What 3 tips would you give a soon to be retiree?

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Twiggsapproved
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What 3 tips would you give a soon to be retiree?

Post by Twiggsapproved »

Dear Bogleheads:

If you could give only 3 tips for a soon to be retiree, what would they be?
Rudedog
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Re: What 3 tips would you give a soon to be retiree?

Post by Rudedog »

Control your spending

Develop some activities to keep you busy don't watch TV all day, interact with positive people

Stay in good physical shape, hiking, walking, pickleball, biking, etc
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TeamArgo
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Re: What 3 tips would you give a soon to be retiree?

Post by TeamArgo »

You can get by comfortably on less money than you think, so don't put retirement off.

You won't miss going to work nearly as much as you think.

Retirement is GREAT! (Did you hear Tony the Tiger's voice as you read that?)
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Nowizard
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Re: What 3 tips would you give a soon to be retiree?

Post by Nowizard »

1. Carefully consider the issue of conversion of retirement savings in traditional accounts to Roth-IRA's and don't be overly concerned about the tax consequences in most cases.
2. Plan for what activities you will undertake in retirement and try some of them out. If you have thought of woodworking, for example, purchase or at least investigate educating yourself.
3. Have discussions with a spouse or significant other if present about retirement, particularly if the other person is not retiring or has been at home without outside employment.

Tim
Tom_T
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Re: What 3 tips would you give a soon to be retiree?

Post by Tom_T »

Nowizard wrote: Wed Oct 20, 2021 9:42 am 3. Have discussions with a spouse or significant other if present about retirement, particularly if the other person is not retiring or has been at home without outside employment.
My wife said "you can retire if you want, but I'm going to work." :happy
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tyrion
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Re: What 3 tips would you give a soon to be retiree?

Post by tyrion »

Twiggsapproved wrote: Wed Oct 20, 2021 8:30 am Dear Bogleheads:

If you could give only 3 tips for a soon to be retiree, what would they be?
I'm not retired yet, but I've read a lot about it and I'm definitely interested!

Here are 3 'tips' I'm planning on implementing

1. Set up finances to replace a paycheck. So automated transfers, redirection of dividends, etc. I know I will miss that regular paycheck so I plan to set up transfers to the checking account in the same amounts and intervals.


2. Add a little structure. I plan to add daily calendar entries to give myself something to do. Which is what I do while working - block out an hour for a walk or bike ride.


3. Keep a running list of hobbies to try, projects, etc. Any time things are feeling a bit stale I can try something on the list, while also understanding they are not 'must do' items.
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Re: What 3 tips would you give a soon to be retiree?

Post by Californiastate »

Make a budget and stick to it. Revise budget next year.
Fill your day. I initally had a schedule of tasks to replicate my old work schedule.
Get healthy. Exercise, eat well and sleep well.
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Re: What 3 tips would you give a soon to be retiree?

Post by tennisplyr »

1. Do things you enjoy, now is your time, life goes fast
2. Don’t worry about money, if you’ve done your homework things will work out just fine
3. Be around others, don’t isolate yourself too much

—retired 10 years, living the life.
“Those who move forward with a happy spirit will find that things always work out.” -Retired 13 years 😀
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retiredjg
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Re: What 3 tips would you give a soon to be retiree?

Post by retiredjg »

Don't assume you have to have it all figured out on retirement day. It's a process. You'll figure things out over time.
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racy
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Re: What 3 tips would you give a soon to be retiree?

Post by racy »

[/quote]
My wife said "you can retire if you want, but I'm going to work." :happy
[/quote]
Same here. I retired 8 years ago and wife is still working, even though collecting social security. It's been the best years of my life! :D
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Re: What 3 tips would you give a soon to be retiree?

Post by Big Dog »

Get all your medical adn dental work completed.
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Re: What 3 tips would you give a soon to be retiree?

Post by Trader Joe »

Twiggsapproved wrote: Wed Oct 20, 2021 8:30 am Dear Bogleheads:

If you could give only 3 tips for a soon to be retiree, what would they be?
1. Have plenty of money to retire - more than enough.
2. Budget.
3. Control your spending.
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sleepysurf
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Re: What 3 tips would you give a soon to be retiree?

Post by sleepysurf »

In addition to all the above...

