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re: Is this one of the worst times to retire?
Posted on 5/19/22 at 10:56 am to StringedInstruments
Posted on 5/19/22 at 10:56 am to StringedInstruments
Fwiw their ss will increase with inflation…
A very good yield on a fixed income today is 5 percent so if your moms pension is 15000 a year that would be like someone having 300k invested in an annuity..
Need to try to build up a bigger emergency fund if possible.. people were talking about the treasury inflation bonds recently … yield plus 7 percent .. I am using them to hold my emergency money.. regardless congrats to your parents.
A very good yield on a fixed income today is 5 percent so if your moms pension is 15000 a year that would be like someone having 300k invested in an annuity..
Need to try to build up a bigger emergency fund if possible.. people were talking about the treasury inflation bonds recently … yield plus 7 percent .. I am using them to hold my emergency money.. regardless congrats to your parents.
Posted on 5/19/22 at 10:59 am to StringedInstruments
quote:
My parents are pulling $6000/month with 12 years left on a house note. He’s got $45k in a 401k he doesn’t want to touch until he has to.
Mom spilled the beans and told me she has less than $100k in her retirement account during this last visit. She retires in 3 years.
I'm very quietly freaking out in the background of my mind. SS will give her a nice chunk of change each month, but it won't be enough.
This post was edited on 5/19/22 at 11:00 am
Posted on 5/19/22 at 11:00 am to Enadious
Probably a bad time to retire but I'm doing it anyway. 2.5 months to go and closing on an overpriced house this week 
Hopefully it doesnt blow up in my face but I can return to work if so since I'll still be young (mid 40s now)
Living on an inflation adjusted pension plus 3% very conservative safe withdrawal rate from investments should give me maneuver space. We plan to find part time work and maybe start a small side business after taking time off and settling in so that will help to if so but not budgeted for.
Hopefully it doesnt blow up in my face but I can return to work if so since I'll still be young (mid 40s now)
Living on an inflation adjusted pension plus 3% very conservative safe withdrawal rate from investments should give me maneuver space. We plan to find part time work and maybe start a small side business after taking time off and settling in so that will help to if so but not budgeted for.
Posted on 5/19/22 at 2:11 pm to Enadious
quote:Unfortunately that lump sum will continue to be discounted as the Fed raises its rate. People who in this situation who are thinking about working another year need to re-evaluate. Hell, if you're still needed see if you can retire and work contract.
corporations who offer a lump sum tied to bond interests rates are decreasing the lump sum around 8% from 2nd quarter to 3rd quarter
Posted on 5/19/22 at 2:40 pm to Enadious
I read a study that said you'd be smoked if using the 4% rule in this environment. Meaning retired right before this selloff. But, 3% or less and you'd be perfectly fine retiring at any time in last 100 years.
This post was edited on 5/23/22 at 10:29 am
Posted on 5/19/22 at 3:19 pm to lsu13lsu
Last time I heard Bill Bengen who created the 4% rule on a podcast he had revised his projection to 4.5% SWR. However, he had gone.much more.conservative with his own portfolio because he was much more concerned w capital preservation rather than growth in old age. Where are you seeing 4% would get you "smoked"?
Posted on 5/19/22 at 3:32 pm to TorchtheFlyingTiger
And just like that, this 9 May interview w/ Bill Bengen just popped up on Reddit
Thinkadvisor.com
Thinkadvisor.com
Posted on 5/19/22 at 4:49 pm to Enadious
quote:
So, are we at the bottom?
Hell if I know, but if you’re retiring with a good plan, why does it matter?
Any money you need in the next 3 years has no business being in stocks in the first place.
ETA- unless you can live on the income from the stocks.
This post was edited on 5/19/22 at 7:56 pm
Posted on 5/19/22 at 7:12 pm to StringedInstruments
quote:
My parents are pulling $6000/month with 12 years left on a house note. He’s got $45k in a 401k he doesn’t want to touch until he has to.
I worry about them.
I think I’m missing something. Is there an approaching end date for the $6K/mo income? Including the mortgage payment, are their expenses in excess of $6K/mo, or close to it?
I’m not trying to get details of their finances, but I don’t understand why you’re worried.
Posted on 5/20/22 at 10:02 am to Jag_Warrior
quote:
I’m not trying to get details of their finances, but I don’t understand why you’re worried.
The $6000 is before taxes.
I’m mostly concerned for their healthcare and end of life care.
They’ll also have a $1500/month mortgage until they’re in their mid 70s.
I mean, it’s not terrible money by any means, but it’s not the level of security and enjoyment I would want for my retired years.
Posted on 5/20/22 at 3:52 pm to StringedInstruments
quote:
I’m mostly concerned for their healthcare and end of life care.
unless they die early, you right to be concerned. Financial advisors have quoted needing 330k to cover medical bills. I can tell you memory care now is at least 5K a month, and assistant living prolly 3K+ a month. Be prepared to have some old guest staying with you in the future.
Posted on 5/20/22 at 4:37 pm to Enadious
If I was them I think I would look for a retiree type job. You can a decent hourly wage working part time at a lot of retail places now a days.
Posted on 5/20/22 at 5:07 pm to Enadious
quote:
assistant living prolly 3K+ a month
$3K a week. My FIL was in an assisted living facility for 3 weeks rehabbing from a broken hip, and their bill was $12K for a month (single room).
We did find one other place that was $10K a month, but when we visited it smelled like cats were living there.
Posted on 5/23/22 at 12:56 pm to Enadious
This sounds like what’s going on at my place of employment (Exxon BR). Guys at retirement age are dragging up left and right.
Posted on 5/23/22 at 1:51 pm to StringedInstruments
quote:
They’ll also have a $1500/month mortgage until they’re in their mid 70s.
This is their biggest mistake. House should be paid off already.
Posted on 5/23/22 at 4:16 pm to Enadious
quote:
Is this one of the worst times to retire?
There is never a bad time to retire. Enjoy it while you can.
Posted on 5/23/22 at 4:20 pm to boogiewoogie1978
Agree never a bad time to retire
Posted on 5/23/22 at 6:56 pm to Double Oh
quote:
Agree never a bad time to retire
Been retired from my real job for almost 12 years, still regret that I worked a year longer that I actually had to.
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