Continuing the Adventure

Posted on September 14, 2012 by Mr G

Planning (cont’d)

Hey Folks,

MG back again. Continuing from where I left off…I always figured that if I needed some extra bucks I could go back to work, IN JERSEY, in a part or full time accounting job. I would not need to make the same amount as before. In the next couple of months I plan to attend school for the noble profession of bartending.

I feel it would be a fun way to keep busy, make some bucks if needed and hopefully there will be samplings of new liquid creations. Also, I think it would be great to watch the old geezers trying to pick up young chippies. I was also thinking I could teach accounting in a community college or at nights if need be (but that would be my last resort). In all seriousness if you are able to retire with some sort of a payout that may not be enough income to fully survive you might want to determine whether or not there is something you can do to supplement the income in order to get out of the rat race.

You could also get training in something you like that could bring in some extra dough. You can go to the following msnmoney website that talks about 10 new careers after 50 for some ideas: http://money.msn.com/baby-boomers/10-new-careers-after-age-50#scptih$
Of, course there is social security (well, hopefully some of us will be able to get some benefit from this program). For me personally, I feel it’s good to take advantage of it as soon as possible.

In some cases some people can start to collect at age 62. The party line is that one could collect more if one waits to collect at 65 or older. As far as I’m concerned I’d rather start collecting at a reduced rate while I can enjoy it. Who says I’m gonna make it to 65 or older. Meanwhile I’m giving the government use of my money which I can party with. One way to look at this is to make a guestimate as to how long you think you’ll be on this planet. Then you can look at the total payout based on whether or not you begin collecting sooner or later.

Now you’re probably wondering what I’m doing with myself since I’ve been off the wheel for the last few months. I’ve been swimming, biking, working with weights, sitting out in the backyard with cocktails, back to playing guitar…being a BUM. I’m also involved with my church and I served at a soup kitchen a few weeks ago. I’m staying busy. That is very important when one reaches retirement. I’ll get into that when discussing health.

OK. Enough for today. This is way more work than I have done in a while. In summing up, if you are thinking about retirement more often than politicians making promises they can’t keep, then it’s a good bet you’re ready. You need to make absolutely sure it’s time for the plunge. You should put together a timetable that is reasonable. If you have a partner both of you need to discuss this change that will take up the last third of your life. If you don’t believe you’ll have enough funds for when you retire, then you need to re-evaluate the situation and determine what you need to do to increase the funds (financial advisor, increase savings, IRA’s, 401K, etc.).

Well, time to go to the Xbox 360 for some carnage. Until next time, stay well. And again let us know what you think and feel free to tell others to check us out.

Finally Beginning the Adventure !

Posted on September 2, 2012 by Mr G

 

Howdy Folks,
MG here. I finally did it. I did the big R word…RETIRED. As you know the purpose of this site (by me and my high school buddy who is the website Brainiac) is to talk about retirement.  I will give my insight into this change in life as I live it and what I pick up from others.

In the beginning I will discuss retirement in terms of planning, health and possible places to live in the golden years.
I figure it would be nice if I gave you a little bit of information about me. I am a male living in New Jersey, 58 years old, an ex-accounting professional with a CPA and a master’s degree.

I have worked in the private and public sectors. Oh…the most important thing is that I am an ex-guitarist/singer from a rock band that did its final gig this past January in my old neighborhood in Queens, New York. Quite frankly I really wanted a career in rock ‘n’ roll but as I always said, “I’d rather play the blues than live ‘em.” And the final bit of info is that I am married without kids. I’m not sure if a dog counts.

So at this point the wife goes to work…the dog and I hang out.  I will periodically put tidbits on the site regarding this great stage of life. To a certain extent reading this stuff will be like looking at the old Saturday afternoon movie serials.  Only I might not be as constant.  That being said, as Ed Schultz says, “Let’s get to work.”

Planning
I began planning my retirement last summer.  I knew I would qualify for a full pension this year as I would have the age and years necessary to retire without penalty. There were three things that I kept in mind:

• Was I ready?
• Was this a good time to do this?
• Would we be financially OK with one full salary and a pension considering we would still have the same expenses (mortgage, real estate taxes, upkeep of house and property, living La Vida Loca etc.)?

First off, I can definitely say I was ready. I worked in mid-town Manhattan in New York City. I was travelling four, yes, four hours a day (two hours each way). The job was just that…a job. In addition to that, there were layoffs two years ago and the morale throughout the place was below sub-basement level.  So it was time to go and get on with my life.

