tell me about retirement.

vash · vash's Garage

i have a co-worker about to retire. he looks bummed. at this point i cannot friggen wait. trying to "get all my ducks lined up" by the time i quit punching the clock. 30 more years of hell.

is it a good thing? you retired guys having fun? worried about $$$? what is it like?

cliff

Bill Verburg · Bill Verburg's Garage

It's a good thing if you are prepared for it, live within your means, invest every dime you can, Don't try to keep up w/ the Jonses. A buck invested now is worth 10000 invested 25 yrs from now.

ZOA NOM · ZOA NOM's Garage

You'll have it made if you don't plan to retire here in California. Take this ridiculous real estate market for all it's worth and retire to the islands.

RallyJon · 05-25-2005, 06:53 PM

Quote:

30 more years of hell.

30 years away! Quit worrying about retirement and figure out what to do in the meantime that won't feel like you're in hell. If you treat every working year 'til retirement as a burden, just think of the bitter wreck you'll be by the time it finally comes.

Evans, Marv · 05-25-2005, 07:14 PM

15 days, guys !!! What do you think of that?
I'm not anywhere near well off, but I've always placed a lot of worth on enjoying an active life. I've also enjoyed my 30 year stint, because I've been able to do lots of different things - even though I haven't made much money. But having said that, I have been able to save a little, invest a little, and have a wife who will be working. That will leave me time to (hopefully) build a house, complete my '69, ride my mountain bike and paddle my kayak.
So there.

pwd72s · 05-25-2005, 07:58 PM

Retirement? I want to have my 28 year old body back...while keeping the money, the free time, the knowledge, and the toys I have now... Alas, it just doesn't work that way.

real550A · real550A's Garage

Compound interest is the eighth wonder of the world!
Curb your wants, and invest wisely during your working years, and you'll be able to afford anything you want when you retire.

gavinlit · 05-25-2005, 08:05 PM

I think it's hilarious we're on a porsche bord and people say things like 'curb your wants' mmmmpphhh. Just wait for the flood of cars onto the market if everyone followed that advice. I thought I knew about having toys & playing until I saw some of the pics on this board (and here's the trailer, and the powerboat, and the other track car, next to the road car, and the bike .......etc).

LeeH · 05-25-2005, 08:19 PM

Quote:

Originally posted by vash
30 more years of hell.

In the end, it's the big dirt nap for all of us.

Remember that life is about the journey, not the destination.

tdatk · 05-25-2005, 08:41 PM

Quote:

Originally posted by LeeH
In the end, it's the big dirt nap for all of us.

Remember that life is about the journey, not the destination.

Thanks for that, I sometimes feel like I'm waiting for the next thing to "get to" in my life and forget about "smelling the roses"

Hugh R · 05-25-2005, 09:31 PM

I'm 51, and I've tried to put money away every year since I graduated from college in 79. In retrospect I should have saved more. My net worth (2/3rds of which is in my house) is about a million, If I retire in aboout 15 years, it may be kind of tight, the stock market has been kind of flat for the last 10 years (as measured by my portfolio and the S&P and the Dow). I won't be eating dog food, but all I can say is save and invest more if you can.

gavinlit · 05-25-2005, 10:26 PM

You're net worth is a mil & you're worried. Holy crap. Maybe i should save some more

Or maybe I just won't ever fully retire. Not sure that I could handle doing absolutely nothing all day. Long ways off for me anyway.

campbellcj · 10:54 PM

Quote:

Originally posted by gavinlit
You're net worth is a mil & you're worried. Holy crap. Maybe i should save some more Or maybe I just won't ever fully retire. Not sure that I could handle doing absolutely nothing all day. Long ways off for me anyway.

With the cost of living here in SoCal, my take is that you'd have to have US$2-3mil invested capital at minimum, with little to no debt and your housing free and clear, to maintain a decent standard of living. Returns for low-risk investors (i.e. retirees) are still very low so preservation of capital is very important.

Many if not most folks here have virtually all of their "wealth" tied up in their home equity; you can't live off that and you sure as hell can't afford a $5K/mo cash-out re-fi mortgage payment on zero income. SoCal real estate is a fabulous investment -- if you plan to sell it or rent it out (at a profit) and live someplace else afterwards.

