Retirement Thread

[Mr. Kotter]

Originally Posted by kepp

We have one kid halfway through college and the other lined up right behind. We're looking forward to being empty nesters, but haven't figured out WHAT we want to do during that time, or in retirement.

I want to hear what CPers are doing, or planning to do, in retirement!

My wife and I have both been “retired” for 3-4 years. We have mostly enjoyed it, and are pretty fortunate—but it is definitely an adjustment. This is our experience, though I suspect it is pretty representative. To be clear, we “retired” early because we had solid pensions and our previous jobs became less gratifying than in younger years, but we intended to continue working side-gigs, hobby jobs, but sought a less stressful lifestyle—where we could choose if, when, and where we worked.

We choose to continue to work at something, rather than FULL retirement, to maintain cash flow, increase disposable income for travel and “fun” stuff, and to avoid dipping into the investment principals—but also to satisfy our need for “purpose.” Investing new money wouldn’t hurt either if you can afford it, while maintaining your preferred lifestyle. Regarding travel, consider what you really want to do: international or domestic, flying and hotels, camping or glamping, or just taking the opportunity to visit family, friends, or places you didn’t have time for when you were working full-time. In retirement, do what you want, not what you think will impress your Facebook friends.

As for general advice, based on our experience: first, have a solid plan for paying the full premium for healthcare if you are accustomed to employee provided benefits. If you still have kids under 26 who you chose to cover—be prepared for sticker shock. Medicare won’t kick in until. 65, so it’s a hefty expense. Dental and vision coverage is usually extra too.

Pay off all credit card and other incidental debts prior to “retirement.” Get your car(s) paid off, and get to within at least 4-6 yrs of paying off the mortgage. That will ensure you aren’t working part-time or side gigs longer than you want into your late 60s or even 70s—unless it’s by choice. One expense we cut when our four kids left home was life insurance. If you have a reasonable nest egg and even a modest estate, disability coverage and long-term care coverage are likely more worthwhile depending on your circumstances.

Continue to pursue passions, travel responsibly, and indulge or at least discover a hobby—or better yet, do all three. Otherwise, our experience suggests retirement can be hard, even depressing. We know some who’ve retired—and basically quit at life. That’s a potential downward spiral that can be hard to reverse. Don’t fall into it. Binging Netflix, playing golf, wasting your day in DC on CP, and poker with the guys are fun for a few weeks, even months; unless they are a true passion even those types of things get old pretty quick.

Unless you are big introvert, socialize. Schedule, schedule, schedule. If you don’t schedule life, it can slip by you. Plan your week with friends, the gym, breakfast or lunch outings, volunteering, bible studies, book clubs, happy hour(s), and weekend special events. Don’t overdo it, but days, weeks, and years can simultaneously drag by, and fly by. Being retired is about choice—not doing nothing. Do what you like, love—and can afford. In our experience, doing nothing is a prescription for boredom and unhappiness.

My final thought is don’t expect to know what your retirement will look like early in the process. You may think you know, but don’t be surprised or discouraged if you end up changing course. Two kids found adulting these days challenging enough they came home to reset—we are glad to be there for them. I know a guy to retired to Kalispell, MT—and inexplicably seems to love his new life as an aspiring lumberjack. Another intended to “golf every day,” but mostly volunteers and mentors students in schools. Some think they will travel a lot, but find hotels and airports, or maintaining a RV to be too annoying to be worth it. For most I’ve known it’s a dynamic venture filled with twists and turns. Breathe, relax, and enjoy the journey. You’ve earned it.

[ptlyon]

Originally Posted by Mr. Kotter

My wife and I have both been “retired” for 3-4 years.

Thank God you no longer infiltrate students brains with your shitty ideals

[Mr. Kotter]

Originally Posted by ptlyon

Thank God you no longer infiltrate students brains with your authentic democratic ideals

Actually, I do…just in a different, chosen, and more lucrative role.

Thanks for your concerns though. God loves us both.

[jdubya]

Originally Posted by Mr. Kotter

My wife and I have both been “retired” for 3-4 years. We have mostly enjoyed it, and are pretty fortunate—but it is definitely an adjustment. This is our experience, though I suspect it is pretty representative. To be clear, we “retired” early because we had solid pensions and our previous jobs became less gratifying than in younger years, but we intended to continue working side-gigs, hobby jobs, but sought a less stressful lifestyle—where we could choose if, when, and where we worked.

We choose to continue to work at something, rather than FULL retirement, to maintain cash flow, increase disposable income for travel and “fun” stuff, and to avoid dipping into the investment principals—but also to satisfy our need for “purpose.” Investing new money wouldn’t hurt either if you can afford it, while maintaining your preferred lifestyle. Regarding travel, consider what you really want to do: international or domestic, flying and hotels, camping or glamping, or just taking the opportunity to visit family, friends, or places you didn’t have time for when you were working full-time. In retirement, do what you want, not what you think will impress your Facebook friends.

As for general advice, based on our experience: first, have a solid plan for paying the full premium for healthcare if you are accustomed to employee provided benefits. If you still have kids under 26 who you chose to cover—be prepared for sticker shock. Medicare won’t kick in until. 65, so it’s a hefty expense. Dental and vision coverage is usually extra too.

Pay off all credit card and other incidental debts prior to “retirement.” Get your car(s) paid off, and get to within at least 4-6 yrs of paying off the mortgage. That will ensure you aren’t working part-time or side gigs longer than you want into your late 60s or even 70s—unless it’s by choice. One expense we cut when our four kids left home was life insurance. If you have a reasonable nest egg and even a modest estate, disability coverage and long-term care coverage are likely more worthwhile depending on your circumstances.

