thanks, olds.
having seen firsthand what has happened to many since the onset of the recession, i am more likely to find fault with what folks did before, than with what they have done since. it is not as much the mistakes that have been made since the event, but all the dumb/irresponsible decisions that were made before.
not trying to suggest any allocation of retirement monies to anyone, just pointing out how difficult it has been for folks since the rates have dropped.
retirement concerns
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olds442jetaway
- Video Poker Master
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So many of us vp players have been retired for a number of years like myself, others just retired or nearing retirement, and even young folks planning ahead of time for retirement, I wonder if this thread or a similar one could be expanded to have us here on the forum exchange either plans, ideas, what has worked and what hasn't, etc. I find it interesting to say the least and none of us are ever to old to learn or consider things maybe we have not considered before or have never even heard of. Anyway, just a thought, but I myself would like to see it keep going and expanded.
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Lucky Larry
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- Joined: Sat Dec 13, 2008 7:35 pm
notes1,
Interesting topic.
Sweet C and I retired in our mid-fifties after 35+ years in education. Prior to retiring I had little knowledge of retirement/investment strategies. So I made it a point to read all I could of the main literature and gain as much knowledge as possible. Luckily, I kept being steered toward the strategies of John "Jack" Bogle, founder of the first Index Fund and founder of Vanguard. Spending time reading the basic research led us to taking control of our own investing in a simple 3-4 Index Fund approach. No advisor fees (save the money for yourself), low cost. Rebalance once a year, and sleep well every night. You can do it. Vanguard $100K gives free advisor advice.
Ok, going to the bathroom, aches and pains, etc.
Thus, living off our state pension and investments. Investments based on Vanguard/ research data of a 60/40 stock/bond split we lost very little during the recession and have regained all our losses plus great gains. Established a goal of living and enjoying the most of life we could during the initial ten years while health/physical should be at our highest. Then re-evaluate our annual WDR. Qualify for SS but with pension offset rules I don't get to use most of it.
Additionally, I decided to work part-time in my previous field which helps supplement our travel and 401G (gambling) account. It also keeps me mentally and physically invested. BTW: partly took up VP for mental stimulus.
*Check out the Bogleheads forum. Leading investment researchers, investment writers/authors, and really smart people who help other people invest just like VP.com helps VP players. Check out the "Investing: Theory, News & General" and the (3Fund portfolio) and the investing Wikipedia they have.
3 Fund: Total US Stock Market Index, Total US Bond Index, Total International Stock Market Index = Sleep Well at Night Low fees
https://www.bogleheads.org/forum/index.php
Interesting topic.
Sweet C and I retired in our mid-fifties after 35+ years in education. Prior to retiring I had little knowledge of retirement/investment strategies. So I made it a point to read all I could of the main literature and gain as much knowledge as possible. Luckily, I kept being steered toward the strategies of John "Jack" Bogle, founder of the first Index Fund and founder of Vanguard. Spending time reading the basic research led us to taking control of our own investing in a simple 3-4 Index Fund approach. No advisor fees (save the money for yourself), low cost. Rebalance once a year, and sleep well every night. You can do it. Vanguard $100K gives free advisor advice.
Ok, going to the bathroom, aches and pains, etc.
Thus, living off our state pension and investments. Investments based on Vanguard/ research data of a 60/40 stock/bond split we lost very little during the recession and have regained all our losses plus great gains. Established a goal of living and enjoying the most of life we could during the initial ten years while health/physical should be at our highest. Then re-evaluate our annual WDR. Qualify for SS but with pension offset rules I don't get to use most of it.
Additionally, I decided to work part-time in my previous field which helps supplement our travel and 401G (gambling) account. It also keeps me mentally and physically invested. BTW: partly took up VP for mental stimulus.
*Check out the Bogleheads forum. Leading investment researchers, investment writers/authors, and really smart people who help other people invest just like VP.com helps VP players. Check out the "Investing: Theory, News & General" and the (3Fund portfolio) and the investing Wikipedia they have.
