Preparedness as a Retirement Plan
We are mortgage free as of 9/14, and in a position to start really taking control of our lives.
+1 to Cdnguy and +1 to you too, Jack. Great post, great show. We had actually been planning to sit down and revamp our budget, so I'm going to incorporate your suggestions about financial planning into our meeting. We are mortgage free as of 9/14, and in a position to start really taking control of our lives. It is so good to be able to say that.
The problem with a lot of people today is that they expect the world to engage them - to come to them.
... Freedom isn’t necessarily being disengaged from the system; I believe the ability to disengage at a time of your own choosing effectively grants you freedom as well.That's worth a repeat.
...
CdnGuy
Just listened to your first two podcasts! I'll pick up your third one in just a bit.
Great stuff.
You have a warm friendly voice and your slight accent make it fun to listen to.
Anyone who's spent any time around Canadians or folks from the upper midwest of the US will enjoy each time that little Canadian twang kicks in.
Your intro podcast was wonderful.
Your second podcast was very enjoyable and I really liked the detail you go into.
With the winters we have here in Ohio, I have some things a lot more in common with you than I do with Jack, considering what they call "winter" in Texas. ;)
Keep up the good work.
I look forward to episode 3.
OK, I give up-podcasts? What have I missed? Can you give me a link? ???
Sorry, I thought I posted it above but I didn't.
http://www.canadaprepared.com/ (http://www.canadaprepared.com/)
BTW, I listened to #3 and I loved it.
There was a sound quality issue, but the content was great.
It is funny how commonality of preparation works,,, If you are prepared for a genuinely secure and strings-free retirement, you are more or less prepared for all but the worst SHTF scenarios.
Great post CdnGuy,
+1 Cdnguy!Wonderful! Glad to hear that you are headed in the right direction. I'm also glad to hear that you are truly diversifying your investments and not just putting it all in the financial paper market. Jack says it plainly - that is NOT diversifying. You've just bought different cuts of pork from the same pig. It's still all pig though.
I love this thread. So many people putting into words what got me started here. I looked around last fall when the economy was tanking and my retirement account was dwindling. I'm in my late 30's and figured out i dont want to work til i am in my 70's (which is what retirement will be when we get there). So we started doing the dave ramsey thing and as i looked at cutting expenses. I quickly figured out the more self sufficient you are, the less money you have going out. As i looked for podcasts on self sufficiency i came across tsp. I continue to be amazed by this forum and the show. I still put money in retirement that i wont be able to touch til i reach whatever arbitrary age the government says is 'retirement', but i am also stashing money elsewhere and making plans to slow down ('semi-retire if you will') before 50. Your discussion of weaning down what it takes to live is a conversation my wife and i had several months ago. We are blessed to live on 5 acres several miles from town, so we are starting alot of this already.
Again, thanks for bringing it here for discussion since reading about others thinking and doing the same thing makes it feel more doable.
There are physical assets, and then there are paper assets. A piece of productive land, a wood stove, a few milk cows, a few head of beef cattle, a wood lot, a chicken house, hand tools, a water well, gold and silver coins, guns and ammunition, an orchard, and the like are physical assets; these assets have intrinsic value from the use to which they can be put. Social security, a pension, a 401(k) plan, a bank account, stocks and bonds, insurance policies, annuities, and the like, are paper assets, all of which depend upon the promises or obligations of others to give these assets value; they have no intrinsic value unless you plan to use them to start a fire.
To live through a period of economic collapse and survive, you are much better off to have real assets, and no debts, instead of paper assets or debts.
Congratulations,TXDaddy, when do you plan to move to the BOL?As soon as my wife will let us go. Progress little by little. At least, now I have only one boss. :D
Well, as of today, I am doing this for real. After 37 years, 2 months, 2 weeks and 3 days with the same company, as of 3:30pm CDT today, I am retired. Free at last, free at last....
The savings will be converted to real assets. Debts, history. I can devote all of my energy to working directly for my family and me. I feel powerful.
The folks on this forum have contributed hugely to my ability to do this at this time. Plus, of course, working towards the goal, and a great retirement deal from mycurrentformer employer.
All I have learned here (homesteading, permaculture, emergency preps, etc.) provided the boost needed to get over the top. Thank you, to all that have helped.