My wife and I discussed this change (as an aside, it probably would be a good idea to discuss this with your spouse, partner or significant other).  Investments would come into play with this decision. However, some of them are in IRA’s. So that means those funds can’t be touched until age 59 1/2. Since my place of employment had not given raises in four years it wasn’t worth it to stay to see if raises would be given which could possibly increase the pension. By not working in the city I was saving on paying for transportation. Between monthly train tickets and quarterly parking the yearly total was approximately $5,000. I would be saving on lunches and dry cleaning bills. So, in a way my pension would be close to my net pay that I brought home when employed.

It should be noted that each situation is different which is why one has to work out the numbers. If help is needed you might want to consult a financial advisor. They can run different scenarios for you based on when you want to retire.  They can give you an idea when the move may be possible.  It should be noted that the timetable can change based on the human and financial condition. But that is why you bring one of these individuals on.   I feel it’s never too late to find one. 

We have had one for approximately fourteen years.   I have to give my wife credit about getting one. I wasn’t really enthused about doing this. My advisor was instrumental with helping me do well with my 401k that I started at my job. He guided us during the 2008 financial fiasco.  Now advisors cost. If you are interested you can go online or go to the library to find one. You should shop for the best deal. You should feel comfortable with the individual.  Possibly your bank can point you in the direction of a competent individual. 

Now when you are conversing with these people you can get explanations that have no relation to the language you are speaking.  Make sure you understand what they’re talking about before signing anything.  Even when you take them on, if there is something you don’t understand keep asking them to explain until you are comfortable, especially when they are suggesting certain investments to make.

Don’t forget:  THEY WORK FOR YOU AND THEY ARE GETTING A FEE.  If you can’t afford an advisor, again, you can go try to do research at the library, online, etc.  Just don’t ignore financial planning

Well, enough for now.  Time to get something to quench my thirst.  Stay tuned for more tidbits.  And do feel free to comment, question and let others know about this installment and future discussions on this blog.

25 Investment Picks To Retire On

These are the “25 Investment Picks For Retirement” from cnn.moneyc.com
Our financial expert always recommend you do your “home work” before making an investment. That is check the company of interest earnings, costs and it is preferred that you buy what you know. Buy in an industry or product you know about.

We do not endorse any of these picks, not being finance experts so read the article and let us know if your making money !

(click here for original article link on money.cnn.com)

1. Markel (MKL), a property and casualty insurer
2. Waste Management (WM)
3. FedEx (FDX)
4. Morgan Stanley (MS)
5. Trinity Limited, Chinese men’s wear retailer
6. Teleflex (TFX), medical devices
7. CVS Caremark (CVS), drug store
8. Smart Balance (SMBL), health foods
9. Ping, insurance group
10. Ensco (ESV), oil drilling equipment
11. Mortgage Bonds
12. Novartis (NVS), drug company
13. South Korean and Malaysian Bonds
14. LAN Airlines (LFL), Chilean airlines
15. ACE Limited (ACE), insurer
16. Tesco (TES0), U.K. based grocery chain
17. Allstate (ALL), insurance
18. Baidu (BIDU), the “Google” of China
19. Colgate-Palmolive (CL)
20. Microsoft (MSFT)
21. Compass Group, runs cafeterias for corporation, sports areas, etc.
22. Occidental Petroleum (OXY)
23. Lukoil
24. Ericsson (ERIC), Swedish telecommunications company
25. Weyerhaeuser (WY), timber and paper

10 Tax Un-Friendly States For Retirees

10 states has been listed by Kiplinger as the most tax unfriendly for retirees for 2011. Called “tax hells” because of their higher than average tax across the board or because they do not exempt much retirement income from state taxation.
Here is the list:

1. Vermont
2. Minnesoda
3. Nebraska
4. Oregon
5. California
6. Maine
7. Iowa
8. Wisconsin
9. New Jersey
10. Connecticut

10 Best Places To Retire In The USA

Beach Fun

Whenever experts set out to find “great places to retire,” they tend to dwell on cost of living and health care.

In this list the cities all have good medical care and are affordable but also include a focus on a lifestyle where there is a balance between outdoor recreation, cultural and educational institutions.

1. Austin, Texas – Population 790,400. Beautiful outdoors, lakes, swimming holes, 10 months of warm weather although hot in the Summer. Music, opera, symphony, ballet. Good medical facilities, no state income tax. Medium home price is $235,000.

2. Clearwater, Fla. – Population 107,700.  Midway up the Florida peninsula on the Gulf of Mexico. Postcard perfect coastal resort town. Real estate prices are down about 50 percent with a two-bedroom condo going for about $200,000. Near bigger cities like St. Petersburg, for fine art museums, orchestra. Baseball teams train in nearby Tampa.

3. Fort Collins, Colo. – Population 144,000 with 30 miles of bike roads. Summers are for biking, hiking, camping, golfing and boating. Winters are for skiing. Highly regarded microbreweries. Medium home price is $221,400.

