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Discussion Starter #1
My bank that I work at had been bought before the end of the year. I had been waffling for a little while on what to do. All things considered, I submitted to be put in for the package on Day 1 Legal Merge. I turn 66 in July and with a June 30 Day 1, things just seemed to line up. 66 is full retirement age. A couple of years back, I converted most of my assets (sold houses and land) into principal guaranteed vehicles. I even moved my 401K into the same type of vehicle. I will have tax liability on the 401k and the package, but everything else is subject only to taxes on interest earned or gains.

The end of May was slated for Gettysburg and Antietam (Frederick, MD). That is likely going to be a miss. I was looking at Rte 66 as a retirement trip. Fingers crossed that July will be open to some types of travel. Chicago then south and west to Santa Monica. 650 horsepower and the open American road. Now I wish I had went for the convertible. Oh well, I'll just have to do with the sunroof and windows down. You do need to button up past 150 (it makes a crazy racket on the track when you exceed 150MPH).
 

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Hope we all get to do some things this summer! Have a safe and happy retirement. I'm also 66, been retired for a while now.
 

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congratulations!🎉

You’re going to enjoy retirement whether on a road trip or not. There’s always next year, and your schedule gets incredibly flexible.

I’m 66 as well and retired ten years ago end of May. It’s awesome!
 

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I'll be lucky if I ever retire. My financial planner is telling me not to count on Social Security (it will be a bonus if it's there).

I earn a reasonable wage, well above the median. I don't spend money on frivolous shit. I bought the second cheapest house in my neighborhood. My generation is absolutely screwed.

Enjoy it! I will live vicariously through you.

EDIT:
Event though I know it will recover, it sucked to watch my investment portfolio take a 60% hit in the last 3 months.
 

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Discussion Starter #5 (Edited)
I'll be lucky if I ever retire. My financial planner is telling me not to count on Social Security (it will be a bonus if it's there).

I earn a reasonable wage, well above the median. I don't spend money on frivolous shit. I bought the second cheapest house in my neighborhood. My generation is absolutely screwed.

Enjoy it! I will live vicariously through you.

EDIT:
Event though I know it will recover, it sucked to watch my investment portfolio take a 60% hit in the last 3 months.
Zax,

I took a huge hit in 2000. I had started to recover in 2007.... I bought houses. I held on through the downside. I was able to cash out. I said I have no runway left. I put everything into very conservative investments. We downsized by half. The new Hood is now building homes that are 1,000 sq ft larger than our home. We were middle of the subdivision before this building started. It had folks coming up (doctors and lawyers) and folks downsizing (that was us). You had kids and parents and kids and grandparents.

I still hope to buy you dinner in Frederick and Gettysburg.

congratulations!🎉

You’re going to enjoy retirement whether on a road trip or not. There’s always next year, and your schedule gets incredibly flexible.

I’m 66 as well and retired ten years ago end of May. It’s awesome!

Steve (is that right?),

I truly enjoyed the trip you took across the U.S. a couple of years back. I know you posted on your healthcare costs in retirement (not asking for that again). That is what I could not solve for. It just took too may compromises that I was unwilling to make (I have a bad car thing as you can tell). Now I am just waiting for the all clear.

Truly safety first.
 

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Steve (is that right?),
Yep, that's correct.

It was indeed a huge relief when I started Medicare and Social Security last year. And Deb starts this year. Combined, that will be like a $4500/month raise! Private insurance was getting to be like a new car every year down the drain, and we had very few claims, rarely meeting our deductible. It was a real stretch there the last few years, but I'm still glad we bailed early.

Out cross-country trips were awesome, but now that our daughter is done with college in Seattle, we don't "have" to go, so Deb is reluctant to take long trips. She's an avid gardener, and hates missing out on any part of the season.

Enjoy!
 

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Discussion Starter #7
Yep, that's correct.

It was indeed a huge relief when I started Medicare and Social Security last year. And Deb starts this year. Combined, that will be like a $4500/month raise! Private insurance was getting to be like a new car every year down the drain, and we had very few claims, rarely meeting our deductible. It was a real stretch there the last few years, but I'm still glad we bailed early.