I don't know why more people don't do the same thing...Way to go. The reason is, we do not believe we can. Plus, we thought we needed more.
Well, as of today, I am doing this for real. After 37 years, 2 months, 2 weeks and 3 days with the same company, as of 3:30pm CDT today, I am retired. Free at last, free at last....
The savings will be converted to real assets. Debts, history. I can devote all of my energy to working directly for my family and me. I feel powerful.
The folks on this forum have contributed hugely to my ability to do this at this time. Plus, of course, working towards the goal, and a great retirement deal from mycurrentformer employer.
All I have learned here (homesteading, permaculture, emergency preps, etc.) provided the boost needed to get over the top. Thank you, to all that have helped.
I can live for myself and pursue things I find interesting, rather than spend my whole life making money for someone else. I don't know why more people don't do the same thing...
Congratulations, TexDaddy... hope we can go to the range this month as a mini-celebration!I am looking forward to it. PM me when you are ready to go!
Retirement planning was pretty much what got me into survivalism in the first place. I realized in college that I really had zero desire to work for someone else 40 hours a week for 40 years of my life. The two ways out that I came up with were to either get a whole lot of money somehow, or not need a whole lot of money. I don't have any wealthy relatives to leave me fortunes, so I went with the latter plan. :)
I found a piece of land shortly before I graduated, and bought it with the bit of money I did have saved up (I'd kept that money in hand and gotten student loans, rather than pay for school out of pocket). After I graduated, I found a job that paid well (bartending), and started saving money. The first year, I paid off all my student loans. The two years after that, all my money went into a shoe box to pay for building my house. This spring I decided I had enough put away, quit the job, and moved up to the property to start building. I'm now about two months away from having the house finished to the building inspector's eye (hooray first-time homebuyer tax credit!). Then this winter I'll be going back to the city for another job, because I need to save up more to put in my alt power system (I was able to put in the well, septic, and house, but can't swing the power yet - and I have zero interest in getting a loan for it).
In a couple more years like this, I hope to have my house all finished, the greenhouse up and running, a nice workshop put up, and be able to sustain myself through my hobbies. It's easy to live beneath the IRS' standard deduction when you have no power bill, water bill, sewer bill, car payment, or mortgage. I can live for myself and pursue things I find interesting, rather than spend my whole life making money for someone else. I don't know why more people don't do the same thing...
I could go on and on and sound like the crusty old man. Yet I'm only 37. Has the world really changed that much so quick?
I am presently watching my parents, who I love, are now retired, and in their late 60s, drown in debt because they refuse to abandon the entitlement lifestyle. It is sad to watch, but providing a clear yet unfortunate glimpse into what happens when you let living on credit consume you.
The sad upshot of all this is that had my parents kept their first house--an old farm house on an acre or two--it would have been paid for long ago, could pay cash for all their toys and wants, and likely not be on the verge of bankrupcy.
I have a 10 year plan. My warehouse/investment property will be paid off and throwing off income. My retirement accounts should be well into the mid six figures. Hopefully the house will have enough equity to pay for the house on the BOL.
I have re-evaluated my life. The desire to become self sufficient is over whelming.
The only thing that concerns me is the chronic heatlth problems (diabetes, etcc...)
I have considered a move to Canada as a health insurance backup plan... ;D
If I were you I'd try to pay off that mortgage as fast as you can. One the best things you can do is live rent/mortgage free when your elderly.
True Dat!My concern is that to stay in CT near the children and to get the type of property we want we will have to maintain a mortgage into our retirement. Keeping the payment low will be the key.
We aren't elderly yet but if we had had a mortgage on this place when DH became disabled we'd be in a mess. Those huge payments required a lot of so called sacrifice of other things that turned out to be no sacrifice at all.
Im not ready to make the jump yet I have a lot of work to do but as of now I owe less than 3k on my house I have no credit card bills my truck is paid for. What Im thinking of doing once my house is paid off is getting continuing the expansion of my garden doing food preps and getting some wind and solar going once that is done semi-retiring.
I recently discovered TSP, and this thread convinced me to join the forums. "Prepping for retirement" has been my goal for several years now, ever since I realized that financial independence, self-sufficiency, and homesteading form a truly comprehensive "preparedness plan": if you aren't dependent on an external job or external food supply, you can weather a lot of storms. Plus, you have the flexibility to do what you want to do, instead of what you have to do.