3 Fund: Total US Stock Market Index, Total US Bond Index, Total International Stock Market Index = Sleep Well at Night Low fees
https://www.bogleheads.org/forum/index.php
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notes1
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LL, would be difficult to find fault with a single portion of your retirement plan. the SS offset you mention, I presume your pension is reduced by the SS income you receive?
in a previous post, I mentioned that many have decided to transition from full time to part time. you might be surprised how many folks work part time, to be able to continue their entertainment 'passions', including going to the casino. having one or more pensions is a luxury that most do not have. retirement healthcare is another benefit, that most do not have.
I/m/o, the best thing you did was get educated, made a plan and stuck to it.
in a previous post, I mentioned that many have decided to transition from full time to part time. you might be surprised how many folks work part time, to be able to continue their entertainment 'passions', including going to the casino. having one or more pensions is a luxury that most do not have. retirement healthcare is another benefit, that most do not have.
I/m/o, the best thing you did was get educated, made a plan and stuck to it.
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Lucky Larry
- Video Poker Master
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- Joined: Sat Dec 13, 2008 7:35 pm
LL, would be difficult to find fault with a single portion of your retirement plan. the SS offset you mention, I presume your pension is reduced by the SS income you receive?
in a previous post, I mentioned that many have decided to transition from full time to part time. you might be surprised how many folks work part time, to be able to continue their entertainment 'passions', including going to the casino. having one or more pensions is a luxury that most do not have. retirement healthcare is another benefit, that most do not have.
I/m/o, the best thing you did was get educated, made a plan and stuck to it.
Yes, Lucky in many ways. Retirement pensions are one of the long-term benefits of working for lower wages for municipal/state government especially in a state like Texas where education isn't rewarded by the State gov't. Started working at 15 and worked summers during early professional years to continue building SS and being able to eat. (Starting teaching salary $6K/yr paid over 12 months.) Continued to work at Univ. level after completing Masters while working at school. - Extra income and contacts to now work part-time. Also chose to work in 1 of only 2 districts out of 1000+ in Texas that also provided a separate pension for employees in addition to state retirement plan (when SS was dropped - they used $SS to fund individual retirement funds for employees). Really smart choice.
Yes, SS offset will greatly impact but hoping legislation is changed but if not can wait until 70 to draw. Medical costs are a bear but Medicare coverage is wonderful. We also sacrifice to buy Long-Term health care policy early on before they became too expensive. My retirement research showed medical cost could kill retirement plans and family health history.
Key: Educate yourself, sacrifice a little early in life (invest and let compounding help you out), make a plan and stick too it. "A penny saved is a penny earned." (consultant fees) and with compounding it grows over thirty years. We couldn't afford more than pennies.
in a previous post, I mentioned that many have decided to transition from full time to part time. you might be surprised how many folks work part time, to be able to continue their entertainment 'passions', including going to the casino. having one or more pensions is a luxury that most do not have. retirement healthcare is another benefit, that most do not have.
I/m/o, the best thing you did was get educated, made a plan and stuck to it.
Yes, Lucky in many ways. Retirement pensions are one of the long-term benefits of working for lower wages for municipal/state government especially in a state like Texas where education isn't rewarded by the State gov't. Started working at 15 and worked summers during early professional years to continue building SS and being able to eat. (Starting teaching salary $6K/yr paid over 12 months.) Continued to work at Univ. level after completing Masters while working at school. - Extra income and contacts to now work part-time. Also chose to work in 1 of only 2 districts out of 1000+ in Texas that also provided a separate pension for employees in addition to state retirement plan (when SS was dropped - they used $SS to fund individual retirement funds for employees). Really smart choice.
Yes, SS offset will greatly impact but hoping legislation is changed but if not can wait until 70 to draw. Medical costs are a bear but Medicare coverage is wonderful. We also sacrifice to buy Long-Term health care policy early on before they became too expensive. My retirement research showed medical cost could kill retirement plans and family health history.
Key: Educate yourself, sacrifice a little early in life (invest and let compounding help you out), make a plan and stick too it. "A penny saved is a penny earned." (consultant fees) and with compounding it grows over thirty years. We couldn't afford more than pennies.
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notes1
- Video Poker Master
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- Joined: Thu Jan 28, 2010 12:18 am
'sacrifice', delayed gratification, living below one's means, these are essential traits I have seen in most who are financially secure. I/m/o, it started around 30 years ago, where folks forgot the difference between wants and needs. just wanting something, meant one deserved it. this started the cycle of over spending, over borrowing and under savings, that I believe was the main reason for the financial turmoil the world finds itself in. it is all part of an entitlement society.
