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!

[TinyEvel]

Originally Posted by 2bikemike

What I failed to do was invest in a Roth. I have around a 14-16% effective tax rate in retirement. Nothing sucks more than to pay Uncle Same $1600 bucks for every $10K you withdraw from your IRA.

From what I understand they can only tax the GAINS in an IRA since you contribute to it with after tax money.

[2bikemike]

Originally Posted by TinyEvel

From what I understand they can only tax the GAINS in an IRA since you contribute to it with after tax money.

A Roth is pre tax dollars. So there is no tax on withdrawals. Your money grows tax free. A traditional IRA is pre tax dollars so every withdrawal is taxed.

[Bearcat]

Originally Posted by Mosbonian

Just thought I would bring this one back up to the top in case anyone new has retired lately.

The really nice part about retirement? When you have the Sunday Night and Monday Night games, there is no real rush to get up early in the AM to have to get to work.

And you can get in an afternoon nap so you can stay awake until the end.

[Mosbonian]

Originally Posted by GloryDayz

I'm one year and four days retired and LOVING it... Trips to Roatan to dive, Green Bay for Chiefs, Northern Iowa to teach Ice Diving, Cozumel for diving, Cayman Brac for diving, Cozumel #2 for diving, Roatan #2 for diving, Sint Maarten/Saba/Saint Kitts for Diving, Egypt/Red Sea for diving, Cozumel #3 for diving, and about ready to leave for Bonaire for five glorious weeks for diving... Then I have dive trips scheduled for Cozumel (kinda my 2nd home), Hawaii/Fiji, The Maldives, and Roatan setup for Jan-July 2025. While I'm retired I LOVE leading dive trips (saved a LOT of my nest egg...), so I guess I'm not 100% retired.

No matter what, I LOVE my retired life...

My nephew came down here about 4 years back to get some dive courses....he takes his diving seriously just like you seem to.

[GloryDayz]

Originally Posted by Mosbonian

My nephew came down here about 4 years back to get some dive courses....he takes his diving seriously just like you seem to.

For me it's a trip to my past, my current and my future (for as long as I can do it). It's my thing, Mrs. GloryDayz gets it and supports it, so I do it. Everybody who retires should "do their thing" and love every minute of it. In my case I do it and teach it, I'm giving back and hoping to share my passion with others who might find the ocean as wonderful as I do. But if a person is into, let's say, trains, I pray they share their passion in their latter half/third of life and let others find their passion.


It's a good thing...

[jerryaldini]

Originally Posted by Mosbonian

Just thought I would bring this one back up to the top in case anyone new has retired lately.

The really nice part about retirement? When you have the Sunday Night and Monday Night games, there is no real rush to get up early in the AM to have to get to work.

I'm feeling it right now, late game is so much more enjoyable!

I retired in May at 62 and I've never been so happy. My favorite thing is having time to go at a slow pace with no set schedule. Especially time and energy to exercise and go hiking. I'm running 3 miles a few times a week and often doing mountain hikes on other days. Physically I feel amazing, and being outside and exercising so much is great for my mental health too. Can't recommend it enough!

[Graystoke]

Well, I am taking the plunge folks.
After 36 years of employment with the same outfit it is time.
My last day will be February 28th. We then go to Mexico for 2-3 weeks...maybe longer right???
Looking forward to going into this with Spring on the horizon. Got travel plans ready and in my head thinking of all I want to do!
I am pretty excited. 3 Months ago I was wishy washy about it, but now I am convinced, I am ready.
I may re-enter the work force as a consultant as folks have already reached out asking. I am not going to immediately commit until I have a 2-3 months of retirement under my belt.
BIG CHANGES on the horizon and I am pumped for the change.

[HonestChieffan]

Originally Posted by Graystoke

Well, I am taking the plunge folks.
After 36 years of employment with the same outfit it is time.
My last day will be February 28th. We then go to Mexico for 2-3 weeks...maybe longer right???
Looking forward to going into this with Spring on the horizon. Got travel plans ready and in my head thinking of all I want to do!
I am pretty excited. 3 Months ago I was wishy washy about it, but now I am convinced, I am ready.
I may re-enter the work force as a consultant as folks have already reached out asking. I am not going to immediately commit until I have a 2-3 months of retirement under my belt.
BIG CHANGES on the horizon and I am pumped for the change.

Great plan....take some deserved you time. But dont wait too long to take the cinsulting work or they will forget who you were faster than you imagine

[scho63]

Originally Posted by Graystoke

Well, I am taking the plunge folks.
After 36 years of employment with the same outfit it is time.
My last day will be February 28th. We then go to Mexico for 2-3 weeks...maybe longer right???
Looking forward to going into this with Spring on the horizon. Got travel plans ready and in my head thinking of all I want to do!
I am pretty excited. 3 Months ago I was wishy washy about it, but now I am convinced, I am ready.
I may re-enter the work force as a consultant as folks have already reached out asking. I am not going to immediately commit until I have a 2-3 months of retirement under my belt.
BIG CHANGES on the horizon and I am pumped for the change.

