Retirement Thread

[Mosbonian]

After the positive responses and congratulations on my Retirement thread, the idea came to me that there should be a thread that helps everyone prepare for the eventuality of retirement.

There were many great ideas, comments and great suggestions that came out of the conversation. What I would like to do is put this here as a repository for information for anyone who is:

• Ready to retire
• Close to retirement
• Beginning to plan for retirement

One of the things I came to find out is that no matter how much I had thought I was prepared for retirement, there were still things I had not pondered or prepared for.

So this thread is for all your questions, comments, advice to help others that are close to retirement.

I mean....this board is about a year and a half away from being around for a quarter of a century, and many of us who have been around are there already.

So, please feel free to contribute!

[philfree]

Originally Posted by Rain Man

Unfortunately, you're not wrong.

I'm assuming the K1 is owner distributions or some such thing. The easy way to check is to see if you paid self-employment tax on it, and I really doubt that you did. I think one purpose of having a K1 is to avoid paying that tax, which means you don't get the benefit later.

People always say to maximize your K1 to minimize taxes, but I never really saw a huge advantage in that. Other than medicare where you're going to get the benefit anyway, paying self-employment taxes on income is going to give you more social security income later. It's probably slightly better to take K1 income over regular income, but paying on regular income kind of creates a forced savings with regards to social security.

When I'm not wrong it's wrong.

[BigRedChief]

Originally Posted by philfree

BRC and Mos, without quoting I'll just say thanks for the responses.

I'm not sure how it works in regard to how much I'll get based off my income. I always had a smaller salary but received a lot of income in k-1 disbursements. If what thinking is correct I'll probably get my SS based on my salary and not my total income. Please tell me I'm wrong.

Easiest way to check is to make that social security account. It will show what SS says your salary was for each year. The SS throws out the bottom 5 years so that will help.

You need 40 quarters of work to qualify for SS. Its a complicated formula. Dont know how it works. I got a letter from SS I think, around 60 that I had qualified. Again, create the account and you can see where you are at with the 40 quarters of work.

[BigRedChief]

Originally Posted by Icon

My wife is a retired teacher (Kansas) and her SS is not affected by being a teacher. She gets her KPERS pension plus SS of about $2500/month. Combined total of about $4500. Very nice!

Happy for you but WTF SS? You got pissed off at Missouri teachers?

EDIT: Its about your state being a "Windfall" state. NHo idea what that means but Missouri is one, Kansas must not be.

[Bearcat]

Originally Posted by BigRedChief

SS rant

Holy shit navigating signing up for Social Security is a mess. So complicated and every sentence written, paperwork must be exact, no help with their ****ed up system. Beyond that....

Because my wife is a teacher of 40 years, she is going to get a fraction of my SS when I die. She'll get about $500 a month. I'm close to maxing out on SS so thats significant money when I'm gone.

And even though she paid in SS taxes just like everyone else all those decades, she only gets $800 a month. Thats $2K less a month than what she earned. Seems like its a "need" based system. But, billionaires still get SS, who came up with this idea that teachers don't deserve their full SS just like everyone else?

We have enough money for a comfortable retirement. It just seems unfair that you paid in for decades just like everyone else but you get 80% less than billionaires receive.

I don't think that should have been a thing in Missouri... the whole reason she doesn't get SS benefits in Missouri is because (I'd assume) she has a pension and didn't pay into SS.

Missouri is an opt out state... if she was paying into SS for 30 years or whatever , I'd think someone ****ed up and it's a shame if no one explained how it works all those years (not necessarily surprising, HR departments on average are terrible). The 2nd link specifically says Missouri teachers don't (well, shouldn't) pay into SS.

https://nces.ed.gov/programs/mapED/s...ity/index.html

https://benefits.lsr7.org/financial/...0Certification.

[BigRedChief]

Originally Posted by Bearcat

I don't think that should have been a thing in Missouri... the whole reason she doesn't get SS benefits in Missouri is because (I'd assume) she has a pension and didn't pay into SS.

