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We did the expensive trips while we were still working. We flew on Concorde, British Airways. I'll never again be in the first class lounge at Heathrow, so I'm glad we splurged. We also took six cruises on QE2. Neither option is available any more.
So if you want to do something, do it now. Don't wait.
I agree, but also recommend doing things right after retirement, while you are still relatively young.
In general, live fairly frugally, but recognize that you need some few splurges from time to time. One regret I have, is how much of our income went into home improvement and maintenance. This was money that we never recovered, mainly because of the Great Recession. There are many factors in choosing where and how to live, but I think living just below your means is important. Save as much as you can, and be an intelligent investor,
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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Originally Posted by silibran
I agree, but also recommend doing things right after retirement, while you are still relatively young.
In general, live fairly frugally, but recognize that you need some few splurges from time to time. One regret I have, is how much of our income went into home improvement and maintenance. ...here are many factors in choosing where and how to live, but I think living just below your means is important. Save as much as you can, and be an intelligent investor,
Also a good idea to do these splurges when still employed (for attitude adjustments and financial recovery!)
When late in your career you hopefully have adequate leave time (tho both my kids have unlimited time off with their current jobs. A new negotiation theory )
I took a LOT of time without pay (Every summer for my first 10 yrs!). Plus several 3-12 month LOA. and contrary to above advice... I worked all the OT I could get (career average was 40%), especially holiday triple pay! Work hard, play hard was perfect for me. I had 'flex hours' since 1968, so came and went as I felt necessary to complete my assignments.
Homes, furniture, cars, boats, landscaping, private school can certainly drain your access to flex funds.
Enjoy your 20s, 30s, and 40s because when you get to your 50s - that check engine light gonna come on.
That is THE TRUTH.
Save - but go on vacation every year. Travel as much as possible.
My husband dropped dead of his first and only heart attack at age 62 - before retirement. Believe me, I am so glad he lived life to the fullest while he was alive. And I am so, so grateful that we went on nice vacations together, through the years. He gave me some beautiful memories, and I will always be grateful for those. Also, I know he relished life too.
I also thought of another bit of advice that some here may disagree with, but it's advice that I took and which has made me very happy. Don't wait forever to retire, always thinking that you need more money, more savings, higher Social Security payments. Life is SHORT! When you get over about 55, the days, weeks, months start to fly by. Then you feel like you were young just a couple years ago and you realize you probably have 20-25 years left, and some of them might be really crappy, or non-existent.
My friend and co-worker "Rick" kept waiting to retire. At our workplace most retired between 55 and 62 because they were long term employees with nice pensions waiting for them. Rick was over 60 and year after year people kept asking him when he would retire. He always chuckled and said "Maybe next year". Rick was full of life and energy. He ran in half marathons, he rode his bicycle 15 miles to work on most days. He was fit as could be. Finally when he was 65, he decided to pull the plug and retire. We were all so happy that he retired while he was still healthy and vibrant. 6 months later he literally dropped dead of a massive coronary. It was like a bolt from the blue. He had good numbers at his physicals, he had no symptoms, he was the most fit person I knew, not the most fit 65 year old, the most fit person period. And he was gone in an instant with only a 6 month retirement.
Hanging on for a higher pension, or a bigger IRA, or a higher SS check just isn't worth it to me. There is a tipping point where you feel that your time is worth more than money. That point is different for everyone, but in my life it was earlier rather than later. When you do the math for your own retirement plan, err on the side of giving yourself some time to enjoy your retirement because the time will fly when you get there, and your healthy years will be gone before you know it.
Spend less money on things whilst you are working and more money on memories. The bigger house won't be as important as that trip up the Amazon. The newer car won't mean as much as that hiking trek in Nepal. And you will remember that morning ride down Haleakala long after your Air Jordans are landfill.
Balance your life during work and retirement and the transition will be gradual and fulfilling. No need to wait for anything. Enjoy what you can; jettison what you can't.
So many pieces of good advice from many posters. I'd like to add:
1. Try to refrain yourself from buying things you don't really need. It's okay to buy something you like or want sometimes. But if you keep buying things you want constantly, compulsively, and if it is a habit, then you will regret later. Lots of things you want and buy, and you just bring them home, and play with them for a couple of days or times, and you toss them into a corner somewhere, and they will cluster your home, and later, you feel you wasted lots of money, and you have a hard time to clean up your house/condo/apartment.
