View Full Version : Specifically what are you willing to give up in order to retire?
Spartana's thread on retirement made me think about what people might have to be willing to sacrifice in order to retire. Some people want to maintain the lifestyle they've become accustomed to (i.e., stay in their big houses, travel, entertain, etc.) while others might be able to chuck it all just to be able to call their time their own.
So, what's your bottom line? My mother, who lost everything when she was 50, used to say in her later years "I love choices,"--basically because she had none. So, what do you choose?
As for me:
My house--I love my house, although I've loved every place I've lived in. I don't expect that I'll be able to live here for the rest of my life--maybe I will, but I doubt it. So, I think I would be willing to downsize drastically, simply because little houses appeal to me so much, and because I love Vermont and I know I'd be able to find cheaper housing there!
Food/restaurants: I SAY I could live without eating out, but I have to admit that I do enjoy the option. I've eaten at the same cheap sushi place with my family every Saturday night for decades, and I'd hate to give that up.
Clothes: Forget it.. Don't need anything fancy.
Pet: Would never give up my dog.
Entertaining: I'm not a big entertainer, so I'm happy to have an excuse to not do it. However, DH, the extrovert, is a different story
Giving: I really hope I can give to some modest extent for the rest of my life.
Transportation: I love my 2007 Prius. I feel I may have to replace it (or another car) once before I stop driving or die (whichever comes first)
Books: I have a quick trigger finger for Amazon one-click. I'd have to be able to buy a couple of books a month. I know there are libraries, but again, I like the choice to shop Amazon.
Travel: I would definitely like to travel, but I have a lot of miles/points from my business travel, so that would help.
Schooling: I'd also love to be able to go to low-cost/free classes. I live in the Princeton area and they have fantastic community auditing programs.
Continued saving/leaving a legacy: I'd rather give money to my kids now. I've seen hard-earned money evaporate in the hands of the succeeding generations (this was discussed in another thread), and maybe I'm a control freak, but I'd rather contribute to a house or education for kids/grandkids while I'm alive.
Great question, as I am facing this, with no retirement fund at present. Thus, I am going to ask DH to think about these categories, and we'll talk about them together! Good to get on the same page, and though I believe we already are, it is best to not make assumptions.
-Home: definitely could significantly downsize, OR take in roomies to stay put, as I love our garden. DH & I have discussed all kinds of options, including a tiny house in the woods, an upgraded school bus, & a small apartment in the city. Our mortgage is affordable for Seattle. We have 3 bedrooms in a 1700 SF home, a semi-finished detached garage, and a small garden house. We could convert the garage to an apt. for us & rent out the house. I currently qualify for low income senior housing, which I hope changes! So many options.
-Food: where I prefer to put my $. Organic & local, including my garden. I could go without animal products, and live very cheaply on beans, rice, veggies & fruits in season. Now coffee..... Hard to give that up.
-Health care: Well, given my recent cancer experience & without substantial insurance, this has suddenly shot to the top of my list, right after the other top two. It's also what I am most worried about affording...
-Clothing: Goodwill all the way, except for intimates & shoes. Happy to be a hippie with low scale tastes, no need to be trendy, and the capability to make my own clothing, including tailoring wool. I can also spin & weave, so I could conceivably make my clothing from scratch, if I can get the fiber. Luckily, I still know sheep farmers! My DH needs specific protective clothing for work, which is pricey, but lasts for a few years.
-Tech: we both love our devices. This would have to be downsized quite a bit, I imagine. Though I also imagine that wifi will become increasingly available & cheaper. I am hoping that Seattle gets it's act together for city-wide Wifi, and darn soon! DH is a photographer with a nascent business, and his equipment is pricey. He's hoping to make money at it in a few years.
-Self-care: I love to take yoga classes, and have found free & low-cost options. I don't need expensive haircuts (DH cuts it for me), don't wear make-up, no Botox, etc.! That stuff is pricey... I only need soap, shampoo, and prefer hot running water. :)
-Pets: I love having cats, but if I am very poor, I would volunteer at a shelter instead of having my own pet. I am committed to the two cats we have. They are quite healthy, as they are indoor only cats. I am also willing to spend some money on health care for them, but also willing to draw the line.
-Transportation: I live in a city with options, so I can do without a car. I have a transit pass, and am a member of Car-To-Go. I have many friends with whom I can & do ride share. I also have a bike. DH & I have me car, which he uses for work, often to get to offsite locations. If it's available I need it, I get up with him (ugh!) & take him to work, or take the bus to his workplace & pick it up.
-Travel: love it, cannot afford it, so we don't do much. I do not see this changing, sadly.
-Dining out/entertainment: love to do this, and am content with super inexpensive food wagons, pubs, & movies once in awhile. We do pay $8 a month for streaming Netflix. I love live theatre, and am hoping to finalize a position at a local theatre, which would start in January. We could get comps as a part of this work. (A friend volunteers as an usher, and now that he's been doing this for some years, he gets the super prime gigs. Nice option!)
-Education: I get to audit classes at Antioch, where I went to grad school, for life. I have done this! Love it. Also, MOOC'S are something I am currently investigating. Though I would love to get a PhD, I cannot imagine how at this moment.
