# Retire early?



## WildBillTN

I am struggling with the decision to retire at the end of this school year or work another 4 years. I have taught and coached for almost 30 years, and learned that I can retire early at age 55 at the end of this year. If I stay longer, of course, I would draw a few dollars more in retirement. 
I have sacrificed, lived frugally for all these years and now have no debt other than electric and water bill, internet, etc. I have looked at my budget and think I can retire on the modest pension I will draw until Social Security kicks in. I have plenty to do, raising chickens, rabbits, keeping a garden, etc. If I need part-time work I can always substitute teach or find other work, as I am a musician and teach martial arts part-time now.
My issue is that I am fearful of change, I guess. I am on the brink of making one of the most important financial decisions of my life, and a major life change, and I admit it is a little spooky.
Any advice from those of you who have made the break?


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## Micheal

WildBillTN said:


> I am struggling with the decision to retire at the end of this school year or work another 4 years. I have taught and coached for almost 30 years, and learned that I can retire early at age 55 at the end of this year. If I stay longer, of course, I would draw a few dollars more in retirement.


What would happen at the age of 59? Still way to "young" for SS, maybe a 401K or IRA????


> ..... I have looked at my budget and think I can retire on the modest pension I will draw until Social Security kicks in.


I'd do more than "think" about living on the "modest pension". Knowing the amount of money you'd have coming in; can you maintain your "frugal lifestyle" and what plan do you have for "IN-CASE"? In case an appilance breaks, the car/house needs repair, you break a leg, any un-expected cost/bill pops up, etc.........


> I have plenty to do, raising chickens, rabbits, keeping a garden, etc. If I need part-time work I can always substitute teach or find other work, as I am a musician and teach martial arts part-time now.


Glad to see that you have alt. ways of making additional income. Not to sure how much of the day can be filled with caring for the animals/garden though.


> My issue is that I am fearful of change, I guess. I am on the brink of making one of the most important financial decisions of my life, and a major life change, and I admit it is a little spooky.
> Any advice from those of you who have made the break?


Have you given any thought about the possible isolation you will be going to - from being surrounded by everyone on a daily basis to possiblily only a select few people, maybe?
Don't take this wrong, but via the "tone" I get from your posting you are having some real doubts about "retirement" and if'n you could really pull it off. Therefore since you don't "need" to if I were in your shoes - I wouldn't. 
But hey, it's only my opinion........

With me, I was debt free, knew what I wanted to do, had a planned income stream, had a large stash for the un-expected (an emergency fund) and had healthcare covered. I also knew that I no longer wanted to work "for the man" any longer. Importantly I had no doubt(s) that I wanted to retire!
In fact, most all the people that I know that willingly retired wanted to; with maybe some odd-ball reasoning, but all of them knew their time had come to "get out of the rat race"..


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## mnn2501

I agree with Michael. I have known a lot of people who retired only to have to go back to work again - usually at a lower paying job than they had.
What will you do about health insurance?
Will your vehicles last? what happens when you need a new one?

To me, retirement needs to be a sure thing. I have a good paying job that I like right now. I don't want to be flipping burgers or greeting people at Walmart for minimum wage a year or 2 after retiring just to make ends meet or because an emergency wiped out my savings.
I'm not telling you not to retire, but just make sure you know what you are doing first.


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## where I want to

There is no "sure thing" retirement. Frankly I have spoken to a lot of widows (and a few widowers) who said "He was only going to work a year more then we were going to travel."
When my sister died at age 57, totally unexpectedly, I decided to retire as soon as my house was paid off. I have not been the least sorry.
Everyone has to make up their own mind about what is right. I agree that a thorough thought process is great. When I retired, I knew my income would be enough to pay my bills. I did not think about an emergency fund for that one month where so many expensive things went wrong- I had to dip into my retirement account years earlier than I had thought. Since then I tried to build up a quick access fund so that my planning about accessing the accounts could get back on track.
I do know retirement was what I was born to do.


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## yikes

I do know retirement was what I was born to do.

lol good one. I retired in January and decided not to change anything for a year. Year's about up and other than leaving my wife, living in a van and shooting myself, I'm not planning on any big changes.


