Retirement

Mike, without a doubt you guys are doing better planning your retirement than most your age. As others say, and I agree, just keep jeeping and RVing all you can now and before you know it retirement will be here. All in or nothing worked for me, and suddenly before I new it soc sec arrived. You two are doing great, don't change a thing.

Ken & Sheila said:

Mike,
Your RV/jeep trips are a good way to help keep the balance.

If you gave up all travel to just work and save, I'd be worried.

ken

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Thanks Ken, I should have stated that besides saving for retirement, RVing is all I can think about.

Ken, I partially blame people like you and Sheila as it has really opened mine and Chrystal's eyes as to the joy of retirement and the need to be part of a social network.  The people on this forum that we have met are what is encouraging Chrystal and I to get into a position where we can afford to retire earlierer rather than later and enjoy each other as well as our friends.

Neither Chrystal nor I came from families that RVed, nor had a group that they did these kinds of things with.  So again, I blame the great people on this forum for my dilema and stress.

I may have mentioned this in the past but for many years my idea of retirement was going to be load the race car in the trailer, hook up to the coach and hit as many race tracks across the country as possible.  Although it would be fun, racing is quite stressful at times and for Chrystal sitting back in the coach while I was thrashing to get to the next round wasn't exactly fun for her.  She never complained but I could tell that it was getting less and less fun for her. 

When we attended the first RVForum rally over 4 years ago was when my mindset started to change.  I finally realized that I just wanted to be with my wife traveling around meeting up with friends across the country and enjoying life.  THAT has been both our goals for the past several years and is what we are aiming for.

So again, everyone here is partially to blame for my stress and worries.

Mike.

taoshum said:

FWIW...  no matter what the fin plan says, the crash of 2008-9 can happen again, probably will happen again...  none of the fin plan "experts" know...worry won't change this.  So IMHO, it's one day at a time for expenses (which you can control)... and it's diversification for the assets (which you can also control)...  after that, who knows?  There are no magic bullets and counting on a return of more than 4-6% over inflation seems speculative to me.  There's no shortage of uncertainty these days but worrying about it probably won't change much.  As Warren Buffet said recently when ask what how he intends to provide for his wife in due time, not that they have any financial worries..., he recommended enough cash for several years of expenses and the balance in the SNP-500 index fund...  Over time he's probably on target, keeping investment expenses low, riding out the bumps and living within one's means.  Then I read that a 1% management fee, compounded over 30 years, takes 34% of the principal... so the 0.1% fee for an index fund looks much better since it only takes 3% of the principal.  Oh well.

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I completely agree with your numbers Gary, that is what I mean when I stated I have him calculate based on the conservative side.  I listen to some of my co-workers talk about the 15, 20 and 30 percent returns that they are being told to expect and it doesn't add up.  Those gains are possible in hit and miss quarters or years but not over the entire course of investing.

Our investment guy did great for us during that downturn in 2007/08 because he got us out of many investments we were in through our companies poorly managed plan just before the correction happened.  Once it dropped we started jumping back into the investment side whereas many of my co-workers were getting anxious and got out.  We did the most growth when the market swung back the other way.

I paid attention to one professor many, many years ago when he briefly touched on the stock market and investments.  He stated, "when people get greedy I get nervous, when others get nervous or emotional about their investments, I get greedy."  It didn't mean much back then but I completely get what he meant now.

Mike.

Becks said:

Mike, without a doubt you guys are doing better planning your retirement than most your age. As others say, and I agree, just keep jeeping and RVing all you can now and before you know it retirement will be here. All in or nothing worked for me, and suddenly before I new it soc sec arrived. You two are doing great, don't change a thing.

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Thanks Gary, I feel good about the path we are on and beleive me, I am not trying to wish our lives away.  I just want to be prepared.

We actually had to cut a few people that we used to hang around with out of our lives because of their toxicity.  I am sure everyone has met those people or know what I am talking about.  They were never happy unless they were spending money on something and the bigger something the happier they were.  The problem was once that "high" was gone they would be in the dumps and nothing was going right and the world was against them.  Until the next big purchase was on the horizon, then their spirits were back up again.

Unfortunately I just described most people in my age bracket.  Chrystal and I met these people as they were neighbors, but as they started making more money in their careers, they bought bigger and bigger houses, newer and newer cars, trucks, boats, snowmobiles and everything else.  The old saying "keeping up with the Jones's", well these people wanted to be the Jones'.

We just simply couldn't afford to play that game AND provide for our future so we chose a different path because it was so hard to be surrounded by that mindset.

