Retirement; Thoughts, Advice, Things to know.

[Jedz123]

Justin, if I can I'd like to quibble on a couple of points

Debt. It just depends. Given how low interest rates are right now there's hardly any cost to carrying debt, and keeping the cash on hand gives you flexibility and the opportunity to invest it and earn more than than the loan cost. I just bought a house, and even though I'm 64 we didn't put down more than we had to, and did 30 years instead of 15. If a bank is going to give me 30 year money at less than 3% I'm going to take as much of that as I can. And between the low rate and the long term, the payment is low enough that it's not the biggest item in our budget.
Basically, I think that the abnormally low rates right now warrant a re-thinking of the conventional wisdom regarding debt.

Taxes. Moving to a low-tax state sounds nice, but it's much more important to me to live where I want to, where I'll enjoy my retirement. Friends and family nearby, decent weather, easy access to things I like to do, all that is lot more important IMO.

Great points Rich!

Mortgage debt is a funny thing for sure. If you can get in at a low interest rate and use the savings to roll into a Mutual fund, that dollar is going to yield you more in the long run. Property is just a good thing to throw money at too. Property values are skyrocketing right now... Which is good if you looking to sell but in the end it sucks because the tax rate on the property value will follow in a year or two. But yes super pumped to hear about your good fortune in getting a low interest loan. My Wife and I are in a similar boat, got a low 30 year, so ahead of it that the payment is easy to budget. I would like to clarify debt on thing like Cars, or unsecured purchases that have no or retain no equity is a bad idea to be involved with.

Also agree with you on location. I'm personally not 100% tied to Vermont and the tax rate is really high, I could see myself moving to an area with less taxes and better (year round) MC riding roads in the future.

Cheers!

[RichDesmond]

...Also agree with you on location. I'm personally not 100% tied to Vermont and the tax rate is really high, I could see myself moving to an area with less taxes and better (year round) MC riding roads in the future.

Cheers!

I see eastern Tennessee in your future.

[argonsagas]

Great points Rich!

Mortgage debt is a funny thing for sure. If you can get in at a low interest rate and use the savings to roll into a Mutual fund, that dollar is going to yield you more in the long run. Property is just a good thing to throw money at too. Property values are skyrocketing right now... Which is good if you looking to sell but in the end it sucks because the tax rate on the property value will follow in a year or two. But yes super pumped to hear about your good fortune in getting a low interest loan. My Wife and I are in a similar boat, got a low 30 year, so ahead of it that the payment is easy to budget. I would like to clarify debt on thing like Cars, or unsecured purchases that have no or retain no equity is a bad idea to be involved with.

Also agree with you on location. I'm personally not 100% tied to Vermont and the tax rate is really high, I could see myself moving to an area with less taxes and better (year round) MC riding roads in the future.

Cheers!

It appears that you have a different system than applies here. It looks like you can get a fixed rate of interest for the full term, and we cannot do that.

We have the option of fixed rate or a possibly lower variable rate that fluctuates according to the market but neither is available for the full term..

I know we can get 30 year mortgages, but not sure about 35. however, while it looks like it is fixed, it actually has to be renewed every five years.
You can choose a shorter time renewal period if you wish and that can change when you renew.

Interest rates, whether fixed or variable are not fixed beyond the chosen 1 to 5 year renewal period, and are subject to change with every renewal.

[gustovh]

Well where do I start….hmmmmm I am 70 and have been retired since 2007, several years late per my long range plan thanks to 911. I have three retirements to live on. Military, Boeing, and social security. The biggest benefit that I earned is my tricare health through the military. I pay little to nothing in medical costs.

That said, I spent 20 years in the military and 25 years at Boeing, the last 10 as grade 10 machinist. So we had short, mid and long range plan. I carry a mortgage and debt that is backed with cash. I do have an ira and it does very well.

So what do I do, pretty much what I wish. My beloved and I traveled to down under in 2017 and stayed in a timeshare we bought way back in 96. Part of the long term plan, the timeshare..it is world wide. I have a gazillion bikes to mess with, I can still hike mountain trails and catch fish in out of the way cricks. But best of all have been the rallies.

