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I feel the need to point out that Greece had a huge number of retired public sector workers with massively generous pensions. They got into huge budget problems and those pensions were slashed. If you look at the state and local unfunded pension liability problem in the US, it's not beyond imagination that something like that could happen here. It would require a law change to allow states to bankrupt but there are enough states with huge problems that it could happen. The rest of us have to work until 65+. A defined benefit pension with health benefits and COLA is worth way more than a million dollars in a 401(k) that very few private sector workers get to.
SO would that $5670/mo increase when you hit 62 and how much of that is tied to inflation? I think you should be fine but I would be concerned if your income doesn't increase over time given we don't know how much inflation we'll have in the future.
Since wife and I recently retired still in our 50's and she found a house she wanted that was a bit over $500K, we are finding out that even though our wealth is multiple times the house cost and we have no debt, they still tie loans to provable income so be aware that is going to potentially affect you when you are ready to buy your next house...our income is tied to investment streams that I can tap or not when I want but they want recurring income, not income available when you decide you want it. I'm thinking of taking a short term consulting assignment with the company I left just to show income for a few paychecks during the loan process. We also don't have a retirement health plan so that exorbitant cost is on us.
Thanks for the reply
Yes, at 62 if I elect to draw SS, our income increases ~$600.00 to ~$6300. The wife can also draw at that time an additional $850 as well bringing us up to around $7100 a month. Our pension is also eligible for yearly COLA.
Good points about loan qualifications. I have discussed this with my sister-inlaw who is a mortgage broker. A quick review of our numbers and she said we should be fine. Tennessee is desirable in there are many examples of 2.5 sq ft homes built since 2010 on 1/2 to 1 acre at ~200K.
House mortgage estimate 1/5 of income initially.
The longer we can put off drawing from our 401K AND not buying a home, of course the better the numbers become. Like I mentioned earlier, it's nice to have various options and no pending requirements
Thanks again for the feedback
WC
Last edited by West Coasting; 04-11-2016 at 06:30 AM..
I feel the need to point out that Greece had a huge number of retired public sector workers with massively generous pensions. They got into huge budget problems and those pensions were slashed. If you look at the state and local unfunded pension liability problem in the US, it's not beyond imagination that something like that could happen here. It would require a law change to allow states to bankrupt but there are enough states with huge problems that it could happen. The rest of us have to work until 65+. A defined benefit pension with health benefits and COLA is worth way more than a million dollars in a 401(k) that very few private sector workers get to.
Thanks for the Debbie Downer view lol.... just kidding
I have a contingency plan for such a dark period should it come to that. We'll have a lot more social problems to deal with than worrying about our pension. Another good reason to be at the TN farm as chaos will reign supreme in the suburbs.... especially in my current location.
Thanks for the Debbie Downer view lol.... just kidding
I have a contingency plan for such a dark period should it come to that. We'll have a lot more social problems to deal with than worrying about our pension. Another good reason to be at the TN farm as chaos will reign supreme in the suburbs.... especially in my current location.
-WC
This is a taboo subject but for people in or near retirement it's important to at least start thinking along these lines. Having contingency plans and being prepared is important and not just for economic/social reasons.
In my field, to many past co-workers have passed on due to things like tumors, cancer, and other things at an early age while still working. Then the ones who do stick around until 62 or beyond, die one year or so after retirement.
Well moving to a cheaper COL area isn't exactly a revolutionary idea - coming from an expensive state like NY, plenty of people sell high and cash out too. Agreed that life is not about working until you die. But we work a bit harder now to pay off the mortgage first (8 more years or so) and then everything else is just savings (other than these ridiculous $1k+/mo. taxes). We'll still be under 50 then. Thing is, I don't think I could move to the boonies at any point in my life. NoVA made the list of best places to retire - maybe we'll go there.
I have been working for the Feds since I was 19 with a small break in the private sector.
Stopped reading after this. It's a lot easier when your way of making money is just taking it from everyone else at an unjustifiably higher rate than the plebs can attain without state extortion.
I'm thinking the DOD naval shipyards to be exposed to those sorts of hazards and to have such a high salary without a college degree (e.g., started working as a Fed at age 19).
This is a taboo subject but for people in or near retirement it's important to at least start thinking along these lines. Having contingency plans and being prepared is important and not just for economic/social reasons.
Quote:
Originally Posted by DaveinMtAiry
Did you work at an asbestos plant?
I'd suggest growing one of the newer "cash crops" - and I'm not talking about tobacco.
I'd suggest growing one of the newer "cash crops" - and I'm not talking about tobacco.
Not in Tennessee. But the OP might still be able to turn an old tobacco farm into cash crops.
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