7 (Common) Realizations Retirees Have Early in Retirement
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- Опубликовано: 12 июн 2024
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Timestamps:
0:00 7 Realizations Retirees Have Early in Retirement
0:26 Realization #1
2:18 Realization #2
4:07 Realization #3
5:42 Realization #4
7:32 Realization #5
10:02 Realization #6
11:59 Realization #7
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I’ve been working for 54 years. I am now retiring in four days. It’s a little scary for sure, but I am looking forward to how my “new” life may unfold.
It’s an adjustment, but you’ve got this. It is a process and changes day to day. Take time and be kind to yourself. Enjoy!
I retired at 56 in 2021. It’s an adjustment, but it works out, well mostly, biggest challenge for me was finding a sense of purpose and finding a way to spend my time. There are only so many projects around the house you can do! Still is a bit of a problem for me, but I have some plans.
Congratulations! 🎉
Been working with my company for forty-five years. Getting ready to retire and scared as hell.
Another great discussion Eric and one I could relate to very much. Paricularly the last point and the example of the guy getting talked into staying longer. I did not stay longer, retired at 62, but I allowed my career to consume me. 10-12 hour days were the norm and more often than not, I also put in a lot of time on the weekends (and I was salaried not hourly). It was funny, my wife would tell me that I could drop dead and they wouldn't even notice and it wasn't until I retired that I realized and understood just how true that actually was. There is a huge difference between dedication & loyalty and the inability to see the forest for the trees. I could have handled that much better in my working life 😐. Keep up the great content Eric, I'm certain you are resonating with many followers. Larry, Central Valley, Ca.
Heh. I was like the guy mentioned at the end, but I didn't want to make the mistake that Michael Jordan and Babe Ruth did in staying on too long, so I retired even though asked to stay on. They survived and retirement has been great for me.
Your understanding of the psychological aspects of financial planning is superb.
I was laid off at 62, but was asked to stay on 6 mos. During which I was pressed to take another position. I held out. Calculated how much money income i needed to pay a low health premium. Chose a good $0. Plan. I have now battle physical challenges, but still manage traveling. I'm gardening, traveling, having time with my dieing mother, visiting grands every other month. Retirement is fantastic. Colleagues who repositioned at the company are miserable and facing more layoffs.
This is high quality content. Deserves more views.
I am so happy to have found this channel! Valuable content , straight-forward and understandable....love the motto...not more money but a better plan...it makes retirement feel possible!
This was great. Really liked all the charts that clarify the subject matter.
Very nice piece! I always make time to watch your content, but this video really gives me a lot to think about
This analysis is excellent. I am approx 1 year into retirement after a surprisingly welcomed severance during 04/23. Very well planned for after 40 years of work over 42 years (almost 2 years of under-employment), Wife is a bit younger and wants to work a few more years (which supports our financial plan perfectly). The psychological aspect is real, and after 10 months of tennis, video games and leisurely lunches, I am LOVING my part-time retirement job. Still plenty of time for biking and travel, but I enjoy helping folks.
When you leave to take another job you give two weeks notice. I don't understand why, when you retire, you are expected to give any additional notice. What difference does it make why you are leaving? The only difference is if you are going to work for another company or going to work for yourself, that work might be golf, gardening, or kite surfing, but that doesn't matter, you are leaving to go do something else.
[I think my wife thinks I'm going to be going from working for my current employer to working for her, in the form of a very, very long honey do list.]
If you expect it doesn't matter, it most likely doesn't matter. If you are working as a key contributor, you probably know it, and you know the people you leave behind might appreciate additional time to prepare. And then the other aspect, at least for me, I find it harder when the final date is known so for my own sanity i don't like to give too much notice.
Because when you are just quitting rather than retiring, you need to account for the needs of the new job. 2 weeks notice is the commonly followed balance between being responsible to the old and new employer. Retirement is different.
