retirement planning

[two wheel tramp]

When the time comes that I can’t do basic important stuff like ride I’m hoping a youthful acquaintance can get me a final hit of the good stuff. The downside being I have to remember what my plan is. Maybe if they know they’re in the will they’ll remind me! Too bad BARF is mostly OGs.

 

[Beanzy]

Just a thought ...

Those of you who love team sports, think about being an usher at one of the nearby sports venues after you retire. The pay is minimum wage but at least you get to see the game and cheer along with the paying fans.

If you prefer to do very little work, be a security person at a sports venue. The pay is higher but if you get stuck guarding inside entrances, that's the downside.

 

[HappyHighwayman]

I just did an annual balance sheet update. I've nearly tripled my net worth in the past six years...though a lot of that is house appreciation.

 

[bikeama]

I just did an annual balance sheet update. I've nearly tripled my net worth in the past six years...though a lot of that is house appreciation.

This is a good thing to do one a year (and only once a year). I did sheets before I retired and could not believe net worth would increase after I stopped working. It is and so far so good. Just over a year and RMD kicks in for me.

 

[Archimedes]

Just a thought ...

Those of you who love team sports, think about being an usher at one of the nearby sports venues after you retire. The pay is minimum wage but at least you get to see the game and cheer along with the paying fans.

I've often thought of working outside at a nice golf course in retirement, but when I think of how much more I can making doing just about anything else, I kinda lose interest. Work is work. Someone's setting your hours, telling you what to do, etc. If I'm doing that, I'm gonna make the most I can for my time. If I don't need the money, I just won't work.

 

[GAJ]

I just did an annual balance sheet update. I've nearly tripled my net worth in the past six years...though a lot of that is house appreciation.

Congratulations.

 

[Beanzy]

I've often thought of working outside at a nice golf course in retirement, but when I think of how much more I can making doing just about anything else, I kinda lose interest. Work is work. Someone's setting your hours, telling you what to do, etc. If I'm doing that, I'm gonna make the most I can for my time. If I don't need the money, I just won't work.

I can understand that sentiment. But it's true that when one volunteers to help others, life becomes more meaningful.

And when the PGA comes to SF and you have a chance to work crowd control and get a front row seat to history in the making, would you turn down that offer?

 

[afm199]

This is a good thing to do one a year (and only once a year). I did sheets before I retired and could not believe net worth would increase after I stopped working. It is and so far so good. Just over a year and RMD kicks in for me.

I dreaded RMD and it turned out to be a blessing. It pays most or all of my tax bill.

 

[wannabe]

I can understand that sentiment. But it's true that when one volunteers to help others, life becomes more meaningful.

And when the PGA comes to SF and you have a chance to work crowd control and get a front row seat to history in the making, would you turn down that offer?

That kind of thing is a tough call. On paper, it sounds awesome, but there is a huge difference between getting to be there and having to be there. I guess it’s fine if you get the job with the right mindset, but if money were any part of the motivation, that would be tough.

The more I think about it the more I am thinking about tossing some money into a 529 so that I have the option of becoming a professional student in my retirement. It would be nice to just take fun classes for the sake of learning instead of taking classes to improve my career.

 

[wannabe]

I dreaded RMD and it turned out to be a blessing. It pays most or all of my tax bill.

With all your comments, I swear that there has to be a way for me to list you as a dependent on my taxes.

 

[bikewanker]

Quote:
Originally Posted by bikewanker
When the time comes that I can’t do basic important stuff like ride I’m hoping a youthful acquaintance can get me a final hit of the good stuff. The downside being I have to remember what my plan is. Maybe if they know they’re in the will they’ll remind me! Too bad BARF is mostly OGs.

Volunteer number 1! I’ve underestimated BARF for the first time this year.

 

[GAJ]

I dreaded RMD and it turned out to be a blessing. It pays most or all of my tax bill.

"The Secure Act increases the age after which you must begin taking RMDs from 70 1/2 to 72.

But this favorable development only applies to folks who reach 70 1/2 after 2019. So, if you turned 70 1/2 in 2019 or earlier, you’re unaffected.