4. Marquette, Mich. – Population 21,300. You must like snow, average 141 inches of snow. Summer beaches along Lake Superior or water sports. Top hospitals and medium home price is $130,000.

5. Pittsburgh, Pa. – Population just over 300,000. Financial/high tech/health-care based economy. Sports, shopping, restaurants, galleries, arts, museums, universities and top-notch hospitals. Medium home price was $112,000 in August 2011.

6. Portland, Ore. – Population 583,800. Forty breweries, coffee houses, laid-back, easy going lifestyle, craft shops, excellent restaurants, nightclubs. Medium home price is $263,300.

7. Santa Fe, N.M. – Population 144,170. Giant cultural heritage, opera, arts, museums, mild climate, with winter sports nearby in Sangre de Cristo. Medium home price is  $380,000.

8. Walnut Creek, Calif. – Population 64.000. Twenty miles from San Francisco, parks, bike trails, golf courses, theater and arts center,  mass transit but medium home price is $430,000.

9. Washington, D.C. – Population 601, 700. Good mass transit, top museums, like the Smithsonian, excellent performance arts center, Kennedy Center, mild climate. Drawback: medium home price is $450,000.

10. Winston-Salem, N.C. – Population 229,600. Good mass transit, universities, arts and medium home price is $137,000

Best Money Moves For Seniors

Money

1. Turning Assets Into Income:

Past advice recommends withdrawing 4% of you assets the first year you retire, adjust annually for inflation, which will give you a 90% chance of your money lasting 30 years, but that assumes 8% returns on stocks, 5% for bonds.

Given today’s low interest rates and uneven stock performance, some are advise starting out at 2% or 3% assets withdrawals.

2. Lock In Minimum

Put enough in an annuity so that the income it produces, combined with Social Security, covers your basic living expenses. Let the rest of your portfolio keep growing.

3. Stay Nimble

When markets do well, you could take out 5% or 6%. In down times for stocks, dial back

4. Minimize Taxes

The conventional wisdom: Withdraw from taxable investments first and let retirement-plan money grow tax-deferred. Save Roth IRA’s for last since you never have to take withdrawals

However if your 401K withdrawals push you into a high tax bracket, just take enough out of your 401K to stay in the lower bracket and take the rest out of your Roth IRA.

5. See More of the World:

Housing and health care is cheaper in many other countries, although Medicare doesn’t cover you outside the USA.

Go to InternationalLiving.com for rates on popular destinations and the cost of living overseas.

6. Don’t Ignore Rising Health Costs:

Long-term-care insurance is expensive about $3,000 a year for a couple in their fifties today.

However, get long-term-care insurance as a safety net if you have a history of family diseases like Alzheimer’s, dementia, Parkinson’s or you have assess of $250,000 to 1.5 million – less and the price is too high, more and you can self-fund.

8 Questions To Ask Yourself Before Retiring

Here is a good article on the basic questions we should ask ourselves before retiring. We’ve heard them before but it is always good to keep in mind in our planning. (click here – mainstreet.com)

Advice From Retirees

Here is a link for some interesting advice directly from retirees on what they would have done differently, perhaps we can benefit from their experience  (click)

Retirement Alternatives

 

Doing the basic planning steps and finding out how much money we should have saved can be depressing and/or discouraging.

When I did the estimate using the tools mentioned I came up that I should have  about $2 Million dollars to retire comfortable  !!

Most people don’t have that kind of money saved – no wonder so many seniors end up going back to work.

But there are alternatives – not sure which ones are viable yet.
However, I will find out.  I doubt my uncle has $2 million in the bank but he has retired comfortable. I’ll ask him.

He does have properties he can live in. Worked several jobs before retirement for years to finance his projects.

It is tough in today’s bad economy to retire since most of us are counting on our homes appreciation to bank roll our retirement.

However our properties have lost value.
Like a wise financial person told me, you only lose money when you sell it, so hopefully my property will gain some value back in the next couple of years. There is already an upswing in real estate in some sections of the country but most experts don’t expect a full recovery for a couple of years.

Options: Selling your home in the U.S. and moving to a cheaper state or country .
This way, you can live reasonably well and have money to travel to the States and see family 0r they can visit you.

Another option is to move to States with low taxes for seniors and have low cost housing.
See Forbes, Best Places To Retire:
http://www.forbes.com/sites/williampbarrett/2011/03/23/the-best-retirement-places/
Florida a favorite for ever is even more attractive now with the housing troubles since prices have dropped so much and are still dropping.

See this article on CNN Money of condos in Florida that cost less than a car !
http://money.cnn.com/2010/08/02/real_estate/condos_less_than_cars/index.htm
Any Suggestions ? Advice ?  More on this as I get more information.