Just like everyone with a retirement account that has volatility, I'm seeing growth wiped out, and a negative slide. I hope like hell there's time for us to make up ground in the 5 1/2 years until we intend to start tapping into it. We're starting to research more ways to make what we have safer, while still taking advantage of tax deferral, but at some point, that might not be smart. There's always the option for me to work longer.
I'm fortunate that I have the freedom to change my mind about when I retire. Besides extending our retirement funds, working longer adds to my pension, though it's not the golden ticket to cover much of our post retirement income needs. I made a job change 7 years ago, so new to even earning a pension. I've invested in first a 403B, then later a 401K, to the max at least the last 20 years. I had smaller inputs before that, and in the begining was tiny. We've also tried to do a Roth IRA, where we use post tax funds, so aren't taxed on earnings. The little account, my small HSA, and the Roth's are what we intend to use as our health insurance premiums between my retirement and when we are both Medicare eligible. I would tap into my pension for both wrap around insurance and filling in holes in our budget as well. I worry about the stability of all.
Now it seems, cash is where we need to try and beef up as much as possible. My joys and simple pleasures will be meaningful, but thrifty. I don't see major travel for a while, but maybe a weekend or two away. I'll help get my kids travel here for holidays and make sure we're prioritizing the ability to support them in life's ups and downs. However, not that this was my norm anyway, gone are days when we see something and buy it. ( Indestructible dog toys the exception )
I'm not writing this as a woah is me- just the opposite. We have so much in our life that I take for granted. Now, it's time for me to choose to appreciate our life all the more. We have the freedom to choose healthy home cooked meals and an occasional meal out for a special occasion. It's been a few weeks since we were out for dinner. We used a discount card last night to defray our anniversary dinner cost. Now that will be it for the rest of the month. Instead, we can take star or moonlit walks with dogs and come home to a warm crockpot of soup, knowing all of us have what we need.
Seeing the devastation in Florida, the retirement dream turned into a nightmare, has been sad and sobering. I hate the bitter cold, but here we're surrounded by family and friends. Maybe we'll still choose to relocate, but we have the freedom to think, wait, plan, and plan some more, before making a decision. That gives me peace of mind that things will be ok.
I became eligible to receive my Florida state retirement back in May. At first I wasn't going to go ahead and start receiving it until our accountant did the math and if I wait 10 more years it will only yield me an extra 50.00 a month. If I start now, I will receive a 3% increase every year.
ReplyDeleteI've calculated it out different ways. Since I don't have many years of pension work, the change between taking it a 62 it 66 is nearly $700 a month different. But, I'll keep checking.
DeleteI retired from full time and went part time (really, I am working 40 as opposed to 60 plus) last December. Had a family member with a terminal cancer diagnosis, which, fortunately, now looks like it went remission and that was the reason for the earlier than expected retirement. I thought I would have to help out. There are major job changes coming early next year but I hope to stay part time in the upheaval. I am able to see two of my four kids every week, or at least every month. One of my four kids lives thousands of miles away so it is an ordeal getting to see her and grandkids and juggling their work schedules with mine, so that is happening, realistically, once a year. The oldest lives in my state but several hours away, and his work schedule and mine do not jive at all so usually see him over the holidays, but talk to him every single day by phone. Even if I retired, my kids all have lives, and I like the cash, to be real, that working provides. My only concerns are when will I start drawing social security, and am I going to switch to another part time job next year. I think I am staying where I am, and try to put off drawing social security until 70, if possible. Again, it is about the cash. My momma always said she worked for every other Friday, and just let work stuff roll off her back like a duck in water. I wish I had more of her attitude about the duck… lol. For real tho, I have considered getting a part time job at McDonalds in University town. People act aghast when I say that. I am not a work snob. I worked fast food before, as a teenager, and liked it. Money is money and the “Benjamins” are what count. I think I could leave work at work and not be thinking about it when I leave. I am just not sure if my bum knees would let me stand even part time, for four hours straight. If I can, I would probably work waaaay past 70. I used to be all about retirement, but now that I am close to Medicare, I am rethinking it. Heck, can always quit McDonalds, or wherever, if I don’t like it. Cindy in the South
ReplyDeleteI too want to be better at letting work stuff roll off. It's not the challenge of the work that's stressful, it's the stupidity of some processes and the hoops to get things resolved, and unnecessary self importance that creeps in. If we all just did our jobs well, the battles would be few. My daughter end d up working fast food this summer after no paid internships came through, (a tiny one did) a d she needed the money. She actually didn't mind it, and made some good money to stick away for her trip. It is hard on a body though. She's young and healthy and was sore some days.
DeleteIn my small town two older men are usually working at the drive through at McDonald’s (for my favorite Diet Coke) and they are the happiest most pleasant and one I think has a stool he uses. They seem to love the interaction.
DeleteIt's never safe to assume older workers begrudgingly still are working. They might just love the opportunity to be out and about and feel like they're part of a group still.
DeleteCindy - I wish I could let work stuff roll off of me like that. Good for your mom! I take the stress & internalize it, which is not helpful.
ReplyDeleteSam - I think it's great to appreciate things, and enjoy what you have in front of you. We all need those reminders for sure.
I need to follow Cindy's mom's lead too. I need to remember that work is to pay for life expenses, not living for work.
DeleteI'm so glad my pension was just "here's what you're entitled to, just sign on the dotted line", because I don't have a clue about all the different pension plans you have in the US. I know it's only because I didn't grow up with that but I would find it all so overwhelmingly complicated!
ReplyDeleteIt really is very complicated. Changing jobs adds more complexity with each change. My husbands good at tracking but I need to get better at it.
DeleteYou have a good approach to this. Things will happen and putting all hopes into one thing is tenuous.
ReplyDeleteWe have too much complexity though. I like what Treader describes. Her you go- sign.
DeleteI can tell you after 4 yrs of retirement, working odd jobs for me and Hubby having his own business... it is a roller coaster ALL THE TIME. Our financial guy (Daddy had him for 30 yrs) said rule of thumb for the economy to settle down is 3 yrs. the least. Sometimes closer to 5
ReplyDeleteIt's hard to tell when this volatility started. Last year with the insane housing wars? This year with runaway inflation and continued rate hikes. I figure I'll make a decision in five years, to retire four months later, but can defer 6 months or a year at a time. March 3 and July 1 are my benchmark dates.
DeleteThere are places between you and Florida that are warm. Florida does not have dibs on warm weather and less than bitter cold. I think it is 350 miles from here to Florida and we had 80F weather here today. We might get a dusting of snow in places, and occasionally maybe 6 inches. I would not like living in Florida.
ReplyDeleteOf course I know that. My point was not where to move, but that we know people who retired to Florida and now are dealing with the loss. In Minnesota we know we have our family and friends.
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