Retirement

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phreddyp

Well-Known Member
vraiblonde said:
What was his reasoning behind this?
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Most likely, this having a mortgage that you are paying 3% interest vs. an average 8% gain per year in the market you are picking up a 5% per year on money invested which you would not be able to invest by paying off the mortgage .
 
black dog

black dog

Free America
frequentflier said:
We attended a retirement workshop a couple months ago and the advisor said to not pay your house off. Guess what- we paid it off earlier in the day! Though we will have to plan ahead for insurance and property taxes, there is no longer a monthly mortgage payment! When we go to sell and move elsewhere, there will be a huge chunk of change to purchase another home that will likely be less expensive and pay cash.
He also advised that I wait until 70 to start collecting SS but I think I am going to disregard that advice as well. It's not that I "need" the money to live on day to day, but who knows what my life will be like 8 years from now. I'd rather have less now than to wait 8 years for more and then drop dead after a year or two. Though longevity runs on both sides of my family (my Dad recently passed as 90), I have never thought I would live past my early 70's.
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I have a hard time understanding why one would wait until 70 for SS. What is the reason you were told not to go a 66 1/2 at 100% ? Thats alot of checks from then until age 70.
Say at 2 grand a month for 3 1/2 years thats 84 thousand. Thats a bunch of years at the positive at age 70 to the break even point.

Will one live that long??????

And if one still wants to work,
Plus at 100% you can then make more than 18 grand a year without being penalized...
 
Hessian

Hessian

Well-Known Member
Could use some clarity on this: Does the SS Admin base your monthly amount on the average of your salary in the 5 years before retirement?
If so....for a Boomer (Jones?) who decides to go part time before quitting,...this could seriously hurt their monthly SS payment. Any folks encounter this situation?
 
itsbob

itsbob

I bowl overhand
Lot of variables.. do you have a retirement income from work? Social Security? May need a lot less than you think.. or may need a lot more.

But let's math. How much do you make today in a month? Subtract from that number any retirement income or Social Security that you'll get a month, what's left, multiply by 120.. that's what you should have saved in a 401K, IRA..
 
itsbob

itsbob

I bowl overhand
Hessian said:
Could use some clarity on this: Does the SS Admin base your monthly amount on the average of your salary in the 5 years before retirement?
If so....for a Boomer (Jones?) who decides to go part time before quitting,...this could seriously hurt their monthly SS payment. Any folks encounter this situation?
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Think SS is based on life time earning not "high three, or last three".. but that's just conjecture.
 
P

phreddyp

Well-Known Member
RoseRed said:
Hiding from loser riff raff. 😂
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itsbob said:
Think SS is based on life time earning not "high three, or last three".. but that's just conjecture.
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It is based on your highest 35 years of working , if you only have 30 years of working then zeros are entered for the other 5 years which brings down your average . I worked a couple of years at the end of my working life even though I had 35 years of employment those extra years knocked out a couple of really low earning years ( $12k $10k ) and replaced them with over $100,000 those years made a huge difference in my monthly check. It pays to get a idea of what you check will be a couple of years before you plan to file. The website is SSA.gov
 
Clem72

Clem72

Well-Known Member
TPD said:
The debt number is key in my opinion. When I hear of a 30 something year old family taking out a 35 year mortgage and a 7 year car loan, I cringe. At 24 we built a new house after living in a trailer for less than a year. Refinanced 8 years later to take out money to complete unfinished space in the house once the kid was born. Still paid off the mortgage in less than 25 years total. My goal is to retire by 55 with $2mil in liquid assets. I am 2 years away from the age part. I think I will have the $ part as well unless Biden screws things up.
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The laugh will be on us when they pay their house off early with inflated money worth 1/3 of it's original value while enjoying a 2% loan allowing them to keep their savings in the market where it will be (somewhat) protected against said inflation.
 
NextJen

NextJen

Raisin cane
A tractor, huh? Darn it. I would have thought my boat would have been more appealing.
Might have to rethink my retirement plan......
 
Hessian

Hessian

Well-Known Member
itsbob said:
Lot of variables.. do you have a retirement income from work? Social Security? May need a lot less than you think.. or may need a lot more.

But let's math. How much do you make today in a month? Subtract from that number any retirement income or Social Security that you'll get a month, what's left, multiply by 120.. that's what you should have saved in a 401K, IRA..
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That is a very interesting formula...I gave it a shot, and the projection was pretty close to what I already have in my 401b...Thanks!
 
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