I currently live in a medium-sized city, but have a 40-acre off-grid property about a few hours' drive away. I go up a couple times a month to work on it, carpooling with my boyfriend who owns the parcel next to mine (on a side note, we often download TSP shows and listen to them on the drive! :) ). Over the years I've put in a well, a septic system, solar power, and just passed the rough-in inspection on my house. The property will be paid off next year, I'll be debt-free in just over two years, and I'm building on the property as I can afford it. My goal is to semi-retire at age 50 (8 years), but I could move there sooner since I telecommute.
An additional perk is that when people ask about my property, I don't have to stumble around to avoid the "survival compound" label. I tell them "it's my retirement". And they're jealous. :)
The only thing that would worry me a bit though is cashing out your 401k because I understand you take a big penalty for doing that (I'm Canadian so I'm not sure how it works).Cool Blue, Yeah, that could cause troubles - I know that I can swap it for gold, silver, real-estate with no tax penalty, looking into the rest. My second oldest son is just about to graduate with his Accounting and Financial Planning degrees - he is being shanghaied into consulting for his Mom and Dad - he just hasn't heard about that yet. ;)
Do you have any income besides your 401k that can provide for you when you reach retirement age?
IMO, although it might be a good good to produce 100% of your own food, I don't think it's realistic for most people, especially elderly people.Those are the goals, right now. Hopefully, I will be able to meet them, but if not, then part of my planning is to come up with Plan B ( and C and D and B.1, C.1, C.2, etc) We'll see what happens. Either way, my current investment is so low, that I would only be able to last about 6-12 months before they all go dry. :'(
I'd like to be able to produce at least 25% of my own food eventually, maybe as much as 50%. I'll need an income to make up the other 50%.
100% of your energy needs is quite possible however.
Do you plan on building a new home? If so I'd recommend building very energy efficiently and no larger than what your minimum needs. It's cheaper to conserve energy than create it.I keep wavering between building and buying and putting a mobile home up and parking an RV/Camper there. A lot will depend on what I find as a BOL/Homestead. One option that I am looking into is a buried/partially buried house - those can be pretty efficient. Still looking (an droolin', an slobberin' an wishin'...) I've got about 20-25 years of thinking and research behind me on this type stuff, and like I said - lots will depend on what I find. One good thing is that the kids are now thinking about having a cabin on a vacation spot, where they can go to relax from society's stress and to use as a BOL. We may use them to help fund a place and set up a couple of outbuildings/cottages around the main house for their families (properly stocked against SHTF situations, of course :))
I'd be wary about cashing out the 401k's unless that is the only option... the penalties are quite high, from what I've heard. Besides, you aren't that far away from being able to access it without penalties, right? With the timeframe you have, you ought to be able to save a huge amount of cash by reducing the lifestyle expenses now. You can save the cash you'll need over the next few years if you put your mind to it. Another thing to consider, is that I think you may be able to access the 401k without penalty for things like your child's education expenses... (check it out, I'm no expert).LvsChant, Yeah, you are right, things like that can lead to disaster. I am studying on it now (see above about the forced slavery for my son :P)
ChEng,CdnGuy, Thanks, yes I am pretty educated. Mostly self-study on this stuff. And yes, I am an engineer. In my post on the Intro thread, I mention that I am starting up a small business designing and selling kits and text material for engineering students. (My business' tag line is "Helping to build a better engineer) The kits are mostly electronic, control system and robotics. One of the things that I am working on for the next five years (until our son, Peter, moves out) is to get my business rolling enough to allow me to drop out of the "rat race". That should be enough time to either get enough into investments for me to retire or to be able to sell and set up another business that I can run from the boonies - or maybe continue with that if I can get close enough to a shipping organization that I can ship and receive.
You are obviously a smart, if not well educated, guy. You'll figure it out. It's all cost-to-benefit really. Just don't get stuck in the analysis paralysis.
I'm guessing you're an engineer yourself? Or at least a really technical guy? You might be surprised how well you could do going out on your own.
Just keep on trucking.
Still stuck deeply in the planning/research stages of this though. Any thoughts?