But if you will turn 70 1/2 in 2020 or later, you won’t need to start taking RMDs until after attaining age 72. "

https://www.marketwatch.com/story/s...-will-send-estate-planners-reeling-2019-12-30

 

[HappyHighwayman]

So I had a good year just did a review with my anal OCD math genius accountant (aka HappyHighwayDad) and realize I can build a lot more cash but I spend it needlessly.

 

[afm199]

So I had a good year just did a review with my anal OCD math genius accountant (aka HappyHighwayDad) and realize I can build a lot more cash but I spend it needlessly.

That's a hard lesson and an important one. It's why I quit buying Caffee Latte's at work. I love them, but I added it up and realized that I was spending $1k a year on them. And much more on lunches instead of bringing my own.

 

[bikeama]

That's a hard lesson and an important one. It's why I quit buying Caffee Latte's at work. I love them, but I added it up and realized that I was spending $1k a year on them. And much more on lunches instead of bringing my own.

A big lesson I learned years ago. An older friend told me to look at how much it cost per year. Little things add up.

Another life lesson I was told in my early 20's. :
"Ask yourself several times a day, are you doing the most important thing you can be doing at this moment? Never forget doing nothing at all can be the right answer. "

 

[Removed 3]

I enjoy the flavor and aroma of the drip coffee I buy in the morning. It's a habit that gives me a good start in the day. Never take the simple pleasures out of living.

I have read some articles that advise leaving out the value of your primary residence from your net worth calculation.

I can see the benefit of that, to have a more conservative view of what you have, to support your living expenses

 

[HappyHighwayman]

I don't spend too much on little things. I drink free black coffee at work. My issue is all sorts of crap I buy, and use, for my various hobbies.

 

[littlebeast]

I enjoy the flavor and aroma of the drip coffee I buy in the morning. It's a habit that gives me a good start in the day. Never take the simple pleasures out of living.

I have read some articles that advise leaving out the value of your primary residence from your net worth calculation.

I can see the benefit of that, to have a more conservative view of what you have, to support your living expenses

‘net worth’ by definition includes all assets owned (minus debt). simply put - ALL property, including a primary residence.

that said, there is no need to eliminate a primary residence from retirement cash flow calculations. a good FA will run multiple models, all focused on cash flow. depending on the equity a person has in their current primary residence, any outstanding mortgage balance they have (a plus up in the column of cash flow requirements), and whether they plan to stay in it or not, are all factors in the various models. the maintenance of and / or conversion of assets to cash flow upon retirement is THE question everyone preparing for that stage of their life needs to know the answer to as early as possible.

there are many variables, and as i said - a good FA will run multiple models - all based on expected retirement age, life expectancy, current and future assets, and the conversion thereof (including any investment portfolio), current and future expenses (primary post retirement being medical security), tax liability, risk tolerance, etc. but it all boils down to cash flow. how much money do you need to live on - and where is that money going to come from? the sooner you know the answer to that question, the more time you have to make any changes required to influence the output of the models.

can’t recommend enough to engage the services of a professional to run the numbers for you (caveat being - there’s a lot of total piece of shit FA’s out there - keep looking until you find a really good one - recommend gathering multiple proposals to manage your finances and select the one that provides the most clear and crisp solution - most sensible among them).

 

[#1Freak]

I've looked at it but the cost/benefit just doesn't seem to be there, especially if you read the fine print.

Generally it doesn't kick in until you are unable to do two of these things:

'...bathing, dressing, toileting, eating, transferring, (moving from one place to another in a room) and continence."

Neither my Mom or Mother In Law, who were in assisted living with cognitive dysfunction, "qualified" to start taking their benefits before they died.

https://www.kiplinger.com/article/insurance/T036-C001-S001-when-long-term-care-policies-kick-in.html

I have found this too, Looks great till u see the price and fine print. The analogue i use is it is like buying earthquake insurance in cali. Seems like ano brainer till u realize your permiums will far outweigh any payout because of the exclusions and fine print

 

[afm199]

I enjoy the flavor and aroma of the drip coffee I buy in the morning. It's a habit that gives me a good start in the day. Never take the simple pleasures out of living.

O, it's good. The remark is that $2-4 times 50x5= $500 to $1000 a year that could be invested. After thirty years that could be $42 to $84k at 6%, invested conservatively.

Factor in those lunches, and that's a huge chunk of retirement money.