Financial
-Review your Investment Policy Statement and convert it to a Retirement Policy Statement (to include withdrawal planning)
-Simplify your portfolio(s) as much as possible
-Review and update Estate Plan (provides additional peace of mind)

Non-Financial
-Be flexible with your "bucket list" plans, and don't feel guilty if a highly anticipated new hobby or activity doesn't work out
-Make social interactions a high priority
-Don't feel guilty about sleeping in, or taking afternoon naps (you've earned it)
Retired 2018 | currently ~64/33/3 (partially sliced and diced, with a slowly rising equity glide path)
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Watty
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Re: What 3 tips would you give a soon to be retiree?

Post by Watty »

1) Don't overplan your finances, there will be lots of financial twists and turns that you cannot predict. As long as you are not planning on a tight bare bones retirement you can likely cut your expenses significantly if you need to and still be more than comfortable.

2) The best thing you can do for your kids is to plan your finances so that they will never need to support you. Planning to leave an inheritance to your kids is problematic. If you live to a ripe old age then by the time the kids inherit any money then they may already be retired and too old to enjoy it and should have saved up their own retirement nest egg by then already. If you die relatively young then the kids will get a large inheritance without any special planning.

3) The cost of long term care is concerning, but you need to remember that when you go into LTC most of your other expenses will stop. You mainly need to worry about the gap between your normal budget and the LTC costs. The term "long term care" is also very misleading since it includes assisted living which may not cost as much as you might think in your area.

https://www.genworth.com/aging-and-you/ ... -care.html
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Re: What 3 tips would you give a soon to be retiree?

Post by helloeveryone »

Nowizard wrote: Wed Oct 20, 2021 9:42 am 1. Carefully consider the issue of conversion of retirement savings in traditional accounts to Roth-IRA's and don't be overly concerned about the tax consequences in most cases.
2. Plan for what activities you will undertake in retirement and try some of them out. If you have thought of woodworking, for example, purchase or at least investigate educating yourself.
3. Have discussions with a spouse or significant other if present about retirement, particularly if the other person is not retiring or has been at home without outside employment.

Tim
Could you elaborate on this part? “or has been at home without outside employment”

My spouse is stay at home mom. But we’re still ~10 years out from retirement
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Re: What 3 tips would you give a soon to be retiree?

Post by Random Musings »

1. Make sure you are financially and emotionally prepared for retirement. That includes taking care of your medical insurance.

2. Enjoy every moment as if it is your last. Spend as much time with the people you love most. If you like to travel and explore, plan the more strenuous trips earlier in your retirement. Stay active!

3. The brown acid that is circulating around us is not specifically too good. It's suggested that you do stay away from that.

RM
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Re: What 3 tips would you give a soon to be retiree?

Post by Stinky »

Exercise. Join a gym. Take long walks around the neighborhood. Keep active.

Don’t watch cable news channels. The dialogue there will keep your stomach churning about things you can do nothing about.

Automate your finances as much as you can. Simplify, simplify, simplify.
Retired life insurance company financial executive who sincerely believes that ”It’s a GREAT day to be alive!”
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Re: What 3 tips would you give a soon to be retiree?

Post by sherwink »

1: Live below your means, but live your life.
2: Enjoy life, walk, explore remain active.
3: Plan your estate and its implementation.
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AnnetteLouisan
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Re: What 3 tips would you give a soon to be retiree?

Post by AnnetteLouisan »

Listen to Suze Orman‘s Why I Hate the Fire Movement, and make sure you have thought of all the contingencies she mentions.
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Re: What 3 tips would you give a soon to be retiree?

Post by sailaway »

AnnetteLouisan wrote: Wed Oct 20, 2021 9:12 pm Listen to Suze Orman‘s Why I Hate the Fire Movement, and make sure you have thought of all the contingencies she mentions.
I hate you now. Very John Galt, isn't she?
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Re: What 3 tips would you give a soon to be retiree?