Out cross-country trips were awesome, but now that our daughter is done with college in Seattle, we don't "have" to go, so Deb is reluctant to take long trips. She's an avid gardener, and hates missing out on any part of the season.

Enjoy!
Buying the ZL1 was one of those decisions.. It meant that I was committed to working to age 66 or so. Worked out with the BANK getting bought out and there being a package. One of the very few times that lady luck seemed to smile on me.
 

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Discussion Starter #9
I'll die before I ever near retirement age. You guys live it up for me.
Starting early and putting just a little bit in a 401K is a start. If you try to catch up at the end, you just don't have the runway.
 

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Starting early and putting just a little bit in a 401K is a start. If you try to catch up at the end, you just don't have the runway.
Honestly man?

The runway is too long for anyone under 40 right now.

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Starting early and putting just a little bit in a 401K is a start. If you try to catch up at the end, you just don't have the runway.
I have put in as much as possible since I got my first job that offered one and put into a Roth when they didn't. Currently I'm putting in 21% and still the calculators and my finance person says it needs to be more.

Coupled with my family not exactly being the longest lived group it's probably not in the cards
 

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Discussion Starter #12
I have put in as much as possible since I got my first job that offered one and put into a Roth when they didn't. Currently I'm putting in 21% and still the calculators and my finance person says it needs to be more.

Coupled with my family not exactly being the longest lived group it's probably not in the cards
With that type of savings, I would think you should be making headway. I'll not speculate on your earnings, but the fact that you can do a 21% contribution indicates above average income and a fairly modest lifestyle.

I do actually think that Social Security will be there. It may be reconfigured or look somewhat different. However, it is too essential to be completely plundered. As of December 31, 2019 there was a $2.9 Trillion dollar surplus in the fund. I get that my generation will start to draw down the surplus, but there are some avenues to adjust for this. One is to remove the cap on Social Security Taxable income. I think that cap is ~$129,000 per year. I am thinking that taxing all wages and income would help secure Social Security in the near term.
 

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I mean I'm not making 6 figures but I do live in an area with an unreasonably low cost of living.

Maybe my estimates are off but it's only leaving me at a tick over 3 mil maybe 3.5 at retirement. Sounds like a lot now but in 30 years I'm not so sure.
 

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I mean I'm not making 6 figures but I do live in an area with an unreasonably low cost of living.

Maybe my estimates are off but it's only leaving me at a tick over 3 mil maybe 3.5 at retirement. Sounds like a lot now but in 30 years I'm not so sure.
My financial planner is telling me plan $4-6M for retirement. I think I'm a tad bit younger than you.

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Discussion Starter #15
Something doesn't add up. Just by the numbers. $1 million dollars is 10 years of $100,000 per year gross. ~$70,000 a year net. That would put you at age 77, given a 67 full retirement age. Social Security will add another ~$30,000 per year and ~$25,000 net. $3 million extends those numbers till you are 97 years of age. $95,000 per year net until age 97.
This assumes no growth in your accounts. $95,000 net is somewhere around $145,000 gross income. Go to SSA.Gov and create yourselves an account. You can begin to explore your Medicare options, too. This is crucial in retirement planning (ask Steve about healthcare - I couldn't solve for it).

For yourselves, do some math on this. Financial folks are motivated to keep you working and putting money in their pockets.
 

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Something doesn't add up. Just by the numbers. $1 million dollars is 10 years of $100,000 per year gross. ~$70,000 a year net. That would put you at age 77, given a 67 full retirement age. Social Security will add another ~$30,000 per year and ~$25,000 net. $3 million extends those numbers till you are 97 years of age. $95,000 per year net until age 97.
This assumes no growth in your accounts. $95,000 net is somewhere around $145,000 gross income. Go to SSA.Gov and create yourselves an account. You can begin to explore your Medicare options, too. This is crucial in retirement planning (ask Steve about healthcare - I couldn't solve for it).

For yourselves, do some math on this. Financial folks are motivated to keep you working and putting money in their pockets.
We are speaking about 35 years from now.

The value of a dollar will be substantially different in 35 years. From 1985, the purchasing power of the dollar has decreased by 240%.

