# Pre-Retirement advice?



## SmokeEater2 (Jan 11, 2010)

I'll be retiring from my second career in 2018 and I'm trying to plan ahead to make things as easy as possible so I can spend my time on the homestead.

So, I'd like to ask for some advice from those of you already retired if I may.

If you were retiring in 3 years what would be your main focus between now and retirement knowing what you know now?

Any certain things You wished you had done while you were still working?



Thank you in advance for any advice, Allen


----------



## where I want to (Oct 28, 2008)

The plans I had were changed when I had a health problem, a house repair issue and a pet health issue. I had a retirement fund that I did not plan on using for some time but all these things happening the year after I retired changed my plans. I wish I had created a larger emergency account so I wouldn't have had to access accounts that were designed to not be readily available.


----------



## Sawmill Jim (Dec 5, 2008)

My goal was always get rid of debt then have enough income to pay living cost . When I got to the point I could do what I wanted to do every day I quit selling my life to others .If one can be their own person at 35 that is even better


----------



## jwal10 (Jun 5, 2010)

Buy big items and get them paid off before you retire. Save every dime you can. Live now, like you will after you retire. Have a plan for the next year after retirement and stick to it. Get teeth in order. Work part time for 2 years before full retirement, makes the transition easier. Live on 1/2 what your retirement funds are each month, save the rest. Some of the things I did....James


----------



## Micheal (Jan 28, 2009)

SmokeEater2 said:


> I'll be retiring from my second career in 2018 and I'm trying to plan ahead to make things as easy as possible so I can spend my time on the homestead.


 May the remaining 3 years go as you would like and nothing comes up to derail your trek.



> If you were retiring in 3 years what would be your main focus between now and retirement knowing what you know now?


 My main focus was tying up the loose ends; such as getting out of debt, making sure I had health insurance covered, making sure any major repair/replacement was completed, and a whole host of piddling things that goes with everyday life let alone retirement.... 



> Any certain things You wished you had done while you were still working?


Not really.


----------



## wogglebug (May 22, 2004)

Get out of debt and stay out of debt while getting every large-payment item in good condition before your income drops. When you retire, you want every vehicle and tractor and motorised tool fairly new and in superb condition, ditto your house roof and well and septic system, insulation, weather sealing, windows and doors, painting, and next year's taxes covered. If you want barn, workshop, tools, lathe, shaper, mill, forge and smithy, vehicle hoist, reloading equipment, anything, get it, install it, and pay it off before you retire. Only proviso is if you will use them to generate income, which might make them tax-deductible, and hence reduce your tax payable. If that's the case, talk to a tax lawyer about whether to pay now, pay in final employment year, or save and pay after retirement. If you're going to do the work yourself after you've retired, pre-pay it (some risk) or save to cover it in a special-purpose account. You have time to wait for good deals at the moment - save up in advance while you're waiting for them. Learn how to use them all too - it may cost you to get training.

If you're shopping for bargains, maybe you can make that a part-time career. Scan the yard and garage and estate sales, buy stuff that's underpriced and that you can resell at a profit on e-bay or whatever. You can better afford to learn how and make a few mistakes now, while you've still got salary or wages coming in.

Make use of your medical cover. Eyesight, dentistry, full medical work-up, maintenance, grease and oil change, fill the tank and check the water. Same for spouse and family.

Live off your preps. You'll be spending heaps now, while you've also got money coming in, so you don't have to spend heaps later, when you don't. That means living even more frugally right now than you might after you're retired. Rotate your stored food, renew and build-up your stores.

Get any training you can at work expense too before the day. This particularly includes training for anything that could supplement your after-retirement income. Part-time EMT is obvious, but maybe armourer in association with the police, mechanic, vehicle maintenance, diesel maintenance, small engines and pumps and generators, building maintenance, health and building inspection, and... well, you figure it out. Formal training and certification that costs your employer money, but also work beside others who are doing the job just so you can pick up experience.

And budget some mad money. Try to save enough to cover a cruise to Alaska or a Hawaiian holiday or a holiday to Europe, where your family originated. Great art of Italy, Rome, Venice, France, Paris, Germany, Switzerland, Netherlands and their "cafes", Scandinavian countries. Africa, South America, Australia and New Zealand. Whatever you like. Save frantically for it. If it's too much, do half each in two years - choose carefully and the international travel costs almost nothing.

