r/retirement

I have enough money in my retirement accounts and 401ks I think for the rest of my life. My question is this should I take the lump sum for the pension or monthly payments. There is no Cola. My inclination is to take the lump sum and invest it whether it's stocks or bonds or whatever I think I could make at least 4% in a tax-free account. Probably could make six which would be the same as the monthly payment and not have to pay taxes on. What are your thoughts thank you

I just informed my manager that I'll be retiring July 3rd. Pretty exciting. The plan has been afoot for a while now, but I needed to let them know. I've tested the numbers, I've created my fund for the rest of the year. I have a plan for health insurance, and a 30 year budget that has weathered many ups and downs and continues to work.

Now the interesting question is, will they just fire me? In my business that is pretty common. I'm prepared for that possibility. I did wait until I was on a project that would take me through the end, and one that required a government clearance, making it much harder for them to just fire me, but you just can't trust any employer at this point so I'd put the odds at 50/50 that they cut me loose. In 50 years of working I've never been fired from a job, it would be quite ironic to be fired from the LAST job, just because I quit.

but who is counting?

My wife and I moved into a 55+ community 3 years ago and I’ve tried getting on board with forming new relationships with other retired folks. I find that I have no shared interests with most of them. I don’t like playing board games, I don’t watch TV or sports, I don’t eat out. I am still into learning and self development, especially when it comes to my health. I do a lot of reading. I despise any type of drama or negativity. I can’t say I haven’t tried to fit in, I just don’t. What the hell do I do?

I am considering retiring in a couple of years. I have 4.780% $125K mortgage that matures at the end of 2033. Should I:

1. Pay off the principal in full now and bank what I would pay monthly.
2. Wait to pay it off in 2 years when the principal will be 95k.
3. continue paying mortgage after retirement withdrawing from 401k
4. Other…

I really don’t want the mortgage payment hanging over our heads when we retire. We have 401k investments and I have a small pension. If we sell the house we will make all that money back. Any advice is greatly appreciated.

We are hoping to retire in next 2-3 years. We met and married in San Francisco and loved that urban vibe when we were young. Kids came along and we relocated to Roswell GA just outside of Atlanta in the early aughts. It's technically suburban but was spared from Sherman's fires so it really has some history and an identity of its own. Once our youngest turn 21 and got his own place, we sold the family home, downsized and are now living in Midtown Atlanta, right in the heart of the city. I say all that that give some context on places we lived and what we like.

We are now realizing our condo is really a bit too small and we don't like sharing walls. So we are thinking about building our dream home....somewhere. We have a few ideas but thought I would ask this group to see if we ought to put some other places into consideration.

This is our list of must haves and hope to haves:

1. A beautiful view, preferably mountain, but river or lake would work. We want to feel serenity and have access to nature and leave the noise and crowding of the city behind. Not huge land, just an acre or so.
2. Access to good healthcare, an airport, and preferably <4 hour driving distance of a larger city.
3. Local culture, restaurants, breweries, music, arts, outdoor stuff like hiking and fishing.
4. A welcoming population. We want to find a community to be involved in and to give back to, where it's fairly easy to make friends and you won't be the "outsider" forever.
5. Four seasons with a mild climate. Would consider cold or hot if necessary but would take a Vermont Green Mountain winter over an Orlando Summer any time.
6. Not overly concerned about tax variations from state to state.

Am I missing anything that we should be considering? What suggestions do you Redditors have for me?

Thanks in advance!

Edited to correct > to <.

Edit #2 to say: WOW!! Thank you all for such great suggestions and so many of them! Hubs is traveling this week, but we'll have to got through this together when he gets back. I really appreciate all of you!

The place I work allows you to accumulate your vacation time up to what you earn for two years. In other words, if you get 24 days a year, you can accumulate 50. Many soon-to-be retirees here will use them up in their last couple of months.

The two biggest benefits are, you still accumulate even more PTO during that time, plus you’re not getting hit with the taxes from a big lump sum.

Any sick time you accumulate, you can only get paid out for half of that.

In my opinion, the only negative to taking all the time off is, the place I work cannot even start the replacement process until after you’ve actually reached your official last day. But that’s on them.

Anyone have something similar in their place?

I (71m) retired 8 years ago and having worked as a corporate sales coach, I told my staff often that “you are what you do everyday!” At the risk of offending you, I confess that my wife and I are a goody two shoes retirees with an amorous side, too.

Not necessarily in order, these are some habits: We exercise and/or play tennis 4 to 5 times a week. Since my nightly routine before bed is so lengthy, sometimes, I wash my face, irrigate my nose, and use my inhaler in the late afternoon.

