www.slideshare.net/kzamandarus/7-retirement-risks-you-need-to-prepare-for

1. Inflation
2. Running out of money
3. Stock market slumps
4. Health expenses
5. Long-term care costs
6. Drawing down assets too quickly
7. Retiring too young

I can understand #7 but #2 depends on how important it is and I think its important to everyone http://www.inthe00s.com/Themes/core/images/post/smiley.gif

www.slideshare.net/kzamandarus/7-retirement-risks-you-need-to-prepare-for

1. Inflation
2. Running out of money
3. Stock market slumps
4. Health expenses
5. Long-term care costs
6. Drawing down assets too quickly
7. Retiring too young

I can understand #7 but #2 depends on how important it is and I think its important to everyone http://www.inthe00s.com/Themes/core/images/post/smiley.gif
#7 and #2 come with prefect planning?

www.slideshare.net/kzamandarus/7-retirement-risks-you-need-to-prepare-for

1. Inflation
2. Running out of money
3. Stock market slumps
4. Health expenses
5. Long-term care costs
6. Drawing down assets too quickly
7. Retiring too young

I can understand #7 but #2 depends on how important it is and I think its important to everyone http://www.inthe00s.com/Themes/core/images/post/smiley.gif


7. Retiring too young

I worked for a large company, they gave me a package when I turned 63, made it attractive enough for me to accept it...didn't have much of a choice anyways. The company gave out retirement packages to just about every full time worker between the ages of 60 and 64.

www.slideshare.net/kzamandarus/7-retirement-risks-you-need-to-prepare-for

1. Inflation
2. Running out of money
3. Stock market slumps
4. Health expenses
5. Long-term care costs
6. Drawing down assets too quickly
7. Retiring too young

I can understand #7 but #2 depends on how important it is and I think its important to everyone http://www.inthe00s.com/Themes/core/images/post/smiley.gif


Pretty bloody important if you can’t pay your energy bills or buy food

Pretty bloody important if you can’t pay your energy bills or buy food
...paying to heat or eat...

Is the retirement age still 65+?

I think health expenses might definitely be a risk! Maybe in the future when I'm 65 it will be much more expensive. But I've got a long while to wait before I'm 65 and retired. 

Is the retirement age still 65+?

I think health expenses might definitely be a risk! Maybe in the future when I'm 65 it will be much more expensive. But I've got a long while to wait before I'm 65 and retired.


When you retire is often your decision, but a lot of thought and planning must go into it.  (Although I've known a number of instances folks got pushed out of their jobs involuntarily due to employer decision and the most sensible thing at the time was to retire; also, people are forced to retire sometimes due to health problems.)  If your finances aren't rock-solid, I'd say wait to retire if you can.

You are correct that health expenses can be a big risk.  Perhaps the biggest unknown risk.

I retired early - the issue hasn't been financial (yet), but more like making myself feel useful.  COVID has been a big issue for me in that area; I retired in Fall 2019, just a few months before COVID.  Social distancing and fear of traveling aren't what I had in mind.

Is the retirement age still 65+?

I think health expenses might definitely be a risk! Maybe in the future when I'm 65 it will be much more expensive. But I've got a long while to wait before I'm 65 and retired.


I will not be eligible for full Social Security payments until I am 66 years and 6 months old.

But I plan on working till I am 70 (as long as I am healthy) so no worries.

If your finances aren't rock-solid, I'd say wait to retire if you can.


I was thinking the same thing. I really want to work during my 40s and 50s, and then retire either in my 60s or 70s. Depending on how I feel.


I will not be eligible for full Social Security payments until I am 66 years and 6 months old.

But I plan on working till I am 70 (as long as I am healthy) so no worries.


Glad that you feel that way!  :)

I retired at the ripe old age of 26.

That is NOT a joke. I really did. I was medically retired from the Air Force complete with pension that I will receive for the rest of my life. But I did work after that for a few years and once I moved in with Carlos, I didn't have to work anymore so I didn't.

When Carlos retired, everyone asked me when I was going to retire. We laughed and said that I was already retired.