Whatever you want to do, get it covered NOW, IN ADVANCE, while you've still got a job and an income.


----------



## Michael W. Smith (Jun 2, 2002)

Before you reach retirement, you want to be totally out of debt.

You also want to have your house fixed up as well as other things - garage, newer vehicles, etc.

Try to have a big emergency fund set aside. Those "Uh, oh - the hot water heater died" moments will come up even with the best of planning.

If possible, the last year or two BEFORE retirement - live on what you expect to get in retirement. If you can live on just your retirement income before retirement, you are good to retire when the time comes. If not, you either need to reevaluate your expenses, or plan on working a while longer.


----------



## Shrek (May 1, 2002)

Drafting a retirement plan similar to a business plan may be of benefit to you as retirement in reality is hopefully the last career in ones career lifetime and a plan worked out on paper can help you get it all in perspective so you can better see where you will probably be and see what facets may need tweaking for you and your particular circumstances.

Although we all hope to enter retirement debt free, many retire to lives more comfortable than the days of their work careers while still having debt and without the frills some commercials seen on television targeting retirees.

Many retirees devise a viable part time sideline income stream into their retirement plan to help ease the weight of debt or lack of extended preparation period before retiring.


----------



## SmokeEater2 (Jan 11, 2010)

Thank you all for taking the time to reply, Lots of good advice here.


----------



## Maura (Jun 6, 2004)

DH is retiring soon. We have bought a smaller place in town within walking distance of one of the kids. As we fix up this house we are planning &#8216;lifetime&#8217;. The new roof is metal, took out the tub and are having a shower big enough for a chair and helper. And so on. Our goal is to never have to make large repairs on this house. It is similar to being debt free, but it is having control over where our money goes over the next thirty or so years. New paint is one thing, a new roof is something else. I&#8217;m even ordering new washer and dryer so that we have them in place and not have to replace for several years. I haven&#8217;t had a dryer in 14 years, but I want to be prepared.


----------



## Avalon Acres (Dec 1, 2006)

Shrek said:


> Drafting a retirement plan similar to a business plan may be of benefit to you as retirement in reality is hopefully the last career in ones career lifetime and a plan worked out on paper can help you get it all in perspective so you can better see where you will probably be and see what facets may need tweaking for you and your particular circumstances.
> 
> Although we all hope to enter retirement debt free, many retire to lives more comfortable than the days of their work careers while still having debt and without the frills some commercials seen on television targeting retirees.
> 
> Many retirees devise a viable part time sideline income stream into their retirement plan to help ease the weight of debt or lack of extended preparation period before retiring.



This is very sound counsel. I retired four weeks ago without being completely out of debt. Three more years at a stressful job would have put me in a better situation financially, but would have no doubt affected my health and well being.

Our assets, primarily rental properties, and retirement and rental income, more than adequately covers any indebtedness. However, I have an interview today with a company to discuss performing consulting work on an "as needed" basis. A person needs to evaluate their situation in detail and determine the course of action that meets their particular needs.


----------



## Jokarva (Jan 17, 2010)

I'll add to what everyone else mentioned, plan to diversify your retirement income. Pension check, savings, investments, rentals, side job...if your only source of income goes south you'll need a back up.


----------



## Grandmotherbear (May 15, 2002)

Avalon Acres said:


> This is very sound counsel. I retired four weeks ago without being completely out of debt. Three more years at a stressful job would have put me in a better situation financially, but would have no doubt affected my health and well being.


 not quite 24 years as a Hospice nurse. I loved the work, hated the toxic company. Every year since 1994 I had some sort of major stress related problem, including multiple back injuries. I was quite literally dying in 2007-8. (atypical asthma) Per diem in 2011, finally got permission to fully retire June 1st.


----------



## emdeengee (Apr 20, 2010)

I think the most important thing about old age is to remember that a 65 year old is nothing like an 80 year old (might as well compare a 5 year old to a 25 year old). And when you retire you do not have to make all the decisions and changes in the first years. At 65 with your health you can stay in your home and travel but perhaps at 75 you will have to make changes. 

So the best thing you can do is to sit down and make a 5, 10, 15 year plan by guessing at some of the circumstances and options. You may have to continue to save or find casual work in order to get what you may need. Oh, and always do a separate analysis first. You write down how you see your life in 5, 10, 15 years and your spouse or partner does the same. Then you compare the lists. Can be quite an eye opener.