2. I don't know if you are married? If not yet, and if you are frugal, don't get someone who is a big spender. You will be resentful that you save, and your partner spends extravagantly. And you two will end up in a lot of arguments and may get a divorce, and that costs lot of money and headaches.
The above can save you a lot of money for your retirement; and the more important thing is to help you to have a clean, healthy and happy life from young to old.
I also thought of another bit of advice that some here may disagree with, but it's advice that I took and which has made me very happy. Don't wait forever to retire, always thinking that you need more money, more savings, higher Social Security payments. Life is SHORT! When you get over about 55, the days, weeks, months start to fly by. Then you feel like you were young just a couple years ago and you realize you probably have 20-25 years left, and some of them might be really crappy, or non-existent.
My friend and co-worker "Rick" kept waiting to retire. At our workplace most retired between 55 and 62 because they were long term employees with nice pensions waiting for them. Rick was over 60 and year after year people kept asking him when he would retire. He always chuckled and said "Maybe next year". Rick was full of life and energy. He ran in half marathons, he rode his bicycle 15 miles to work on most days. He was fit as could be. Finally when he was 65, he decided to pull the plug and retire. We were all so happy that he retired while he was still healthy and vibrant. 6 months later he literally dropped dead of a massive coronary. It was like a bolt from the blue. He had good numbers at his physicals, he had no symptoms, he was the most fit person I knew, not the most fit 65 year old, the most fit person period. And he was gone in an instant with only a 6 month retirement.
Hanging on for a higher pension, or a bigger IRA, or a higher SS check just isn't worth it to me. There is a tipping point where you feel that your time is worth more than money. That point is different for everyone, but in my life it was earlier rather than later. When you do the math for your own retirement plan, err on the side of giving yourself some time to enjoy your retirement because the time will fly when you get there, and your healthy years will be gone before you know it.
I agree with this! If you can, retire early, or at your earliest practical date. Of course, some have been forced to retire early, and that is no fun when you aren’t ready. Think of retirement as a gift that you decide when to accept.
My passion, obsession to be truthful, is travel. I made a point to travel as much as I could to places I was curious about since childhood. If i didn't have enough money I used credit card/frequent flier points which became a hobby accumulating. I also cut a lot of corners with meals, hotels, etc.,.. just to get somewhere.
So I would say explore your passions/obsessions by any means practical early, in case you get dealt a difficult hand later in life with health or family issues. At least you will have some satisfaction with that experience.
Also maximize saving in a Roth IRA, I didn't realize how helpful that would be in retirement.
Roth rocks . I fully retired earlier this year at the age of 60, and I converted my SEP IRA into Roth last year and this year... I did last year's conversion on a down-market day, and this year on the second-lowest market day of the year in March. By now, my Roth has grown by 35% since the full conversion, all tax-free, ie, my tax-free earnings in the first year since Roth conversion are equal to two years of my expenses, and the amount that I saved in taxes by converting on low-market days (when my account temporarily lost a lot of value) is equal to half year of my annual expenses.
Since my retirement is annuity-based, I don't plan to touch my Roth for at least 20 years. Obviously I don't expect a 35% annual growth of the account in every year, but it is incredible that the growth, whatever it ends up being, will never be taxed!!! I had been in a high tax bracket for many years, in some years paying about half of my gross income in federal + state + self employed social security taxes, so the fact that I can receive funds on which I DO NOT HAVE TO PAY TAXES amazes me to no end!
You are saving money for your eventual retirement. That is a great plan but doing a lot of retirement planning at a young age is unusual. What is it that you want to do in retirement that you cannot do now?
My friend and co-worker "Rick" kept waiting to retire.
Oh no. "Rick" is doomed. That one sentence is all anyone needs to know.
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He had good numbers at his physicals, he had no symptoms
Ah, but did "Rick" have a CT scan or a coronary calcium scan? I'm guessing not.
I didn't know I had coronary artery disease until three weeks ago. And now I'm on statins. (Yay.)
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