After sitting down as a family a few years back and deciding on what was really important, what activities we really enjoyed and what we really wanted for our future, we sold pretty much everything except what we truly enjoy.  It dawned on us that these people really didn't enjoy what the had, they enjoyed the search and the acquisition of things and stuff.  We just wanted to simplify our life and enjoy what we had rather than acquiring more, just a different mindset and I think it is working for us.

Mike.

It is really important to find that balance between work and play. I found out the hard way that if you don't play today, you'll forget how to play tomorrow. That's my biggest problem, I quit working in June 2009 and I have yet to fully take advantage of the fact that I don't work. Each day I make strides though, I am learning how not to work, slowly but surely. I have high hopes for 2015.

When I retired in 2002 (age 60), we changed our whole outlook by selling out and moving to a lakeside home.  The fishing was great and living in the "outback" was, too.  But, 12 years later, my wife put it well when she said, "I think we've used the lake up."  With both our health conditions slowing down and the grandkids that used to come every chance they got for skiing, tubing, swimming and just raising cane, now grown and out on their own, we find we are ready to move in closer to civilization and services.  We should close on our new home in town next week or the week after.  I'm ready to quit lugging in wood pellets in the winter and keeping up a really big yard in the summer and raking bushel upon bushel of leaves in the fall.  We gave away our chickens a couple of years ago and have two boats to sell.  Then I have my 5-bay garage to clean out which might take the rest of my life.  But, if anyone is interested in a 3-bedroom home with a huge garage/shop building on Bull Shoals Lake in SW Missouri...PMs are welcome.

Oscar Mike said:

It is really important to find that balance between work and play. I found out the hard way that if you don't play today, you'll forget how to play tomorrow. That's my biggest problem, I quit working in June 2009 and I have yet to fully take advantage of the fact that I don't work. Each day I make strides though, I am learning how not to work, slowly but surely. I have high hopes for 2015.

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I too have high hopes for 2015 John.  If all goes well we'll have our coach paid off about mid-year and we have some fantastic trips planned for the season.  We're looking forward to seeing everyone out and about at some point in the year or another.

Mike.

return of more than 4-6% over inflation seems speculative to me

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I listen to some of my co-workers talk about the 15, 20 and 30 percent returns that they are being told to expect and it doesn't add up.

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Back about 1978-1979 I was working on an MBA and our finance problems all used 7% as the return on investment and so forth.  Now we're lucky to see 1-2% interest.  Anyone who thinks they'll get returns of 15% and above must be living on another planet.  On Wednesday the markets plunged, Thursday they soared, today they plunged again.  It's tough to plan in such and up-down environment but staying conservative in expectations will help your planning.  And, of course, remember the adage that if it sounds too good to be true it probably is.

Unfortunately I just described most people in my age bracket.  Chrystal and I met these people as they were neighbors, but as they started making more money in their careers, they bought bigger and bigger houses, newer and newer cars, trucks, boats, snowmobiles and everything else.  The old saying "keeping up with the Jones's", well these people wanted to be the Jones'.

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Mike, we've known a few of these people too.  While we stayed in one house for 29 years, they were busy upgrading every couple of years.  Some chided us for not moving up to a bigger and better house.  But as attached as they were to the concept of spend, spend, spend, they weren't happy as you noted.  Other friends who were more like us (paying off mortgage, saving for retirement, etc.) are still like us and comfortable in their paid-off homes and enjoying their retirement.  Stick with what you believe in and you'll be just fine!

ArdraF

Molaker said:

When I retired in 2002 (age 60), we changed our whole outlook by selling out and moving to a lakeside home.  The fishing was great and living in the "outback" was, too.  But, 12 years later, my wife put it well when she said, "I think we've used the lake up."  With both our health conditions slowing down and the grandkids that used to come every chance they got for skiing, tubing, swimming and just raising cane, now grown and out on their own, we find we are ready to move in closer to civilization and services.  We should close on our new home in town next week or the week after.  I'm ready to quit lugging in wood pellets in the winter and keeping up a really big yard in the summer and raking bushel upon bushel of leaves in the fall.  We gave away our chickens a couple of years ago and have two boats to sell.  Then I have my 5-bay garage to clean out which might take the rest of my life.  But, if anyone is interested in a 3-bedroom home with a huge garage/shop building on Bull Shoals Lake in SW Missouri...PMs are welcome.

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Just when we think we have a handle on life...change happens and we are starting over once again. It is a wonder thinking back at how many new beginnings I've had in my life, each one turned out for the better, kind of like Someone's hand was directing things...

Good luck on the sale of the lake house.

I was forced into retirement through medical issues.  Wife and I hung in there, running her business, until Feb of last year.  Then we looked around, said 'Dang, we are both 65, and time to do something else.'  We sold our home in Dallas, bought a smaller home in southwest Florida, bought a boat and a RV.  We have had one cruise, looking at another this May.  Planning a multiweek trip across the US to Seattle. 

