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retirement planning

littlebeast said:
... 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).
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I like your response, especially the emphasis on your ability to influence the outcome.

I agree it makes sense to pay a visit to a financial advisor who is a fiduciary, years in advance of planned retirement date to see what kind of options are out there beyond your own knowledge or comfort level.
 
afm199 said:
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.
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Noted

There is a reason why you can talk of enjoying your retirement so much on barf :)
 
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#1Freak said:
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
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I still have earthquake insurance on my home and three rentals.

Major repairs can cost double per square foot than building from scratch.

Many people think earthquake insurance will only be of value if your house is totaled which is not the case at all.

Your house can be damaged to the tune of $400,000 quite easily.

Where will people come up with that kind of money?

I guess they assume the Feds will step in and offer loans should the worst occur but that process could take months if not years.

I'll stick with my earthquake insurance.
 
I count my house in my net worth it would be silly to not consider it. That said I value it extremely conservatively for net worth purposes.
 
In your case it is currently generating an income stream as long you maintain your living situation (e.g., you have room for a tenant)
 
GAJ said:
I still have earthquake insurance on my home and three rentals.

Major repairs can cost double per square foot than building from scratch.

Many people think earthquake insurance will only be of value if your house is totaled which is not the case at all.

Your house can be damaged to the tune of $400,000 quite easily.

Where will people come up with that kind of money?

I guess they assume the Feds will step in and offer loans should the worst occur but that process could take months if not years.

I'll stick with my earthquake insurance.
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The premiums for the coverage is a tough pill to swallow for most folks. Sure, if you've got the money to blow, why not.

I do agree that a major earth quake is going to have a bunch of people in a world of hurt, financially.
 
JesasaurusRex said:
The premiums for the coverage is a tough pill to swallow for most folks. Sure, if you've got the money to blow, why not.

I do agree that a major earth quake is going to have a bunch of people in a world of hurt, financially.
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Indeed but many are basing their new worth on home value(s).

It would seem prudent to protect that investment, especially if you own it outright.

Discussion here.

"Bach at United Policyholders had this to say: “You never meet anyone who’s gone through a disaster who regretted having too much insurance."”

https://www.latimes.com/business/lazarus/la-fi-lazarus-earthquake-insurance-20190709-story.html
 
There might be different types of earthquake insurance based on price

I recall a conversation I had with my farmers agent about insurance in general (e.g., fire, earthquake). He clarified to me that the CEA earthquake insurance I have is there to help you rebuild your home if it becomes uninhabitable. It will not kick in to help you in spot repairing minor things like cracked walls in a mild earthquake.

$777/yr is affordable and offers peace of mind for me.
 
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it's been a long long time since i shopped for it but iirc the premium was like half your mortgage payment and the coverage had like a 30% deductible
 
Back to retirement planning. After I told the company I was retiring I had this cartoon hanging on my office wall.

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Beanzy said:
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?
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Volunteering to help the unfortunate isn't the same as working as an usher at a sporting event. Funny you should mention the PGA, as I got asked to be a marshall at an event last year. Fuck that noise. Volunteer my time for a hugely profitable professional golf tournament where the best thing that happens is that I get to stand on my feet in the sun and/or rain for 6-8 hours and the worst thing that happens is that I make a mistake that impacts the tournament and get to live in Internet infamy for the rest of my life? Sure, that sounds awesome!
 
JesasaurusRex said:
it's been a long long time since i shopped for it but iirc the premium was like half your mortgage payment and the coverage had like a 30% deductible
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Yup, it's really only coverage for a catastrophic loss and it would actually take a really, really big earthquake to level a house.
 
For example, if your home is subject to an earthquake and sustains cracks in the walls, ceiling, foundation or other damages, those would be covered under the dwelling portion of the coverage. There is a deductible and limit to this portion of the coverage. Another portion of earthquake insurance covers your personal belongings inside the impacted home. Personal property claims usually include protection for furniture, electronics, and other belongings. Almost anything can fall within this category, although there is a deductible and limit to this portion of the coverage that is separate from the deductible and limit for the dwelling itself. ALE and loss of use can cover a variety of things while a home is repaired within a reasonable timeframe or until a policyholder finds a new home. You might able to have your insurance company reimburse you or pay for a temporary rental home, apartment, hotel room, restaurant meals, or a temporary telephone line. Moving, storage, furniture rental, and laundry can also be covered.
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https://www.valuepenguin.com/earthquake-insurance
 
Archimedes said:
Yup, it's really only coverage for a catastrophic loss and it would actually take a really, really big earthquake to level a house.
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Bingo. I have earthquake insurance, with a 20% deductible, ( pretty sure it's 20%) for one reason. To protect me from a catastrophic loss. I have to foot the first $50k of repairs.
 
I don't get it in San Francisco. My insurance for non-Earthquake is like $1100 a year I think Earthquake would cost thousands.

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Increase my mortgage another couple of hundred dollars a month. Should be paid off in 15 years.
 
HappyHighwayman said:
I don't get it in San Francisco. My insurance for non-Earthquake is like $1100 a year I think Earthquake would cost thousands.

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Increase my mortgage another couple of hundred dollars a month. Should be paid off in 15 years.
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When it's paid off then it's worthless?
 
Archimedes said:
Not really true. Typically, when the term net worth is calculated, it excludes primary residence.
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only for certain financial and investment reasons (e.g. a net worth of $1MM minus a primary residence is the threshold to be accredited by the SEC - enabling investment in unregistered securities; and financial institutions will set thresholds for certain of their management opportunities based on net worth minus a primary residence). but even in those cases, the calculation is net worth ‘minus’ a primary residence - not a revised definition of net worth.

for the purposes of retirement planning - true net worth needs to be included, especially considering that many retirees change their living situation upon, or at some point after retirement, and any projected equity they have in their home can and should be used to model their options and the optimal timing of those options for decision making purposes.
 
HappyHighwayman said:
I don't get it in San Francisco. My insurance for non-Earthquake is like $1100 a year I think Earthquake would cost thousands.

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Increase my mortgage another couple of hundred dollars a month. Should be paid off in 15 years.
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All the more reason to insure it. Don't say "I think", you don't know. Why don't you do a premium comparison for earthquake insurance this year?

It doesn't cost thousands (plural). It could cost less than $2K a year.


You might not get a terminal illness, need a heart transplant or your house is devastated by a major earthquake but the risk is there. That's what insurance is for. So you don't have to pay out of pocket for all emergencies that life can throw at you
 
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