I am not intending this thread to become a "generational" war about Social Security/Medicare. That said, the reality is that Social Security/Medicare will present more liabilities to our country than there is money coming in to pay it. So, (it's a fact) that either taxes are going to go drastically UP and/or benefits are going to go DOWN. Whatever your age, YOUR retirement lifestyle will be a product of the preparation you are making NOW to get ready for it.


I am just curious what are most people's thoughts here on DTR are about retirement. Do you ever think about it? What financial plans are you making to prepare for it? What age do you hope to retire? Do you plan to work even after you officially "retire"?

Currently I am 40 years old, happily divorced, and a single dad. Personally I am fortunate to work in a position with a pension that will pay a large percentage of my income at around 50-55 which I can draw immediately then or leave it to allow it to grow and accumulate. To supplement that, I have access to a self funded 401k and 457 plan that I contribute a combined 10 percent of my income into. My goal is to leave work around 52-55 depending on my (now 10 yo) son's college tuition bills. I want to sell my home and purchase a large 5th wheel w/slideouts and become a full-time RVer and see our great country. I hope to supplement my retirement income with some part time work (that I choose) in various capacities while Full-Time RVing at where ever I happen to be at that time. (hopefully Summers in Alaska and winters in Florida/Texas/Arizona!...with some travel in between)

My goal will be to continue to work toward the above plans and pay off any outstanding debt. I hope to be debt free by the time im 50. I want to increase my savings rate from 10 percent up to maybe 15 or 20 percent. I want to start accessing my retirement funds in stages. 457 plan first while my pension continues to accumulate. Then start drawing it once the 457 runs dry.....but not touch the 401k until age 70 1/2 (I believe that age you have to start taking a portion of it).

Am I crazy in my line of thinking on the above mentioned plans?
The biggest kink I currently see in my plan is going to be affordable health insurance or if I up and remarry and have to take "her" plans into account.

Without getting into specifics or personal income etc....what preparations are you making? Besides starting young and saving as much as you can, what preparations should we all be making now?

I think this is a topic that is not discussed enough among most Americans. We just live and work and survive and wake up one day when we are in our 50s or 60s and say...."hmmm...I guess I better start thinking about retirement". I hope this thread will start a discussion about it and help a few people (including me) to create a plan or alter their current one for the better. Thoughts?????????????????????????????

 

I can't really contribute to your post too much, but I will throw in my opinion. I am 21 years old, and have a 401k and a Roth IRA. The IRA has a decent sized amount in it, left by my father when he passed away. I contribute 7% of my weekly pay into my 401k. I was only doing 4% for a couple of years, and just bumped it up to 7% in the past few months. I am planning on going up to 10% once I get another pay raise. I also used to contribute $10/week into a stock program through the grocery store I work for, and that adds up quite a bit. I get fully vested into the 401k this year, and will have a nice lump of money saved up once I get out of college.

The most important thing, though, is if you are young, go ahead and start contributing to something. The more you save now, the easier it will be to retire. I dont have a set age when I want to retire, I will probably not stick with the job that I have now once I get out of college, so I guess then I will start saving some more(truck payments are expensive along with college expenses). Most of the folks I know my age do not even know about a 401k, and only know that a IRA is. I think there needs to be more education about this. I do not want to be like my 53 year old manager, and not save when I am younger, and be working my tail off, trying to get enough so I can retire one day.

My 401k is through T. Rowe Price, and their website is pretty cool, some neat calculators, and other neat things to read up on.

 

I am 19 and have a Roth IRA and 401k. I contribute 10% of my bi-weekly paycheck to the 401k. And 50 bucks each paycheck to the Roth IRA. Start early

 

I'm 30, put 10% into my non-matched 401k. I work for the railroad, so we get Railroad Retirement, which amounts to Social Security, plus what's called "Tier 2", which is basically a privately funded industry pension. We are allowed to retire with full bennies at age 60, if you have 30 years of service. Between my 401k money, which I'll use to buy an annuity, and RRR money, I hope to be able to sell my house, and sail a boat around the east and west coast, Caribbean, Hawii, and with some luck, Europe too.

 

Interesting post. Texas CTD you are right when you state that the problem with early retirement is insurance. Health insurance can get real expensive real quick. I will be 51 years old this year and have been planning my retirement for the last 25 years. The plan is to work to 61 and hang it up. No semi-retired or part time work. I have worked for a large corporation for many years and had the chance to contribute to a 401k and a 409a. Stock options don't hurt either. I always planned on $7000/month after tax for retirement (not counting Social Security) and will achieve that easily. The key is to start saving as soon as you start earning. Ed B

 

Absolutely fellas, can not say it enough. Start saving from the start. I am 23, have an IRA just gaining interest from my first job fresh out of high school, and another from my current job that I have been putting 5% into, with a 3% employer match. All in all, I have 3 actual retirement accounts, nothing huge, but I want to try to put some more away than just the minimum.

