New retirees: Avoid these mistakes

From jumping the gun to moving too far, these are the blunders not to make when transitioning into retirement.

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VIDEO ON MSN MONEY

158Comments
Apr 27, 2013 8:07AM
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Take your Social Security at 62-  
Example- if Bob and Charlie both have the same benefits. Their payment is 1000  month at 62 or 1500.00 per month at 70. Bob decides to collect at 62 while Charlie waits until 70.
Bob collects his 12000 per year for 8 years totalling 96000 while Charlie waits and collects nothing.
Finally at age 70 Charlie begins collecting his 1500 per month while Bob continues collecting his 1000. 
It takes Charlie another 16 years to catch up to Bob in total benefits, So by age 86 Charlie can finally laugh at Bob and brag about the extra  500  per month he is getting.  Bob can laugh and say he enjoyed his money while he was still active, while Charlies extra benefits go for his nursing home care. 

The math-
Bob       1000 per month from 62 to 86 =  288 months X 1000= 288000 total benefits
Charlie 1500 per month from 70 to 86 = 192 months X 1500= 288000 total benefits
Apr 27, 2013 7:16AM
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If you knew how long you were going to live, it would be pretty easy to decide when to retire. Assuming of course you could afford to.  But we don't have a crystal ball, so unless you have a pretty good chance of living till you're 85 or 90, It might not be in your best interest to wait.

 

In my case, if I wait just one year (at age 63), I will have to live till I'm 82 just to recover the benefits I lost by waiting one year.  I'm not taking that chance.

 

I'd like to spend a few years while I'm still healthy enjoying life.  Too many people wait so they can get another 5% or 10% on their social security check and they don't live long enough to ever get the money back they lost by postponing retirement.

Apr 27, 2013 7:36AM
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Mark and John made a couple good posts on here. Our government has done away with the unions and the middle class along with it. This once grest manufacturing country has lost all the good paying jobs because of company greed and crooked polititions. As far as I'm concerned my children and grand children have nothing to look forward to anymore. Service related jobs DO NOT support a family living wage and never will. I took my social security at 62 and I believe it was a very smart move. You never know how long you are going to live and I'm sick and tired of giving it all to the free loaders we have here now.  To all the young people all I can say is start planning early.
Apr 27, 2013 8:07AM
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its interesting MSNBC site always say do not take social security early.

But do your math,  At my current aget I have to wait until age 66 and 8 months.

So the break even point between taking it at age 62 and full 66 years 8 months comes out to bue age 77.   So it wont be until after age 77 that I will be getting more by waiting.

 

Then in the meantime due to the orgy of wasteful govt spending they say they will be cutting benefits in the future.

And considering how WELL the feds do their finances I say grab it as SOON as you can as the govt keeps stealing from social security ect.

Apr 27, 2013 9:47AM
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I retired at 62, two years ago.  I am so glad I did. Not going into all the details...everyone has a different situation and life style to make that decision.  Mine was a shock....husband angry...left back to Germany. Left me with all financial responsiblities (did not see this coming)....got through it all.. despite small pension & SS...moved to Florida...so now I stay strong, I never hate, I don't worry, I live simply, expect less..but I still give alot...I always smile, live with love...and best of all dear God...thanks for this Life & Health you have given me and forgive me if I don't love it enough. Just Saying!!!!
Apr 27, 2013 9:20AM
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If you listen to this rather inept article, you will never retire. It's not necessarily all about the money...sometimes, it's about getting out of the "rat race". Who says you have to move anywhere? And you don't have to make or spend a ton of money.

It's all about making adjustments to your lifestyle, and living within your means. The only "requirement" we looked at was being debt free and having savings available. MSN comes up with these same articles weekly...maybe "they" should retire.