Post by obafgkm »

Stinky wrote: Wed Oct 20, 2021 8:28 pm Don’t watch cable news channels. The dialogue there will keep your stomach churning about things you can do nothing about.
Amen. I really wish my (retired) father (and to some extent my mother) would stop watching a certain one of those channels. Every time I visit (or call) that thing is on. I even suggest watching the "other" channel to see what the other side is saying (and keep in mind, I actually am more in tune with the channel they like to watch). But no, he is addicted to it. On all of these channels, Nothing. Changes. Over. The. Entire. Day. I've taken to turning the TV off and saying "So-and-so is still missing" or "So-and-so is still dead." :twisted:

They watch it so much that "Breaking News" (and the logo of the channel) is permanently "burned" into their screen. :oops:
"I'm investing in stocks... chicken, beef, and vegetable. It's risky, but I know one day it'll pay off & I'll be a bouillonaire. Who knows, I might even open up a Broth IRA."
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Re: What 3 tips would you give a soon to be retiree?

Post by firebirdparts »

helloeveryone wrote: Wed Oct 20, 2021 7:56 pm Could you elaborate on this part? “or has been at home without outside employment”

My spouse is stay at home mom. But we’re still ~10 years out from retirement
Well, my wife is really blunt and so she just told me that she doesn't want me around all the time knocking her playhouse down. That's a big adjustment for a stay at home mom. She's been retired over 25 years. The covid helped, though. After she saw what it would be like with me working from home, she realized that she could stand it. I went out to my shop at 8 and I did not come back until dinnertime.

To the original question, my wife retired around age 29, and she has a schedule of mostly self-care activities that takes her all day every day. She has mastered retirement, except that she is actually stressed by her schedule. So don't do that, but do realize that if you ever wanted to eat right and exercise and just be the best you can, then you actually have time for that if you're retired. You can actually over-fill your time, without hobbies, without charity work, without a time-waster job. It is possible.
This time is the same
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AnnetteLouisan
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Re: What 3 tips would you give a soon to be retiree?

Post by AnnetteLouisan »

sailaway wrote: Wed Oct 20, 2021 9:27 pm
AnnetteLouisan wrote: Wed Oct 20, 2021 9:12 pm Listen to Suze Orman‘s Why I Hate the Fire Movement, and make sure you have thought of all the contingencies she mentions.
I hate you now. She is touting out tropes that I have heard my entire life about automation and unemployment and arguing that the financial collapse of our county is why I should keep working and save more...ok there John Galt.
That’s a pity.

The episode I mentioned references very neutral considerations like:
-education costs for kids
-floods, fires
-inflation
-cost of care for parents
-addiction rehab costs
-industry changes
-tax increases and social security reductions

It‘s a pretty long list. I‘m not saying people should agree with her on everything or that they shouldn’t retire early. I hope to do so myself. I‘m saying for someone asking for tips before retiring, her list is as comprehensive a what-if list as you‘ll find anywhere, so you‘ll be forearmed by having heard it.

Peace.
Last edited by AnnetteLouisan on Thu Oct 21, 2021 7:22 am, edited 1 time in total.
RoadagentMN
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Re: What 3 tips would you give a soon to be retiree?

Post by RoadagentMN »

1. Fitness- all in. Use a professional trainer to customize a program for your goals
2. Watch the alcohol consumption
3. Deeply understand this it, the end game.

It’s better to burn out then fade away.
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HomerJ
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Re: What 3 tips would you give a soon to be retiree?

Post by HomerJ »

RoadagentMN wrote: Wed Oct 20, 2021 10:35 pm 1. Fitness- all in. Use a professional trainer to customize a program for your goals
2. Watch the alcohol consumption
3. Deeply understand this it, the end game.

It’s better to burn out then fade away.
(1) and (2) don't seem to fit your last sentence. :)
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Re: What 3 tips would you give a soon to be retiree?

Post by heyyou »

Be aware that a stock market crash often occurs soon after retiring since a stock market boom is what lead to prospective retirees reaching their magic numbers.

The stock market crash recovery may take awhile, but it does recover so spending some percentage of each recent annual portfolio value is how to adapt your annual spending to your remaining portfolio size during both high markets and low markets.

The above reason is why the 4% SWR is a good measure of how much to save for retirement, but is not a good spending plan during retirement. Expect to be flexible about your spending since that helps portfolio longevity.
Carefully consider the issue of conversion of retirement savings in traditional accounts to Roth-IRA's and don't be overly concerned about the tax consequences in most cases.
We did this throughout early retirement, and it worked out so well later due to the large gains of the stock funds stored only in the never-taxed Roth IRA and minor gains of the bond funds stored in the now taxable traditional IRA. After spouse died, the tax consequences of filing as a single are not worrisome since the RMD percentages are just a reasonable spending amount.
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ResearchMed
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Re: What 3 tips would you give a soon to be retiree?