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## Ramblin Wreck

Such a personal choice with no right answer. I retired after 30 years and have never regretted it. Often I wonder how I had time to work as chores around the farm keep me so busy. I did have a well planned budget which allows me to do all of what I need and some of what I want. I have taken on some consulting assignments (working on one now for a few months), but I never put myself in a position of needing to take these jobs. If there is bit of advice I can offer, it's to live below your means. This keeps life simpler and makes handling the unexpected "gotcha's" much easier. I also think it leads to more contentment and happiness.

Best wishes whatever path you take.


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## WildBillTN

Thanks to you all for the very good advice. I have some time to think about it before I have to make my decision.


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## mink

every check you draw is one that isnt going to be lost. work for 4 more years ? take your retirement and compare it to your take home ....i bet your not working for much. retire , i did at 48 and never once looked back.


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## Esteban29304

I retired early at 50 & never looked back. I haven't worked anywhere since, although I have done some odd jobs for cash. Your being out of debt is a BIG PLUS ! 
Several things to consider ; 
How is your health ? Can you get health insurance at a decent price ? Do you have a good emergency fund saved ? Is you car dependable & can you expect it to last a good while ? Do you expect to move to a smaller place ? If not, is your present home in very good condition & is fairly inexpensive to live there ?


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## WildBillTN

I have an investment of a 403B and an emergency stash in mutual funds that I can fall back on for unforseen expenses and until SS eligibility. I will be able to continue my health plan from work until Medicare kicks in. I am in excellent health for a 55 year old guy (still able to teach and train martial arts with young bucks half my age). My 10 year old truck still runs fine, and I intend to drive it till it falls apart. My plan is to stay right here where I am since I have built the home over 25 years with my own hands, planted an orchard, built raised beds in the garden, etc.
At present I have two grown sons who share the place with me. One is working full-time and going to community college. The younger one is still looking for a job but I am expecting him to find work soon and get off support from me. They both are pretty good at helping out here on the place, and pull their own weight. I can live very cheaply and keep my freezer full of fish and venison. 
Early retirement is looking better every day. Teaching is just not what it used to be. I am tired of the bullcrap from the legislators and administrators who are out of touch with what goes on in the classroom, parents who do not make their kids accountable or teach them respect for their elders, and am tired of my profession being the whipping boy of the public (now granted, there are plenty of bad teachers to earn some of the criticism).
Again, thank you all for your sage advice.


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## Travis in Louisiana

I have been at my current job for 30 years. I am 51. I told my wife I am going to retire at the earliest social security, which is 62 for me. My wife is retired and her retirement is set up so that if she dies, I still get it. I have a thousand things to do, since I like woodworking and making furniture. I am always busy. I have heard of too many people waiting to retire and die either before or right after they retire. I am going at the earliest I can even though I like my job. If the POWERBALL comes in, I will go before 62, FAT CHANCE WITH MY LUCK!


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## Esteban29304

WildBillTN said:


> I have an investment of a 403B and an emergency stash in mutual funds that I can fall back on for unforseen expenses and until SS eligibility. I will be able to continue my health plan from work until Medicare kicks in. I am in excellent health for a 55 year old guy (still able to teach and train martial arts with young bucks half my age). My 10 year old truck still runs fine, and I intend to drive it till it falls apart. My plan is to stay right here where I am since I have built the home over 25 years with my own hands, planted an orchard, built raised beds in the garden, etc.
> At present I have two grown sons who share the place with me. One is working full-time and going to community college. The younger one is still looking for a job but I am expecting him to find work soon and get off support from me. They both are pretty good at helping out here on the place, and pull their own weight. I can live very cheaply and keep my freezer full of fish and venison.
> Early retirement is looking better every day. Teaching is just not what it used to be. I am tired of the bullcrap from the legislators and administrators who are out of touch with what goes on in the classroom, parents who do not make their kids accountable or teach them respect for their elders, and am tired of my profession being the whipping boy of the public (now granted, there are plenty of bad teachers to earn some of the criticism).
> Again, thank you all for your sage advice.


 It sounds to me like you are in a very good position to retire early. I have some teacher friends & I understand the pressure you are going through ! 
GOOD LUCK !!