Since I didn't work long enough, I will not be getting my own Social Security but will be getting half of Carlos' when I reach 62 & 1/2. There is no reason for me to wait because whether I start getting it at 62 or 66, it will still be half of what Carlos gets.


Cat

Is the retirement age still 65+?




Here's the official government chart of the age one can retire with full social security benefits. If you were born after 1960 your retirement age is 67. Be warned they may push it up even further before you get there.

www.ssa.gov/benefits/retirement/planner/agereduction.html

Here's the official government chart of the age one can retire with full social security benefits. If you were born after 1960 your retirement age is 67. Be warned they may push it up even further before you get there.

www.ssa.gov/benefits/retirement/planner/agereduction.html


I'd advise anyone reading this who's young enough to sock away a 401K and/or IRA for retirement so you have more money than just Social Security.  It may seem hard to part with the money now, but it'll be wonderful to have that money when it's retirement time - you'll have many more options, not to mention how the money can grow.  Between me and hubby, out little 401K/IRA nest egg has grown nicely over the years (it even survived the Great Recession).  We started in our 30s.  We also have used a financial advisor.

I'd advise anyone reading this who's young enough to sock away a 401K and/or IRA for retirement so you have more money than just Social Security.  It may seem hard to part with the money now, but it'll be wonderful to have that money when it's retirement time - you'll have many more options, not to mention how the money can grow.  Between me and hubby, out little 401K/IRA nest egg has grown nicely over the years (it even survived the Great Recession).  We started in our 30s.  We also have used a financial advisor.


Correct. Social Security isn't really enough to live on.

I'd advise anyone reading this who's young enough to sock away a 401K and/or IRA for retirement so you have more money than just Social Security.  It may seem hard to part with the money now, but it'll be wonderful to have that money when it's retirement time - you'll have many more options, not to mention how the money can grow.  Between me and hubby, out little 401K/IRA nest egg has grown nicely over the years (it even survived the Great Recession).  We started in our 30s.  We also have used a financial advisor.


I work for a company where the average line worker is doing $70k per year. We will match 401(k) contributions, dollar-for-dollar, up to 5% of wages.

Frustratingly… our average worker only contributes 1.2% of wage to the program. They’re turning down FREE MONEY.

I'd advise anyone reading this who's young enough to sock away a 401K and/or IRA for retirement so you have more money than just Social Security.  It may seem hard to part with the money now, but it'll be wonderful to have that money when it's retirement time - you'll have many more options, not to mention how the money can grow.  Between me and hubby, out little 401K/IRA nest egg has grown nicely over the years (it even survived the Great Recession).  We started in our 30s.  We also have used a financial advisor.


I started an IRA when I was 18. It was my parents that basically insisted that I open one. I didn't really know anything about them. When I was really hurting financially, I did a stupid thing and took money out of that IRA (not all but a good chuck). As stupid as it was, I did pay off all my debts and basically started anew, debt-free. 

I was really stupid in those days. My IRA was basically in a savings account so I was only earning interest. AFTER I took the money out, I learned that I could invest that $$$$$. So, about 2001 or so, I started investing. One of the first things I invested in was Green Mountain Coffee. It is pretty funny because I am NOT a coffee drinker. But, they were a local company who was socially responsible. I bought 50 shares for about $29 each in 2001. The stock split and split again. I think I ended up with something like 600 shares and when the company went private, the shares were worth about $90 or something like that. I did sell a few shares but man, did I make a killing on that (and bragging rights). Of course I can't touch that money until I hit a certain age but still. I'm still looking for my next Green Mountain but so far, I haven't. Well, I guess something like that only comes by once. But, I'm still looking.


Cat

... AFTER I took the money out, I learned that I could invest that $$$$$. So, about 2001 or so, I started investing. One of the first things I invested in was Green Mountain Coffee. It is pretty funny because I am NOT a coffee drinker. But, they were a local company who was socially responsible. I bought 50 shares for about $29 each in 2001. The stock split and split again. I think I ended up with something like 600 shares and when the company went private, the shares were worth about $90 or something like that. I did sell a few shares but man, did I make a killing on that (and bragging rights). Of course I can't touch that money until I hit a certain age but still. I'm still looking for my next Green Mountain but so far, I haven't. Well, I guess something like that only comes by once. But, I'm still looking.

