Q&A: Can I afford to retire now?

[Grinder1]

Fortunately we have secure income sources and little debt so we don't have to worry too much about income.

Health insurance is just such a black hole it's unbelievable.


Even with having enough to retire it's still a pretty hairy pill to swallow knowing it's going to cost you the price of a decent new car every year for health insurance up to age 65.
The worst part is there is absolutely nothing a guy can do about it.

Grinder

[Mojo-NC]

I hope to call it quits as soon as my son graduates college next year and gets out of my wallet. We've saved all of our married life (25 years), but there's always that lingering question, did we save enough? My financial advisor told me the wisest thing I ever did from a financial perspective was to marry a woman 10 years younger than myself. Unfortunately, she will need to continue working for a while after I retire, at least until the mortgage is paid off, then she can retire regardless of her age at the time. I have retirement health insurance benefits from my previous company that will cover us until we reach the required age for medicare, so we have that going for us. Hopefully we will both continue to be healthy so we can enjoy it. The countdown is on! Fingers crossed!

[andersaki]

Originally Posted by rzep

right ... show me someone disciplined enough to put 1 mil in some long term secure investement to returning 4%.....

most people I know would end up buying new car, fixing house, maybe moving, helping the kids ....etc ..By year end would be down to half mil....hopefully.

99% of folks are better off with 5K/month ..

rzep,

I know alot of people with a million in a long term investment, and they are withdrawing 4%/year. The thing is, they did have the discipline to start early and save regularly, even if it was $100 a month or less to start.

andersaki

[Baseline]

Originally Posted by rzep

right ... show me someone disciplined enough to put 1 mil in some long term secure investement to returning 4%.....

There a lots of people who have $1 million plus and even much less who have the discipline and knowledge to invest their money properly and leave it there to fund retirement income. I funded two college educations. One in nursing and the other in civil engineering. As far as I'm concerned if my kids can't make it on their own that's their problem. They are both doing quite well.

Everyone's situation is different. While there is lots of information about retirement available there is not one size fits all program. Like most of those who have commented on this thread have said it is best just to do what's good for you.

[eriksat1]

Glad to see so many planed ahead for retirement. I just turned 60 and have no retirement account and no nest egg. I do have health insurance through my wife at her job (family insurance) and she plans on working another 10 years, I am 6 years older. Dang it at 62 I am pulling the plug on work, I don't care if I have to live on fish and wild game. I do have enough skills and tools to do plenty of side jobs from home.

[Bugler]

Originally Posted by eriksat1

Glad to see so many planed ahead for retirement. I just turned 60 and have no retirement account and no nest egg. I do have health insurance through my wife at her job (family insurance) and she plans on working another 10 years, I am 6 years older. Dang it at 62 I am pulling the plug on work, I don't care if I have to live on fish and wild game. I do have enough skills and tools to do plenty of side jobs from home.

I do hope it works out of you. Your full social security retirement age is 66.5 years. Each year to start drawing before that age will cost you. If you start SS at age 62, you will be giving up approximately 30% of your monthly benefit for the rest of your life.

https://www.ssa.gov/planners/retire/retirechart.html

[rzep]

well, if you do not have anything to loose, you can just go to the emergency and smile.

Other options for medical coverage are high deductable plans. Like $20K deductabile plan which essentially becomes emergency unmbrella policy. Anohter option, maybe not to everyone is forgo insurance and in case of coming down with something major, travel outside of the country. Still costs $$$ but it is fraction of US cost. There is an entire industry of medical services in India catering to foreigners. Eastern Europe another options. My 70+ year old father lives in Poland. We compared some of the services between US and private doctors in Poland, I think it was around 20% of US cost. Besides medical, I had distant relatives spending 3-4 weeks vacation and coming back new set of teeth caps... full mouth for around $3000-$4000...few years later, still look good !

[Bugler]

Anyone considering retiring outside of the US for overall general lower costs of living?

If so, where are you looking?

[rzep]

I am not looking but know people looking at Costa Rica....

The Switzerland of Western hemisphere...So I am told.

[Bugler]

Originally Posted by rzep

I am not looking but know people looking at Costa Rica....

The Switzerland of Western hemisphere...So I am told.

My wife's co-worker has a home there and that will be his place of retirement. We always record the house hunter international shows so that we can look at the backgrounds and also see where and why folks are retiring.

I love Europe. A few years ago, I would have considered buying a home there but with the jump in terrorism, that is off the books. I have yet to travel to Costa Rica but that is a frequent destination on the house hunter show.