Apr 27, 2013 9:19AM
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Also, if you take your ss at age 62 instead of 70 you will be getting todays dollar value which will be more than that at age 70 due to inflation 
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Word to the wise. Starting planning for your retirement location a fair while before retiring. I decided to move to a warm climate and a part of the process was to learn Spanish. After two course in the USA ... I went to Guanajuato Mexico for total immersion. Went to a Language Institute and stayed with a Mexican family. Took classes for two weeks and then travelled Mexico for another two. Practicing what I had learned and also to look for an appealing retirement locale. Did that for three springs and then, at retirement, lived in Guanajuato under a 180 day Visitor's Permit. This confirmed that I would be happy living in Mexico and after returning to the USA ... applied ... and received residency status. Have since moved to another and small city ... never regretting my move. Yes ... my adult children are a fair piece away ... BUT ... they love to visit and come often. It takes a while to acquire a web of friends but that is now done and I enjoy a fairly network of great people. Health care is good with many small clinics available ... also the dentist I use is wonderful. I guess what I am driving at ... is "Don't Sit On Your Hands" until the last moment ... begin investigatiing your options and then preparing ... EARLY
Apr 27, 2013 4:19AM
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unless youre rich youre not going to be able to retire ever, the days of blue collar jobs that offer a living wage and benefits are  OVER
Apr 27, 2013 9:05AM
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Have to agree with most of the comments concerning taking social security early.  Our calculations showed a catch up time that had a high probability of exceeding our life expectancy.  The other is the benefit of the social security check enabling money in the IRA's to continue to grow.  This is really a decision that is dependent upon your financial condition. No pat answer.  Best thing that happened to our retirement - paying off the house when savings rates went to nothing in 2008.  Very beneficial impact on monthly cash flow.  Stay in the house and use the "mortgage" payment to travel where you want to go.  Most fun? Staying active by working volunteer jobs; Food Pantry, Thrift Shops, Habitat for Humanity, Disaster Recovery teams, etc.  Hardly any cost except tools, maintain social interaction, and significant job satisfaction.
Apr 27, 2013 8:04AM
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Not sure which is more depressing, the article or the comments.
Apr 27, 2013 3:40AM
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How true about dentists during retirement. I had one for 22 years that I trusted before retirement. When I moved to a new city I ran into some of the worst dentists I have ever seen. I did not know there were so many poor dentists in one place. One wrecked a good tooth, the other was like a auto mechanic working on a Ford truck and bruised my lip to the point of swelling. Both of these dentists had high ratings on line.  I finally found a good one by asking others where they went to. Ask around and don't go by the online references as I do think the ratings are inflated by the dentists themselves. BTW, the good one I found was not even listed online.
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If Letterman were to post top ten mistakes retirees make it might look something like this.

10) You got born..well technically that was your parent's mistake

  9) Your employer of over 20 years calls you in for a 'meeting' and informs you that you are being

      terminated...hey wait that was their mistake and not your's

  8) Poor diet, no exercise...wait, you've been doing that all your life and now it's catching up with you

  7) You donate to any charity or any political party...stop giving your money away while you're still alive

  6) You got  married

  5) You had kids

  4) You have a pet...there should be onlly one mouth to feed in retirement...yours

  3) You have a site built home and pay huge property taxes

  2) Did not move someplace with better weather and a lower cost of living

  1) You have/had a 30 year mortgage and support exclusionary zoning

Apr 27, 2013 8:39AM
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Retired at 60, took SS at 62 and never looked back, biggest thing you have to do is cut you expenses, and the biggest by far is you home. Get rid of it, it will suck you dry, here in the once great state of NY, we have property tax, county tax, water tax, sewer tax(if you have it) and beleive it or not school tax(yea someone has to pay for our 100k per year teachers) and guess who that is, the home owner. Renting is so much cheaper, no taxes, rent stays fixed, you have mobility I can move whenever I want, and no repair bills. So good luck to all.

Apr 27, 2013 7:40AM
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The biggest Blunder, and this is after visiting with 12 of my former co-workers who retired in the last 10 years is...Going on a spending spree! Unless you have seriously planned out what you want to do after retirement do not start buying new cars, new homes, or going on long cruises or European trips.

 

All told me the worst thing to do was to sit at home and drink beer and watch TV. Make sure you have a hobby of some kind or three or four hobbies which include a LOT OF PHYSICAL EXERECISE. Half of those who retire die within 3 years because of physcial inactivity and alcohol. Join a Gym and visit it three times a week, walk at least 2 miles a day if you do not have a Gym or cannot afford it. Start out slowly and over a period of a month or two slowly increase your workout time and weight training. I know three 80 year old men who visit the gym three times a week and routinely benchpress 210 pounds, but they worked up to it over time so they did not injure themselves.

