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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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.
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.
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.
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
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.
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....
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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