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When do you realistically expect to retire?


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Discussion Starter #1
This article:

http://www.usatoday.com/money/workplace/2010-12-14-older-workers-employment_N.htm

made me wonder what people are thinking about as a realistic retirement age these days. I would love to retire early but I don't think it's going to happen. When it does, I think it is reasonable to expect a much reduced standard of living.

How about you, what is your realistic retirement age, how have you/will you plan to make that happen and what plans do you have when it is achieved?

Ideally, I would like to have a mix of part-time volunteer-type work, lots more fishing and some travel in my retirement years.
 

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Discussion Starter #3
I guess I'm hoping that if I scream loud enough maybe the government will offer us early retirement so the young people of this country can get some jobs... ???
 

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LOL...This has been weighing heavy on my mind as of late! I'm shooting for 62-65 which is only in the area of 10 more years, that is why I am setting myself up now with all my toys before that happens. I've got way to many I know but if we have to we can live in one of our campers...lol...a duplex or triplex, rent out one of the boats or snowmobiles. Start out early setting yourself up and pray you get to live to enjoy them. H3ll, during the market crash and all that went down I lost over half of my 401K and just now am back to being even. Even the best layed out plans can go wrong, you just never can tell!
 

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I am 33 now and expect to have my first retirement around age 55.

My goal is to be debt free (mortgage, cars, student loans) by age 40. My attmept will be to no longer use credit for any other purpose than to maintain my credit rating. My house, two cars and student loans are the only current debt I have, and after that if I can't pay cash for it I probably will learn to live without it.

I have become a minimalist, and look to maximize the utility and purpose of any purchase I make. I don't need fancy, flashy, anything and I contribute to my investments regularly.

By age 47 I will be able to put both of my children through school.

At age 55 I forecast to have a large enough nest egg to fully retire if I chose to, keeping a comfortable standard of living. I expect no benefit at all from social security, though I'm sure the government will help me pay for many other peoples retirements.

Of course this is all dependent on my wife not divorcing me and running away to Aruba with the mail man. Or Barney Frank remaining in congress.
 

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Cast-N-Away said:
I am 33 now and expect to have my first retirement around age 55.

My goal is to be debt free (mortgage, cars, student loans) by age 40. My attmept will be to no longer use credit for any other purpose than to maintain my credit rating. My house, two cars and student loans are the only current debt I have, and after that if I can't pay cash for it I probably will learn to live without it.

I have become a minimalist, and look to maximize the utility and purpose of any purchase I make. I don't need fancy, flashy, anything and I contribute to my investments regularly.

By age 47 I will be able to put both of my children through school.

At age 55 I forecast to have a large enough nest egg to fully retire if I chose to, keeping a comfortable standard of living. I expect no benefit at all from social security, though I'm sure the government will help me pay for many other peoples retirements.

Of course this is all dependent on my wife not divorcing me and running away to Aruba with the mail man. Or Barney Frank remaining in congress.
MAN it sounds like you've taken some advice from Dave Ramsey. Good plan my friend.

I am currently planless being fairly fresh out of college and my fiance just graduated in may. Getting married is taking up all my planning time now for the future. Hopefully I will be able to plan something good out pretty soon.

26 is my age and I am hoping to have my and my fiances student loans paid off within 6 or 7 years. Other than that, my only other big debt is a house mortgage. One step at a time here.
 

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I pretty well used the same plan as Cast-N-Away, but missed the 55 yrs by a few yrs. Another thing I found out, is that as you get farther into your retirement you actually start spending less. I've been retired for 10yrs now. PK
 

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I'll be 39 this year and this has been weighing heavily on my mind. Based on current savings, retirement at age 65 leaves me with a bit over $19,000 a year based on current savings (including social security). One of my goals is to boost that amount up by quite a bit but the outlook isn't good - rising prices and falling or stagnant wages are making it harder to live frugally and be able to save money.

I was reading last week that one of the biggest mistakes people who retire make is they don't have their house paid off. In all honesty, when I bought my house 15 years ago, I wasn't expecting to live in it for the rest of my life - I was planning on upgrading a few times. Looks like if I want to retire with a paid off house, I'm going to have to stay put or move into a condo unless I make drastic changes in lifestyle. :-\
 

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Discussion Starter #13
Very interesting to hear about some of the planning and it is nice to see there are a fair number of people who still expect to retire early.