Of course, we take all of our pills upon rising. I get up at 5:30 a.m. My wife finds a hot mug of coffee on her night stand at 6:30 a.m. daily. She loves doing her puzzles with CBS This Morning (Gayle King).

For me, it’s Paint By Numbers, NYT, and Reddit with black coffee most mornings. Whenver she takes a bubble bath after her dance class, she knows I’ll come visit and poke her soft tummy with my index finger with a chuckle. She laughs every time.

Every other weekend, we have Sushi with our best couple friends. We both have book clubs so there is the monthly dinner and discussion. She volunteers at her friend’s food garden. Throughout the month, we read whenever we find pockets of relaxation time.

We have a weekly meeting to sync our calendars and plan commitments like concerts, wedding, and little short vacations. Frequently, we get takeout from our local taco, sushi, mediterranean, and poke bowl eateries.

Spring is here, so my wife gardens. I try to have lunch with tennis and good friends several times per month. As a private person, I need ample private time to recharge. I do the latter by making pizza, social media, and watching Netflix movies.

Oh, since we are so tired from playing sports, our love making has waned. So, we have appointments midday occasionally. These are fun days! We try to schedule time (dinner) with our three adult children. I can go on and on about our habits. But what about your retirement habits. Please share.

Given that I have 7 coronary stents, lung disease, high blood pressure, high colesterol, and a bad back, I was eager to see the lab results. But not for the reasons you might think. After all, three years earlier, my cardiologist told me I was 48 hours away from a massive heart attack.

Do you fret prior to your annual physical and blood draw? Or is it a privilege to get good health care and find out your vitals? Since my cardiac incident (no heart attack, just angina), I workout and play tennis 3 to 5 days a week.

So when I opened my lab results yesterday, I was surprised to see all of my hard work paid off. All of my results were within the normal range. With that knowledge, it gives me a strange “super power” to indulge in some fatty foods - hamburgers, fries, Kung Pao chicken, and several Margaritas.

It’s a game to me. Eat bad for the weekend and stay clean for several weeks. Had I gotten a bad lab results, I would stay clean for months at a time. Anyway, generally, my lab results give me a sense of mortality.

What about you?

I am retiring at the end of next week. Looking forward to it, and I’m well prepared both financially and socially. But for some reason, I find myself very stressed out! I’m waking up every morning around three, with work-related bad dreams spinning around in my head. I’m working hard at the job still, trying to wrap up loose ends and make sure my team and my successor will have an easy transition. I know that’s part of it, but what the heck am I stressed about, really? There’s nothing I can put my finger on. Anyone else have the same experience? How did you get through the last week without crumbling into a big bag of nerves?

My wife (68) and I (71m) have been house-bound for the last two years with a demented pet that required getting up 2 to 3 times during the night. We finally put our pet down last month.

Together with a few chronic illnesses and the habit of not doing any retirement traveling (both internationally & in the states), I feel a bit like we’re transitioning into the “slow-go years.” Somedays, I want to make plans for Europe and other days, I desire the same routine: gym, grocery store, dinner with friends on the weekend, repeat.

How did you get motivated to start traveling again?

I am now at the point, financially (hopefully) where I can retire. I'm just having a really hard time pulling the trigger for a few reasons, but there are some things compelling me to do it.

To start with, I was just put under my 5th boss in 8 months at a very dysfuntional company. I did fine under the first 4, but this boss is a nightmare! I do not look forward to work anymore and have a lot of anxiety just being in meetings with him, which is not the norm for me. I have my resignation letter typed up and change the date every day so it's ready to go! With all that said, it's hard to leave my team and the money.

I'm also tired of juggling a stressful job with all of life's other responsibilities and demands. I'd like to spend more time with family and grandkids, but work gets in the way

My career has been a big part of who I am for over 30 years. I'm a little scared about what happens when that is no longer the case.

Also my other half is 4 years younger and plans to continue working for 5 more years. Not sure what that dynamic will look like- afraid to find out.

I just feel very emotional today and am sitting here staring at my resignation letter and kind of paralyzed.

Sorry for the ramble- I'm just looking for some piece of advice that will make this a clear decision that I won't regret. (A lot to ask, I know, but thank you to anyone willing to talk me on/off the ledge!)