Cat


O0 Kudos on getting in on Green Mountain coffee - great product, we have some in our kitchen!

For ourselves, since we worked with a good financial firm (highly recommended), we let them pick the stocks/bonds/etc.  They did a great job growing our investment.


I work for a company where the average line worker is doing $70k per year. We will match 401(k) contributions, dollar-for-dollar, up to 5% of wages.

Frustratingly… our average worker only contributes 1.2% of wage to the program. They’re turning down FREE MONEY.


It's usually a combination of (a) financial illiteracy and (b) having no margin, i.e. tying up all of one's wages on daily living.  It's sad - when the company is willing to pitch in that much, that's where an employee's investment REALLY grows.

I will not be eligible for full Social Security payments until I am 66 years and 6 months old.

But I plan on working till I am 70 (as long as I am healthy) so no worries.

I am 47 and I got about 20 more years left so I will stay at my job for as long as I can without getting fired.

Correct. Social Security isn't really enough to live on.

And neither is Food Stamps.

I know that the way most people contribute to their 401k or IRA is through regular deductions from their paycheck in amounts like $50, $75, $100 etc each pay period. But do you think it is safe to also sporadically put a much larger amount in? For example, if a person gets a $1000 tax refund and wants to put it all at once into their IRA, is that smart? What if the stock market just happens to take a big nosedive that day? The $1000 could vanish.

(This big deposit would be assuming, of course, that the regular monthly deposits wouldn't add up to the yearly limit).

In the U.K. anyone over the age of 60 gets free prescriptions (all other medical treatment is free at the point of use anyway).

In the U.K. anyone over the age of 60 gets free prescriptions (all other medical treatment is free at the point of use anyway).


We have Medicare here for that when one reaches 65. But it comes with a hell of a lot of conditions and complications and doesn't cover everything. Don't get people started on medical insurance in this country, you'll open a can of worms the size of Alaska.  :D

O0 Kudos on getting in on Green Mountain coffee - great product, we have some in our kitchen!

For ourselves, since we worked with a good financial firm (highly recommended), we let them pick the stocks/bonds/etc.  They did a great job growing our investment.

It's usually a combination of (a) financial illiteracy and (b) having no margin, i.e. tying up all of one's wages on daily living.  It's sad - when the company is willing to pitch in that much, that's where an employee's investment REALLY grows.


We also have a good financial firm. It was started by a former colleague of Carlos and is wife was his advisee. She was in my class in college and we graduated together. This was long before they started their firm. They have since retired but we still use the firm.

I actually have 3 IRA accounts. 1 is my main one and I let the financial firm chose the best place to invest. The second was my dad's that they also invest and is still making some money and I have to take the mandatory distribution at the end of the year. The third one is the one I call my "play money." There isn't much in it and I chose what stock I want to invest in hoping to pick another Green Mountain Coffee.

Some of the stocks I have is Canopy Growth a Canadian cannabis company (that isn't doing too good. I have lost $$$ on that one-so far), Casella Waste-local company that is doing well. Berkshire Hathaway-B. Yup, Warren Buffet stock. Can't afford the A stock but the B stock, is making some $$$. NRG that is doing ok. They are investing in solar and stuff. And the last one I got last year-Ocean Power. I bought 100 shares at $1 each. It is now up to $2 a share so I doubled my money.  :D ;D ;D


Cat

In the U.K. anyone over the age of 60 gets free prescriptions (all other medical treatment is free at the point of use anyway).
For the 60+ in London, a free travel pass is available for the London residents.

For the 60+ in London, a free travel pass is available for the London residents.


Same everywhere I think, issued by the local county council. I know my dad and my mother in law have them. Travel only free after 9.30 here.

I know my mother in law has used hers on the buses here. I don’t know for certain if that means they are transferable or just that the driver was half asleep!

Same everywhere I think, issued by the local county council. I know my dad and my mother in law have them. Travel only free after 9.30 here.

I know my mother in law has used hers on the buses here. I don’t know for certain if that means they are transferable or just that the driver was half asleep!
Thank you, I cannot speak for other areas.