I have been very fortunate in that I started at my current job over 29 years ago and they had a retirement savings program that all employees were required to contribute to. So I've been forced to build up a nest egg (which has seen huge fluctuations over the years as Pikester mentions) but still need more of course. If my workplace hadn't required savings, then no doubt I would have spent all of it on beer in my early years. lol

I have a question for those who followed the Cast-N-Away approach: If you retire at 55, how do you intend to take money out of a 401(k) or 403(b) and not pay huge taxes on it? Maybe Ed knows something about this?
 

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Make every attempt to develop multiple income streams...consider an annuity as one of those sources...stay healthy---your expenses will be lower and your quality of life will be higher...
 

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Mike, it's been a while since I've looked but if I remember right, you can retire at age 50 provided that you meet certain provisions. I think as long as payments are based on your savings and are regular (same amount, same payment period) then you're good.

There are some pension plans still around that allow this as well. I have a buddy that was a deputy U.S. Marshall and he was forced to retire at 52 - he gets a terrific pension (he worked for the IRS doing enforcement - they don't hire people over the age of 36 for this very reason).

I think you have to be at least 59 1/2 (depending on your year of birth) to collect social security.

Naturally, you'll be taxed at your normal rate, unless it's a Roth IRA or Roth 401(k).
 

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I believe it's 62 for Social Security and 59 1/2 for 401K withdrawals without penalty.

I don't know when I'm going to retire. At the earliest, it'll be in three years. My job is interesting and rewarding, and no matter how much I sometimes would like to not have to worry about it, I think I might really miss it.

I've pretty much adhered to the plan that Cast-N-Away describes. I don't carry any debt, and I don't go into debt that I'll carry to make purchases. I've also maximized my 401K contributions for the 16 years that I've had a 401K plan. If you have a 401K plan and you're not contributing to it at least to the extent that your employer will match (if your employer matches), you're throwing away money.

I was trained academically that market timers never win, but I rolled the bones back when the Dow was at 13,500 and took all of my 401K out of growth assets and put it into stable value. As the Dow continued to climb above 14,000, I wondered if I'd miscalculated. When the DOW started its plummet down to around 6,000, I was really glad that I had made that move. I'm leaning toward doing the same sort of consolidation at some point later this calendar year.
 

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It is 62 and there is a penalty, calculated by month, for each month your retire early---"early" is calculated on what your normal retirement age is.
 

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Don't buy that $400 rod or reel. .Buy the $50 one and catch the same amount of fish. Invest the $350 difference and apply that idea to all of your materialistic items and you will probably be able to hit your retirement age. I retired 11 years ago and found that I did not need all the money that the so called experts said that I would need.
 

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honestly, I don't expect to live past the age of 60 so I don't care either way. I just want to leave enough money for my wife to pay off whatever house we own and the ridiculous cost of cremating my bloated fat corpse.
 

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Discussion Starter #20
That Guy said:
Mike, it's been a while since I've looked but if I remember right, you can retire at age 50 provided that you meet certain provisions. I think as long as payments are based on your savings and are regular (same amount, same payment period) then you're good.
sswan said:
I believe it's 62 for Social Security and 59 1/2 for 401K withdrawals without penalty.
TheUkrainian said:
It is 62 and there is a penalty, calculated by month, for each month your retire early---"early" is calculated on what your normal retirement age is.
No surprise that there is differing information.

What I had heard a while back is similar to what Ed describes: A person can avoid penalties and retire prior to turning 59.5 or 62, but to do so they must annuitize and be paid regularly in an amount that is projected to bring their 401(k)/403(b) down to zero over the person's estimated remaining lifetime.

For example, for somebody who had this situation:
  • 401(k) balance of $900K at 50 years old
  • Retire at 50 with an estimated life expectancy of 80
  • Take withdrawals from the 401(k) of $30K per year (this example is just $900K/30 years and assumes 0% interest just for simplicity)
  • Pays income taxes on the $30K/year but no penalty
Does this sound right? Of course, social security withdrawals have a whole other set of rules.
 
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