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Waiting to 65 to retire - death risk versus finances


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Hey guys just saw this and thought I'd chime in and say that we did retire from the military and moved right into our new to us and bought cash HitchHiker fiver towed by our 1992 1 ton Dodge Ram Cummins diesel dual rear wheel truck. Age 45. That was 1997 and our retirement, after 27 years active duty,  covered our travels for seven years and we decided to come off the road in 2003 to care for our two remaining parents. We are just over the arrangements, and succession, and are preparing to move to cooler climes. Now we are 66 and 64 respectively, and making a complete change of circumstances again. We both decided to take SS at 62, and are doing fine. We've been luckier than many in the decisions we've made over the years. None of us knows what we are going to get in lifespan. Health and wealth are somewhat under our control.

Aside from ego issues it's not about money. No one regrets what they've done, only what they did not do, but always wanted to do. Don't tell yourself why you can't, but instead how you can!  

 

RV/Derek
http://www.rvroadie.com Email on the bottom of my website page.
Retired AF 1971-1998


When you see a worthy man, endeavor to emulate him. When you see an unworthy man, look inside yourself. - Confucius

 

“Those who can make you believe absurdities, can make you commit atrocities.” ... Voltaire

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The issue of early retirement can be looked at as a mathematical equation. (Others have mentioned that money out can't be more than money in.)

 

Figure out what you live on now and then do an estimated budget under the early retirement scenario. Include distributions from your IRAs and other accounts as part of your cash flow. Ask for tax advice if you're not sure of your tax situation in early retirement.

 

Some states have expanded Medicaid that can make health insurance affordable. (e.g. MN) (Republicans are trying to kill it.)

Don't be afraid of running out of money (assuming you have something to start with.) As has been pointed out, life doesn't go on forever. 

Have a plan A and a plan B.

I was inspired by a guy who blogged about his escape from a job he hated and into full timing in a Lazy Daze. He wrote a short book on how to do it on modest means. (Andy Baird).

I still work during tax season but decided to semi-retire and spend lots of time doing  the things I enjoy. Most financial advisors would probably think I'm crazy. (I am 57 and implemented this more laid back life style 7 years ago.)

Put it all down on paper and look for a bean counter like me who can validate your numbers. 

Ignore the financial industries hype, you need 1.5 million etc. They lie for their own benefit. No one goes through that kind of money in retirement, early or otherwise.

 

Todd

 

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On 6/24/2018 at 6:13 AM, packnrat said:

yes cost is a unknown right now.

but that is why i said "gross" not "net"

i do understand there will be a loss involved. i will go the cheapest way i can, if i get sick i will just walk into a er room,

if bad sick, party time.

fi d a nice place to watch all the remaining sunsets i have left.

NO not a death wish. just do not fear death. many times in my life i have been trying to kick in deaths door. so on with life till the end.

X's 2; Packrat!

 

:) Living Life One Day At A Time!

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  • 2 weeks later...

Scott's post is "right on". But the forum serves as a "sounding board" which can help folks make important decisions. This thread really got me thinking about the options. All decisions will ultimately involve certain tradeoffs and risks. I am in the midst of doing "an about face" on early retirement, always thinking one should wait until FRA (Full Retirement Age) to take SS. In our case, the numbers work out for early retirement at 62. I am sick of saving, sick of paying taxes, and sick of winter. ER puts me in a position where I would no longer be paying taxes, spending down instead of building up, and get the h*ll out of MN around Nov 1 and come back Apr 1.

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1 hour ago, ToddF said:

Scott's post is "right on". But the forum serves as a "sounding board" which can help folks make important decisions. This thread really got me thinking about the options. All decisions will ultimately involve certain tradeoffs and risks. I am in the midst of doing "an about face" on early retirement, always thinking one should wait until FRA (Full Retirement Age) to take SS. In our case, the numbers work out for early retirement at 62. I am sick of saving, sick of paying taxes, and sick of winter. ER puts me in a position where I would no longer be paying taxes, spending down instead of building up, and get the h*ll out of MN around Nov 1 and come back Apr 1.