I could go on but I think you get the drift. We are not rich but we have enough.

V

[bwringer]

IMO, your number one, most important thing, is health insurance. If you got that covered, everything else is much easier.

When I was forced to retire at 60, six years ahead of our plan, we got killed by private insurance cost, until my wife found a job that covered us both.
It has been five years now, so maybe things have changed, but just make sure.

Agreed. The costs for health insurance and health care in the US are, and I'm not exaggerating, literally murderous. People die every day because they cannot afford care, or they avoid care because of the stupendous costs.

Anyway, my wife Marge went on Medicare when she turned 65, and what a difference... with Medicare, a decent supplement, and a prescription plan, her costs for all the care she needs are predictable and reasonable. This is what a civilized society should offer to everyone.

I have several years to go in order to reach that promised land. I'm 53, and my "insurance" is incredibly expensive (almost $1K per month), and covers almost nothing with ruinous five digit deductibles. It's only going to go up from here, at a rate several times that of inflation.

So, if you are planning for early retirement, plan for incredibly high health care and health insurance costs above all else.

[GSXR7ED]

Well where do I start….hmmmmm I am 70 and have been retired since 2007, several years late per my long range plan thanks to 911. I have three retirements to live on. Military, Boeing, and social security. The biggest benefit that I earned is my tricare health through the military. I pay little to nothing in medical costs.

That said, I spent 20 years in the military and 25 years at Boeing, the last 10 as grade 10 machinist. So we had short, mid and long range plan. I carry a mortgage and debt that is backed with cash. I do have an ira and it does very well.

So what do I do, pretty much what I wish. My beloved and I traveled to down under in 2017 and stayed in a timeshare we bought way back in 96. Part of the long term plan, the timeshare..it is world wide. I have a gazillion bikes to mess with, I can still hike mountain trails and catch fish in out of the way cricks. But best of all have been the rallies.

I could go on but I think you get the drift. We are not rich but we have enough.

V

First, thank you for your service!

I did 25 years in the USAF and I'm on my 7th job since I retired in 2011. I also did a stint with Boeing for 2.5 years but that was not my cup-of-tea job as a Materials guy.

Yes, we (wife & I) are fortunate to have TriCare and my current job supplements my retirement/disability. We are also credit card debt-free and did a mortgage refinance last year to a 15yr instead of 30yr mortgage.

Being able to budget with current Life Insurance/Home Utilities/Car Insurance/Groceries/Gasoline & 2021 Tacoma Truck payment allows us to be able to live within our means and be able to put money into IRAs & Savings. (Wife's 2017 Elantra is paid off)

Thanks for your input. We all learn very much from one another.

Ed

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[bwringer]

I see eastern Tennessee in your future.

Yep, there's a lot of that going around with quite a few past and present denizens of this very forum...

[SylviaWhite]

These people are not afraid to manipulate others, they can do everything to get you into debt.

[trevor]

These people are not afraid to manipulate others. The can do everything to get you into debt.

Great first post!

[Baatfam]

Yep, there's a lot of that going around with quite a few past and present denizens of this very forum...

Yes....We like it down here....Although it is snowing and 33º today. Lucky for us, it will be mid 40s in a day or so.

[Redman]

These people are not afraid to manipulate others. The can do everything to get you into debt.

Possibly a bot. ...
But somewhat related to something mentioned recently. ...

[GSXR7ED]

Possibly a bot. ...
But somewhat related to something mentioned recently. ...

Poster says from Italy...interesting.

It's usually good practice to just ignore "off-the-wall" posts. Just my two cents...and it could be said, even the most tenured can be "off the wall", sometimes...lol!

Ed

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[Rob S.]

These people are not afraid to manipulate others. The can do everything to get you into debt.

I am in complete agreement with the last post.

[Grimly]

, even the most tenured can be "off the wall", sometimes...lol!

Hmm... ain't that the truth.

[GSXR7ED]

even the most tenured can be "off the wall", sometimes...lol!

Ed

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Hmm... ain't that the truth.

Hahahaha!

I'm glad this brought a little "wonder" to your mind.

Lots of personalities = interesting dialogue.

Ed

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