 

After about 6 months of discovering who you are and what you want to do, then start planning Trips or buying that other home somewhere else.. Visit that new Home area in the WINTER, and in Mid July Especially if your old body suffers from the Cold or high heat, many people discover to late after making a big move they have allergies to the local Pollen and plants and even the Air, like Florida, many places in Florida smell like you living in a Swamp, well you are, some people just cannot take that smell for very long. Also take any costs the Realtor Tells you about with a grain of sand. Physcially contact the Electiric and Gas Company and Water Company and ask what the average yearly cost is for their customers..Next Check out and Locate where the nearest Hosptial is, also if the local Fire Department has a Class A rating and Fire/Parmedicas with ALS Rating and Training on each engine. ALS is Advanced Life Support, remember your getting older and will need more Medical Care as you get older that should be your #1 Priority. . If the Community has a local Ambulance check them out as well. Most have only Medical Assistants or Nurses Assistants but a few do have fully trained ALS Paramedics..Ask how much that Amublance Costs per run and see if you Insurance Company will pay for any part of it, some run as high as $5000 for a 20 minute run time. Nothing worse than buying that new home in the Mountains or on the Lake to find out Medical care is 45 minutes away when in a Heart situation minutes count and then deplete your savings on a Couple of Ambulance runs.. Volunteer Fire Depts need to be looked at very closely, especially their published average response time to a Medical Emergency.

 

Taxes, rememeber your on a fixed income now. No raises can be expected and no over time hours to make up for some financial shortage. Social Security via O'Vomit and his Demoncrat hordes punishes you for working for be careful. and no SS is NOT an Entitlement, you Deserve it for all those years you put money into the fund, no matter how O'Vomit tries to work it, you earned it by putting your own money in there unlike O'Vomit's hordes of leeching supporters..

 

Save money, yes, you should do that. If you really take care of yourself you might live longer than expected and so you should save for that rainy day just like you always did which enabled you to retired and not work til your dead, you were smart unlike thousands if not millions of others who believed the Demoncrats and now find out they were lying to you and work hard NOT TO GIVE YOU ANY MONEY BACK that you put in..Ask that fresh young face behind the SS window how much they make a year,,they won't tell you but it averages over $54,,000 a year, to your pityful $12,000. a year.

 

Everything else is frivoulous until you are retired at least 6 months and know what your doing....

Apr 27, 2013 9:09AM
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Make new Friends.. Everyone you meet is a Potential friend.. 
Apr 27, 2013 8:23AM
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The biggest blunder I've made is to invest thru Bankers Life and Casualty.  They're real good at taking in your money, but when you want to take it out they are a complete mess..........in their favor.
Apr 27, 2013 10:01AM
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I am willing to bet this article was written by someone who a) is younger than 55 and b) has not spoken to many who retired. I have and I can tell you, waiting until I am too sick to collect a few extra bucks a month is not worth it. As to point one, friends, again the author does not know what they are talking about. I moved to Florida two years ago, and have more friends (my age with similar interests) than the last seven years where I moved from. And I volunteer my time to several causes, more friends my age with similar interests. Yes, family is far away, but as noted earlier, they love to come and visit during the winter! 
Apr 27, 2013 4:44AM
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if people would remember trade unions are what help give middle class a way to retire its called a pension and health care never forget  big business does not care about you its all about profits and keeping stock holder happy look at peabody coal this is the start of big money screwing the people that made then rich for what a larger profit margin
Apr 27, 2013 9:51AM
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No one has mentioned that you can start collecting SS and work at the same time, still contributing, and stacking the money up or paying off debt.  I worked for two years after starting to collect SS.  After I retired (my company went belly up) I applied for my partial Teamster pension.  Today, 5 years later, I am refinancing my house, pet my dog, mow the lawn, Collect $1965.00 SS, $470 Pension, pay all my utilities, don't file income tax, and I have excess money per month growing in my checking account.  Living by myself is enjoyable, a few friends are nice sometimes, traveling around in a meager motor home is fun if you enjoy the outdoors. I tightened my belt considerably and do concervative spending.

Grocery shop wisely at a savings supermarket and I buy used appliances from a local handyman that repaires washers, Etc.  If  your concerned that you make enough to retire on, just list your expenses and try it for a few months.  Get both A and B Medicare right away, you pay for the B part but you need it.  Good Luck to you.

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