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## tarbe

WildBillTN said:


> I have an investment of a 403B and an emergency stash in mutual funds that I can fall back on for unforseen expenses and until SS eligibility. I will be able to continue my health plan from work until Medicare kicks in. I am in excellent health for a 55 year old guy (still able to teach and train martial arts with young bucks half my age). My 10 year old truck still runs fine, and I intend to drive it till it falls apart. My plan is to stay right here where I am since I have built the home over 25 years with my own hands, planted an orchard, built raised beds in the garden, etc.
> At present I have two grown sons who share the place with me. One is working full-time and going to community college. The younger one is still looking for a job but I am expecting him to find work soon and get off support from me. They both are pretty good at helping out here on the place, and pull their own weight. I can live very cheaply and keep my freezer full of fish and venison.
> Early retirement is looking better every day. Teaching is just not what it used to be. I am tired of the bullcrap from the legislators and administrators who are out of touch with what goes on in the classroom, parents who do not make their kids accountable or teach them respect for their elders, and am tired of my profession being the whipping boy of the public (now granted, there are plenty of bad teachers to earn some of the criticism).
> Again, thank you all for your sage advice.


This post sounds like a fellow ready to retire!

A co-worker of mine retired recently. His comment was "the pain of leaving is only exceeded by the pain of staying".

I guess that's what it comes down to...you have to want to retire more than you want to keep working. 

I say I want to retire, but the truth is, I want to make more money first....so I keep working. Once the more money lure weakens to that magic point, I will pull the plug.

Are you there yet?


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## machinist

I always felt stifled doing engineering work for big companies, so one day in 2003 when my boss ran his mouth one too many times, I walked out. Went home and started my own machine shop. That was the beginning of several wonderful years in our own business. But by the time I got to be 62, some arthritis made it easier for me to hang it up. 

My thinking was, SS isn't going to last forever. It's a Ponzi scheme, and the perpetrators have already absconded with the money. They ARE, however, still paying out of their income, so better get it while I can. I maxxed out my SS payments for most of my working life, and I want it BACK! Can't get it back when they finally figure out there is no money left, sooo....

I love retirement. We kept the shop, and could open it again any time, if the need arises, so I don't have to worry about begging Wal Martians for a job. If/when SS goes poof, we know what we gotta do--re-open the shop and work till we die, just like we figured out in 6th grade when we learned about compound interest. That little tidbit of education about exponential functions made clear that none of us could expect much for SS. I kid you not. In 1958 our grade school class made jokes about this, and KNEW it was not going to work out. Thankfully, I'm getting a little of it back now. But, I expect that within 5 years or less, one of three things will happen: A) The .Gov will cut SS benefits to a very modest level they can afford (NOT likely), or, B) SS will go away as the US can't borrow any more money abroad (Not very likely, because, as Alan Greenspam pointed out--they can print all the money they want), or, C) The FED/.Gov will inflate away the govt. debt and all of us will be a lot poorer (most likely IMHO). Any choice means the same to me--I get to work until I die. 

Take what you will from this, but it is the best I have been able to figure out. I see traditional retirement as being pretty well impossible in the next few years. 


To each his own here. I basically agree with most of the advice given here, all sensible stuff. 

For our situation, my wife retired from the Census Bureau which provides our insurance at cut rates, paid for by her annuity from that job. We both draw SS. No debts on home or shop business (now closed, but still here), no credit card debt nor anything else. Very little in the way of traditional "savings", having put that money to work elsewhere. Living expenses are under $10K/yr., but we could reduce it to half that if we wanted to. Got a couple good cheap vehicles and everything else we wanted. We are both 65 now, and don't see any major expenses coming up, but have a stash for that if necessary. We're happy with this. YMMV.


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## CesumPec

I retired at 45 and the biggest problem was going stir-crazy. That's why I decided to buy raw land and go back to work for myself making it into a farm and home. I'm much happier now.


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## ldc

I guess I might be semi-retired after getting laid off in 03 from my l-t job, 05 from the next one, and another in 08...got a 1/2 time job in 07 and am still there, with - until recently! - 5 other very p-time things. Was also taking care of the elderly in my family until recently. I was a caretaker of land, elderly gent and dog until last year also for 16 years. If one can cobble things together without too much stress, it's great! But it's no substitute for an old-fashioned job with benefits, moneywise. I go a little stir crazy myself from time to time, at 56! Am glad it's worked out for others here, tho!