Congratulations and good luck!

[Macroach]

Originally Posted by 2bikemike

A Roth is pre tax dollars. So there is no tax on withdrawals. Your money grows tax free. A traditional IRA is pre tax dollars so every withdrawal is taxed.

I think you meant to say the Roth is post-tax, while traditional IRA is pre/tax contributions.

Just a few ideas from this old guy:

- If possible, contribute as much as you can to the Roth. The money can grow to a billion dollars and you will not be taxed on any of the gains when you withdraw.

- Roth is a great vehicle because you can withdraw your PRINCIPAL contributions tax free (since you paid taxes on that one already). So for example if you contributed $100k, and it grew for several years, you could then withdraw any of the $100k without early withdrawal penalties or taxes.

- Look into the “backdoor” IRA -> Roth conversion. (Insert obligatory CP joke here). Or the “mega”Roth backdoor conversion. If they’re still around. Been awhile since I researched those.

[ChiTown]

Originally Posted by Graystoke

Well, I am taking the plunge folks.
After 36 years of employment with the same outfit it is time.
My last day will be February 28th. We then go to Mexico for 2-3 weeks...maybe longer right???
Looking forward to going into this with Spring on the horizon. Got travel plans ready and in my head thinking of all I want to do!
I am pretty excited. 3 Months ago I was wishy washy about it, but now I am convinced, I am ready.
I may re-enter the work force as a consultant as folks have already reached out asking. I am not going to immediately commit until I have a 2-3 months of retirement under my belt.
BIG CHANGES on the horizon and I am pumped for the change.

Congrats and well-deserved. Enjoy it all!

[BigRedChief]

Originally Posted by HonestChieffan

Great plan....take some deserved you time. But dont wait too long to take the cinsulting work or they will forget who you were faster than you imagine

I still get calls for consulting companies, remote work etc. I just tell them I'm retired. Wellll until the next hurricane whacks my house.

[BigRedChief]

Originally Posted by Macroach

I think you meant to say the Roth is post-tax, while traditional IRA is pre/tax contributions.

Just a few ideas from this old guy:

- If possible, contribute as much as you can to the Roth. The money can grow to a billion dollars and you will not be taxed on any of the gains when you withdraw.

- Roth is a great vehicle because you can withdraw your PRINCIPAL contributions tax free (since you paid taxes on that one already). So for example if you contributed $100k, and it grew for several years, you could then withdraw any of the $100k without early withdrawal penalties or taxes.

- Look into the “backdoor” IRA -> Roth conversion. (Insert obligatory CP joke here). Or the “mega”Roth backdoor conversion. If they’re still around. Been awhile since I researched those.

We tool our last annuity out of the stock market. We just have them in CD's getting 6%. Staying ahead of inflation.

The housing and insurance markets, politics, A.I. and all the uncertaintly coming with this new presidency. A lot of chances to see the stock market crash or slide significantly. If I was 30-40 I'd leave it in because it will wventually recover, But at 66, I've become risk adverse.

[crayzkirk]

Originally Posted by Graystoke

Well, I am taking the plunge folks.
After 36 years of employment with the same outfit it is time.
My last day will be February 28th. We then go to Mexico for 2-3 weeks...maybe longer right???
Looking forward to going into this with Spring on the horizon. Got travel plans ready and in my head thinking of all I want to do!
I am pretty excited. 3 Months ago I was wishy washy about it, but now I am convinced, I am ready.
I may re-enter the work force as a consultant as folks have already reached out asking. I am not going to immediately commit until I have a 2-3 months of retirement under my belt.
BIG CHANGES on the horizon and I am pumped for the change.

I've been retired for about three months, going on a trip to Arizona in March. I had thought that I might want to consult however the further in the taillights my work gets, the less I want to spend the time I have left for the benefit of someone else.

Get the Medicare, Social Security, 401k and pension stuff out of the way because it all takes time and is, at least for me, a source of frustration. The hardest thing for me so far is changing the mindset to spending instead of saving.

[ChiTown]

Originally Posted by crayzkirk

I've been retired for about three months, going on a trip to Arizona in March. I had thought that I might want to consult however the further in the taillights my work gets, the less I want to spend the time I have left for the benefit of someone else.

Get the Medicare, Social Security, 401k and pension stuff out of the way because it all takes time and is, at least for me, a source of frustration. The hardest thing for me so far is changing the mindset to spending instead of saving.

My plan is to retire (shut what remains of my business down) at the end of 2026 (I'll be 59). However, I plan to open a small consulting business that will allow me to keep 2 clients that will essentially pay the majority of my bills - my mortgage will be paid off in Dec of '26. I'd only have to "work" less than 6 hours per week to keep that up. Zero business travel and no office required. I'd most likely keep doing that until I'm physically/mentally unable to do so. The next 2 years are gonna be ball-busters, but they are also going to be 2 of the best years financially of my career. So, I'm gonna rack it up while I can