My goal is to go "semi-retired" by 40-45, which is coming up real soon. By that I mean not -having- to work the 40-60-80 hour weeks but still having someplace to go do that when I'm up to it....I would go absolutely effin' nuts without a steady stream of stuff to work on.

gavinlit · 05-25-2005, 10:53 PM

At a 5% return that's some cost of living you guys have in socal. I thought Sydney was a bit pricey. No more complaints from me about real estate.

campbellcj · 11:11 PM

Obviously you could avoid eating pet food for dinner on significantly less, but you have to also keep in mind that certain costs here such as healthcare are essentially unbounded and increasing at 3X+ inflation rates. I sure don't want to be faced with a healthcare issue at a relatively young age, and be bankrupted by it.

In particular, between about 55-65 (or whenever Medicare kicks in these days) healthcare/insurance gets REALLY expensive here, as in $25K/year in some cases I have personally seen among reasonably healthy married couples.

And I won't even mention education for the kids. I will be approx. 54 when my oldest enters college!!! I can't even guess what that will cost but for tuition+total cost of living it is $$$,$$$ over 4 years...per kid.

Also, we all want to have our toys and travel fun etc. in retirement. What's the point of eating Top Ramen and watching Jerry Springer reruns all day long, after many years of hard work? I plan to work as long as it takes to NOT have to do that when I stop working...

motion · 05-26-2005, 06:38 AM

Quote:

Originally posted by Hugh R
I'm 51, and I've tried to put money away every year since I graduated from college in 79. In retrospect I should have saved more. My net worth (2/3rds of which is in my house) is about a million, If I retire in aboout 15 years, it may be kind of tight, the stock market has been kind of flat for the last 10 years (as measured by my portfolio and the S&P and the Dow). I won't be eating dog food, but all I can say is save and invest more if you can.

There are ways to do it with a million. Take this scenario:

Sell your house here in SoCal. Cash out a nice, smaller home in St. George or Cedar City for $250k. Beautiful area to retire in. Take $500k and buy a 6-plex in Salt Lake City. Live off of the $5k-$6k your rental property is generating. You still have $250k left in reserves for an emergency. As time goes by and costs increase, your rental income will increase also. This scenario doesn't afford you a slip home in Key Biscayne, or constant globe-trotting, but isn't retirement about slowing down and being happy with your cup of coffee and the sunrise? I'm a big proponent of living to the hilt while you can pay for it, then slowing down when you're ready.

turbo6bar · 05-26-2005, 06:50 AM

I feel sorry for guys and gals that commute to work every day. Self-employment gives me a little more freedom. I can basically accomplish in 6 full hours what most accomplish in 8-9 hours (job + commute). The spread is for my own enjoyment, or I can work extra hours.

I had a roadmap to "success" when I was in college, but things change. I value my free time a lot more now than before. I feel my work gives my life purpose. If I truly retired, I would go crazy. I prefer semi-retirement, where I will be reducing my workload to 3-4 half-days per week and the rest of my time will be spent on the activities I find fun (bicycling, general grunt work/home improvement, tractor work, horse stables, charity work). Most of the things I like are considered work to some, but the secret is work is no longer work when you find it enjoyable.
Jurgen

gaijindabe · 05-26-2005, 07:09 AM

Quote:

Originally posted by turbo6bar

...... the rest of my time will be spent on the activities I find fun (bicycling, general grunt work/home improvement, tractor work, horse stables, charity work).

Jurgen

J - you are on to something here. The last thing I want to do is chase a little white ball and have cat-naps every day...

RickM · RickM's Garage

Quote:

Originally posted by LeeH
In the end, it's the big dirt nap for all of us.

Remember that life is about the journey, not the destination.

Heh heh, as long as you prepare for destination along the way.

I have to say the most disheartening thing to hear is the story about the guy who works his a$$ off his entire life and then kicks two weeks after he retires. I'm sure we've all heard tale along these lines.

Drago · Drago's Garage

Quote:

Originally posted by RickM
I have to say the most disheartening thing to hear is the story about the guy who works his a$$ off his entire life and then kicks two weeks after he retires. I'm sure we've all heard tale along these lines.

Boeing engineers have a high rate of this...maybe I ought to rethink my profession.