Finance and Economics > Economic News, the Global Economy and all Things Monetary

What does "Retirement" mean to you?

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robkaiser.me:

--- Quote from: DDJ on February 04, 2020, 11:18:09 AM ---There is a recordation that you should have 10 to 15% of your retirement in actual hard metals (gold and silver).  I have also heard that having a year or 2 of your property tax in metals is a good safety net.  More people lost homes to tax issues than to the bank in the depression.

Some limiting factors there are holding large amounts of metal may open you up to a can of worms should you come under the scrutiny of the government.  Money laundering laws being what they are have inadvertent affects on law abiding citizens.  Having the ability to pay your tax bill in times of hardship sounds like a good place to be.  A year ago I would have thought that the "economic collapse" was not too close but what is going on in China is going to have an economic effect that could be devastating and it could start building soon. 

As far as my retirement expectation personally.  I am NEVER expecting to be sitting on the front porch watching the world go be.  I expect that retirement for me will be a day job with little income above providing for my health care (assuming out of pocket).  My pension and 401K I am expecting to get 1/2 of my preretirement income. Life after I hang up my corporate ID will be a lot less stressful.  I am getting to the point in life where retirement is get out of the rat race, but stay in the turtle race.  Dropping my corporate ID will do wonders for my life.  Like you I am going to be getting my house paid off in the next year.  You have to view that as getting a raise of your mortgage payment.  The same is true with all dept.  Paying off that last payment is like getting a raise by that amount.  Imagine how you would feel if your boss called you into the office and offered you a $1000 a month raise.  How many people pay $1000 or more in their house payment (principle and interest).  I do not but I have been accused of being debtaphobic. 

I have been dropping a good portion of my income into my 401K for the last 20plus years (still have less than 4 years of my current income in there).  The sooner you start putting money in the sooner it will begin to grow. 

Each has their own burdens, savings styles, and expectations.

--- End quote ---

Yep, I'm familiar with the strategy of having a certain percentage of one's net worth in precious metals.

As far as government scrutiny regarding my possession of metals, I view that in a similar manner to that of my guns...

...I don't.

Like you, I don't expect to (or want) to front porch sit, cruise, or anything like that. 

Unlike you, I won't be paying off the house...just my consumer debt.

The house / land is not mine, it's parent's who have a very unstable financial situation...which makes me nervous.

This is also one of the primary drivers behind my own financial motivation to change / repattern my own finances.

Time to change the family tree...and I suppose this is an entirely different variable with potential to impact *everything*

First and foremost, I'll be saving 3-6 months of living expenses (more like 6).

If I have enough sense, I'll keep going - I should probably plan for worst case scenario in that I may not be able to stay on the land that I'm currently on...even though it's owned by family and I *am* paying rent.  What little I do know about my parent's financial situation has me concerned about my own ability to purchase it in the case they die.  Again, another issue.

Lots to think about this year as I finalize my debt and begin crossing off savings goals.

robkaiser.me:

--- Quote from: Mr. Bill on February 04, 2020, 01:12:43 PM ---My wife and I are also debtaphobic.  I think it's a good phobia to have.

[rambling-old-guy-anecdote]
Back in the year of our 25th wedding anniversary, we were trying to decide what Big Thing we should do to celebrate.  A trip to Europe?  A bunch of new furniture?  And it dawned on us to ask, what is our actual net worth, after subtracting what we still owe on the house?  Because paying for a big anniversary gift with debt sounded stupid.

Well, we realized that the amount we had in savings (outside of IRAs and retirement plans) was greater than the remaining mortgage principal.  And our investment earnings on that amount weren't much better than what we were paying in mortgage interest.

So our anniversary gift was paying off the mortgage.  That felt way better than any European vacation.
[/rambling-old-guy-anecdote]

As for how to invest for retirement, I dunno.  That'll depend on your personal situation.  What has worked for us is:

* Take full advantage of any matching contributions available in an employee retirement plan.
* Divide inventments according to Harry Browne's "Permanent Portfolio" plan: 25% each in volatile stocks, long-term Treasury bonds, gold, and cash.
Also, have lots of medical insurance.