Good plan if you have a place to stay before and after heading south. Most parks close October 15th and open again April 15th. The few that stay open usually don't have water those dates. The one at Mystic Lake Casino stays open all winter, though.

Linda

Blog: http://sandcastle.sandsys.org/

Former Rigs: Liesure Travel van, Winnebago View 24H, Winnebago Journey 34Y, Sportsmobile Sprinter conversion van

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On 7/28/2018 at 12:24 AM, RV_ said:

 

Aside from ego issues it's not about money. No one regrets what they've done, only what they did not do, but always wanted to do. Don't tell yourself why you can't, but instead how you can!  

 

Not everyone is sitting around breathlessly waiting to retire. For some of us, life is not about money, it's about quality of life. As I approach seventy, I'd LIKE to retire, if it becomes financially feasible to do so. However, I spent a LOT of time in my youth with my wife and little kids, plus doing volunteer activities with my wife, knowing my kids would be grown and doing their own thing at this point in my life. So, I intentionally planned to work more now, rather than when my kids were young. I enjoy my work, just as I'll enjoy my retirement, but I'll NEVER regret my choice to put family ahead of finances. That's the beauty of this great country, everyone gets to choose their own path. Jay

 

 
 
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8 hours ago, ToddF said:

This thread really got me thinking about the options. All decisions will ultimately involve certain tradeoffs and risks. I am in the midst of doing "an about face" on early retirement, always thinking one should wait until FRA (Full Retirement Age) to take SS. In our case, the numbers work out for early retirement at 62.

While each of us must make the best decision we can for our own circumstances, I do not believe that I know 1 person who has been retired for 10+ years that wishes they had waited longer before retiring. 

Good travelin !...............Kirk

Full-time 11+ years...... Now seasonal travelers.
Kirk & Pam's Great RV Adventure

            images?q=tbn:ANd9GcQqFswi_bvvojaMvanTWAI

 

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Best decision we ever made.  We had each had a life-threatening illness, want to enjoy how ever much time we have and do it when the body is still able to have a little 'get up and go' left in it. :D

Barb & Dave O'Keeffe
2002 Alpine 36 MDDS (Figment II), 2018 Ford C-Max HYBRID
Blog: http://www.barbanddave.net
SPK# 90761 FMCA #F337834

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9 minutes ago, jpcoll01 said:

I always say I wish there was a way I could have retired from 20-45 and then just work until I die.

Be very careful what you wish for. I sure would not want to go back to work at 75!

Good travelin !...............Kirk

Full-time 11+ years...... Now seasonal travelers.
Kirk & Pam's Great RV Adventure

            images?q=tbn:ANd9GcQqFswi_bvvojaMvanTWAI

 

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2 hours ago, Kirk Wood said:

Be very careful what you wish for. I sure would not want to go back to work at 75!

But if you got 20-45 off and had money during that time?  Oh what fun it would be to raise my kids on the road free from work.  To each his own, you may be right it might not be a good idea, but it's just talk anyway, I'm almost to 45 and didn't have the chance so will have to do retirement the normal way.

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6 hours ago, jpcoll01 said:

To each his own, you may be right it might not be a good idea, but it's just talk anyway, I'm almost to 45 and didn't have the chance so will have to do retirement the normal way.

And you would not be able to take your grandchildren on exciting trips to places they and their families have never been, because you would be working! I have taken trips more than once with each of our grandchildren, one at a time so that they get quality time that would never be, had I been working. I retired at only 12 years older than you are now and have spent a great deal of time doing things with my kids when they were young and also with our grandchildren more recently.

Good travelin !...............Kirk

Full-time 11+ years...... Now seasonal travelers.
Kirk & Pam's Great RV Adventure

            images?q=tbn:ANd9GcQqFswi_bvvojaMvanTWAI

 

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On 8/10/2018 at 8:14 AM, jpcoll01 said:

I always say I wish there was a way I could have retired from 20-45 and then just work until I die.

I have many friends who are  in that situation due to "live for today" philosophy.  Nope, wouldn't want to be there.