Continue to pursue passions, travel responsibly, and indulge or at least discover a hobby—or better yet, do all three. Otherwise, our experience suggests retirement can be hard, even depressing. We know some who’ve retired—and basically quit at life. That’s a potential downward spiral that can be hard to reverse. Don’t fall into it. Binging Netflix, playing golf, wasting your day in DC on CP, and poker with the guys are fun for a few weeks, even months; unless they are a true passion even those types of things get old pretty quick.

Unless you are big introvert, socialize. Schedule, schedule, schedule. If you don’t schedule life, it can slip by you. Plan your week with friends, the gym, breakfast or lunch outings, volunteering, bible studies, book clubs, happy hour(s), and weekend special events. Don’t overdo it, but days, weeks, and years can simultaneously drag by, and fly by. Being retired is about choice—not doing nothing. Do what you like, love—and can afford. In our experience, doing nothing is a prescription for boredom and unhappiness.

My final thought is don’t expect to know what your retirement will look like early in the process. You may think you know, but don’t be surprised or discouraged if you end up changing course. Two kids found adulting these days challenging enough they came home to reset—we are glad to be there for them. I know a guy to retired to Kalispell, MT—and inexplicably seems to love his new life as an aspiring lumberjack. Another intended to “golf every day,” but mostly volunteers and mentors students in schools. Some think they will travel a lot, but find hotels and airports, or maintaining a RV to be too annoying to be worth it. For most I’ve known it’s a dynamic venture filled with twists and turns. Breathe, relax, and enjoy the journey. You’ve earned it.

Lots of good advice here. Whats your experience in "long term" coverage? Does that include plans to help if and when "assisted living" is needed? Lost both my parents last year when they were both in assisted living. For both of them to share a 1 bedroom studio room, we were paying $12k or more each month.

[BigRedChief]

Originally Posted by jdubya

Lots of good advice here. Whats your experience in "long term" coverage? Does that include plans to help if and when "assisted living" is needed? Lost both my parents last year when they were both in assisted living. For both of them to share a 1 bedroom studio room, we were paying $12k or more each month.

Most of them I’ve seen in southern Missouri charge $1000 a week for semi- private assisted living with 24/7 health care. It’s not covered by Medicare after 100 days.

[jdubya]

Originally Posted by BigRedChief

Most of them I’ve seen in southern Missouri charge $1000 a week for semi- private assisted living with 24/7 health care. It’s not covered by Medicare after 100 days.

My folks were in Calif. The highest quote we got from a very nice facility was $20k a month for both of them. Ouch

Ive told my kids if and when I get to that point, move me to the least expensive state or build an ADU and I'll stay out of their hair lol

[Mr. Kotter]

Originally Posted by jdubya

Lots of good advice here. Whats your experience in "long term" coverage? Does that include plans to help if and when "assisted living" is needed? Lost both my parents last year when they were both in assisted living. For both of them to share a 1 bedroom studio room, we were paying $12k or more each month.

Long term care can definitely help—research the companies prior though. Some are better than others. Helps with both full and assisted care, but to differing levels. Understand that even those run out at some point if you live forever (85-90+) and know that the sooner you start, the less expensive the plan. Plan for essentially a car payment, the better plan the more expensive the premium—KIA Forte vs. F250 Raptor (or Mercedes) difference. Depends on where you retire too, though.

My family history suggests I won’t make it to 90, so I if I really wanna live that long I probably need to start soon. On the other hand, tequila, tacos and a special “cocktail” (when the time comes) sounds better than prune juice, baked chicken & steamed broccoli, and green jello…and forgetting my spouse’s name. If they shared a room for that, that sounds par for the course, so they had a decent, though not extragent plan.

[BigRedChief]

Originally Posted by jdubya

Lots of good advice here. Whats your experience in "long term" coverage? Does that include plans to help if and when "assisted living" is needed? Lost both my parents last year when they were both in assisted living. For both of them to share a 1 bedroom studio room, we were paying $12k or more each month.

Wonder if people try to game the system? Put all your assets in only one spouse's name so Medicare doesn't take all your assists before they pay for the assisted living?

[trndobrd]

Originally Posted by BigRedChief

Wonder if people try to game the system? Put all your assets in only one spouse's name so Medicare doesn't take all your assists before they pay for the assisted living?

Yes. An irrevocable trust is one way. The look-back period varies by state….5 years is common. Most states have exemptions, vehicle, primary residence , etc.

Oh, you have to REALLY trust the trustee. Effectively all the assets put in the trust are controlled by the trustee….and no way to reverse the decisions of the trustee without litigation to prove beach of fiduciary duty.

You can also simply transfer the assets to another person…still subject to look-back period. But if a person intends to leave an asset to a particular person in a will it can be better to transfer title earlier. For instance, you are going to leave the classic car to someone.


https://www.verywellhealth.com/irrev...dicaid-4173386

[Mosbonian]

Originally Posted by trndobrd

Yes. An irrevocable trust is one way. The look-back period varies by state….5 years is common. Most states have exemptions, vehicle, primary residence , etc.

Oh, you have to REALLY trust the trustee. Effectively all the assets put in the trust are controlled by the trustee….and no way to reverse the decisions of the trustee without litigation to prove beach of fiduciary duty.

You can also simply transfer the assets to another person…still subject to look-back period. But if a person intends to leave an asset to a particular person in a will it can be better to transfer title earlier. For instance, you are going to leave the classic car to someone.


https://www.verywellhealth.com/irrev...dicaid-4173386

The look back period is so important and something most people never look at.

That is why I hope that at age 80 I can just go to sleep one night and not wake up. Don't want to put my wife thru the pain of having to put me in a care/memory care place.