Post by ResearchMed »

firebirdparts wrote: Wed Oct 20, 2021 9:34 pm
helloeveryone wrote: Wed Oct 20, 2021 7:56 pm Could you elaborate on this part? “or has been at home without outside employment”

My spouse is stay at home mom. But we’re still ~10 years out from retirement
Well, my wife is really blunt and so she just told me that she doesn't want me around all the time knocking her playhouse down. That's a big adjustment for a stay at home mom. She's been retired over 25 years. The covid helped, though. After she saw what it would be like with me working from home, she realized that she could stand it. I went out to my shop at 8 and I did not come back until dinnertime.

To the original question, my wife retired around age 29, and she has a schedule of mostly self-care activities that takes her all day every day. She has mastered retirement, except that she is actually stressed by her schedule. So don't do that, but do realize that if you ever wanted to eat right and exercise and just be the best you can, then you actually have time for that if you're retired. You can actually over-fill your time, without hobbies, without charity work, without a time-waster job. It is possible.
"Well, my wife is really blunt and so she just told me that she doesn't want me around all the time knocking her playhouse down. That's a big adjustment for a stay at home mom."

Ah, the "For better or for worse, but not for lunch" issue! :twisted:

RM
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Rudy Tooty
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Re: What 3 tips would you give a soon to be retiree?

Post by Rudy Tooty »

1. Dive into that hobby you've always loved but never had time for.
2. Do a regular aerobic exercise you enjoy - 3x-4x times a week for at least an hour per day. If you're not athletic, walking works.
3. Set weekly, monthly and annual fun goals. Write them down in a notebook. Develop a plan to accomplish them and assign dates.
namajones
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Re: What 3 tips would you give a soon to be retiree?

Post by namajones »

1. No plans.
2. No schedule.
3. No worries.

You'll figure it out without our help or "advice."
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Re: What 3 tips would you give a soon to be retiree?

Post by retiredjg »

helloeveryone wrote: Wed Oct 20, 2021 7:56 pm
Nowizard wrote: Wed Oct 20, 2021 9:42 am 1. Carefully consider the issue of conversion of retirement savings in traditional accounts to Roth-IRA's and don't be overly concerned about the tax consequences in most cases.
2. Plan for what activities you will undertake in retirement and try some of them out. If you have thought of woodworking, for example, purchase or at least investigate educating yourself.
3. Have discussions with a spouse or significant other if present about retirement, particularly if the other person is not retiring or has been at home without outside employment.

Tim
Could you elaborate on this part? “or has been at home without outside employment”

My spouse is stay at home mom. But we’re still ~10 years out from retirement
Not Nowizard, but this is what I have heard from a number of women who were either SAHMs or retired before their husbands retired...It can be a case of She already has a life and He has no idea how to fill the "empty hours" other than to do things with her.

Some women find that their newly retired husbands are always around (even in the way) and wanting to do everything together. But these women already have their own routines and interests and don't want to spend all day with DH. They want DH to find and develop their own interests.

I remember being surprised a number of years ago the first time I heard "I love him but my husband is driving me crazy!" Turns out it is not uncommon.
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Re: What 3 tips would you give a soon to be retiree?

Post by UpperNwGuy »

1. Don't become a consultant to your former industry.
2. Don't upsize your house, even if you move to a lower cost area.
3. Get a personal trainer who will push you to get fit and stay fit.
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Re: What 3 tips would you give a soon to be retiree?

Post by Wanderingwheelz »

I’m surprised by the mentions of personal trainers.

Exercising is far easier to do than managing your own finances, for example. It’s odd reading Bogleheads being so emphatic about hiring someone to do something that is so simple to do yourself.
Being wrong compounds forever.
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Re: What 3 tips would you give a soon to be retiree?

Post by HomerJ »

Wanderingwheelz wrote: Thu Oct 21, 2021 8:40 am I’m surprised by the mentions of personal trainers.

Exercising is far easier to do than managing your own finances, for example. It’s odd reading Bogleheads being so emphatic about hiring someone to do something that is so simple to do yourself.
Well, a personal trainer isn't taking 1% of your portfolio every year.

