The 2016 Retirement Thread

[laurajhawk]

Originally Posted by Tammie M

For those who are interested in retiring before 59 1/2 you may be interested in this information if you have an IRA:

https://72t.net/72t/Introduction

https://www.irs.gov/retirement-plans...iodic-payments

http://www.bankrate.com/calculators/...alculator.aspx

Wow, thanks!! I have a workplace 401(k) and so if I retire at or after 55 from that workplace then I can take distributions without penalty. However, I thought I'd be stuck if I should happen to get laid off before 55. These articles seem to indicate I have options in that case.

[bubbles76]

Originally Posted by sherry7899

Laura-that is so exciting that you're thinking of retiring in another country! I hope things work out well for you and your DH.

We know we will likely have to move out of our state whenever we do retire. The taxes and car insurance in our state (NJ) are insane.

Sherry

Sherry definitely! I have no intention of staying here into retirement either. I envy those that can, but I'm not one of them.

[Tammie M]

Laura,

The 401(k) option of "if you are employed by a company and are participating in the company’s 401(k) plan and you leave employment with that company at any time during or after the year in which you reach age 55, there will be no penalty for taking distributions from the plan." is not very helpful for me. Apparently all 401(k) plans are not alike. Mine does not allow partial distributions - it is all or nothing. I wished they allowed a yearly distribution.

I had not heard of the 72t accounts until I visited some financial advisors while I was going through a divorce. I had 3 different advisors speak of them. There are some strict rules that have to be followed so I would work with a wealth management group or advisor that is very familiar with them. Definitely is a nice option.

[Leonana]

Originally Posted by videofit

Most people can't afford to retire. I figure I'll have to work till I drop or marry a rich man or win the lottery. But even that is difficult nowadays with the horrible economy and age discrimination.

Originally Posted by lselbach

I was beginning to think I lived on a different planet than everyone else on this thread. Age discrimination is real, and it hits particularly hard if you live in a small town with few jobs to begin with. I'm 55. Hubby is 67 and plans to work until 70. Does he want to? No. We don"t feel we have a choice.

It's similar for us, specifically my husband's job. I'm not working outside of the home currently, as I homeschool my daughter. I'm planning on looking for something part time when she gets her license next January. However, I'll be 57 and out of the work force for 16 years, along with having a moderate hearing loss. I should have kept on working part time, and homeschooled. I was willing, but my husband wanted me home full time with dd. Then the crash happened in 2008, and jobs are harder to come by. Hindsight is 20-20, I guess!

[clerkin11]

This thread has been fascinating to me and I thank all of the people who shared their experiences and plans. It's really made me do some serious thinking.
I'm 51 and my husband is 59 and we haven't really thought about retirement much. It feels like something way off in the future to me, but my husband probably feels differently. We've been putting what we can in our 401K plans over the years, but with two kids we definitely weren't maxing out. And we'll be paying huge parent plus loans for a long time. I'm not complaining because we have great kids and they are worth it.
I have to laugh because all of the stuff we read years ago said "put x% in your 401k and you'll be a millionaire when you retire". We did that %, but then the market crashed a couple of times and we're definitely not going to be millionaires lol. Luckily I have a pension at my job, so I think we'll be ok, but that's not something most people have anymore. Even at my work, new hires don't get a pension. I now understand the appeal of government jobs (benefits!!)
Luckily I love my job so I hope I can keep working for a long time, but I'm realizing I need to be much more focused and disciplined in planning how to help my husband retire in the next 5-7 years.
Thanks again for sharing.

[bzar]

Originally Posted by clerkin11

We did that %, but then the market crashed a couple of times and we're definitely not going to be millionaires lol. Luckily I have a pension at my job, so I think we'll be ok, but that's not something most people have anymore. Even at my work, new hires don't get a pension. I now understand the appeal of government jobs (benefits!!)

the market rebounded, and I'm really glad I "stayed the course". if you haven't looked at your accounts, it would be good to do so.

for pensions, have a meeting w/your benefits coordinators for you and hubby's employer to do some projections. also, find out about medical benefits that might be available post-retirement for both you and hubby.

[Jeanne Marie]

Originally Posted by bzar

the market rebounded, and I'm really glad I "stayed the course". if you haven't looked at your accounts, it would be good to do so.

Best advice my financial adviser ever gave me... "stay the course". I did so and have made back all that was lost.

[Carol K]

I stayed the course too and even though I was out of work for 3.5 years, I made back everything and a lot more.

[Paula]

People can retire young, I retired in 2006 at age 55, DH had already retired. We both spent over thirty years in public employment and have pensions (thank goodness). In our employment we both paid into our pension funds, social security, and our 403b accounts every month. Working in the public sector meant we got paid once a month which taught us to budget and discipline our spending. We bought a condo rather than a house and paid it off before we retired. During the crash, we stayed the course and made back all we lost plus more. Retiring early and comfortably can be done but it takes planning.

[Sophie]

Originally Posted by DejaDeb

My father retired the year he turned 60. He died two months after his 61st birthday. That has been a HUGE driver for me to want to retire early.

I admit that this is part of my reason for wanting to retire early. Not so much my own parents, who are healthy and active in their early 80's, but DH's siblings. He has lost 2 older siblings before they reached the age of 61, and shortly after their retirements. That was a big driver for him retiring at 55, and now, two years down the road, I'm tempted to join him so we can be more free to travel and pursue other activities.

The thing is, I love my job. It's my second career, after taking time off in between to care for my kids at home. It's a great job, but being tied to an academic schedule and working very long, stressful hours during the semester does take a toll on my health, both physically and psychologically. Yet it's very rewarding and I couldn't ask for better colleagues or work environment. So it's a conundrum for me. I'm 53 this year and in my mind I will go for at least another two years, partly because of the magic "55" number and also because by then, my youngest will have a couple of years of university under her belt (children of faculty/staff get a tuition discount for going to school where I teach).

Thank you all for sharing your experiences, it gives me lots to think about!