I know nothing about the texas pension system, but what little I know about texas, I would guess the following; the pension system is likely fully or mostly funded, it is a plan the tax payers can afford and those receiving those pensions, can count on receiving that money. that is vastly different than the more generous plans in states such as ILL and NJ, where pols gave away the store, in return for votes. and, if those who have under funded plans think that the federal gov is going bail them out, forget it. in a time when so many are in bad financial shape, any politician that suggests the taxpayers should bailout unrealistic/over generous plans for government workers would be hung or worse.
kudos to texas.
I know nothing about the texas pension system, but what little I know about texas, I would guess the following; the pension system is likely fully or mostly funded, it is a plan the tax payers can afford and those receiving those pensions, can count on receiving that money. that is vastly different than the more generous plans in states such as ILL and NJ, where pols gave away the store, in return for votes. and, if those who have under funded plans think that the federal gov is going bail them out, forget it. in a time when so many are in bad financial shape, any politician that suggests the taxpayers should bailout unrealistic/over generous plans for government workers would be hung or worse.
kudos to texas.
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olds442jetaway
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We have SS offset in Ct. too. This will affect my wife but not me as I am short on quarters. I started working for the Feds at age 21. Could have doubled my pay in the private sector doing essentially the same thing, but I decided life was and is too short. Retired at 55 mainly due to the health situation with my parents. That was 13 years ago. Still have my dad at age 92. They have been my full and part time job since retirement. All gratis of course and I would never ask them for anything. Miss my mom as I'm sure most of us do. We are OK though financially as I have already outlined. I think I will check out the LL stuff. Tired of earning 0 in the IRAs and money markets. Maybe risk 20 percent or so.
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notes1
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good timing, there is a new article on cnbc.com, listing each states pension funding level percentage and how much each resident owes to make it fully funded.
texas is 75% funded, each resident owes $1515, not as good as I would have thought.
NJ (worst in nation)38% funded, each resident would owe $10,600.
ILL (2nd worst) 40% funded, over $9k each resident
CONN 49% funded, each resident owes over $7600
south Dakota and Wisconsin are over funded. my state, nc, is 95% funded, each resident owes $169.
texas is 75% funded, each resident owes $1515, not as good as I would have thought.
NJ (worst in nation)38% funded, each resident would owe $10,600.
ILL (2nd worst) 40% funded, over $9k each resident
CONN 49% funded, each resident owes over $7600
south Dakota and Wisconsin are over funded. my state, nc, is 95% funded, each resident owes $169.
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billryan
- Video Poker Master
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If 30% of retirees have no pension or savings, then the best thing for them is a low inflation model like we are in. How would 5% interest help those living month to month on SS? More interest creates more inflation, which would hurt those people even more.I feel horrible for people who reach old age without the proverbial pot to piss in, but raising interest rates won't help them. I'm a firm believer in the theory that if you gave everyone in America a million dollars on their 21st birthday, by the time they are 30, most would be broke and almost all the others would be living paycheck to paycheck.
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notes1
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actually, higher interest rates are the formula to decrease inflation, not increase it. we had high inflation during the carter years, the fed (paul Volker) hikes rates to fight it.
inflation is caused by too much demand or a shortage of supply. deflation is caused by lack of demand or over supply, the very situation we have been in for the past 8 years.
central banks, the fed, use interest rate adjustments to either cool or attempt to stimulate the economy/demand.
the fed is attempting to increase demand, by making it cheaper to borrow, while at the same time, forcing investors into riskier assets, to create 'wealth effect'. they are also trying to increase inflation.
as to your statement about giving everyone a $1m and seeing most of them blow it, I have no disagreement with that.
inflation is caused by too much demand or a shortage of supply. deflation is caused by lack of demand or over supply, the very situation we have been in for the past 8 years.
central banks, the fed, use interest rate adjustments to either cool or attempt to stimulate the economy/demand.
the fed is attempting to increase demand, by making it cheaper to borrow, while at the same time, forcing investors into riskier assets, to create 'wealth effect'. they are also trying to increase inflation.
as to your statement about giving everyone a $1m and seeing most of them blow it, I have no disagreement with that.
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