Doesn't hurt to start with a personal trainer for 6 months and learn a solid routine.
"The best tools available to us are shovels, not scalpels. Don't get carried away." - vanBogle59
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Re: What 3 tips would you give a soon to be retiree?

Post by vanbogle59 »

obafgkm wrote: Wed Oct 20, 2021 9:33 pm
Stinky wrote: Wed Oct 20, 2021 8:28 pm Don’t watch cable news channels. ...
Amen. ...
Don't wait for retirement. Do this now! And encourage everyone you know to do the same.
Cut back on the sugar and booze while you're at it. (Same part of the brain.)
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Re: What 3 tips would you give a soon to be retiree?

Post by RamIam »

UpperNwGuy wrote: Thu Oct 21, 2021 8:05 am 1. Don't become a consultant to your former industry.
Because?
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Re: What 3 tips would you give a soon to be retiree?

Post by Bbddl »

Awesome post with a lot of great information.
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Re: What 3 tips would you give a soon to be retiree?

Post by Stinky »

vanbogle59 wrote: Thu Oct 21, 2021 10:50 am
obafgkm wrote: Wed Oct 20, 2021 9:33 pm
Stinky wrote: Wed Oct 20, 2021 8:28 pm Don’t watch cable news channels. ...
Amen. ...
Don't wait for retirement. Do this now! And encourage everyone you know to do the same.
When I have a little down time, I listen to classical music instead of having the TV on.

Far healthier in my opinion …..
Retired life insurance company financial executive who sincerely believes that ”It’s a GREAT day to be alive!”
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Re: What 3 tips would you give a soon to be retiree?

Post by jimbok_mb »

I would just add to focus less on money and more on your health - addressing any existing problems and taking steps to stay healthy as you age.
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Re: What 3 tips would you give a soon to be retiree?

Post by Northern Flicker »

retiredjg wrote: Wed Oct 20, 2021 6:10 pm Don't assume you have to have it all figured out on retirement day. It's a process. You'll figure things out over time.
+1
You need some time away from work to think about what you want next.
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ResearchMed
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Re: What 3 tips would you give a soon to be retiree?

Post by ResearchMed »

Stinky wrote: Thu Oct 21, 2021 11:33 am
vanbogle59 wrote: Thu Oct 21, 2021 10:50 am
obafgkm wrote: Wed Oct 20, 2021 9:33 pm
Stinky wrote: Wed Oct 20, 2021 8:28 pm Don’t watch cable news channels. ...
Amen. ...
Don't wait for retirement. Do this now! And encourage everyone you know to do the same.
When I have a little down time, I listen to classical music instead of having the TV on.

Far healthier in my opinion …..
Absolutely!!
:happy

RM
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Re: What 3 tips would you give a soon to be retiree?

Post by DiploInvestor »

HomerJ wrote: Thu Oct 21, 2021 10:24 am
Wanderingwheelz wrote: Thu Oct 21, 2021 8:40 am I’m surprised by the mentions of personal trainers.

Exercising is far easier to do than managing your own finances, for example. It’s odd reading Bogleheads being so emphatic about hiring someone to do something that is so simple to do yourself.
Well, a personal trainer isn't taking 1% of your portfolio every year.

Doesn't hurt to start with a personal trainer for 6 months and learn a solid routine.
+1 to both

Once you figure out what you like doing, it’s easy. But not everyone has been athletic their whole lives, and they need some direction. If they’re Bogleheads, though, they’ll figure it out after some guidance and lose the “advisor.”
"History doesn’t repeat itself, but it often rhymes." -- Mark Twain // "If you have a garden and a library, you have everything you need." — Cicero
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Re: What 3 tips would you give a soon to be retiree?

Post by spammagnet »

AnnetteLouisan wrote: Wed Oct 20, 2021 9:34 pm -addiction rehab costs
Oh, no. I forgot to include the cost of addiction rehab in my retirement plan!
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AnnetteLouisan
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Re: What 3 tips would you give a soon to be retiree?

Post by AnnetteLouisan »

spammagnet wrote: Thu Oct 21, 2021 12:36 pm
AnnetteLouisan wrote: Wed Oct 20, 2021 9:34 pm -addiction rehab costs
Oh, no. I forgot to include the cost of addiction rehab in my retirement plan!
Her point is you or a family member could develop an addiction to something besides BH and need help. It’s too common today, sadly. Not completely outside the realm.
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Re: What 3 tips would you give a soon to be retiree?