One year ago we were in the same position, much desire and over 50. Well 1 year later credit card debt gone, car payment paid down to 6 monthe left, about 30 days worth of food, learned to can and dehydrate, had a 4 x 4 garden at our condo that produced some food. Started to build the 1st aid supplies, working on paying off and getting out of the condo. Yiou cant expect to buy yourself into this lifestyle it takes work small steps in the right direction within your means, to reach your goals. Being in yoyur 50's is hard having a teenager at homeis tough, my youngest is 16 so I relate. But this year has taught her lessons as well.
Teach yourself something, can you bake or make a lanyard from paracord, how about sharpen a knife, shoot a gun, fish? There is so much to learn. Winter is coming pick something and just do it, learn it and then do something else. This is my passion and I will keep doing it until I can't. Good luck and don't give up
I am going to read that update and another listeners story today on the air, today's topic will be, "Creating Your Vision of Freedom". I wasn't sure what to do today but that just pushed it over the top. I am SO happy for you brother! You just got more than a decade of your life back, wow! Terrifying, well when you let a caged bird go free it is terrifying at first too.
CdnGuy... I am so happy for you. My husband has about 13 months to go before he retires and he describes it as the feeling of knowing you are going to win the lottery. The anticipation!
It sounds like the two of you won the lottery, too. Best of luck to you.
CdnGuy - Since your story was put out on the podcast it has help kick my family into high gear. My wife and I had our first meeting last night about where we are headed. We are going to have a planning/vision casting meeting again on Sunday. So thanks for share and let'ing Jack share on the show.
Rook
CdnGuy - Since your story was put out on the podcast it has help kick my family into high gear. My wife and I had our first meeting last night about where we are headed. We are going to have a planning/vision casting meeting again on Sunday. So thanks for share and let'ing Jack share on the show.
Rook
Man, this is something I need to get my wife to do. Any advice on how to approach it? It seems like she doesn't want to face facts and just bury her head and keep spending money on junk to distract her from the problems.
The other night I asked her what her plan is and what she wants out of life, her reply was "I don't know."
Man, this is something I need to get my wife to do. Any advice on how to approach it? It seems like she doesn't want to face facts and just bury her head and keep spending money on junk to distract her from the problems.
The other night I asked her what her plan is and what she wants out of life, her reply was "I don't know."
Personally when she said, I don't know, I would simply of ask, "honey would you like to know, would you like to be able to answer that question"?
It is amazing what asking a person can do vs. telling a person something. Because when she says, yes, you simply say well, can we try to find that together. Hell, lets face it guys, Dr. Phil is crap compared to a good salesman, ;D
He leaned on his shovel, cocked his winter hat up a bit so he could look right at me. With a serious face but soft eyes he said, "My wife is very ill and has been for a long time. If something should happen, I want the ambulance and medics to be able to get to her as quickly and safely as possible. I love her and I don't want to lose her because I didn't shovel the walk."
My goal in ten years is to generate at least half of my energy needs, 80% of my food, and be 100% mortgage free.
I find work enjoyable, when not accompanied with financial hardships. I could see working until my final day on earth, because I want to work.
I can't help but wonder if the reason so many of us struggle with our jobs is that many of them (mine included) seem to lack obvious, indisputable value in the grand scheme of things. Growing food, producing energy, homesteading, teaching our kids skills - it is very easy to recognize the value in these things. Hence, people on this forum are attracted to and passionate about these things. Most people would be if they weren't so caught up in getting that Benz or 3,500 sq foot McMansion.
I do not know if my way can be applied to the USA but i invested a lot of "spare" money into agricultural land that i do not work but rent out, before i invested in the homestead.
I think that agricultural land is a commodity that will go up in price as it "can not be printed" and the rising price of energy makes farm land not only interesting for planting food or feed, but also for harvesting energy.
I rent it out on a year to year basis and only to responsible farmers that look after it which get discount prices .. there will always be the "i pay more" farmer that will destroy the land by planting the same crop for 10 years, i do not want that and can afford to make less than possible.
Four birds with one stone,
1. Acquire an asset with OPM (other people's money)
2. Produce cashflow
3. Build a long term income producing asset (food forests)
4. Spread the techniques and mentality of permaculture
Bill Mollison has taught many people to become wealthy with Permaculture, I just wish he had done it for himself.
My husband stays home and has had a couple of businesses that failed because he is not the entrepreneur type (neither am I).
