What you wish you would have done differently before retirement?

[PatchManager]

Granted, this forum isn't really a forum about finances or retirement, but I do see many retirees on the forum. I also really appreciate experience/advice from real people who are actually doing what they are talking about instead of reading about retirement from someone who isn't even close to retiring. Since I will be "retiring" in 10 years or less, I would appreciate some of your wisdom regarding retirement or preparing for retirement. I have two questions.

1. What is one piece of advice you would give to someone about 10 years from retirement?
2. What would you have done differently 10 years from retirement knowing what you know now?

Thank you.

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[Buyer2021]

What is one piece of advice you would give to someone about 10 years from retirement?

If you have the option, to the best of your ability maximize 401k contributions including 'catch-up' provisions.

 

[ThunderBubba]

Figure out what major projects you have on the horizon and get them done and paid for before you retire. Things like a new roof, new A/C unit, bathroom or kitchen remodel, new car, truck, boat, or camper. Big ticket items that won't hang over your head financially once your retired.

 

[lacartus]

Plan how you will get health insurance; especially, if you retire early, but even with Medicare at 65 you will likely want supplemental insurance.
Try to have multiple streams of income: pension, dividends, rental properties, annuities, SSecurity, part-time work, etc.
You're already ahead thinking about this before it's time.

 

[UGADawg96]

Great thread! I'm planning to retire in 12 years at 60. So while I can't speak from a retired person's perspective, I can speak from the perspective of someone very close to your situation.

On top of the financial preparation, you also need to do estate planning if you haven't. Get a will, a durable power of attorney, and possibly a trust in place depending on the value of your estate. If you want your wishes granted, write them down.

And most importantly, make sure you make note of all your income sources, email, banking, properties, memberships, and any other type of financial and non-financial accounts along with login creds, insurance policies, utilities, subscriptions, associations, tax records, storage units, and anything else you associate with, etc. Include the amount and the frequency of payments. Make sure your executor or loved ones knows how to access these things in case you become disabled, have cognitive decline, or worse. They will need to know all these things so they can close what needs to be closed, get access to what they'll need to support you, or file the appropriate forms to handle the accounts, etc.

My wife is currently going through this with her mom who shared nothing with children and didn't prepare for her current condition. It has been a nightmare getting her affairs in order since she's got serious memory issues. It takes months of daily effort combing through a vast amount of unopened mail, statements, policies, making phone calls, filling paperwork, etc. just to get access only to find more mysteries. If the people are out of state, it requires multiple trips to sort things out. Even with a POA, many institutions require their own paperwork filled out to acknowledge you. The Fed doesn't, so make sure to set up an account on both SSA.gov and Medicare.gov and include the creds with the above list or else it will make it really difficult for the person handling your care.

Once you turn 60, start shopping for a long term care policy. Don't cheap out on it either. Some policies may only pay out 100$ day and the current cost for a facility is more than twice that.

PSA: Don't be a burden to whoever you leave responsible for you and your affairs.

Great thread and I'm looking forward to other's suggestions!

 

[Yves]

Like ThunderBubba said make sure all majors tickets item are paid off. Before I retired I had made a spreadsheet to track ALL our current expenses and potential upcoming expenses. We also planned for our projects of retirees i.e. travelling in summer, winter... One important thing is don't lie to yourself when you identify your expenses and identify them on the high side $$ value. If you lie to yourself you may be short of income when you pull the plug.

 

[powerboatr]

ALL THE ABOVE, have a 401k or IRA maxed out on contributions and once you retire, find a way to still have earned income that qualifies as earnings with irs so you can still drop money in the funds.

and have plan A, B and C
Decide in advance how much you love your kids or grand-kids and at what level of financial support you might want to help them with on their journey of life. It adds up fast. when that amount is spent. CUT THEM OFF.

minimize debt at retirement time and do math on tax deductions before you pay off the house, once its paid off , you loose a huge tax deduction.

for us having just the 2 of us and our dog is really easy and low cost life. it leaves room for a new car or truck when we want. It leaves room to travel or not.
we have a very comfortable motorhome and traveled far at first. now we do shorter trips and enjoy the time more at each stop.

medical and medicines can be a PITA to manage with rules about in network or having your provider in your zone. mail order meds works for us, as we can change delivery spots ,


then plan on the OH CRAP my body just had a breakdown
above all remain positive

 

[SomebodyInGNV]

Get a subscription to Maxifiplanner.com. You might not need it past the first year but it's an excellent approach to retirement income forecasting. It will take you a couple of months of fiddling to understand the options and what it's telling you. I have no association with the company other than being a satisfied customer.

