Survival & Freedom #4: Retirement

[Bob]

How are you going to generate income into retirement?

I am building a four pronged attack on being able to maintain streams of income - active revenue generation, until I die. Why? At the very least, I assume that the Government will continually tax me more and more, that they will find ways to tax my saving and retirement prior to use, and that the dollar will continue to devalue. There is nothing mystical about those predictions. The worst case scenarios lead to serious financial resects where my savings/investments are not worth nearly what they were, where bankruptcies of towns/cities/counties results in pensions no longer being paid, and where seizure of assets becomes a very real possibility as we turn ever more socialist, whether through taxation of direct theft.

At the end of the day
- Social security has been mis-handled and kicked down the road one too many times
- The Stock Market has been manipulated too much
- Pensions have proven to be useless vs Bankruptcy

I need to be able to be a producing member of society well into old age. If I can't do that I may very well be subject to poverty, bankruptcy or worse - being a ward of the state on their Universal Income program, where I will lose all freedom to their control.

The only other option is to be completely self-sufficient, and that is harder and harder as you get older.

Over the past 5 or so years I have laid a tiered groundwork for being able to stay employed in business, or in my own business, as long as humanly possible. Follow the "Golden Years" myth if you are close to death and have a couple of million stashed away.

I am taking responsibility for producing and providing for myself as much as possible.

[bdcochran]

Retirement.
1. In the 1950s, the average retiree lived less than three years. That is so untrue today. In 2022, the government will put into effect a new formula for the annual minimum distribution of retirement funds. The anticipated life expectancy will be dramatically increased. It won't increase the money you saved.
2. let me distinguish between self-reliance and self-sufficiency. Self-reliance means seeking and finding that competent dentist, lawyer, accountant, doctor, mechanic. Self-sufficiency means doing it all yourself, which for me would be impossible. Today, I had stitches removed. The nurses and the doctor all knew me - they received another round of hug cards. When I was handled by the surgeon today, I knew her training, that she spoke Russian, had been to France with a boyfriend. I take fruit from my 15 fruit trees and give some to mechanic and his staff even when I have no work being done. Yes, I get breaks in charges. I took French language books and gave them to my new dentist whose daughter is studying French in college. I work at building a relationship with people who can help me.
3. I make a real effort to live within my means. The sewer line was replaced. The house was painted on the outside. I couldn't trim the trees anymore and had seven men come in and do it for the first time. Next time will be 5 years from now. I research my car questions. The last time I was into the dealer for routine "servicing" was at the 500 mile oil change and then two recalls.
4. I have no control over the actions of the government, ranging from kicking the can down the road to changing the rules in the middle of the game. Like the deduct-ability of certain expenses in the federal tax code, changing the calculation of inflation in social security. In 1957, I memorized that Tbone steak was an even $1 a pound. Last week, I found it on sale for $5.99 plus tax of $.60. So the price of steak was 6 times what it was. So you have options - work if you can or change what is important to you. But live within your means.

[Bob]

All good points BD

I did say Self Sufficiency very deliberately.

And the age thing was a good point. we have been behaving like it was 1950. It is 70 yeaqrs later and medical advanced have significantrly changed the life span for many.

But we have not changed our behavior, or our paradigm. My point: Change it for yourself.

"Live within your means" makes sense if you know how long you will live. I say create the means to live!

[Mac66]

I've been retired 11 years, my wife for 15. We both get pensions. Have a pretty good nest egg/investments. We also both get social security. We live on our pensions and SS and still stash money away. We haven't touched the interest on our investments which have done really well. We had no debt i.e, owned our house, cars etc. until we built the new house. We will recoup that when we sell our old house (after our parents pass and we move to the new house).

So far the American dream has worked for us. We are set for the rest of our lives if the country doesn't completely collapse which is unlikely. As I've said before, I've been prepping since Jimmy Carter took office. The economy hasn't collapsed yet, the world hasn't ended and it's unlikely much will fundamentally change in the next 20-30 years. I don't think the stock market will collapse. It has a very long and stable track record. I don't think social security will end or the govt will take our pensions. Hasn't happened yet, unlikely that it will.

I do think the govt will continue to get bigger and bigger, doesn't matter who's in office. They will want and take a bigger and bigger piece of the pie but they will always leave enough for those who prepare to live the dream.

[bdcochran]

agreed. If things don't change, I will be fine. I took advantage in 2020 of not taking the required minimum distribution. Other people in their life styles and planning did take it. Doesn't mean I am smart, just cautious as I do anticipate bumps in the road in the future and hope that the passed on distribution is there when I need it.

[tom mac]

Also been retired for over 12yrs now... yes, a good pension ( only thing good about NY is they don't tax it as prior LEO )
Money isn't an issue.. pay no interest on any account except mortgage... so living withing means... and no matter if wife or I go first, the pension still pays the same so wife is covered too.

Are things changing, yes... but prob will effect the kids more than I.

[David]

Also been retired for over 12yrs now... yes, a good pension ( only thing good about NY is they don't tax it as prior LEO )
Money isn't an issue.. pay no interest on any account except mortgage... so living withing means... and no matter if wife or I go first, the pension still pays the same so wife is covered too.

Same here, wife is covered by my pension. Which is very comforting.

[aerynsun]

I've been retired since 51, now 66. For the mathematically challenged that is 15 years. Planning for retirement begins when you can get a work permit - usually 16.

Pension 12K
SS 36K
Total 48K

Average spending over 15years 30K and going down.

Tell your children to focus on income first and costs seconds.

[bdcochran]

Most of us are retired. Yes, you go to work as early as you can. It provides an adult perspective on the world.

[Bmyers]

Well, I guess I'm in the minority class of still working. My dad taught me when I first started making money, give God his part, government their part, save a part, and whatever is left is yours to spend. Didn't like that much because all the parts were larger than my spend pile. Yet, in the long run it has paid off. Both the wife and I have retirement investments and she will receive a government pension on top of that. The save part has allowed us to put our daughter through college by cashing in the bonds we had invested in (yes the talk of eliminating college debt irritates me because I worked and paid for my college and my daughter's college).

We have planned to retire at 57 and have everything set to go for that time frame. Although I will most likely keep working, it will be nice to know that I can leave whenever I would like. Most likely the wife will retire when she hits 57, the benefits at that point for her to keep working is marginal towards her retirement. I have already talked to the company and at that point I may go part-time. Although the company president and the CFO are both looking at retiring at the same time so we may just all go out the door together.

As the day gets closer and closer, it is actually hard to comprehend retirement. Yet, I think I will be able to enjoy it.