We have 40 acres and a house that has been in a partially finished state for the 13 years we have lived here, progressing very slowly.
I really dislike my job and would quit tomorrow if I could.
Our house has been paid off for 5 years but we just agreed to purchase the adjacent property (another 40 acres with a house that we hope to rent out).
We have enough cash to pay for all but about $30,000 on the new property but probably won't put all of our cash into the property, and will instead get a mortage. We have no credit card or other debt.
Hey all. New to the forum.
...
And should the geese or guineas be penned separately from the chickens?
Thanks....
I am recently widowed and in need of some mortgage advice. My husband died last May, and did not have a large life insurance policy. However, with it, I was able to pay for his funeral arrangements, medical bills, and pay off all our debt (cars, student loans, etc) with the exception of the mortgage. I have about 11 years left on this, but without his income, this one bill is taking almost half my income, and is seriously stressing my budget.
The current interest on my mortgage is just over 9%, and I am in the process of trying to refinance. I was hoping to reduce the interest, reduce my payments, and reduce the term of the loan - seemed like a win/win/win. The problem is that the appraisal came in so incredibly low that there is really no chance of the refi happening unless I can pay down the mortgage about 20K, which is not an option.
Anyone have any suggestions?
Examples: Solar, upgraded wiring & plumbing, rainwater collection, graywater use, edible landscaping.
Refinished with long-term durable materials. New windows, blah, blah….
By the time we retired, the place is not necessarily roomy or pretty, but it functions and reduces what would otherwise be ongoing costs… It’s nice to be able to water the garden with “free” water, and pick “safe” veggies whenever we want. Heck, a few months out of the year the electric company pays us…
This kind of thing has made a huge difference for me too. At the time I put in solar, I had no idea I was going to have illness force me into early retirement, I just wanted to. But, I am glad that I did. Everything I spent money on earlier that saves me money now has been key to me being able to be here in this house. I barely make it now, but it would be impossible without having expenses so low.
Still, we managed to pay off our debts this year and expenses have never been lower so we're in a pretty good place.
Still, we managed to pay off our debts this year and expenses have never been lower so we're in a pretty good place. I'm not getting any younger though!
One thing I detest is drywall. It requires lots of upkeep over the years (settling, raised nails, nicks, filling brad holes, etc.). I was thinking it would be neat if there was a modular steel panel wall, sort of like some office cubicles are made of. You could back it with foam board insulation for sound deadening and warmth. Maybe just use in high traffic hallways and rooms, or for the first three feet like the old style wood panel wainscote.
PorcupineKate, I guess it depends on a few things.
Do you have any other debts? What is the interest rate on those? Paying off the debts with the highest interest rates first results in reducing your debt load more now and in the future.
If the mortgage is your only debt, consider paying it off asap. Interest rates are starting to creep up in several places around the world. It is very likely that they will start climbing in the U.S. soon.
Can you hand a jump in rate of 2-5 points? I mean, if your rate is 3% now, can you handle it doubling? Tripiling?
Call me paranoid, but I expect to see rates go nuts like they did in the early 80s in the next 5 years or so. Imagine your mortgage at 18%!
Our mortgage is a fixed rate so I am not worried about rate increases.
Here, even if you have a 20 year mortgage at a fixed rate, the rate is usually fixed for a max of 5 years. Then when you renew, the rate changes.That's how our commercial loan worked but for our home place, 3% fifteen years fixed, baby!
Glad to hear you're doing alright, AppleJack.
My wife and I lost our jobs due to restructuring in November. If our house wasn't paid off, we would be in big trouble.
We don't have a garden or any sort of livestock yet. Just never had the time with working 50+ hours a week plus 1.5 hour commute each day.
But we're not going to make that mistake again. I'm not risking my health at another job unless it's to save someone's life.
We're not completely sure what we're going to do just yet, but we're focusing on self-employment.
Glad to hear you're doing alright, AppleJack.
My wife and I lost our jobs due to restructuring in November. If our house wasn't paid off, we would be in big trouble.
We don't have a garden or any sort of livestock yet. Just never had the time with working 50+ hours a week plus 1.5 hour commute each day.
But we're not going to make that mistake again. I'm not risking my health at another job unless it's to save someone's life.
We're not completely sure what we're going to do just yet, but we're focusing on self-employment.