Missouri is an opt out state... if she was paying into SS for 30 years or whatever , I'd think someone ****ed up and it's a shame if no one explained how it works all those years (not necessarily surprising, HR departments on average are terrible). The 2nd link specifically says Missouri teachers don't (well, shouldn't) pay into SS.

https://nces.ed.gov/programs/mapED/s...ity/index.html

https://benefits.lsr7.org/financial/...0Certification.

She paid into SS as anyone else does. In addition, she contributed to the pension. Maybe they changed the rules in the last 14 years we have been down in Florida? Maybe the Lees Simmit school district were idiots interpreting a law?

Only about 5% of teachers that start in education stay in the field their whole careers. What about the teacher that works for 7 years or so, then changes fields? They have lost 7 years of SS time.

She does get $800 a month from SS. But, Im not clear if thats from my taking SS or not. Still new to all this.

[Bearcat]

Originally Posted by BigRedChief

She paid into SS as anyone else does. In addition, she contributed to the pension. Maybe they changed the rules in the last 14 years we have been down in Florida? Maybe the Lees Simmit school district were idiots interpreting a law?

Only about 5% of teachers that start in education stay in the field their whole careers. What about the teacher that works for 7 years or so, then changes fields? They have lost 7 years of SS time.

She does get $800 a month from SS. But, Im not clear if thats from my taking SS or not. Still new to all this.

That first link says Florida is an opt-in state, so it makes sense she's been paying into it since you've lived there.

If you 100% have paystubs/info from MO that shows SS was taken out, if I were in her shoes I'd be really curious if that was supposed to happen... but I'm by no means a SS or Missouri teacher/pension expert. It would take a pretty massive **** up to be taking out for SS all these years and then not seeing that benefit back, but I guess it's possible.

But as you mentioned, the more you make, the more you put into SS and the more you get out of it, which really sucks for underpaid professions like teaching.

[BigRedChief]

Originally Posted by Bearcat

But as you mentioned, the more you make, the more you put into SS and the more you get out of it, which really sucks for underpaid professions like teaching.

I came close to maxing out SS due to my lifetime income, despite me not earning shit in my 20's. But, I was making 3X-4X what she was making as a teacher. They are so underpaid. They should be more respected and paid more but that's never going to happen.

[BigRedChief]

From Redditt

Retirement doesn’t need to mean Viking cruises on the Danube, or RVing for three years, or hiking the Pacific Crest Trail. I’m a huge fan of the Small Adventure, something that gets you out of the house for one thing or another, but requires neither a big expense or big time away from home. Let’s make a post cataloguing favorite Small Adventures to share. Here are some of ours.

[ ] Try one new recipe a week, especially if it involves a new, fun ingredient like swordfish, whole fennel, or garam masala. Take the time to shop for the ingredients, maybe in specialty shops.

[ ] Volunteer 2 afternoons a month at an animal shelter. Cats and dogs mostly need attention, touching, play time from volunteers. Training is an hour, typically.

[ ] Find a nature trail and walk it regularly. If it’s a 10 mile trail and you can’t walk that far, then park at one trailhead, walk to the next trailhead and back, and then walk the next leg next time.

[ ] Have one library book at home at all times. It’s nice to make a regular visit every couple of weeks to see new titles.

[ ] Go to the Tuesday matinee movie with your partner, which is usually dirt cheap.

[ ] Volunteer at your nearest grade school, helping 1st and 2nd graders read. Little girls and boys that are a little behind get special attention/practice with these volunteers.

[ ] Draw a 4-hour driving radius around your home for day trips. It’s amazing how many towns are inside that radius (unless Alaska, Hawaii, Montana) and there’s usually something fun in every town. If you leave by 8 in the morning, you’re there by lunch. If you’re done by 5pm, you can drive home. Otherwise spend a night in a motel and come home the next day.

[ ] Get to know your neighbors if you were too busy to do that while you were working. Just carry a plate of cookies, knock on a door. Hit the whole block by the time six months are gone.