-Legacy: Quite unlikely. I will be lucky to cover my own expenses. I am very glad I'm married, and to a younger spouse. Nurturing that relationship is a critical part of my long term survival, at all levels. I am deeply invested in it, and feel well met. I do not think my stepkids give helping me out a second thought. We make very small pledges every month to a few non-profits, which is important to me. I have thought about dropping it.
Thanks again for this opportunity to think about this!
goldensmom
7-17-13, 3:49pm
When I retired 12 years ago I decided we'd make it somehow. We didn't really give up anything but cut back and spent wiser. I traveled a lot when I was young and single so that desire is in the past and I'm happy to be a homebody. In preparation for retirement I kept track of every penny spent for 2 years to see where my money went. The money saved from my expense of employment was way more that I expected - clothes, gas, car maintanence, lower car turnover, lunches, dinner bought on the way home because I'm too tired to cook, obligatory office events, etc.. I rarely buy clothes anymore for any reason. One rule I gave myself was about books. If possible I get a book I'm interested in buying from the library first to see if it's worth the money. If not available through the library I put it on a list and after 30 days, if I still want it I will get it. I'm happy I made the decision to retire early and have had the life I've always wanted for the past 12 years. I would not change a thing.
Love this question. I'm not ready to retire but we're considering current options and this gives me some good questions to ask my husband.
rosarugosa
7-17-13, 4:26pm
Great topic, since I am just starting to give retirement the consideration it deserves, and I ‘ve tentatively set 8 years from now as a goal. We already live in a very small house without a mortgage, although in a high COLA. I want to stay in this area because we are close to family and lifelong friends, and I’m too introverted to rebuild a social network from scratch at this point.
I’ve already cut back on non-essential shopping and I would be willing to cut back further. I would definitely cut back spending on clothes, and in fact, I’m going to start scaling back on this category now.
We could easily go down to one car, but would not want to be car-free.
I would not want to give up vacations, but I think we could reduce to every other year without any anguish, especially if we were able to spend a lot more time walking in the woods and along the ocean, lakes, etc. that are in our area. That’s the kind of thing we tend to like to do on vacation!
We could definitely cut back on groceries and eating out, which is another category we should tackle now.
Concerts could be an occasional treat instead of the fairly regular occurrences they’ve become over the past few years. We’re doing three shows in three nights during a heat wave this week, and I’m not feeling like I have the stamina to want to do this again! I’m sure there is more – will give it some thought.
.
fidgiegirl
7-17-13, 5:00pm
I might be in a different phase of life than some of the others who have answered this question, but it has me thinking regardless.
I have been a bit troubled by this issue lately, not because obligatory retirement is looming (I'm 34), but because I've long been working toward FI/early retirement, and I think DH and I have made some decisions that are actually taking us further from that target.
The big one is our home. I love this house. We've lived here a year and a half. I feel at home here, we have room enough to be together OR apart, room enough to host family (it's a bonus, since I think that's a lame reason by itself to get a bigger house), room for our doggies, room for yet-to-exist-but-may-never-exist kids, etc. We might even finish the basement as a nonconforming rental for some additional income. But if we'd stayed put, we'd only have $68,000 in mortgage left to pay off. That feels doable. Now we have that (we kept the old house as a rental) PLUS $230,000 plus whatever we incur on the HELOC we're about to open to pay for repairs. *Le sigh* But would I give it up? I do not know if I would. I'm happier in this space than in our old space. It IS nice to know that we still own that other house so if we changed our minds, retirement became suddenly very important like if one of the jobs turned into a HSSJ, or something unforeseen happened health wise for either of us, that smaller, more affordable place remains an option in the distant future.
Pets: We have two dogs and I would be ok with having one again, but pets are so important to me. It'd be really hard to give up.
Car: Yep. That could go. Our 'hood is really walkable, there are three different bus lines within 2 blocks of us, a zipcar just a 10 minute walk from here, bike lanes, river trails, it's awesome. I'd like to figure out my work so that I could let go of the commute, but that's not happening this year, at least.
Healthcare: Big and scary. See, when I think retirement, I think BOTH of us retiring. It doesn't seem fair for one to retire and not the other, except perhaps in the scenario of my DH retiring before me since he is a few years older and since has "done his time" longer than me.
Eating out: Yeah, I'd be ok cutting back. Half the time, unless it's a known establishment, it's an anxiety-provoking situation anyway. I prefer to entertain here at the house.
Entertaining at home: I'd like to do more, and would want to do more if I were retired. But I think we have a good knack for doing this inexpensively, and hopefully by the time we retire, our backyard will kick ass and people will love coming over.
Clothes: Never have been of much interest to me. I spend very little on this now, but have to have decent looking clothes for work. I could give up the nice clothes but otherwise, not too much to give up here.
Hobbies: That would be part of the excitement of being retired! Being able to engage in those kinds of activities more often, more deeply! But as redfox said, I think there are more and less frugal ways to engage in those hobbies. For example, I am learning to crochet and enjoying it so much. The reason is because I joined a group called Team Yarn that makes hats and shawls and other goodies for people with cancer. Well, this is fantastic for me because I can make a difference to a person in need and at the same time enjoy the craft without ending up with a house full of crocheted everything OR having to buy the yarn (it's donated by community members to the group). It's really a nice group of women, too. It's filled a hole for me.