Post by sailaway »

AnnetteLouisan wrote: Thu Oct 21, 2021 1:01 pm
spammagnet wrote: Thu Oct 21, 2021 12:36 pm
AnnetteLouisan wrote: Wed Oct 20, 2021 9:34 pm -addiction rehab costs
Oh, no. I forgot to include the cost of addiction rehab in my retirement plan!
Her point is you or a family member could develop an addiction to something besides BH and need help. It’s too common today, sadly. Not completely outside the realm.

Sure, but she wants you to price in ridiculous amounts for every contingency. $350k+ per year for her mother. Nursing homes aren't cheap, but her numbers are silly. Even the seven year number is incredibly high for someone who needs that level of care. There is a big gulf between "bare bones will likely look irresponsible" and "save for the maximum of every contingency." In this podcast, she says that it is fine to earn a lower wage your whole life, but if you are capable of earning more, you are obliged to. She is trying to give financial justification to the glorification of work.
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Re: What 3 tips would you give a soon to be retiree?

Post by spammagnet »

AnnetteLouisan wrote: Thu Oct 21, 2021 1:01 pm
spammagnet wrote: Thu Oct 21, 2021 12:36 pm
AnnetteLouisan wrote: Wed Oct 20, 2021 9:34 pm -addiction rehab costs
Oh, no. I forgot to include the cost of addiction rehab in my retirement plan!
Her point is you or a family member could develop an addiction to something besides BH and need help. It’s too common today, sadly. Not completely outside the realm.
Should it be part of everyone's plan to have an emergency rehab fund, even before retirement? That's kinda silly.
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Re: What 3 tips would you give a soon to be retiree?

Post by AnnetteLouisan »

spammagnet wrote: Thu Oct 21, 2021 1:22 pm
AnnetteLouisan wrote: Thu Oct 21, 2021 1:01 pm
spammagnet wrote: Thu Oct 21, 2021 12:36 pm
AnnetteLouisan wrote: Wed Oct 20, 2021 9:34 pm -addiction rehab costs
Oh, no. I forgot to include the cost of addiction rehab in my retirement plan!
Her point is you or a family member could develop an addiction to something besides BH and need help. It’s too common today, sadly. Not completely outside the realm.
Should it be part of everyone's plan to have an emergency rehab fund, even before retirement? That's kinda silly.
certainly not. I think she was simply trying to highlight that unexpected costs can arise in retirement and not to think when planning FI that every possible future expense is predictable.

No need to listen to her complete list or take it as gospel, but if you do, I think the context will be clear and you might be alerted to some planning contingencies that could be helpful. And if not that is certainly fine as well. I agree she’s quite pessimistic at times and not to everyone’s taste, substantively or otherwise.
chris319
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Re: What 3 tips would you give a soon to be retiree?

Post by chris319 »

1. Don't think about your old job.

2. Exercise your body.

3. Exercise your mind.
Financial decisions based on emotion often turn out to be bad decisions.
UpperNwGuy
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Re: What 3 tips would you give a soon to be retiree?

Post by UpperNwGuy »

RamIam wrote: Thu Oct 21, 2021 11:07 am
UpperNwGuy wrote: Thu Oct 21, 2021 8:05 am 1. Don't become a consultant to your former industry.
Because?
Because consulting is working not retiring.
spammagnet
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Re: What 3 tips would you give a soon to be retiree?

Post by spammagnet »

UpperNwGuy wrote: Thu Oct 21, 2021 2:25 pmBecause consulting is working not retiring.
If done sporadically at your own convenience, it can be very lucrative, personally satisfying, and not interfere with your other plans at all. Some people may enjoy it as an adjunct to their social life and it may provide a transition for those whom an abrupt change is hard to adapt to.
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JupiterJones
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Re: What 3 tips would you give a soon to be retiree?

Post by JupiterJones »

Random Musings wrote: Wed Oct 20, 2021 8:16 pm 3. The brown acid that is circulating around us is not specifically too good. It's suggested that you do stay away from that.
And if you got that reference, you're probably old enough to retire. :D
"Stay on target! Stay on target!"
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