Funny ad on TV - I think it's for an investment firm, showing the elderly in various jobs, including lifeguard.  Sung to the tune of "Banana boat song":  "I'm eighty-five and I wanna go home."

Edited by hemsteadc
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On 8/9/2018 at 5:25 PM, Zulu said:

Do you have a military pension & Tricare?

Yes, Zulu, I have Tricare for life, which includes all our Medical, prescriptions with no co pay if filled on base. Tricare is now my supplement for Medicare. And yes we have a military pension, SS X2, a civilian retirement, and our investments. We're good.

RV/Derek
http://www.rvroadie.com Email on the bottom of my website page.
Retired AF 1971-1998


When you see a worthy man, endeavor to emulate him. When you see an unworthy man, look inside yourself. - Confucius

 

“Those who can make you believe absurdities, can make you commit atrocities.” ... Voltaire

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On 8/9/2018 at 2:27 PM, Jaydrvr said:

Not everyone is sitting around breathlessly waiting to retire. For some of us, life is not about money, it's about quality of life. As I approach seventy, I'd LIKE to retire, if it becomes financially feasible to do so. However, I spent a LOT of time in my youth with my wife and little kids, plus doing volunteer activities with my wife, knowing my kids would be grown and doing their own thing at this point in my life. So, I intentionally planned to work more now, rather than when my kids were young. I enjoy my work, just as I'll enjoy my retirement, but I'll NEVER regret my choice to put family ahead of finances. That's the beauty of this great country, everyone gets to choose their own path. Jay

Jay,

I've really never worked a day in my whole life. I did go back to work from age 52-58 because it was fun to do, and something I'd not done before. Being Military I never had to worry about unemployment or a gap in pay when changing job/profession. We just cross trained and never missed a beat. Now I was in the Air Force and my family went with me everywhere. We all lived in Colorado Springs when I taught at the AF Academy for three years. Then we lived in Germany for seven years right where France, Belgium, Germany, Luxembourg, and Holland were all close by. We went skiing as family in the Austrian, Swiss, French and Italian Alps, went touring as a family. We went to Egypt for our open water certification diving the Red Sea, then went to Luxor, crossed the Nile by boat, and went to the valley of the Kings, and even visited Tut in his tomb. Our kids met people in places many here will never visit, let alone immerse into the language and cultures. Our parents were military so we were all over as kids too. My brother in law was born in France. We went to Colombia SA for two years and went to kindergarten and first grade in Spanish. I was a senior leader or white collar general manager most of my working life. My kids school field trips were to Rome, The French Riviera, and others. We loved Amsterdam and a little area a half hour from Amsterdam called Amersfoort. Tongren Belgium for Antiques, all part of the job. My professional Lives were medic and scrub tech, Then medical lab technologist, then the last twenty years teaching shooting the handguns, rifles, machine guns, sniper rifle, shoulder fired rockets, and grenade launchers. I got to play with guns daily, teach the other base people to shoot them effectively, and fix the guns when they broke. And the system didn't allow us to go to war because we had to equip and check function on all their weapons when the rest of the base deployed, and inspect them on return.

We loved every place we lived here and on other continents. We went to festivals, ate haute cuisine in France an hour from home. Rome was 18 hours driving and Switzerland six hours drive time. Lynn got he Svavorski crystal and Hummels at their respective factories and the artists signed them. It was and still is a blast! I'm busy all day every day. 

A member here said something I'll never forget In answer to a tirade about her military retirement. She said we are all living with the results of decisions we made 20-40 years ago. Being retired just means I don't have to spend most of the day working with others in service to others. Now I am re-tired and can do that as much as I please.

Retirement isn't about money, it will however mimic the amount of satisfaction you sowed working.

 

RV/Derek
http://www.rvroadie.com Email on the bottom of my website page.
Retired AF 1971-1998


When you see a worthy man, endeavor to emulate him. When you see an unworthy man, look inside yourself. - Confucius

 

“Those who can make you believe absurdities, can make you commit atrocities.” ... Voltaire

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42 minutes ago, RV_ said:

 

Retirement isn't about money, it will however mimic the amount of satisfaction you sowed working.