I think it is important to:

Retire debt free. No mortgage, car loan, line of credit debt, personal loans or credit card debt. Retire with a relatively new car that will last you for most if not all of your remaining driving years.

Continue to save as no no one knows how long they will live, the rate of inflation or what exceptional expenses may occur.

Budget. It is vitally important to keep track of what you have and where it is going.

Prepare to downsize your home if you wish and look for a bungalow with laundry on the main floor. But you don't HAVE to change as long as you can look after what you have and meet the expenses and plan for the increased expenses.

Keep your social life active and make new friends. 

Don't delay doing the things you want to do. My parents had 10 wonderful years of retirement from 65 to 75 but then Dad got sick and the next 6 years were hard. But they did do most of what they wanted and had wonderful memories.

Find physical hobbies. Gardening is great especially veggie and fruit/berry gardening because it not only gives you a boost to your groceries but it gives you exercise and lots of vitamin D which is vital for healthy bones.

If you are homesteading you will have to make plans for the times when you are away (travelling or perhaps ill) or even as age advances. Someone who you can trust and understands what is necessary. This will probably require hiring someone but this will depend on how many animals you have and how co-operative and close by family members and friends are and how long you will be away. You cannot expect people to donate their lives for any length of time. We were only partially prepared the first time I became ill and we were away for 3 months. One thing we learned was that downsizing is not a dirty word. There were things that I could no longer do so we had to face this and find solutions and make changes.


----------



## pancho (Oct 23, 2006)

I retired about 5 years ago. Wish I would have retired years before that. I finally found something that I am good at.


----------



## Drizler (Jun 16, 2002)

Before You Do Anything, Know your pension INTIMATELY , NOW and I mean right now before you think about hitting the bricks. Where ever you are working find out what it is and if they have a computer based or otherwise Pension Calculator. If they do GET TO KNOW IT. Most have what if provisions so you can plug in numbers and see where you would be if on this year or 4 or 10 from now, 
Secondly credit cards . Don't just toss your cash to get them gone but if you have good credit work the system. If you are paying on stuff like 20% then you are getting screwed. Seek out those banks that are looking for business and give the cheap rates like 0% for 2 years then 10or so thereafter. Roll all you can off that ugly thief card right onto the cheap one. They pay down hard on the ugly one and let the rest ride to pay off later. Just do what you can as much as you can. Clark Howard usually has all the details on how to do this and who. Sure it's better if you don't have any debt. 
IRA or ROTH IRA How is yours? and or your wifes? You can contribute to a roth or regular IRA for 2014 year until tax time this year in APril. Also can you get at it and whether you want to or not? It's 59 1/2 to go near an IRA without penalty. 
If spouse is still working, how much income for how long with your pension added on? Don't forget you won't get taxed nearly as hard and of course by state it varies but it does add up. 
If you have a few years left make an appointment to sit down with a retirement planner. Have all that info on your retirement figure handy and he / she will be able to rough out the good news or the bad news. Either way better to find out you are stuck than retire and find out you are really in trouble. :bored: Check out Clark Howard's web site he has lots of random info in this area. Start planning now and taking that long walk will be as grand for you as it was for me..


----------



## Ann-NWIowa (Sep 28, 2002)

Once you figure out what your retirement income will be, make a budget based on that amount and live on it for a year or two before you retire. You'll quickly learn whether or not you can afford to retire and/or whether or not you are willing to live on that lower income. It much better to know before you retire. Once you're retired it can be nearly impossible to return to the workforce unless you're fond of Walmart or McDonalds.

ABSOLUTELY DO NOT FORGET to factor in the ever increasing cost of medical insurance and non-covered medical expenses. I retired 12/31/12 and our income is primarily SS with small amounts from IRA's. We're spending almost $700 a month for insurance premiums, deductibles and expenses not covered by Medicare or insurance. (BTW the $700 a month does not include what is withheld each month from SS for Medicare.) Most big expenses can be managed by waiting and saving to pay for them, but medical is a NEED that requires immediate attention. Also, when medical takes such a huge percentage of income, it becomes nearly impossible to save which means anything out of savings cannot be replaced.

Even if you are in excellent health, as you age you become more and more likely to run into serious health issues. Failure to make contingency plans for this can lead to a medical emergency turning into a financial disaster.