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## Elevenpoint

My father reired at 63 and was sick off and on until he died at 73, he had SS and a good pension from a public utility co. His thought was that you should retire early enough to enjoy that time before you are too old to enjoy it...so I am taking that advice. I am still doing some building projects, since I enjoy it I do not see it as work and I do not see that I will ever stop unless I cannot get around. I do not have savings to speak of, 401K, or health insurance...never had a broken bone, stitch, day in the hospital, and have not seen a doctor in my life for anything but a virus and that was 20+ years ago. I have done two small projects in the last year and have one that will last until March now....I can live on well under 10K a year and I find that the time I have to spend right now enjoying life is more important than trying to have more money. I am still busy around the farm even if I am not doing a paid building project, semi retired or however you would call it does not mean sitting around doing nothing to me...and I know I will never retire in the true sense of the word, I enjoy everything I do so I don't think of it as work.


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## jwal10

WildBillTN said:


> If I need part-time work I can always substitute teach or find other work.
> 
> My issue is that I am fearful of change, I guess. I am on the brink of making one of the most important financial decisions of my life, and a major life change, and I admit it is a little spooky. QUOTE]
> 
> Looks like you have it thought out. Having a backup plan takes away a lot of the fear. I was going to work until 59, that would make 20 years. I was let go at 54 yrs 10 months, I had to wait 2 months for early retirement at 55 from PERS. I had a back up plan, did it for 5 months 1/2 time, than went and played around to totally get away from all stress. I really like retirement.
> 
> Have a plan so you stay busy. Just been offered the 1/2 time job again, first of January start. Not really ready yet but will probably take that, on my terms for the health insurance. I am a different person due to retirement and I like him....James


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## yikes

I am a different person due to retirement and I like him....James

Well said. What a different country we would have if everyone were able to feel this way.


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## whiterock

I retired from teaching just before i turned 56. More or less forced into it, health issues, admistrators. Then got a divorce. I have things paid off. Teacher retirement is sufficient to live on. Insurance is provided through state, deducted before payments. I have the highest level of insurance too. It had gotten to the point with me that I had to retire or stress was gonna kill me. Since then, my health has improved (less stress) but I have developed other health issues with time too.
At this time, I don't think I could work and hold a job. I can do some things but takes me a lot longer to get things done. I don't regret retirement one bit.
Ed


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## Jokarva

CesumPec said:


> I retired at 45 and the biggest problem was going stir-crazy. .


This is about where I am right now, except I am 55. Been retired 8 months and I'm ready to crawl the walls so I think I'll look for a PT job after the holidays. I never minded working, it was the miserable management at my last job that made me decide to retire early. 

It is very scary and I hate change too, but it sounds like you have a good plan and nothing is certain in life...so as long as you feel like you've got the basics covered, I'd go for it.


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## birdman1

At 50 I had to make this decision also ;But after 33 years in road construction (high pressure ,deadlines, tighter rules , and seems like traffic keeps getting faster and more dangerous) take a few dollars less each month and leave or stay . I took my pension ;I'v seen to many kick the bucket soon as they retire .My farm is paid for the cabin is complete and due to a strong union health insurance is only 30$ a month .I grow a huge garden raise my own meat ,eggs, milk my grosery bill is very small mostly for junk food .just keep fixing up these old trucks ;I can lots of food and have a big supply of most things .Sure I miss the action and lots o buddies i worked with .I don't miss Having to get up at 4 am or 6pm depending if on a night shift or not the global warming making the sun hotter each summer and paper work .I love my new freedom and love being a homesteader 'but it was a big change I'v got a spot at the local farmers mkt. and seem to keep making more friends as i become a member in the local comunity . I'd go for it


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## salmonslayer

I dont post much on HT much anymore but just found this retirement forum and it piqued my interest. I retired from the Army almost 2 years ago after 33 years of combined active and reserve service in the USMC and Army (24 years active) and had to make several of the same decisions. We carefully planned for when we made the big break but we had a 5 year plan that shortened to about 2.5 years and I decided to retire right before I was due to reenlist for another 4 years of active duty and I dont regret a minute. The loss of additional retirement I would have gained for doing 4 more years is greatly off set by our new lifestyle and enjoyment of all that retirement has to offer. I retired right before my 50th birthday as did my wife and though we went from a comfortable 6 figure income to about a quarter of that we live well and have a rich life.

