progrocker
progrocker
Joined: Feb 21, 2010
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March 26th, 2012 at 5:54:27 PM permalink
Quote: whatme

While you may seek professional guidance keep in mind they just want to sell you products, so please don't sign any papers on the spot.


Definitely, which is why I suggested starting with places he's already a customer. The products to watch out for are stuff that can lock your money up with penalties to get out (annuities, other insurance products) and mutual funds with front end loads (sales charges that can be up to 5%....no reason to pay that at all).
Solo venimos, solo nos vamos. Y aqui nos juntamos, juntos que estamos.
odiousgambit
odiousgambit
Joined: Nov 9, 2009
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April 5th, 2012 at 1:33:05 PM permalink
It's really great you can summon up so many calculators with your google machine these days.

Boy is this one essential for just about everybody Guess what happens when you screw your retirement distribution up in your dotage? You give the IRS a 50% penalty on the amount you failed to draw out. Must be party time over there all the time now.
the next time Dame Fortune toys with your heart, your soul and your wallet, raise your glass and praise her thus: “Thanks for nothing, you cold-hearted, evil, damnable, nefarious, low-life, malicious monster from Hell!” She is, after all, stone deaf. ... Arnold Snyder
MrV
MrV
Joined: Feb 13, 2010
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April 5th, 2012 at 1:34:46 PM permalink
Just work til you drop; it's the American way.

In fact, with the evisceration and evaporation of many retirement plans, it's really the only way.

Heck, even that old Internet Fool, Frank Stanton, is still working, and he's 78.
"What, me worry?"
EvenBob
EvenBob
Joined: Jul 18, 2010
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April 5th, 2012 at 1:40:51 PM permalink
The guy who runs the wine dept in my local
grocery store is 81 and still works 40 hours
a week.
"It's not enough to succeed, your friends must fail." Gore Vidal
FleaStiff
FleaStiff
Joined: Oct 19, 2009
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April 5th, 2012 at 5:30:42 PM permalink
None of the elderly working at Walmart are there "to keep active"... they are there to eat or drink or smoke at home.

The first thing is to consider in what way will you be adjusting your lifestyle and do it now. Library instead of bookstore? Clothing? Cars?

If you move to Las Vegas from somewhere else your automobile and electricity expenses will climb astronomically. Even if you yourself are luck enough to travel elsewhere for August, the house has to be kept relatively cool.

How much will you budget for legal insecurities regarding prior foreclosures on homes in Vegas? How much will you budget for occasional checking of your properties title records to avoid scam artists selling a fictional mortgage on your home while you are out at the casino?

What comfort level do you want? Its not much fun to be cutting the thermostat to "save" money. Health problems may strike? Crime victims can be in the headlines or in your home or both.

Diversification is good. Some fools lock things up in an annuity when they need the money "now" or forget that the term "income" in an annuity payment has a specific meaning and does not mean the full payment.

If you have assets in a trust and also a will... be careful. Children is a term that in a will tends to include adopted children but in a trust document it tends to exclude them, so make sure you tell your estate lawyer just what your situation is. If you die in an autoaccident the cause of action might be part of the Trust corpus rather than the Will's hotchpot... be sure such unusual situations are considered.

Keep control of assets... too many people who give their kids their inheritances early wind up in a low cost nursing home with no frills. Rather than buying an assisted living policy you might be better off buying a home that appreciates but the ownership of it entitles you to some assisted living care.

Go to a REAL financial planner, not a commission-oriented salesman pushing some product so he will get HIS money no matter what happens to your money or how unsuitable the investment is for you. A front end load is absurd. Even a fee for management of money in a stock fund is absurd since the fund itself charges a management fee.

Consider Asset Protection but only if you really think you will face greedy judgment holders and know what you are doing. If you put your funds in a Cayman corporation you are in real trouble, you have to put them in a Cayman company. The words have major differences in the Cayman Islands and some careless lawyer in the USA might not know that.

Expatriates often try to come back when laws and local customs start to annoy them but some can't afford to. English retirees in France don't qualify for health coverage and English retirees in Spain often don't bother to call the local police when Gypsies come calling. The local police don't come to the aid of foreigners.