There is definitely not enough education about retirement in schools. Too many people think that the SS, and such will hold out. There is no way I am putting any faith in that one... I had the luck of a teacher in college who took an entire 2 hour class and just talked about retiring, investing and funds... He is the kind of guy to learn from, he was teaching because he liked it, coulda quit whenever he wanted and lived off his funds.

One of his big things was to not spend money on the wants, just the needs. Obviously, on this forum, we tend to do just the opposite, but you will have this...

 

I retired at 55 from a electric utility. It's not hard to accomplish that but the secret is to put a resonable amount into whatever retirement fund you have. In my case everytime I paid off any loan I just took 25% of the amount of the payment and upped the 401-k by that amount. Retirement accounts allow you to defer taxes until the money is actually used and then only the amount that you draw is taxed. It's that investment money that will enable you to retire. Forget about social security, they have robbed it until it's practically gone. Buy a house and remodel it, the returns can be huge especially if you relocate from a expensive to a less expensive part of the country. As mentioned the biggest problem is healthcare especially if you have health issues. You just have to pay attention and plan for your needs. If you do a little homework you don't need a financial advisor but you need to make sure that you understand the rules and costs. The benefits of a little saving and homework are huge... Retired while you can still crawl around and nothing to do but play!!!!

 

I'm 56 and would love to retire now. I'm married and have a sixteen year old son at home. Retirement to me simply means doing what I want and not being scheduled at work. I am self employed and am slowly working less, charging more, and consulting more.

I have a regular IRA, a SEP IRA, and some mutual fund accounts. I also have two houses. One is a rental, and one I'm living in. I am now starting to build our new home in Nevada on five acres. We plan to sell the other two when it's done and the market is right. I know the importance of saving, but it's also important to live now. I don't want to plan to start having fun at 65. It's been a balancing act all the way through.

Hopefully, in three years, we'll end up with our home all done and paid for, and be living there full tme. Lots of time to putter around in the shop, travel, go four wheeling, etc. I do those things now, but still work about three days a week too. Later we'll be able to take longer trips, like two weeks at the hot springs, a month in Hawaii, and two or three months in China.

I don't see myself doing less activities after I stop working, just not chasing the dollar through physical work. More time in my shop building stuff. More time with friends.

So, I guess it's more of a gradual transition for me. Not just that one day I get the retirement watch and head for the golf course. Retirement opens the door to much more creativity, exploration and freedom.


Wetspirit

 

I am saving anywhere from 400 a bi-weekly paycheck to any extra cash/checks that I get from doing side jobs. That is a little on hold right now cause of a big road trip and a job change. I plan on investing 1.5 million in several accounts (Roth IRA, 401k, Mutual Funds, Savings). That way I can live off the interest alone. Right now I have a couple grand in a mutual fund that has been slowly gaining in the last 12 years that my G-ma started. If I keep investing 200 a month in Roth and sometimes in savings, I should reach that goal in 35 years. BTW, I just turned 19, single (no GF either , frees up alot of money), have a very decent job that I could live off of, and still at home. Far-fetched? No.

I am going to talk to a financial advisor at church about a Roth IRA.

Jon

 

i PLAY THE LOTTERY...................

 

The average family pays $40 dollars a week in the lottery. If that money is put into a good large growth stock/mutual fund it it will be worth over 2 mil in 30 years.

 

100 days and I retire but I have 30 years in Govt service DoD. I am super fortunate that the agency will pick up 1/2 my Ins costs. I am concerned but the new performance based management plan that is coming into force is bad for the employee and bad for our brave war fighters. Smoke that georgie.

 

Chris,

I hope you hit it big!!! And then you can share it with your 30,000+ friends here on DTR and we can all RETIRE together, NOW!! Wouldn't that make some headlines in the newspapers???



Seriously, and sadly.....the Lottery IS the retirement plan for most people.

 

That is awesome! You young guys can make a very comfortable retirement for youselves by starting early and saving even modest amounts. The time value of money is your friend.

I read once, that a guy can save X amount of money from 20 until 30 years old and never save another dime but leave his investments alone and invested. He will have more money at age 65 than the next guy who saved the same amount of money from 30 until 65.

 

Easy big guy... this is a Jeff Foxwrthy joke...

" normal folks have IRA's... rednecks play the lottery......."