#61
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FYI - This isn't the best terminology to use on a retirement thread. I'm just saying...…...
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Waterloo WL-S, K & K mini Waterloo WL-S Deluxe, K & K mini Iris OG, 12 fret, slot head, K & K mini Follow The Yellow Brick Road |
#62
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Doesn't sound like a waste to me...
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Emerald X20 Emerald X20-12 Martin D18 Martin 000-15sm |
#63
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Lol... you are right about that!
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#64
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Tony
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“The guitar is a wonderful thing which is understood by few.” — Franz Schubert "Alexa, where's my stuff?" - Anxiously waiting... |
#65
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Health Care providers work with Medicare to provide these benefits. Lastly, when someone has a major surgery as I did, Medical Mutual offers "reduced out of pocket" discounts based on your financial situation. This is done through the state of Ohio. We qualify for a the minimum. My out of pocket was $3500. The minimum discount for people of our means is 65%. In the end, we will pay under $1800 for a surgery that was billed at over $30,000. The money we saved goes back to Medical Mutual in the form of aid from the state to fund new facilities. Almost everyone qualifies for at least the minimum discount of 65%. In some cases that out of pocket discount could be as high as 85%.
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Nothing bothers me unless I let it. Martin D18 Gibson J45 Gibson J15 Fender Copperburst Telecaster Squier CV 50 Stratocaster Squier CV 50 Telecaster |
#66
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"...Most of the money I've wasted in retirement has been on guitars and RVs . . . but I guess that's what I saved it for."
The first dozen guitars or so might have been prudent. It's the other 30 - 40 that I'm talking about. |
#67
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I think it's worthwhile to link this thread and the recent one https://www.acousticguitarforum.com/...d.php?t=544561 about retirement activities because in the end, retirement is about enjoying the option to finally do as you please (for those of us who weren't born with silver spoons) and having the financial wherewithal to do so....
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Emerald X20 Emerald X20-12 Martin D18 Martin 000-15sm |
#68
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When I was planning for my post-retirement finances I realized that I would need need a certain amount of "saved" money to meet my expected expenses. To determine how much that would be I subscribed to the 4% Rule which roughly suggests that if a person taps into their retirement savings by withdrawing 4% of their savings annually to meet expenses that this should be sustainable for the life of the person.
After calculating my expected expenses, I then had a target dollar figure for savings that would be needed. The problem with that was that the dollar figure didn't include my Social Security or small pension income that I would have. So how do you convert those types of income streams into lump-sum saving figures? One of the easiest ways to estimate the lump-sum value of your Social Security check is to use that previously mentioned 4% rule. Using the 4% rule you can: • Take 4% of the value of a well-diversified portfolio during your first year of retirement. • Increase that take by the rate of inflation every year (which is built into Social Security). • Have a very good chance of seeing your money last as long as you do. So, for example, if you're expecting $1,000 a month from Social Security, that would work out to $12,000 a year. Dividing that $12,000 by 4% gives you a lump-sum value of $300,000. If you anticipate needing $50,000 worth of annual income during retirement, that same 4% rule works out to a lump sum of $1,250,000. Subtract out the $300,000 estimated value of that Social Security benefit, and it means you'd need to save an additional $950,000 on your own to cover your retirement lifestyle. So all you need to do is make sure you've got $950,000 on hand by the time you're Social Security eligible, and then call it a career.
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AKA 'Screamin' Tooth Parker' You can listen to Walt's award winning songs with his acoustic band The Porch Pickers @ the Dixie Moon album or rock out electrically with Rock 'n' Roll Reliquary Bourgeois AT Mahogany D Gibson Hummingbird Martin J-15 Voyage Air VAD-04 Martin 000X1AE Squier Classic Vibe 50s Stratocaster Squier Classic Vibe Custom Telecaster PRS SE Standard 24 |
#69
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Good info, Cat... the 4% rule is a long-held tradition in financial planning that works very well.
BTW, I posted this thread after watching, "Nightly Business Report," Friday which has been a decades-long ritual for me. The show has changed over the years, but they still do a pretty good job of reporting on markets and business news. They did a long segment about retirement savings and that got me doing a little more research. So, for what it's worth, the segment begins the program and runs between 12-13 minutes. |
#70
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Our path is a bit different and we were very fortunate. Our income from (family held S corp income producing real estate ) now exceeds our woking income by a considerable margin.
