At 57, I’ll probably work a good 10 years or so, but finally starting to see the light at the end of the tunnel. Just about debt free and sockin away my max 401K and trying to get all my ducks in a row.
Of course, there’s plenty of books and advisors available, but I figured I’d post here and ask for some feed back from some of you guys who’ve actually already retired.
My biggest concerns are things I may not be thinking about or costs I may be underestimating.
A few of the things that come to mind:
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Any expenses that caught you by surprise? things like fees on IRA/401K accounts?
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Would you have done anything differently on investment strategies as you neared retirement?
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Anything you would have changed as far as when to start collecting SS/Medicare? buy supplemental insurance?
In short, I guess what I’m asking is, “Looking back, is there anything that, knowing what you know now, you would have done differently?”.
TIA for any words of wisdom and congratz!!
'07 198 DLX Carolina Skiff
FS90 Suzuki
Make sure that you have a good car (and relatively new) that is paid for. That has been my biggest headache. The constant repairs and not having the money it takes to buy even a good used car. Also try to be mortgage free. Always pay your credit cards off and save more money, and then save some more. You might want to start practicing living on what your monthly income may be with social security/retirement. I had a stock broker mess me up a couple of years before I retired, he put the bulk of my retirement in high risk stocks, needless to say I lost about 50% of it, so make sure you don’t keep all your investments in that kind of stock. Any tools or toys you think you may want then, you better get and pay for them now. I know all this sounds obvious but the car thing has really hurt me and I am stuck in a not so wonderful situation with it. Good luck.
Oh one good thing, when you are 65 you can apply for a Homestead Exemption that will really cut your property taxes down.
WS Tarpon 120
WS Tarpon 100
Heritage Ultralite 9.5
Ghennoe & 6hp Suzuki
Scout 153 & Yamaha 60
Dear Striper…Forewarned is forearmed. 1st…Eliminate debt. No mortgage, no car payments, no revolving debt(credit cards)and NO NEW DEBT! Pay cash for everything. If you don’y have the cash, you can’t buy it…PERIOD! Alter your lifestyle…don’t eat out, don’t travel for vacations, cease buying expensive gifts. You get the idea…be frugal. Save, save, save. Pay yourself first after eliminating debt. A large cash reserve trumps all other retirement strategies. Allocate your retirement investments towards bonds vs. stocks. Perhaps 60% stocks(stock index mutual fund)40% bonds(intermediate term bond mutual fund). Keep it simple with low. low fund expense ratio’s(fees). No load funds if available. When you get within 5 years of retirement re allocate to 40% stocks, 60% bonds. When you retire, re allocate to 30% stocks and 70% bonds. You are lowering your risk exposure relative to income and age. Health care expense is the true boogeyman. Get serious about preventive healthcare…diet and exercise. Stop smoking and drinking. Work in partnership with your spouse. Become a team. Have a plan, have goals, have time set aside to discuss and review and be prepared to make changes for improvements. Be honest and live in the real world. Conclude what is really important in your lives. Don’t take SS early, sign up for Medicare as soon as eligible. Supplemental insurance and Long Term Care insurance become very relevant by age 65. Do your homework now…be informed and prepared. Use free advice…the internet, seminars, written articles, etc. Discuss in a business like fashion with your spouse. Develop clarity, certainty, and confidence. Automobiles are depreciating assets. Squeeze as much juice as is reasonable out of them. Consider alternative public transportation, and limited use of cars in retirement. Reverse mortgages are expensive, but evaluate your situation and do the math. It could be a resource. Evaluate your living arrangement…too much house…too remote…too many repairs