Decision-time........ 7/14/10
For about three years I have been thinking about retirement. Not consumed by the idea, mind you, but knowing that I was getting closer to the day! Of course, that meant several different things.... and lots of questions......
• What would I do if I wasn't working 60+ hours per week?
• Would my wife want me around all the time?
• Am I saving enough to be able to retire, ever?
• Will Social Security be available or out-of-business?
• How much income do I need in retirement?
• Will I need to work part-time?
• How will I afford Health Care?
Financial and timing concerns have always been staring me down, but as time marched on and I approached the early retirement age of 62, I marked my calendar on my birthday, "I could retire today!"
Between age 62 and 64, the economy tanked (2008-2009), and my retirement funds dropped, but only a fraction of the 50% stock market slide. I escaped with only a 10% drop because I'm no longer a financial risk-taker! Growth of money market funds and other low risk investments is only slightly better than zero, but that still holds true in plunging markets. At least historically.
Amazingly, I managed to hang-in there until age 64, and now I am making the early retirement decision, two years before my full retirement age (FRA) of 66. It came down to me personally saying no to the job pressure of doing more with less (but longer hours). And I'm not the only one in the world facing these pressures. I'm just one of the lucky ones who can walk away from it all. The corporate owners and shareholders continue to be duly compensated for their wise investment that has netted them millions. But hey, that's what businesses do, especially publicly held corporations. Companies are in business to make a fair profit. Maybe it’s just me, but it seems that "fair" is never quite enough. On the other hand, I am grateful for the opportunities of the last 46 years and the many years of compensation and benefits! Thank you ex-employer for 22 years of that!
Anyway, my decision point was reached when 1) I realized that I was no longer key to the corporate agenda and success and 2) my spreadsheet showed that I probably have financial resources to make retirement work! Other factors that could affect your decision may come about due to a shift in your personal beliefs, declining energy level, health issues, or just because you need to move on and devote more time to living your life the way you want to! Happiness is what we make it.
More later on being retired, financial planning, social security challenges, and health care.
So far, so good………………. (8/13/10)
Well, it’s a done deal. Friday, August 6, 2010 was my last day as an employee. Bittersweet moments, as I leave behind some really good friends that must continue to suffer coming in to work every day! On the other hand, it’s all in how you look at it. Most of my years were good - I enjoyed working and feeling good about adding value to the company. Then, when you run out of value to add, it’s time to pull the trigger..... in a nice way of course..... not literally! Decision now made and the plan put in place, my first week of retirement has been great! A mix of relaxing, productive and satisfying. I won't start worrying about when the money will run out - Social Security or my 401K - until I've had some good time to just soak up the freedom I now have!
Really, the only "bad" thing about retirement is that you have to be old enough to retire - unless you have stashed away a big chunk of cash while you are still young. To do that you needed to be a corporate exec, politician, or surgeon - or not have 4 kids to raise! Since none of those things were true for me, I had to wait until I was old enough to start getting my 46 years’ worth of social security contributions back and build up a little bit of cash reserves in a 401K plan.
If I had been able to invest my FICA over the past 46 years into independent "safe" investments at just 5% annual compounded growth, I would have a whole lot more than I do now. BUT, would I have invested it? Privatizing SS may be good for some, but most workers would not invest their FICA voluntarily. Some couldn’t invest, but many just wouldn’t. I know this sounds like socialism, but let’s be honest….. socialism could work if we could find a way to sensibly balance greed and entitlement.
Some things to think about……………… (11-11-10)
Very simple advice – do a little planning for the future –
• for each $1/day you save, at 3% APR, you will have over $40,000 in 50 years. Trust me, 50 years goes by in a hurry! You will of course save more than $1/day as your income increases over the years.
• Live within your means – limited, if any, use of credit cards – they can kill you financially.
• Eat healthy – skip fast foods and eat whole foods as much as possible. Skip added sugar and artificial sweeteners – I know that pretty much just leaves water and beer for beverages!
• Exercise – stay active – at the least, try to walk 6000 steps/day.
• Practice voluntary socialism – take from your wealth and give to those with less. Start with love and let your heart be your guide.
Peace, Light and Love!
Dave
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