[ ] With your spouse or a good friend, go to a sidewalk cafe, sip coffee, and tell each other fictional backstories of other people on the street. “He hasn’t seen her in 15 years and is wondering what she wants.” “She’s a field agent and got a report he’s been selling secrets to Venezuelans.”

[ ] Go to a fruit farm during picking season, get a peck of strawberries or apples or melons.

[ ] Test drive a new car every month. Give a fake email address. It’s a nice way to see what an Escalade or a Porsche feels like.

[ ] See how many federally managed parks and preserves there are in your state. With a lifetime senior parks pass ($80), visit all of them over the course of several years. There are about 2000 nationally.

[Mosbonian]

Originally Posted by BigRedChief

From Redditt

Retirement doesn’t need to mean Viking cruises on the Danube, or RVing for three years, or hiking the Pacific Crest Trail. I’m a huge fan of the Small Adventure, something that gets you out of the house for one thing or another, but requires neither a big expense or big time away from home. Let’s make a post cataloguing favorite Small Adventures to share. Here are some of ours.

[ ] Try one new recipe a week, especially if it involves a new, fun ingredient like swordfish, whole fennel, or garam masala. Take the time to shop for the ingredients, maybe in specialty shops.

[ ] Volunteer 2 afternoons a month at an animal shelter. Cats and dogs mostly need attention, touching, play time from volunteers. Training is an hour, typically.

[ ] Find a nature trail and walk it regularly. If it’s a 10 mile trail and you can’t walk that far, then park at one trailhead, walk to the next trailhead and back, and then walk the next leg next time.

[ ] Have one library book at home at all times. It’s nice to make a regular visit every couple of weeks to see new titles.

[ ] Go to the Tuesday matinee movie with your partner, which is usually dirt cheap.

[ ] Volunteer at your nearest grade school, helping 1st and 2nd graders read. Little girls and boys that are a little behind get special attention/practice with these volunteers.

[ ] Draw a 4-hour driving radius around your home for day trips. It’s amazing how many towns are inside that radius (unless Alaska, Hawaii, Montana) and there’s usually something fun in every town. If you leave by 8 in the morning, you’re there by lunch. If you’re done by 5pm, you can drive home. Otherwise spend a night in a motel and come home the next day.

[ ] Get to know your neighbors if you were too busy to do that while you were working. Just carry a plate of cookies, knock on a door. Hit the whole block by the time six months are gone.

[ ] With your spouse or a good friend, go to a sidewalk cafe, sip coffee, and tell each other fictional backstories of other people on the street. “He hasn’t seen her in 15 years and is wondering what she wants.” “She’s a field agent and got a report he’s been selling secrets to Venezuelans.”

[ ] Go to a fruit farm during picking season, get a peck of strawberries or apples or melons.

[ ] Test drive a new car every month. Give a fake email address. It’s a nice way to see what an Escalade or a Porsche feels like.

[ ] See how many federally managed parks and preserves there are in your state. With a lifetime senior parks pass ($80), visit all of them over the course of several years. There are about 2000 nationally.

This is one of the best posts on this thread......you don't need to be Jet Set John and Jane to enjoy your retirement. I love all of these suggestions save for the one where I go to my local coffee house and make up stories.

The Senior Lifetime Pass is one of those things many people overlook....I know I did once I turned 62 and now I regret it. $80 to go to any National Park for free? And if you don't want to do the Lifetime Pass and just want to try one out for a year? They have the Annual Pass for $20.

Here's one.....make yourself an expert on all the places that you get Senior Discounts....there are loads of places that either give you a free drink or coffee but you have to ask. Make sure you ask for any Senior Discount....find the stores that have Over 55+ Discount Days....

I've been doing the volunteer reading program for a couple of years...but now I plan to invest more time in it because nothing is more fun than watching kids be enthralled with a good book. Making a book come alive for a young boy or girl to dream is paying it forward in the best way.