In my organization, HR told me the only difference between resigning and retiring is if I’ve had over 10 years with the org and am 55+ then I can ‘retire’, which gives me more benefits upon exit. If I want to retire with 2 weeks notice, it’s my choice. I my case, I thought highly of the organization and liked the people who worked with me and I wanted to make the transition easier for them. That’s all it really came down to.
Your company will march you out the door in a second if times get tough. You owe them nothing.
Consider this, too … Companies will and do clip you in less than a heart beat.
Thank you sir! Very good video and I'm paying attention to your suggestions !
Thanks again, Eric!
Excellent and concise!
All employment is “At will” which means as an employee you can quit whenever you want, it also means the employer can let you go anytime they want. Anything beyond that such as two weeks notice, severance packages etc. are the employee’s and employer’s option.
It's at the option of either side but, as always, the employer comes from the stronger position. If no notice is given, recommendations can be affected.
Not a real problem with three of four of mine. By policy, they didn't give recommendations. Date of hire, last date of employment, and last position held. IOW, facts. More gets into potential liability waters (defamation, etc).
Thanks Eric, always good
Transition to retirement was not a problem, but my job was not my life. I liked my job, but I like doing what I want so much better. I am able to help others, I have little or no time pressures and I have plenty of time to stay connected with work friends. I never gave a thought to returning to work.
Nice coverage of important stuff beyond finances.
@Safeguard Wealth Management This is all true-very well done. My money rules: 1. "Money Doesn't Grow on Fees" 2. "Save More-Spend Less", 3. "Trust but Verify-Buyer Beware".
Great video! 👏👏🙏🙏😊
Solid thinking.
The "new retirement" model usually includes part-time work and volunteering. Both can be rewarding.
If you're still working a job, even part time, you're not really retired. In my opinion, retirement means moving on from work altogether and spending your time on other more personally fulfilling activities. I think people in the USA, in particular, derive too much of their personal worth from their job and that's sad to me. We all need to put more effort into building a fulfilling and complete life separate from work, so that when it is time to retire, it's an easy transition because we have a rich life to retire to.
@@dlg5485 @KatieLibby1315 Instead of new retirement, substitute financial independence. You don't need to work for money, but can if you choose to for various reasons
@@dlg5485Why is it sad? "If you choose a job you love, you will never have to work a day in your life."
Financial independence doesn't mean that you don't work. It simply means that you don't have to.
@@kwilliams2239 It's sad because there is SO much more to life than work. Duh!
@@dlg5485 Perhaps. OTOH, perhaps you've never had a job you loved. Too bad.
The people I've worked for have always treated me fairly and with respect, so I feel the need to do the same. Likewise, I've never seen the company resort to underhanded tactics, so I am not going to cast the first stone.
I paid $1,400 a month for health care when I retired before medicare kicked in for self and spouse. I have a pension so almost all income counts for the ACA and we couldn’t qualify for a subsidy. Now aged 66 we pay $174.90 for medicare + $325 for the advantage plan for each of us (about $1,000 month total) for health coverage. When employed I had a generous employer so my share of premiums were about $150. Health care costs are equivalent to my old mortgage so don’t minimize those costs. Luckily I contributed to a HealthCare savings account when working and that money can be used to cover premiums with no tax. Still though I am glad I retired early, the past 3 years have been the best in my life.
My tax guy says I can use my HSA monies to pay for copays or any other out of pocket medical, dental or vision expenses. However he says the IRS doesn’t allow you to pay for medical premiums. For ACA they are giving you a subsidy already…same with Medicare. Are you saying you use your HSA to pay premiums?
For #1, I retired about a year after coming out of the pandemic and was still working from home. We were gradually being forced to return to the office and that really gave me the incentive to retire. Because I was working from home, the social interactions were less than what they normally would be. This seemed to ease the transition from work life to retirement life. I do occasionally think about taking on some part time work but its only because it would be nice to bring in some additional cash to take on some new projects.
Hardest thing for me is going to be saying goodbye to all the free wifi... 😄
So very informative. Would love to see one of these focused on retiree survivors. We have married tax rates now in our 50s but by retirement it will be just me with non taxabler insurance death benefit to invest or take right away on AND a much lower single rate in retirement. Makes me think we should contemplate roth conversion before retirement while still under married marginal tax rates rather than my post 62 single retiree tax rate.