----------



## wogglebug (May 22, 2004)

Smokeeater, I'd appreciate a report back every so often - say monthly or even quarterly - on what you've decided, tried and achieved on this.


----------



## ET1 SS (Oct 22, 2005)

We had 14 years in which to plan for my retirement. 3 years seems like a pretty small window to maneuver in.


----------



## pancho (Oct 23, 2006)

My spending went down quite a bit after retiring. Many things I spent money on when working I didn't need to continue doing after I retired.
Just be sure to get rid of all payments of any kind. Without the need to make payments the cost of living isn't that bad.


----------



## emdeengee (Apr 20, 2010)

Drizler said:


> Before You Do Anything, Know your pension INTIMATELY , NOW and I mean right now before you think about hitting the bricks. Where ever you are working find out what it is and if they have a computer based or otherwise Pension Calculator. If they do GET TO KNOW IT. Most have what if provisions so you can plug in numbers and see where you would be if on this year or 4 or 10 from now,
> 
> This is really excellent advice. If you do not know what you will get you cannot plan.


----------



## cricket49 (Apr 20, 2014)

We are 2-3 years away from retiring. However we have been planning for over 7 years. Many people have provided excellent advice on here and we have followed the same methods. Our house will be paid off in 15 months and we will be debt free. We have lived the past 10 years on 1/2 our salary. Instead of buying bigger and better things (like so many of our friends) we have saved saved and saved. We live very frugal compared to our incomes. Planning is key and I see so many friends who plan to retire until they get the details of their pension, IRA or 401K rules etc. I set us up in Quick Books to track our expenses. I have a year of true expenses and was shocked to see how much we spend---even being frugal. I know the areas we can improve upon but tracking a year of expenses is eye opening. Between health insurance, auto insurance, home insurance and property taxes this will be take 1/3 of annual income during retirement.


----------



## jwal10 (Jun 5, 2010)

pancho said:


> My spending went down quite a bit after retiring. Many things I spent money on when working I didn't need to continue doing after I retired.
> Just be sure to get rid of all payments of any kind. Without the need to make payments the cost of living isn't that bad.


 We have seen the same, big time. I guess it depends on what you want to do in retirement. We travel a little, with money we save each month, not out of preretirement savings like we thought we would. Since I am home all the time, we save a lot, growing and making things that we were buying. We find that just taking the time to enjoy what we do have, keeps us wanting to stay home more. We planned a lot more time away than we are because we love the properties we have. Before, I was wanting to get away, now, no need. Also it is easy living here, great weather, lots of things grow wild so are almost free. I know so many people and they have so much that just goes to waste, we share things we have in excess, for things they have in excess. Our food costs are 2/3 less than what they were before I retired. We knew those costs would go down but we have seen a lot more than we budgeted for. We save a lot of money, not having to "put up" as much, by extending the seasons and being here most of the time. We eat a lot more fresh. Gardening is very relaxing since I have all the time I need to get it done. We make better use of everything. Sweetie was able to retire 6 years before I did. Like she said the other day, she sees her crafts and hobbies saving even more, now. Birthday and holiday gifts, using bits and pieces saved over the years. Even using many of the kids' old clothes saved back, for things they want and need, they mean so much to her and the kids. She is doing a lot of small projects, everyone just loves these little gifts, potholders, pillows, quilts, wall hangings. Keeps her busy and brings a lot of satisfaction to her life. She is in much better health, carries over in getting more done, more productive. We didn't realize how much the rat race made us feel like we "needed things", now we are truly relaxed and comfortable. 

One example. The greenhouse. I used to have 48 strawberry plants. Now only 18 and still plenty. Before we would process them and eat a bowl full, now we enjoy each one. You know how good a nice cool strawberry sliced in half tastes, with a tiny swirl of honey on it. We have seen this in all our food, we eat so much less. Seems like the preparation feeds us, we just absorb the goodness. Before eating was a habit, now we enjoy each part of each meal. A small portion seems to fill our "need", very satisfying. The greenhouse fills a yearning to get back to the earth, get my hands in the warm soil. I don't yearn for spring, I enjoy the feeling every time I go in there, everyday. It settles my soul. 

Stuff.... We are saving a lot of money because we use and enjoy what we do have. We don't feel the need for "stuff", we are satisfied with the little things we really need, not wanting, we are content, filled with life....James


----------