When you are not paying for a bunch of new cars, owe little on a home, not commuting to work, etc, it is amazing how much further your cash goes.  Wife is drawing half my SS as hers was lower. 

We made the decision to retire based on both of our parents experiences.  Wife's father and my mother both died of cancer not long after retirement.  They all worked hard, didn't travel much.  So instead of seeing things they wanted to see, they were not able to enjoy retirement. 

We are NOT going to have that happen.  We are starting new careers, but careers that fit our traveling lifestyle.  And we are going to enjoy life as long as possible.

Some of the best advice I ever got was from a dear friend and supervisor on the job. We were sitting around one morning about 3 AM chatting about finances.  His small piece of advice saved me from the crash of 08'.  We were talking retirement and he said "when you get within 3 years of retirement, get out of all the risky high return stocks. Get into bonds, or something that is minimal return with a safe principal. If there is a stock drop, you won't have time to make back all you lost".  So when I got within 3 years of retirement (I retired in January of 08') I pulled all investments and got into an insured savings fund.

For a few years all my buddies laughed when I told them where my investments were.  Then about mid 08' the bottom fell out.  Some of my friends lost 40% of their accounts over night.  I made 5% on my account that year.  And 4% the next.  Some of them are still working trying to get even again.

I owe Doug a huge debt of gratitude for his advice.

All but one of our stocks got nailed in the Great Recession, luckily our stocks were less then 10% of our portfolio at the time. Happily we had one stock that did perform during the downturn, which has grown 400% +/- since our purchase (bought at $11.00 and yesterday it closed at over $40.00)...I invested in garbage...

I left it completely alone after '08 and had fully recovered by late 2010. Only had one down year.

Ernie

But you were fortunate it could have been devastating as it was for many.

We too got out of equities before that happened and lost nothing.  Earnings aren't good but we didn't have to reearn any
of it and hubby could have retired if he wanted too.  When you get close to retirement is not the time to gamble with your
savings or at least that is our opinion.  It will crash again at some point and now we wouldn't have 10 years to wait for it to come back, we may need some of that money.

At the time, I was glad I had previously reduced my equities holdings significantly.  My hit in 2008 was minimal.  Maybe 15 to 20%.  In retrospect, I'm not so sure.  The market has recovered nicely and is currently about 25% greater than it was in 2008.  If only my four-sight was close to my hind-sight.  But in spite of what uncle tells us, inflation is a tad more than 2%.  So for those of you that are protecting your investment with no or low risk money markets and bonds, you are probably losing money.  Inflation is not a big deal unless you plan on living more than a few years.     

Or you worked longer and saved more money.

If we could predict the market we'd all be much richer.  When I hit 65 last year I "blinked" and moved about 2/3 of my funds out of equities.  I'm making somewhat of a bet that those funds still in equitiies won't be needed during the window I would have to recover any downturns.

Good info on this thread and lot's of definitions of success.

Curious Oscar Mike,

Do you spend any time in Roseburg Oregon?? Just wondering what your home base is. I have a family in Oregon that I visit when ever I can.

If you spend some time there then maybe I could talk you into spending a day or two (or lots more time if you wish) at the Oregon Star Party near Prineville. I'd be glad to share my scope with you and any of your family members that happen along. I'll probably have some of my own family members with me as well.

Back to the subject at hand: My problem isn't wanting to work too much........although I have to, my problem lies with downsizing of my company and being put in a position of having to work a lot more than I like to. I've always taken time out for vacations and taking it easy. Perhaps a bit too much. I am successful at what I do but I am more than ready for retirement and hope to be with the retirees very soon. I've got a ton of wanna do projects in which to do when retired and look forward to doing them.

BTW, is a honey do list the same as having a list so your not declining??  ;D

camperAL said:

Curious Oscar Mike,

Do you spend any time in Roseburg Oregon?? Just wondering what your home base is. I have a family in Oregon that I visit when ever I can.

If you spend some time there then maybe I could talk you into spending a day or two (or lots more time if you wish) at the Oregon Star Party near Prineville. I'd be glad to share my scope with you and any of your family members that happen along. I'll probably have some of my own family members with me as well.

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We spend a couple of weeks every summer in Roseburg, OR. Susan's mother lives in Roseburg. Our home base is in Southern Nevada.

I got nailed on some of my stocks in 2008, frozen where I couldn't sell them (legal issues).  Finally sold at $0.35 a share, took the tax loss.  But looks like I might get at least a few bucks more.  The big investment companies sued and shareholders got a $170M settlement.  Now the attorneys are going get a big chunk but might get enough to take the wife out to dinner,