By that math, in 35 years (assuming similar rate of inflation), $1M in the bank would only be $41,666 per year for 10 years adjusted for inflation. To apply the same maths, I would need $2.4M in the bank which would be the modern day equivalent of $50,000 per year for 20 years. Adjusted for cost of living in my area, the minimum comfortable earning would be (inflation adjusted) $85,000 yearly for myself and my wife. That would be (current day) $1.7M in the bank for 20 years, adjusted to $4M in 2055. That is only assuming that we live to 87 years old. My wife will likely live longer while I will likely live less. And yes, this is with no additional Social Security as my financial planner has suggested we "not count on."

This also assumes no growth in the accounts over the 20 year span.
 

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Oh, BTW. I am counting on "retirement" with additional supplemental income at some point in my future.

I will likely be working in some capacity, although diminished, until the end of my natural lifespan. That will be by choice rather than necessity I'm sure.

In all seriousness, it is very unlikely that I will make it to 70.
 

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Discussion Starter #18
We are speaking about 35 years from now.

The value of a dollar will be substantially different in 35 years. From 1985, the purchasing power of the dollar has decreased by 240%.

By that math, in 35 years (assuming similar rate of inflation), $1M in the bank would only be $41,666 per year for 10 years adjusted for inflation. To apply the same maths, I would need $2.4M in the bank which would be the modern day equivalent of $50,000 per year for 20 years. Adjusted for cost of living in my area, the minimum comfortable earning would be (inflation adjusted) $85,000 yearly for myself and my wife. That would be (current day) $1.7M in the bank for 20 years, adjusted to $4M in 2055. That is only assuming that we live to 87 years old. My wife will likely live longer while I will likely live less. And yes, this is with no additional Social Security as my financial planner has suggested we "not count on."

This also assumes no growth in the accounts over the 20 year span.
Zax,

I think you are slightly off in how you calculated your dollars. You still would have either $70,000 net or $95,000 net in 10 years. That $70,000 or $95,000 would still be the number. That $95,000 would be used against the $85,000 cost of living in your area (assuming that is the correct inflation adjusted amount). Your dollar amount is your dollar amount. It doesn't devalue and the cost of living increase by inflation. Could $95,000 buy less in 20 years? Yes. However, $95,000 will buy what $95,000 will buy. If your cost of living is now $85,000 per year, you would have the dollars to meet that cost of living.
 

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Zax,

I think you are slightly off in how you calculated your dollars. You still would have either $70,000 net or $95,000 net in 10 years. That $70,000 or $95,000 would still be the number. That $95,000 would be used against the $85,000 cost of living in your area (assuming that is the correct inflation adjusted amount). Your dollar amount is your dollar amount. It doesn't devalue and the cost of living increase by inflation. Could $95,000 buy less in 20 years? Yes. However, $95,000 will buy what $95,000 will buy. If your cost of living is now $85,000 per year, you would have the dollars to meet that cost of living.
Perhaps I'm missing something, and I admit I'm no financial analyst, but how can you make this claim?

That $95,000 would be used against the $85,000 cost of living in your area (assuming that is the correct inflation adjusted amount). Your dollar amount is your dollar amount
Inflation is calculated by a "basket of goods" assessment. If the cost of that basket increases (inflation), then by the very definition the value of a single dollar has diminished. Would you be more comfortable if I said the "purchase power" of a dollar diminished?

Perhaps I can dispel some confusion. When I am talking about the net worth of my portfolio prior to retirement, I am speaking on the total dollar amount of that portfolio in 35 years. If we speak on the dollar amount of that portfolio as an net preset value (NPV), then I would agree with what you are saying.

My cost of living assessment is current day vs. what it may be for retirement. If using the same inflation adjustment as 30 years prior, this may be roughly $200,000 per year in 2055. Perhaps we should be speaking in NPV after all.
 

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Mike, I understand your point in rereading this.

You are saying a certain $$ investment today will have the same purchasing value in 35 years as today, assuming that there is market growth -- and I agree!

My portfolio $$ amount is based on a 2.5% YoY inflation adjustment. Does it help clear the confusion?

I think 2.5% is a fair assessment given the history.

325100
 
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