 

Well put,  RV_.. Thanks for your insight. A wise man once said, (and I apologize for butchering it) do something you love to do, find a way to get paid for it and you'll never work a day in your life. Another one... No-one ever said on their deathbed, I wish I'd spent more time in the office.... I may not be financially wealthy, but my wealth of memories are immeasurable. We too had amazing adventures as a family, just perhaps not on your scale. Our most unique was working our way to a small mining town called Lynne Lake, Manitoba for NASA on the longest day of the year. When you get to the last chapters of life, you really can't change the choices you made earlier. It's important to make the best choices up front to minimize regret later. But most of all, it's vital to not lose sight of what's really important in life as you chase the almighty dollar. Jay

 

 
 
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Saw this from the motley fool thought it was pertinent to the thread.. 

The Motley Fool: Why Smart People Take Social Security at 62.
https://www.fool.com/retirement/2018/08/13/why-smart-people-take-social-security-at-62.aspx

I was one of those who always advocated "FRA". 62 might not work for folks who don't have a pension or their own savings.

I say " if you can fund at least 20 years of retirement on SS at 62, pensions, personal savings etc, go for it if you want to." The risk of running out of $ at age 82 is very low. But it does happen, albeit infrequently.

 

 

Edited by ToddF
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3 hours ago, ToddF said:

I say " if you can fund at least 20 years of retirement on SS at 62, pensions, personal savings etc, go for it if you want to." The risk of running out of $ at age 82 is very low. But it does happen, albeit infrequently.

I funded mine at age 52 so feel very fortunate(?) yet I wish I could have kept working my job, really loved it (got hurt, could no longer perform my duties).  Mine can/will never run out, as long as I live, I will live decent as will my wife.  I have a half a year until I can collect ss but don't need it to continue living my lifestyle.  On the other hand, my wife is about to hit 65 and still works, will until 66 but that is her choice, she truly enjoys her life.  She ultimately made a good decision, for her, the difference between yearly ss and current pay is quite a bit.  A minor (?) problem is, my retirement pay will end if I die, wife will get very little of it when I'm gone (yes, mine is from gov. job).  Because of this, my wife is growing her retirement so she could live decent if need be without me.  She made the choice to not work early on but to stay home and raise our children so she is missing 20 years of work history from the git go.  Yes, I understand ladies, a stay at home mom is very hard work, harder than any job I ever had but one she does not regret.  Her choice.  I'll be 62 this coming April and will probably start drawing on it, I will put all of it into my wife's retirement savings account

So, in reply to 62 or FR, I see/live both sides of the coin, not everyone should draw at 62, it all goes back to choices made throughout your life, good or bad.  Early retirement, with my wife working, has not been all fun and games for me.

Edited by NDBirdman

2002 Fifth Avenue RV (RIP) 2015 Ram 3500 Mega-cab DRW(38k miles), 6.7L Cummins Diesel, A668RFE, 3.73, 14,000 GVWR, 5,630 Payload, 27,300 GCWR, 18,460 Max Trailer Weight Rating(For Sale) , living in the frigid north, ND.

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Last year, Vanguard asked it's investors (pre-retirees and retirees) what regrets they had and what did they learn about retirement financial issues and otherwise...it makes for interesting reading.

 

https://vanguardblog.com/2017/04/18/the-coulda-shoulda-woulda-behind-every-retirement-story/

 

You really have to inject your own circumstances into the picture and use these types of resources to test your decisions and thinking.

You only get 1 crack at this and no one wants to screw it up.

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If you were born between 1943 and 1954 your full retirement age is 66. Most of us are before that but the retirement age has changed. We are retired Federal Employee but we did work enough out of the system to receive SS although reduced  for double dipping.It pays enough to pay my Medicare  premium and a couple tanks of diesel.

Helen and I are long timers ..08 F-350 Ford,LB,CC,6.4L,4X4, Dually,4:10 diff dragging around a 2013 Montana 3402 Big Sky

SKP 100137. North Ridgeville, Ohio in the summer, sort of and where ever it is warm in the winter.

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