Here's one that takes dedication....and an earnest desire to help your fellow man. Go to one of the local retirement homes and make a friend. Unfortunately there are way too many people that are dumped in a Senior Citizens home by the family and rarely do they visit. Sit down one or 2 days a week and just talk with them....find out what is in their diet and what they are allowed to eat/drink and bring it to them. You tell them stories or let them tell you stories...in some cases you can read a book to them....heck in some cases you just sit and watch an old movie or television show they love.

I am just starting into retirement....and each day I am fascinated by what I really don't know or think about that life holds for me and the opportunities I have to give back.

[|Zach|]

Originally Posted by Icon

My wife is a retired teacher (Kansas) and her SS is not affected by being a teacher. She gets her KPERS pension plus SS of about $2500/month. Combined total of about $4500. Very nice!

I am in a similar position on the Missouri side. I have a while but now that I am 40 I am starting to try and run the numbers or looking into the crystal ball in regard to what LAGERS (pension) and SS will look like. A lot pension wise is determined by my last 3 years of service. I *could* retire at 55 but I doubt that is in the cards for me we will see.

[trndobrd]

Originally Posted by BigRedChief

Happy for you but WTF SS? You got pissed off at Missouri teachers?

EDIT: Its about your state being a "Windfall" state. NHo idea what that means but Missouri is one, Kansas must not be.

Originally, SS was not available to government employees that had state retirement plans. When SS was expanded in the 1950s to include public employees, some states chose to opt out. A few states later joined SS, but many teachers retired without enough years accrued in SS to get a retirement benefit.

https://www.teacherpensions.org/blog...ocial-security

[BigRedChief]

For those who have been retired 6 months or more. did you find that keeping a semi-regular schedule helps ease into retirement or did you give yourself a year to figure out what the hell to do with the rest of your life?

Staying up and binging something on a work night does hold a little fun. Those poor slobs are getting out into traffic, dealing with overbearing bosses, insane deadlines and unsatisfied customers or suits.

My wife was a teacher, retired "officially" as of tomorrow. The teachers have to report and start work for the new year on Friday. We are going to the beach.

[tmax63]

I "officially" retired as a civilian from Uncle Sam 6 years ago when I turned 56 after 32 years with him in one uniform or another. Saw too many military retirees who passed after they retired because they didn't have a mission (aka good reason) to get up every day. I retired on Halloween of 2017 and by early spring I and my spouse knew I needed to get out of the house for both our sanity. I got 2 part time jobs, one 12 hours a week and the other 3-5 days per month. Having a 40 acre hobby farm helps keep me busy as well. So, to answer your question, it took me about 3-4 months to get "restructured".

[CatinKS]

Retired 1 yr and 11 months. I took the first 6 months to detox mentally after 32 years of corporate life. No more deadlines, getting up at 7am for conference calls, or being stressed about contacting individuals, who really didn't want me addressing concerns my company had to complete a project. Would multi-task with as many as 15+ projects ongoing with contractors and company employees. I was the blunt end of discontent by property owners for the actions of the employees and contractors.

Had a computer display with 3 screens at once, which looking back probably led to some brain scramble issues, as I was trying to problem solve several different tasks at the same time. There were times I would send written correspondence out via regular mail or email and would need to verify shortly afterward that I completed, as I couldn't recall. It was not healthy.

After 6 months, I decided to volunteer for the Red Cross and supported blood drives as a pickup driver and delivery to hospitals. The Red Cross is very dysfunctional and most of the regular staff have a love hate opinion of their career path. They were too woke for me, and it drove me to forgo being a volunteer after 11 months.

This led me to a parttime job now, (not required for income) but need the responsibility and reason to connect with the general public. Work 10-15 hours a week making prescription deliveries to those organizations that support Individuals with intellectual disabilities.

Looking back, I realize how blessed I am to retire at 59. My retired life is such a relief to my fulltime working life. When asked to describe retirement I respond with it is "Preschool for Heaven" as I can enjoy activities and sleep terms on my clock. Oh yes, the biggest benefit of retirement has been rest! I go to sleep when I'm tired and get up, minus the bathroom break when I please!

[Rain Man]

I'm one month from hanging 'em up as of today. But it's a 31-day month so it's still a long way off.