We moved from Alaska to a farm we bought in the Missouri Ozarks with virtually zero experience in raising crops, having farm animals or even running a tractor. We moved to an area where we knew no one, had no family, and talk about a change in lifestyle! In our previous life we had motorcycles, nice vehicles, vacations, modern furniture, and enough money that we never worried about just buying what ever we wanted. Now we have several tractors, our newest vehicle is a 2005 with 100k miles on it, and we have several cows, dogs, cats, and soon chickens and weaner hogs. We have a 73 year old farm house we are renovating, a couple barns and several outbuildings, and enough land for the animals, row crops, hay and woods for hunting.

We have always lived debt free so when we retired we sold almost everything except tools, weapons and some of our art pieces and started new. Our furniture is now mostly old antique farm house type comfortable (not expensive antiques...read shabby chic) and we couldnt be happier. I cant imagine being bored and we work on our place, we both (the Mrs and I) spend many happy days restoring old tractors and farm equipment, we raise most of our own food, log our own wood for heat, and have a very active social life within our small community. Unlike some, we have had little difficulty fitting in here through our participation in community organizations like the Fire department, Lions, church etc. and we have a wealth of friends here who are quick to lend a hand or teach us some of the old ways of doing things. I have also found more paid work than I really want and have a part time job working for the Sheriff as well as various farm jobs that I enjoy. Like someone else mentioned I am working harder than I did when I was part of the rat race.

I watched my folks work and save for their retirement and then they were too old and too physically limited to really enjoy themselves and we just decided that we wanted to move on to a new phase of our life while we could. I draw 2 pensions and have excellent health insurance which helps and we also know that when the Mrs turns 59 1/2 she can start to draw her retirement and than shortly after that I can draw SS so for us that will be just an added bonus. 

Retirement has given us the freedom to do what we want to do when we want to do it and I say retire as soon as you have the eligibility to draw a retirement.


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## Runningtrails

We are mid 50's now, semi retired for about 3 years now. We did not have the money to retire but simply had no choice. (Could not continue working there. Burned out, exhausted and finished!) We have a bit of land and live near town. Husband and wife both work part time now and because we have downsized our lifestyle and simplified, it's enough. You can downsize your lifestyle to live on just about any income, if you really want to. 
It all depends on how much it's worth to you and only you can answer that.

To me, anything is better than working full time for someone else. 

We LOVE it! We will never go back to working all day at a job somewhere. We both have small home businesses doing what we enjoy! My days are so full now that I can barely find time to turn around, but it's all doing what I want to do with my time and I love it. 

My personal opinion: Working hard all your life just so you can enjoy the last 1/4 of it is a waste of a life.


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## Sweetsong

My DH took an early retirement/buyout at 50 (2008)--company he worked for did not look like it would survive. He is attending the university with only two years left (now) to finish. He'll have a bachelors in accounting.

I wish that he would have stayed on the job. It has been difficult, we weren't ready, I have absolutely NO privacy, and he's been sitting around too much watching movies/TV most of the time and complaining. Classes start next week. 

Did I mention we weren't prepared? I don't think he even thought about the social security issue, not that it will be there when we hit the correct age.

I don't think we could have EVER planned for the 2008 financial upheaval, the current political situation, the lack of employment available now-I had planned on getting a job/better job to put him through school, inflation that no one wants to admit to, the changes that are constantly made to our medical, pension deductions, taxes, etc., OR how it feels to be 50+. The ONLY and BEST reason it was good is because his mother passed away in 2010, and he has called his dad EVERY day to check up on him. A job would have made that difficult. I worry a great deal. 

*IF you have everything paid off, five times the money put aside that you think you might need, and you have a good place to go. Do it. *


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## Bentley

Sweetsong said:


> *IF you have everything paid off, five times the money put aside that you think you might need, and you have a good place to go. Do it. *


please explain, Five times "what" money?

B


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## Hollowdweller

Retire.

There is a war going on now on teachers and other public employees.

It would be terrible to stay on and then have your state legislature mandate that you HAD to work longer, OR do away with your subsidized health insurance when you retire.

