I keep running into people who say, "I don't know as I will ever be able to retire?"
Some of them are convinced in their hearts that the work they do would collapse without them. And they have committed years, often decades of their life to the work. I understand that feeling. The reality is that most of us can't single handedly guarantee the future of our work. The job I leave behind could grow massively, or collapse in a year or two, priorities change, funding comes and goes, things that are not tied to me being there. And if I work until they find me decomposing at my desk, the work with either go on, or not.
Some don't know what they would do without the income. And I get that, with my leaving work, our joint income will go down by more than I made before I moved to DC. Often they need to stop and take a look at what they really need to live. Big mortgage payments are often a factor, on homes that are wonderful, but much larger and much more expensive than they really need to live happily. We would love to have twice as much house, but then I would need to keep working to feed the beast. Sell the dream house, buy something smaller, and buy back your life.
Think about what it really costs to live. Food, utilities, medical care, basic transportation, it is probably a whole lot less than you are spending.
We have planned for this. We have gone back to the basics and charted what it really costs to live, I have worked the numbers on income. With a little bit of restraint, we will be fine. Sit down and add up your real costs, and adjust your spending. You can do this.
Some are supporting others, who often are self sufficient, but take all that is given. At times my father could be stingy to an extreme, but he did force us to be independent and self sufficient.
Some a buried in debt. As a child of children of the depression, who were then cash crop farmers, I was raised to avoid dept. My father worried when I took on mortgages to buy homes, and when I financed cars. It is not easy, but get rid of the debt. My car is 15 years old, with few miles on it for it's age, reliable, bought used and I paid cash for it. If I had the new car of my dreams, I would be working until I turn 70. When the top goes down on my paid for car, I smile even more than I would in a new Cadillac. (I really did like the Cadillac, that was also bought used, and paid for in cash.)
A key to an easier retirement, is pay off all of the debt.
Unless you want to work until you are no longer able, or to be found decomposing on the job, make a plan to retire, and execute the plan.
That is all good advice. And I will store that in my memory bank. I've often asked my mother why she keeps working as she really only has credit debt but as far as her car and house they're both paid off. She worked 49 years with the federal government and then retired. But now her part-time job she swears it's what's keeping her going. And she also knows that she can just up and leave anytime she wants when she's had enough. Doctor say she's very alert and in perfect health. So that's what's keeping her going I say more power to her. That's the only part of retirement I think some people worry about. If they don't stay busy with at least something they're going to go downhill
ReplyDeleteI think I will always find something to do.
DeleteHaving an adequate income, being able to afford holidays and to live my life as I was before retirement were my chief concerns and they all turned out to be meaningless. I have an adequate supply of money for our modest lifestyles and for holidays. I consider myself as now unemployable and cannot earn money any more, and that was what worried me most about retirement from a secure job, and I was worrying about nothing. Yes, debt free at retirement and still the same.
ReplyDeleteThere are parts of the subway system I have not explored - there is always something to do.
DeleteI kind of drifted into retirement and hoped for the best though the mortgage on the house was paid off and our two children had become self-sufficient long before. However, the number crunching that you and Mr Sweet Bear did is probably a very sensible tactic. If all goes pear-shaped you could always move to Detroit where many houses are still incredibly cheap to buy.
ReplyDeleteThis is not the least expensive place to live.
DeleteWise words indeed. Too many people finance their lifestyles by debt.
ReplyDeleteThe burden of the past, obscuring the future.
DeleteExcellent advice. We have very little debt, the largest being the mortgage, but even that isn't so much because we put a lot down on the house to begin with, and it will be paid off in a couple of years.
ReplyDeleteThe hardest part will be keeping busy, but we have some great local charities, food banks and such, that I have worked with before, and will do so on a more regular basis once retirement hits!
I have written myself lists of things to do when I think I am bored.
DeleteYou have some very sound advice here. It gives us all something to think about.
ReplyDeleteI was on a bit of a rant when this was written.
DeleteI wrote a long comment earlier today. It's not here. I was having connectivity issues. It wasn't profound.
ReplyDeleteGoogle ate it, it was not in the spam filter this time
DeleteI'm getting ready, but the budgeting is a pickle. Paid off the car last year and hopefully I can stay out of trouble and it will be the last car I ever own. While I won't be able pay off the mortgage in the next few months, the outlay for the mortgage, insurance, and taxes on the house are less than rent. Unfortunately my house is the one on the block that looks a bit Grey Gardens. Over the years the knob and tube electrical conductors were replaced with romex and a contemporary ground system, the galvanized supply lines were replaced along with the sewer extension from the house to the city sewer, and the roof is newish. I need to replace the heating/cooling system with something more contemporary, patch the siding and probably also replace the garage (don't ask). I like the neighborhood. It is walkable, convenient to downtown, and there is decent public transportation. The neighbors tend to mind their own business. As you can see the real issue is budgeting for maintenance on a 97 year old house.
ReplyDeleteWill Jay