Should you invest in land and preps?  Maybe, somewhat.  My personal feeling is, once you've got the basic emergency preps covered, money is the best prep, because it's the most versatile and you don't know for sure what you're going to need.

--- End quote ---

After a few years of continual input of Dave Ramsey and Uncle Jack...I've become debtaphobic also.

I think a paid off mortgage sounds incredible...and always admired those who have done that - even before I wised up financially.

Regarding the retirement suggestions, yes - many variables for sure with each person / circumstance.

Harry Browne's "Permanent Portfolio" will be good material to read in addition to Gary Collins (and others?)

Looking to diversify financial information from people within homestead/prepper circles as well.

Medical insurance is huge - because I have an existing condition (chronic neurological condition - epilepsy) and require medication.

The "requirement" is/may be fluid as I continue experimenting with lifestyle changes and alternative/adjunct treatment methodologies.

Land and preps may be cart before the horse and an increased savings fund is likely the best place to start.

I suppose I'm just trying to lubricate the grinding gears with ideas from others as we all move forward.


robkaiser.me:

--- Quote from: LvsChant on February 04, 2020, 02:56:49 PM ---retirement to me?

Well... I'm currently really happy doing what I am doing, so don't know when I'll actually retire...

that being said... my husband retired in 2012. Our criteria for making the decision for him to retire were:

a) zero debt (not even mortgage)
b) pension adequate to continue living well (keeping mind that we are simple folk and are happy and content living on less than many)
c) good insurance (health)
d) enough savings for sons' education (in-state colleges - no ivy league for us)
e) investments to suit our taste (including some land and some metals, as well as retirement accounts)

Before making the decision for hubby to retire, we did a thorough examination of our lifestyle, spending habits, etc. and eliminated many things so that we knew we could live on his retirement alone... lived that way for a period of time and socked away the extra to aid in the retirement plan.

--- End quote ---

The through examination you wrote about is key. 

I plan on taking some steps to do exactly this - great point!

robkaiser.me:

--- Quote from: IKN on February 05, 2020, 07:29:31 AM ---Sounds like you have a decent plan currently and I’d second investing in some precious metals.
As far as traditional investments, I’d hold off if I were you for the time being unless you know it’s a solid investment.
Investing when markets are at “All time highs” historically isn’t a good move. Add that to the current ‘Geopolitical’ situation and things could get real ugly real fast.

Take a listen to this guy: https://www.youtube.com/watch?v=BclcpfVn2rg

While I don’t totally agree with everything he says, he does make some interesting points. I do believe he over estimates the impact on the US and its economy.
For me, the biggest question is why are both central banks and other countries buying up so much gold during a time of prosperity ??
Consider the fact that if he’s right, many US based corporations will be forced to move their money from foreign banks to a safe haven. Of the countries he lists as ‘Sitting good” or “Very little impact”, the US would seem to be the safest place, but would be a tax nightmare for them.
I think they are either buying and moving gold here inside some sort of tax loop-hole or are getting ready to buy off politicians to pass legislation that would not result in having to pay huge sums of taxes on it.
If the general public got wind of this combined with other political time bombs like the 2A fight, I think the crap would hit the fan in a big way.

--- End quote ---

Thanks for the comment and the input.  I'll be sure to note those videos for future reference.

Precious metals will certainly be part of the plan when I'm ready to begin making investments.

Still a ways out from doing that yet while paying down debt and establishing savings.

David in MN:
I guess "retirement" to me means living off my investments without touching principle. We'll pay off the house in our mid 40s and that's all the debt we have (we're debt-phobic too). So we are having the conversation about what we want out of life.

A bit oversimplified but if you can net a 3% dividend of $2 million you end up with $60k per year and with almost no expenses that's not bad. I'll never get the Porsche G3 but I'll live the quiet life in relative comfort. We already set up the daughter with $30k seed money and I manage her portfolio.

What will our actual day to day retirement look like? I'll still manage our finances and keep doing art shows with my woodwork and I suspect my wife will read the entirety of the local library. She's a bookworm. We already have plans to go back to Paris and we've been kicking around a Spain trip. My in-laws do a lot of river cruises in Europe and I'll admit they look like fun.

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