My daughter has a significant disability but has been self-supporting and living independently for 15 years. She has suffered some setbacks in this economy. I also feel that she makes what I think are poor decisions, yet overall, I give her a lot of credit for being courageous, creative and persevering. Making your own decisions are part of adulthood and I can accept that what I would do is not going to be tolerable for a younger person all the time. We have a good nest egg, but nobody knows the future and inflation worries me. Still projections indicate we will be able to leave her money after we are dead - so why not help now? My anxiety is at a point where I am considering a part time job to just feel more secure about sharing money with her - assuming I could find one.

Does anyone have guidance about sharing money with adult children? Is there a rule of thumb from the experts? Do you have experience to share?

I do not want to destroy her motivation to get back on her feet, and I think she prefers independence. I just feel bad that she is having this problem right now. My husband has invited her to live with us and she says that is a last resort, so I have sent her money.

(No, not the go-go, slo-go, no-go adage)

I just got my letter from Social Security saying, it’s time, bud, apply to claim your benefits. I’ll be 70 in a few months. For the last 2.5 years, my wife and I have enjoyed our first-phase retirement, which has had some nice variety in a laid back way. I’ve enjoyed my tutoring part-time job (as well as a couple other part-time jobs preceding), and my volunteering involvements with poverty, social services, animal shelters, and the incarcerated. My wife enjoys her domestic routines and hobbies and her own volunteer involvements with children and hunger. We go to National Parks annually, and another trip or two domestically with family or friends, plus some day trips. There’s an event center less than 2 miles away, and no shortage of entertainment where we live.

Financially, we’ve lived off her Social Security, my part-time wages, a small pension, and draw from deep savings, and our tax burden has been very low, despite doing things like Roth conversions. We’ve not drawn on retirement funds, and I have not collected Social Security. But we’re about to do both, and even her Social Security will be affected by taking the spousal benefit.

It feels like the days when I would change jobs and get a substantial bump in pay, and (in those days) there would then be lifestyle creep. And so looking at this milestone, as well as the Big 70 associated with it, I just have a hunch there will be a lifestyle SHIFT at least. I don’t know whether this will mean quitting the part-time job, leaving more free time to do … what?

In a way it’s like retiring all over again and trying to sort out how we want to live out in this new phase. Is this a familiar thing to any of you already-retired folks? Did you have a Phase 2 retirement as a result of some key change in circumstances?

I'm 61 she's 62 1/2. We have a Fidelity advisor and the scenarios all run well. Do we also need a CFP to essentially check his work? Hope she can retire fully at 63 and I'll stay on the job to 65. Any thoughts on this approach of a double checker? I want her to get out of the rat race and do what she's earned, the joy of time.

I have small Fed career that will allow her to come aboard the Fed Benefits for the bridge years.

Thanks

This is going to be a bit long.

We are planning on getting LTC insurance, my wifes dad used his benefit and we have no kids. I am just not sure how to think about it. I conceptualize 3 different reasons to get it:

1 you don't have enough money to pay for the medicare spend down that most assisted living places require to get one of their medicaide beds, (I don't really understand how this is legal but it seems industry standard.)

2 you probably have enough money to pay for LTC but it is maybe a little unclear and you would like to be able to spend the money you have socked away rather than hold onto it till your dead in case you have to pay LTC costs.

3 you have money to pay for LTC but you want to leave some money to someone or something so you buy the insurance so that you don't have to spend that money on LTC

We are in reason 2 and I think about it in terms of having a chunk of money that can generate an income with maybe not dipping into principal but if one of us needs LTC the money might get strained for the other. I think about how you insure a truck that you use to generate income, if the truck gets wrecked and it isn't insured you are out of business so you buy insurance.

My problem is I am not sure how much to buy. The policies we are looking at do not adjust for inflation and have a maximum benefit of 6 years. I think you should buy insurance to insure against disaster not inconvenience. If one of us goes into LTC early that is harder on the remaining spouse so the worst case is one spouse goes into LTC a year after we purchase the policies. So does that mean I price a conservative income from assets and buy enough coverage so that adding ltc costs next year does not change that income? Do I consider the much more likely prospect that the coverage won't be used for another 20 plus years where its value will be cut in half so it would be better to just get what LTC costs today and figure that is better? (that is kind of vague but my brain is a little worn out ruminating on this.)

As it stands right now my wife costs more than I do and to have 10K a month each it would take about 250K at 4% to pay 25 years of premiums. While the largest benefit the policy could pay would be a face value of 1.48 million though that would be highly unusual in my opinion.

I have tried looking at the implied odds of the defacto bet we would be making and using a payout of 360K (one of us using LTC for 3 years) the premiums indicate a really low chance at the beginning rising to 50 50 at year 22. So what do I do with that? The information on needing the insurance is somewhat vague I have seen official statistics that claim 30 percent but I also have to consider that we have no kids and whatever you say I have had experience taking care of my mom and FIL and there will be no economizing if we need to be taken care of.