The topics in this video are the most undiscussed in personal finance management.
By that I mean not at all discussed.
After a meeting with a counselor at Schwab I had, accompanied by a friend was a profoundly knowledgeable tax lawyer, the friend said that he was beginning to see mutual funds as very deceptive.
I was not able to continue this discussion because he died soon after.
In recent years I have seen funds which are supposed to be efficient, churn holdings in search of big returns, yielding nothing in the long run, but generating lots of taxes.
I have never had the feeling I understand the exact figuring necessary to know exactly what is happening, but I have been trying to sell high tax consequence holdings when I have losses which counteract the gains.
I would guess the reason these topics are not often discussed is because they are not easily understood.
#3. Pre-Medicare insurance costs are certainly a concern. You could manage taxable income to qualify for ACA subsidy or even Medicaid, but at the cost of having to delay Roth Conversions. Also, your estate could be subject to Medicaid Estate Recovery. After reaching 65, still have to balance Roth conversions with concerns over increasing your Medicare premium and losing income tax advantages of Social Security benefits.
#7. My father kept getting asked to come back as a private consultant to manage various projects, and he kept naming increasingly higher compensation requirements.
You absolutely should not have any loyalty. An employer will drop you on a moment’s notice if it suits their interests. You should have no reservations about doing the same.
And people don't put life unhold for work because of guilt... That might be a small part. But more money, more interaction...all those things you mentioned in the beginning of the video.
I understand these things, but to be honest, I'm a big weary of hearing it over and over on youtube. Believe me, I will find something other than work to do. And it will mostly be whatever I want to do other than occasional have to things. Biggest thing is no schedule, not having to worry about work project timelines and people. Lessons on money I get, I don't need it on how I will spend it, how I'll miss work and being around others, etc. lol
If you’re weary of hearing the same thing on YT then why did you watch this?
@@DunRovinRanch-1969 Because I had to watch a first bit of it to even know what he was going to say. What a dumb question.
I don't think nearly enough financial youtubers discuss the life part of retirement, which is FAR more important than the money part as far as I'm concerned. Most of them only recently started talking about lifestyle aspects of retirement because channels like this one revealed that a lot of people were craving it. If it's not your cup of tea, you don't have to watch. In any case, it seems like a strange thing to get bent out of shape about.
Your statement itself shows just how much you need to hear and actually understand the message. You try hard to suggest you have it all figured out, and maybe you do. If so, you are one of the statistical few. If actually not, you are in for a real surprise. I hope your over confidence and arrogance doesn't set you up for difficult times ahead. Good luck.
I found it very interesting the realization #2 where one shifts to a 35/65 before retiring and then slowly shifts back to a 60/40. However I saw a video where the point was that retirees can be too conservative. So the rising glide path still needs to beat inflation and cover the 4 % rule. Or maybe not all the so called 4% rule?
How would having a government pension change your investment calculations? How should teachers and other state employees on these plans invest their money for maximum wealth in retirement?
For #2 I took half of my portfolio on 2008 and moved to an annuity. Wife and I also have small pensions. With annuity, pensions and SS we have a guarantee stream of approximately the same amount of money we are making pre retirement. Also still have have the portion we didn't move and have it in Roth IRA. Since I am main breadwinner we will live with our fixed income. If I pass first wife will have the Roth to make up difference. If she passes first kids get rich...lol
Inactivities and desires decline as the older you get... Because of physical limitations.. So those hobbies and interests that depend on those... decline... Even at 50 now I'm not rock climbing it or scuba diving because joins hurt, Vision has gotten role badt. Etc. And this stuff happens, no matter how healthy you eat or exercise in some cases..
You mentioned a glide path video. Could you please add the link.