Hope all works out for you guys. It can be tough but I know things can work out for the better. Best of luck to you guys. Prayers are with you. Get that garden going and start canning. It will be a life saver with grocery bill.
Sorry to hear about the job losses, CdnGuy. I hope things get better for you very soon. And... you've just proved what a great idea it was to get your homestead paid for! Since it is time for planning a garden, you could start one this year with the extra time you have (at least for now).
Perhaps you can use your skills in some sort of business of your own? Your description of work in the IT field sounds truly horrible. I'm glad you are re-assessing your options and looking at making a change... stress is a killer.
IT, no one hears about the work you do until something goes wrong, then they blame it on you (even i you did not do it) and expect you to fix it now for free.
Nowadays. with retirement plans tanking and pension funds bleeding out, we may find ourselves without the ability to retire once again. However, this time, we won’t have the farm to feed us and the multi-generational home to keep us occupied and close to our loved ones. If we’re very fortunate, we may be able to find a spot in a retirement home and sell our current homes to pay for it.
Me, I have a different plan. My plan depends on me getting prepared to take care of myself and my wife for as long as we are physically able. If my plan works, we’ll also be able to ‘retire’ early. That plan is preparedness.
Look forward to reading through this thread as well.
I wrote the original post 11 years ago. It amazes me that people still find it and appreciate it. It's humbling.
Hi All- Just joined this forum today after many years of listening to TSP episodes here and there. I've been working towards being self sufficient but in the face of the COVID-19 pandemic, I see where I'm ill prepared. I work in financial services so the title of this thread caught my attention. Given the access to 401(k)'s that the CARES Act provides, (if you have been financially impacted by COVID-19 you can take up to $100K out of your account, avoid the 10% early withdrawal penalty, return the funds you took within 3 years and avoid taxes OR don't return the funds and stagger the taxes you would owe on the withdrawal over the next 3 years), I'm wondering if it is worth it to take advantage of this and use the money to build up our homestead. We need a garage/workshop and a small barn for animals, (pigs and goats are what I'm thinking about). We have some debt as well. But my thought process is by using my 401k money to improve/enhance my home, I'm more quickly getting to self sufficiency if things go from bad to worse. On the other hand, if this pandemic passes and things get back to normal, (the stock market stabilizes), I could then refinance my house, cash out the equity, (assuming it has increased in value from building a garage/barn, etc.), and use that to restore my $100k withdrawal. I should say here that this runs contrary to everything I have been taught, (and teach), in my professional life. I must also say that I'm not intending nor attempting to provide financial advice to anyone. I'm just looking for collective insight from this community to gauge if what I'm considering is just stupidity being amplified by the emotions of our present circumstances or if there is some level of merit to this strategy. Grateful for being given access to this forum and I look forward to your responses! Thank you!
If you do get a fair amount of produce from your garden, you may want to invest in a dehydrator (even the fairly inexpensive models will do the trick) in order to store some of your garden produce for the longer term). This is a very easy way to get started on food storage that doesn't require refrigeration or freezing.
Hi All- Just joined this forum today after many years of listening to TSP episodes here and there. I've been working towards being self sufficient but in the face of the COVID-19 pandemic, I see where I'm ill prepared. I work in financial services so the title of this thread caught my attention. Given the access to 401(k)'s that the CARES Act provides, (if you have been financially impacted by COVID-19 you can take up to $100K out of your account, avoid the 10% early withdrawal penalty, return the funds you took within 3 years and avoid taxes OR don't return the funds and stagger the taxes you would owe on the withdrawal over the next 3 years), I'm wondering if it is worth it to take advantage of this and use the money to build up our homestead.Welcome!
"...Me, I have a different plan. My plan depends on me getting prepared to take care of myself and my wife for as long as we are physically able. If my plan works, we’ll also be able to ‘retire’ early. That plan is preparedness..."
this is where I disagree. Last year I had a lot of pears to dry. I borrowed 5 dehydrators in addition to my 2 9-tray Excaliburs. one of my Excalibur dried 3 times the amount of any ONE of the others, and in half the time, with none burnt. So much so that on Black Friday we bought a THIRD instead of ever doing that again. Funny thing, my friends and neighbors from whom I borrowed - none of them use their dehydrators; they don't like the end product to justify the work.