We started investing in a family owned business (my wife's parents) when we were in our 30's and as a consequence from that equity and some smart estate planning had a manageable tax payment when we took over after they passed. Several years back.
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Enjoy the Journey.... Kev... KevWind at Soundcloud KevWind at YouYube https://www.youtube.com/playlist?lis...EZxkPKyieOTgRD System : Studio system Avid Carbon interface , PT Ultimate 2023.12 -Mid 2020 iMac 27" 3.8GHz 8-core i7 10th Gen ,, Ventura 13.2.1 Mobile MBP M1 Pro , PT Ultimate 2023.12 Ventura 12.2.1 |
#71
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I'd always dreamed of retiring at 55 but never really thought it would happen.
My last position was computer room manager in one of the largest data centers in the state. That was Consolidated Freightways in NW Portland. Times change, companies change, it was time for a change. We were no longer CF and the new company was really bad. CF had established a 55 and out plan so I took early retirement at 56 which was 10 years ago. Yes, recession time. Fortunately I made certain to contribute to my 401K. Many long time friends lost their jobs during the recession. Several had been there years longer than me with nearly nothing banked. Positions in mainframe programming are tough to find. Outsourcing took more of them a year later. |
#72
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I've read several reports that state the same information the OP listed. It's really sad so many people are in that situation. Granted many put themselves there, but at least as many are there through no fault of their own. I know many people who are in this no-retirement funds and it scares me what their lives will be like.
Just yesterday, I read an estimate from my investment company which said I will be bringing home just about the same as I am right now. Granted, I make much more now but I only look at my take-home amount for comparison. A very large portion of my income goes to my retirement but luckily its an amount I can afford to put aside. I'm maxed out on my retirement contributions, we own our cars, have no debt beyond one small mortgage that, if necessary, could be paid from my wife's TSA account. I'm 4 years out from retirement and feel very good about where I'm at and where I'm headed, financially speaking. And it's all due to my wife! It all started 38 years ago when she said we needed to save for a down payment on our first house. I always thought you just rented an apartment and that was it! Best, PJ
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#73
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Yes really. Like you mentioned on the OP, the average American has maybe 50 grand saved in their IRA. Asking the average middle class American to save half a million bucks (and that’s minimum in my book) for retirement is as unrealistic as it gets.
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I honestly believe much more in real estate than stocks. And you don’t “save” into investments, you invest your money and watch it grow...hopefully if you do your due diligence. One way to “save” into an investment is to self-direct your IRA and have the passive income (like a rental property) make it grow. |
#74
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You seem to be advocating the accumulation of real estate, but not for the accumulation of other assets. Real estate is one type of equity investment; stocks are another. If you're purchasing real estate, you are saving into an equity investment. Financial planners often encourage other equities because the one of the largest investments many people have is their house. Utilizing other equities is simply a means of diversification. I think self-directing an IRA is a great idea. You can put an IRA into any number of investment vehicles... real property, stocks, bonds, precious metals and other commodities and even money funds. The longer the time frame, the more aggressively it can be invested. If your goal of passive income is to sit back and gather monthly rental checks, isn't sitting back and reaping dividends very much the same? The IRS doesn't consider that passive income, but portfolio income just gives you even more flexibility when writing off losses and you still don't have to work to earn it. Passive income is a powerful tool, but it's one of many ways to accomplish a monetary goal. It seems like we're saying the same thing here even though you're happy with your money in only one asset type. That's your choice, but I don't understand how you figure you're not accumulating savings in your real estate. If you're using bank loans, that's fine... that's just using leverage which you can also do with other equities. I wish you well with your real estate and I appreciate your participation in this discussion. |
#75
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Not in this day and age ...twenty-thirty years ago, maybe and if you did, good for you. We built our house 12 years ago in a very nice new gated community in a nice town and if we sold it today we might gross 5% over what it cost. After we pay thetaxes on the profit, forget it. As I said in my previous post, it's paid for. Did you read my post on page 2? I would love to hear your thoughts.
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Nothing bothers me unless I let it. Martin D18 Gibson J45 Gibson J15 Fender Copperburst Telecaster Squier CV 50 Stratocaster Squier CV 50 Telecaster Last edited by rokdog49; 04-22-2019 at 05:29 AM. |