It doesn't give investment advice. Rather, it forecasts the result of what you do or could do. It does involve drinking a bit of Kool-Aid because, unlike most retirement planners, you don't tell it how much you need to live on. Rather, you tell it your savings, expected retirement income and fixed costs are (primarily, housing) and it tells you how much discretionary income you'll have to spend on things after paying housing, Medicare, income taxes and (suggested) life insurance. It also recommends the optimal Social Security filing strategy, given the circumstances (age, marital/partner status and life expectancy) you enter.

Note that their assumptions about earnings on retirement savings are EXTREMELY conservative because they assume the safest possible way to invest your savings. That's basically bank interest which, after accounting for current inflation, produces negative real income. You can adjust your assumed average returns to something more optimistic (and, in my view, realistic) without being foolishly aggressive with savings your life depends on.

Aside from that, plan to travel early, while you can. Sh** happens, then you can't.

 

[JimMoran]

Granted, this forum isn't really a forum about finances or retirement, but I do see many retirees on the forum. I also really appreciate experience/advice from real people who are actually doing what they are talking about instead of reading about retirement from someone who isn't even close to retiring. Since I will be "retiring" in 10 years or less, I would appreciate some of your wisdom regarding retirement or preparing for retirement. I have two questions.

1. What is one piece of advice you would give to someone about 10 years from retirement?
2. What would you have done differently 10 years from retirement knowing what you know now?

Thank you.

Invest everything you can in your 401k. When the market is down, double up those investments. Pay off all debt, including vehicles. Buy some land and build your retirement dream home. As FPU states, live like nobody else, so you can live and give like nobody else.

 

[UGADawg96]

Invest everything you can in your 401k. When the market is down, double up those investments. Pay off all debt, including vehicles. Buy some land and build your retirement dream home. As FPU states, live like nobody else, so you can live and give like nobody else.

I'd add not just 401k, but also private Roth IRA, and max out/invest in HSA if you have one.

 

[JimMoran]

I'd add not just 401k, but also private Roth IRA, and max out/invest in HSA if you have one.

Good for you, that’s exactly what we did, currently have 5 investment accounts—IRA for myself, and the wife’s, Roth for me and the wife’s, and a joint investment account. Keep up the good work.

 

[PatchManager]

Thank you for all of the excellent advice. Some things we are doing, and some I need to still look into.

Have you found that your expenses in retirement were close to what you expected, less than, or greater than you expected?

 

[PatchManager]

I'd add not just 401k, but also private Roth IRA, and max out/invest in HSA if you have one.

The HSA was a good reminder. That is another area that I wanted to increase now.

 

[FrankThompson]

I do most/all of this..... but honestly, I wish someone told me when I was in my 20s. Then again I keep telling my daughter and son-in-law they need to start, but as young people often do, they don't listen. I'm trying to instill savings into my younger children's lives, but it's hard.

I'm on path to hopefully retire in 10 years (55), but that is only a "goal". I fully plan to work past that either in a full time or part time capacity in some capacity. I just want the freedom to know I don't "have" to work past that date.


What I can tell you to plan for in retirement is activity. An old couple used to work at publix (husband/wife combo). I once asked them why they still work and they said because it keeps them moving. They said they see so many of their friends retire and slowly fade away, but working, even part time, has helped keep them "young". They got to work on their terms and because it wasn't really for the money, they would just pack up and move around when they wanted to (mainly to follow children around the country as they moved). It was a really eye opening conversation. Prior to it I would have told you my goal was to never work again after retirement, now I plan on working in some fashion*.

*note, work could be for money or just something to keep you active. My mom at 71 works in her yard multiple hours a day on gardens and the like. It keeps her moving and "keeps her young" so to speak.

 

[FrankThompson]

Also note that if you are self-employed you can utilize a solo 401k which can really help you pump money into retirement tax free (until you withdraw). I don't remember the exact amount, but I think based on income, the max is close to $60k/year. I'm trying to convince my wife to go into business for herself so that we can set up a solo 401k for her and max it out with her income.

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