Should have been linked in the upper right hand corner but here you go - ruclips.net/video/IQ_ihD4ASh0/видео.html
Can you go into more detail about having a High Income in Retirement but reporting a low income for tax benefits? I am thinking of ways being able to take my IRA and 401K and convert some to Roth for later years. Right now I am devoting all our retirement savings into a Roth 401K to try and avoid high RMDs, paying exorbitant premiums on Medicare, and having our SS taxed fully.
The issue, which is a nice one to have, is my wife and I have a considerable chunk of money in a traditional 401k and IRAs, I need to learn and plan how and when would be the best time to convert some of this money to a Roth and be able to pay the taxes on the conversion. @@_-Karl-_
Keeping high income but low taxes in retirement is usually done by filling up the lower tax brackets with IRA money, using a brokerage account to then fill up the rest of the 0% LTCG bracket, and then getting any remaining income you need from Roth accounts
Healthcare ...Big. I see it all being a nurse.. Interesting dilemma. 12 retire early comma by fifty five.. To enjoy life... but the cost of health care can be huge.. So probably part time fifty just to get insurance... But still pay a ton in premiums, deductibles, out-of-pocket as usual.
Maybe I'm different. I retired at 69 but like my job so really didn't consider it before. Covid (worked at home but it was boring) got me thinking about it. It took a year before I convinced myself that I'd be making (with very conservative investments) the same as I was working. Then a bit to convince my wife.😁It wasn't straight up because I had to think about, instead of putting money in the 401K, I'd be taking it out. Social Security would change from a significant tax to income. My state doesn't tax retirement income, etc.
I didn't mind not working because I'd planned my retirement hobby for years. What did surprise me is how fast the people at worked forgot about me. It wasn't a crushing blow but I was surprised nonetheless. Even the cost of Medicare surprised me. Medicare itself isn't too bad but our drugs are a killer.
I also have my accounts under management (Fidelity) so that's a worry gone. I know it costs me money but it also lightens the load that I don't want. I don't have to worry about "chasing" the market. They put together the (conservative) plan so the chances of out-living my money is small.
Where do you live that they don't tax SS and other retirement income?!
Georgia. I have SS, qualified pension, and 401k disbursements. No state tax.
If I did work, none of this is taken into account.
Taxes are owed only on the income. Essentially, starting with the 0% tax bracket, with deductions.
@@_-Karl-_
GoodRx is very useful and sometimes drugs cost less than insurance co-pays but, these drugs are usually relatively cheap to begin with. I'm on one patented drug that GoodRx lists at well over $600 a month. My wife has one that is closer to $1000. These are both very common drugs, taken by literally millions of people. Until yesterday (my optometrist change prescriptions because of the cost) one of mine was $250/mo. Both of us get into the "donut hole" very quickly. Our drugs cost several times what the rest of the insurance costs.
BTW, another resource is Mark Cuban's Cost Plus Drugs. Again, this is for only the generics.
What is the point of "(not religious)" after "television and movies"? And, if there is a reason, I just watched the Godfather. They spend a lot of time in church. Does that make it religious?
To stop doing work that you enjoy doesn’t make sense unless you have no choice.
Retired at 64 and love every minute of it. At gym till noon 4 days a week working out in the best shape of my life. Work part time 2 days a week. Archery has allways been the love of my life and I shoot my bow every day of the year either inside or out. I bow hunt on my wife’s family farm plus 4 other relatives farms. Have a 20 foot trailer i keep up there on Nebraska farm and go up every month to either hunt ( during season) or piddling around working on or moving tree stands. Life is great and there are no guarantees what’s ahead so doing all I can to enjoy it every day. Don’t know how I ever had time to work!!🏕️🦌🏔️🦃🏹💪👍
Rising Equity Glidepath. I did not know about this but i did it. Went to cash just before retirement locking in a 15% gain for that year, and had short term bonds increased over first yr. Slowly will dollar cost average back into funds with more stock exposure with balanced funds. Gave me great comfort, especially when market dropped. Back tested my old vs. new portfolio and I still would not be back to even after 2.5 years with old portfolio, and new portfolio made small gains.