Remember... there are always pitfalls. Its true that often Brazil does not extradite Americans but Brazil does often expel them to America. If you want the protection of Brazils non-extradition laws its best to be the father of a Brazilian national. And even then you may have to pay and pay and pay. So don't assume anything that you've "heard over the years". Check it out.

If you plan on travel... look at the current headlines: Cruise ships losing power and drifting helplessly in pirate infested waters. Yachts in the Indian Ocean sailing in secret convoys for protection, pirates using AK-47s to totally sever the bodies of American yachting couples who were found to have Bibles aboard. Detention in some foreign country for importing a statue of Qua Yin is not fun since that is a statue of a godess and in a muslim society can bring the death penalty even if the yachtsman had it on board for years of peaceful sailing. Times change! In the sixties a great many yachts disappeared during easy voyages. The boats were not wanted for drug runs, it was simply that taking on-board cash and jewelry and some engines and spare parts was a profitable haul and a safe crime since yachties were in Davy Jones Locker along with all the evidence. Sink a valuable yacht and kill a retired couple for a few hundred dollars? Why not. Life is cheap and every day it gets cheaper.

Living in an urban area as a prisoner of street crime can be just as depressing as living in Las Vegas as a prisoner of air-conditioning. So have an escape plan if something serious happens to that nest egg. Don't think you can sell that house... often it won't sell and often a realtor won't even list it when there is just too much on the market already.

And remember,,, watch your spouse's health: one husband asked his wife for money so this Gypsy Woman would continue to pray for him since that was all that was keeping him alive. The wife immediately checked their 400,000 stash of cash. All gone. Their bank accounts: all gone. Title to their home: the Gypsy Woman owned it. Brain tumors, senility or just mild dotage... can be dangerous for you and your spouse. One man sold 20K worth of stock to buy "collectible glasses". Total worth: zilch. Potential for eventual appreciation: zilch. What could his wife do? Have him declared unable to manage his affairs retroactively? She didn't even have money for a lawyer.
Paradigm
Paradigm
Joined: Feb 24, 2011
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April 5th, 2012 at 5:37:41 PM permalink
Geez Flea......I thought I worried too much ;-)
FleaStiff
FleaStiff
Joined: Oct 19, 2009
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  • Posts: 14484
April 5th, 2012 at 5:55:16 PM permalink
Quote: Paradigm

Geez Flea......I thought I worried too much ;-)


Sorry. I'll shut up now.
Paradigm
Paradigm
Joined: Feb 24, 2011
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April 5th, 2012 at 6:35:23 PM permalink
No I didn't mean it that way....you have some good points in there, I was just like "crap....what else can go wrong". I am trying to stay more positive these days and based on my leap to the negative most times, it is a challenge :-)!
100xOdds
100xOdds
Joined: Feb 5, 2012
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April 6th, 2012 at 6:50:21 PM permalink
Quote: cardshark

How much money do you think you will need to live off of per month? Think not just about normal living expenses like electricity and food, but also other additional "luxury" expenses, like travel, restaurants and gambling.

Also consider the need for an estate. Do you need to have money in the bank in case you predecease your spouse? Do you need money to support any children (college bills, etc.)?

A 62 year old male in 2014 will live, on average 22.489 more years, according to the 1994 Uninsured Pensioners mortality table, with generational projections.

>If you can earn 3.25% on your money (1% real assuming inflation of 2.25%), then $1,000 a month will require $184,000 in savings.

>If your investments can only match inflation at 2.25%, then $1,000 a month will require $205,000 in savings.

>If you will not be investing your money, $1,000 a month will require $270,000 in savings.



what? age 62 and living another 22.5yrs only requires $410k TOTAL if u need $2000/month and assume your investment return only matches inflation?

how did u arrive at this?

and does that also including taking early social security?
Craps is paradise (Pair of dice). Lets hear it for the SpeedCount Mathletes :)
Scotty71
Scotty71
Joined: Mar 5, 2011
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April 6th, 2012 at 9:40:25 PM permalink
plan on needing income=75% or more of what you are currently earning. Not sure when medicare kicks in, it isntt always whe you become SS eliligle.
A safe rule of thumb is not to plan on drawing down savings/portfolio more than 5% in any given year, less if you dont own equities
when man determined to destroy himself he picked the was of shall and finding only why smashed it into because." — E.E. Cummings

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