Plus if you can actually live on a reduced amount you are opening up another job that a young person who needs to get a start in life can take who may have a degree but is flipping burgers and living with their parents because they can't find a good job.


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## CesumPec

Hollowdweller said:


> There is a war going on now on teachers and other public employees.



Isn't it just terrible how some taxpayers have actually started to expect that schools and teachers do a good job and that public employees not receive better pay and benefits than the general public.


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## Ohiogal

I was in Lowe's last night, talking to a guy my BF used to work with in the steel mill. He's a licensed electrician, he's 58 and he took early retirement to avoid the cut in bennies on the union contract. His comment was "I figured why work 5 days a week when I can work 1-3 and get SS" and "they are talking craziness about cutting SS benefits, so I figured I'd better get mine FIRST".
I pay into SS to, but frankly, I'll never see a dime of it. It will be broke before I get to 62, less than 12 years from now. I'd like to at least have back what I paid into it. I could 'retire' on that permanently and be happy indeed.
And yes, its a pity that the teachers and public workers are getting paid more than the regular public sector worker. Sure makes the rest of us mighty mad we have to pay their pensions and ours at the same time.


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## Michael W. Smith

The only reason I can come up with WildBillTN having to decide to retire now or in another 4 years is that the teacher's contract must up and a new one will be in the works. Am I correct WildBillTN?

I have to wonder what you consider a "modest" pension. I know in States other than PA, teachers really are underpaid. In PA, it would be hardpressed for a current teacher to retire now and get less than $40,000.

If a new teacher's contract is coming up (and that is why you are deciding if you should go now), if your district will pay your healthcare until SS picks up - I think it would be best for you to retire NOW.

With all the budget cuts the schools are having to make, that is one thing that was taken out of our local teacher's contract. There is no "retirement incentive" deal anymore where our district continues healthcare. You either work and get healthcare or retire and get nothing.

Times are changing, and the school districts just can't afford previous benefits that were taken for granted - because "That's the way it's always been."

In PA, the taxpayers are now going to be double taxed on teacher's pensions. Not only does the local school district have to put in more money in the coffers for retirement shortfalls, but so does the state.

That's quite the deal - guaranteed pensions. And with the financial meltdown and stocks getting hammered, the taxpayer now has to increase their taxes being paid to make up for the shortfall in the retirement system. I can assure you, the majority of the taxpayers have no guaranteed retirement. Their's (IF they even have any saved to begin with) are sitting in either an IRA or 401(k). And if the market tanks, nobody makes up the difference for them.


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## Sweetsong

Bentley said:


> please explain, Five times "what" money?
> 
> B


Whatever amount of money you think you can live on until you die, multiply that at least by five. Actually that probably a low number.


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## jwal10

I have about half of what I would have had if I hadn't had to retire early. I will be good. Most people don't live frugal even when they should. They don't know how. My Grandparents and Mom lived through the depression and the dust bowl at the same time, IN KANSAS....James


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## whiterock

My parents got married during the depression, and bought land, Daddy farmed, ran a threshing crew, bookkeeper at cotton gin. Momma kept house, garden, chickens. I didn't come along until the drought of the fifties. Many times I wanted something in the 5 and dime and was told we didn't have that kind of money. I'm talkin a 2 cent toy of some kind. The folks spent money on quality items, didn't buy cheap stuff that wouldn't last.

I spend more freely than I should, and I know i do. BUT, I also know how to do without and make do. Right now my retirement pay covers me pretty well. Some months it isn't enough, like tax time, or those months when house ins, taxes, BIG propane, and Christmas time all run together. Usually enough left over from the low expense months to cover that. This year I've had some huge medical bills, figure I'll get a good bit of my tax money refunded this year though.

Most of the money I do spend freely on goes to tangibles. Things that will last. I've picked up lots of cast iron at garage and estate sales, revere ware, hand tools, garden tools, books, and other things of that nature. If I don't need it myself, makes good wedding, birthday and christmas gifts for the right people.

I spend too much on gasoline for "needless" trips to town, but that is my recreation in a fashion. I go to town, hit stores, wander around, pick up a few items now and then, and visit with people, some of them I know, lol.

If I was still married, or had debt, I could be in a really tight spot now and then, but, I'm ok for now.

Ed


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