Well If you read this far thank you and if you have any suggestions about what worked for you in terms of deciding this question I would appreciate any advice. My impression is that Northwestern has a reputation for actually paying, which seems like a huge issue with some of the policies that were sold in the past.

For rough numbers we have 2 mil in securities etc. and 2 mil in realestate including our home and 3.5 rental houses net of debt. I don't expect you to do my financial planning but just want to illustrate why I think we are in category 2 of the categories I outlined above.

My IRA balance is constantly variable. It’s not the same today as it was last week, last month, last year. I see rules like the 4% rule and other calculations based on account balance used as a guide to how much to withdraw in a year. But with the balance varying over time, how does this work? Do I use today’s balance, or some past date’s balance to make the calculation?

We are retiring next year. I want to start going to the gym together, join a wine club, go to the parks (we live in Orlando), Staycation for a while, build a garden.. etc. When I ask my husband what he wants to do- he says rest. He really won't just imagine the possibilities with me, which is really what I want more than anything, not necessarily to do everything I wrote above. He has been at his one job 30 years. Should I be worried? How can I encourage him to dream a bit.

UK 56M, I have worked abroad for the last 8 years and plan to work as long as my body allows, but at least up until UK state pension age, mainly because I had kids later in life (they're going to Uni over the next few years) and I don't want them to end up with huge debts. I am massively anxious about not having enough money to retire, on the face of it I should be fine, I have GBP200k in a UK SIPP, another GBP200k in various other investments, a house in central London worth circa GBP1.1m (200k left on the mortgage) and an inheritance that will be in the GBP500k range when it comes. In my 20s and 30s I did an OK job of saving, but after marrying a spender who wasn't able to hold down a regular job for long, 2 kids, life etc I didn't really save through my 40s which I obviously regret now. I know I'm fortunate and will probably have more than the great majority. I did think that by this stage in my life I'd have fewer worries and more of a safety net, which I guess is the source of the anxiety. My retirement plan is to be abroad, I've been outside the UK for nearly a decade now and I can't see my self returning. I'd rent out the London house for extra passive income, but that anxiety about money, still needing to work to support my wife and kids, constantly worried that at my age I may become unemployable etc etc. How may of you have experienced that same feeling in the ramp to retirement? As I read this back I do realise that these are somewhat 1st world problems, I'm currently very well paid and trying to save as much as possible but those worries remain. Us GenX people seemed to fall through the gaps of final salary pensions and the new UK workplace pensions, our investments took a beating in the early 2000s and I do see GenX as being the generation most anxious about retirement, so I guess I'm not the only one. Just wondering how many of you had similar experiences?

I received a severence check from my company for the VSP. Boldin says I have enough to spare a 15k car to my daughter which will help her through Grad School. She will be living with me and we have been sharing my car. But now that I'm retired, I'll be traveling more and she will be stuck home taking classes and our 3 cats/3dogs need to be taken care of. She is 25. She is planning on doing some babysitting over the summer which probably wont make a dent in car payments and insurance. Should I do it anyway?

Wish we all could see the future! Will be 70 later this year. Still working part time, started collecting SS at FRA. Divorced long ago, never really recovered financially. Work recently started a 401k but if I decide to completely stop working end of next year I'll only have contributed 3 years even though I'm putting a lot in.

My dilemma is stay in my house (not paid off) or next year sell and buy a manufactured home in a nice park (I'm not in Florida or in a warm state so not expensive lot rent). Lot rent is about the same amount as mortgage payment. I've replaced every big ticket item. The driveway is in bad shape and that would be a lot of money to get new. I'd like to sell while it still has value and pay cash for the manufactured home and that way have extra money for emergencies. I know a lot of people whose parents stayed in their homes well into their 90s, but relied on adult children to check on them and take care of them. I only have one adult child and would not want to rely on him.

My main reasoning is if something happened to me and I had to go into a nursing home which Medicare does not cover. If I had to go on Medicaid eventually they would get my house once I was passed. I'd rather access that money now. A new or almost new manufactured home that I'm interested in are around 100k. But then I think will I still be in good shape in 10 years when I'm 80 and can live on my own? My brother does and he has a 2600 sq ft home on 3/4 acre. My house is my biggest asset and I would like to tap into it, reverse mortgage does not sound like something that I would want.

Anyone else go through anything like this as far as wanting to downsize? Though actually a manufactured home would be about the same size as the house I have now it would just be new.