I think I will retire...

[Roarmeister]

I think I will retire... in about 5 years or maybe less.  I'm 58.  In March 2023 I will be mortgage free - I am currently 11 years ahead in payments on the 25 amortization.  I have a credit card debt that will disappear by April 2020, a car loan that I will zero out in May 2020 and I am paying the max amount into my RRSP fund [similar to a 401(k) for you Americans].  I plan not to have any debt when I give notice and retire.  I increased my charitable donations in the last 2 years - may as well help out the less fortunate.  I will have multiple sources of income - government pension (CPP and OAS), company pension, work-related RRSPs, private RRSP, deferred income and precious metals.  Life is good.  But it wasn't always so - 20 years ago I was nearly penniless.  Then I decided to get serious with my finances, changed jobs and worked at changing some habits. 

Right now, I transferred some of my investments into conservative funds from the aggressive growth funds.  I have this feeling that a major market correction (15-25%) is just around the corner and I want to protect my wealth.  We are long overdue and it wouldn't take much to get the markets skittish.

[Anonymous]

I look forward to the day I can retire. Congrats on your plan. 

[bada_bing]

Congratulations. It is a shame that this particular sub-forum doesn't have more posts dedicated to retirement. After all, this sub-forum was originally requested as a place for "Retirement" posts and still has that as it's HTML address. Last couple years the evolution has been towards subjects like debt consolidation loans and strategies to get in with restrictive CU's. I hope that members are thinking more about the important topics of saving and planning for retirement than they are posting about.

I am right in the same zone with the OP. I am 59 and have targeted 2020 for retirement at age 61, 2 more years. Things have come together nicely in the last 10 years, & especially the last 5. I have a modest pension, a max'ed SS earnings record, company provided retiree health coverage and a modest portfolio in place. A small self-employed gig is up and running profitably and is something I'll enjoy doing for beer money until maybe age 70. It only involves work during the month of July. No debts at all and a paid for house. 

I still lurk here occasionally, but the interests of the group at MyFICO aren't my focus anymore. I haven't made a credit app in 5 years, my bureau reports all frozen. MyFICO was a great help 5-10 years ago in managing my credit. I may chase sign-up bonuses again once I retire, or maybe not.

Anyway, congratulations again. Good to read a post from a kindred spirit.

[Thomas_Thumb]

@bada_bing

I can relate. Also 59 and plan to retire in 2020 at 61.

Daughter will be done with grad school 5/2019 and be off our medical insurance and car insurance plans soon thereafter. House will be paid off 9/2020. Replaced cedar deck with larger Azek deck, all new kitchen appliances, new central air conditioner, replaced garage doors and new vehicles for me and DW in the last couple years. Plan to replace roof next year.

Goal is to have all large ticket items taken care of prior to retirement. Expect DW will retire next year. My biggest concern is medical insurance after retirement but before medicare eligibility. Not lucky enough to work for a company that offers medical benefits to retirees - that's a rare thing these days. Fortunately, both DW and I will receive pensions from prior employers.

I do have sufficient after tax savings and both 401k and IRA savings to cover the gap between retirement and pension/social security income. I could pull funds from tax deferred plans at 59 1/2 without penalty but, proceeds in those accounts can continue to grow tax free.

Current thinking is to cover yearly expenses from after tax sources until age 65. Then start pension, SSI distributions and medicare insurance (assuming medicare is still viable). 

I am contemplating signing up for long term health care insurance at age 60 with based on a plan that offers 3 year coverage at $250/day + COI adjustment. However, I'm a bit torn on this and DW is not an advocate of LTHC insurance. I realize the LTHC value proposition is situation dependent. Nonetheless, other's thoughts on this are welcome.

P.S. My last credit application was 7 years ago athough I did go for a couple HP CLIs last year. For me analyzing/understanding Fico scoring is a hobby.

[Anonymous]

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@Thomas_Thumb wrote:

@bada_bing

I can relate. Also 59 and plan to retire in 2020 at 61.

Daughter will be done with grad school 5/2019 and be off our medical insurance and car insurance plans soon thereafter. House will be paid off 9/2020. Replaced cedar deck with larger Azek deck, all new kitchen appliances, new central air conditioner, replaced garage doors and new vehicles for me and DW in the last couple years. Plan to replace roof next year.

Goal is to have all large ticket items taken care of prior to retirement. Expect DW will retire next year. My biggest concern is medical insurance after retirement but before medicare eligibility. Not lucky enough to work for a company that offers medical benefits to retirees - that's a rare thing these days. Fortunately, both DW and I will receive pensions from prior employers.

I do have sufficient after tax savings and both 401k and IRA savings to cover the gap between retirement and pension/social security income. I could pull funds from tax deferred plans at 59 1/2 without penalty but, proceeds in those accounts can continue to grow tax free.

Current thinking is to cover yearly expenses from after tax sources until age 65. Then start pension, SSI distributions and medicare insurance (assuming medicare is still viable). 

I am contemplating signing up for long term health care insurance at age 60 with based on a plan that offers 3 year coverage at $250/day + COI adjustment. However, I'm a bit torn on this and DW is not an advocate of LTHC insurance. I realize the LTHC value proposition is situation dependent. Nonetheless, other's thoughts on this are welcome.

P.S. My last credit application was 7 years ago athough I did go for a couple HP CLIs last year. For me analyzing/understanding Fico scoring is a hobby.

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I hate to be a spoil sport but why retire?  Keep the mind active as well as the body. Just consider cutting back to parttime.  Dw and I are both in our 60's. We have been self employed almost our entire life.  Our house has been paid for for years.  Our only debt is 2018 Car debt.  Our assets include interests in our main biz plus minority  interest in several related firms all total more than enough to retire.   At some point in another 2 or 3 years we will start selling off everyhting    but our core business.   

[Anonymous]

Super Congrats on your retirement plan way to go!

[SouthJamaica]

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@Roarmeister wrote:

I think I will retire... in about 5 years or maybe less.  I'm 58.  In March 2023 I will be mortgage free - I am currently 11 years ahead in payments on the 25 amortization.  I have a credit card debt that will disappear by April 2020, a car loan that I will zero out in May 2020 and I am paying the max amount into my RRSP fund [similar to a 401(k) for you Americans].  I plan not to have any debt when I give notice and retire.  I increased my charitable donations in the last 2 years - may as well help out the less fortunate.  I will have multiple sources of income - government pension (CPP and OAS), company pension, work-related RRSPs, private RRSP, deferred income and precious metals.  Life is good.  But it wasn't always so - 20 years ago I was nearly penniless.  Then I decided to get serious with my finances, changed jobs and worked at changing some habits. 

Right now, I transferred some of my investments into conservative funds from the aggressive growth funds.  I have this feeling that a major market correction (15-25%) is just around the corner and I want to protect my wealth.  We are long overdue and it wouldn't take much to get the markets skittish.

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If you think having your investments in a "conservative" stock fund will "protect [your] wealth" you may be in for a rude awakening.

[Roarmeister]

SouthJamaica: Perhaps you could elaborate?

[iced]

Retiring at 60 is a pipe dream for me.

At 41, we've only got about 25% of our target number saved up, so we're still looking at about another 30 years to the finish line. If the markets are favorable over the next 20 years, we might be able to move our date up, but for now we're looking at around 2047. To try to catch up, we've taken an aggressive savings stance and we're putting just under $50k/year into various retirement savings. I despair to think it still won't be enough.

We've also hit 40 quarters of maxed SS contributions, but by the time I retire I suspect SS won't be a thing anymore. No pensions, either. 

[Thomas_Thumb]

Well said, Doc.