This is making me realize I need to catch up on my tracking and three monthly questions.
if you have a kindle checkout www.bookbub.com. free books,haven't seen any more than 2.99,it also supports nook.
Well, I'm already there. So, in essence, we've kind of decided what we'd give up.
Home. Our current home is really manageable, both financially and in housekeeping. It's not paid off and may not be by the time DW retires. But even when we're both done, it won't cost much more than an apartment in town and we get so much more. I know DW talks about maybe moving to a condo "in town". She doesn't want to do yardwork or shovel snow. Me, I've spent years in multi-family housing and don't need to repeat the experience. I'd rather stay here, have some space, and hire out the lawnmowing and snow clearing. I'm not convinced moving to a condo is an economic win, especially for what we'd give up.
One option friends of ours have discussed is a co-housing arrangement, with every couple getting a cabin/building wing/whatever while we collectively maintain a kitchen and dining area. It's a somewhat-fanciful discussion, but I think we could pull it off if the finances could work for all of us.
Pets: Don't have one now (economic considerations, mostly). Could do fine without one.
Car: I could see us going to one car, especially if we were closer to some destinations we truly cared about (food co-op, library, drugstore, etc.). I've given up the idea of ever getting a new car, but considering I plan to drive my stupid Jetta for another 10-15 years, I don't care much.
Healthcare: We're resolving this one right now with DW working. But she likes what she does and where she works and, so far, the chipping and grating away of benefits has been manageable. We'll also get some decent benefits if she retires before she's 65.
Eating out: Already a casualty. I used to be "Mr. Restaurant" among my friends. Those days are gone. I enjoy eating out, but I'm okay with doing it less frequently because I enjoy cooking at home, too.
Entertaining: Cruises aside (we're the couple in the discounted inside cabin not ordering any drinks), we really don't have expensive tastes in entertaining ourselves or others. We're going to a rock concert this summer; the first in a few years and probably the last for a while since I can't think of another act I'd want to pay three figures to see. We're fine with not seeing movies in a theater. And we're just as good with cooking dinner for friends or picnicking or camping and enjoying their company or playing board games.
Clothes: Don't care much anymore myself. DW hates to go clothes shopping so she buys good-quality classically-styled clothing that will last for years.
Hobbies: DW is figuring out e-book lending so she doesn't buy so much on Amazon or bn. Neither one of us really has expensive hobbies (well, they could be, but we don't let them be).
Thing of it is, our costs are so low relative to many of our friends and we're going to do pretty well on pensions and defined-contribution plans. Our financial planner estimates that we'll have more money in retirement than we do now, especially if/when SS kicks in. For us, the challenge is the 10-12 year bridge between now and then.
rodeosweetheart
7-18-13, 6:53am
I The big one is our home. I love this house. We've lived here a year and a half. I feel at home here, we have room enough to be together OR apart, room enough to host family (it's a bonus, since I think that's a lame reason by itself to get a bigger house), room for our doggies, room for yet-to-exist-but-may-never-exist kids, etc. We might even finish the basement as a nonconforming rental for some additional income. But if we'd stayed put, we'd only have $68,000 in mortgage left to pay off. That feels doable. Now we have that (we kept the old house as a rental) PLUS $230,000 plus whatever we incur on the HELOC we're about to open to pay for repairs. *Le sigh*
Just a thought, but have you considered selling the rental and keeping the new house and applying the rental money to repairs and towards mortage, and reducing the mortgage on the new house? Then you would be closer to paying off mortgage and also in the bigger, more pleasant new house?
flowerseverywhere
7-18-13, 9:02am
Love your cruise comments Steve. If we went on a cruise we would be in the next cabin! we left the workforce at age 55. Had reached FI early fifties but waiting until DH could participate in the retiree medical plan. We pay for it, but much less for great coverage than we could have any other way. only way we could do this was by tracking every penny for years, and we lived for five years on less than our retirement budget would be.
My house : we downsized. sold our paid for house and moved to a lower cost of living area in a better climate. Energy bill averages less than $100 per month, 1/4 the taxes, no snow removal.
Food/restaurants: never eat out. The quality of simple food I cook at home is way better than any restaurant. We pack food and drinks if we are to be gone from the house for more than three or four hours. Go to the farmers market but I am seeing the cost of good quality food escalate. gave up my huge garden but we will have homemade earthboxes for next year. Luckily DH happily eats leftovers and we both eat very little meat.
Clothes: simple and functional. Line dry, mend and replace items only as needed.
Pet: none, mainly for financial reasons. did not replace our last dog. house is much cleaner as well.
Entertaining: do pot lucks, cards with friends, quilt group, book clubs etc. redbox movies. bike, walk and swim in the community pool.
Giving: 20% used to go to charity. Now we give a lot of time to habitat and I make scrap quilts for charities to silent auction, raffle etc. I am using my fabric stash and people give me what I need to finish from their stash.
Transportation: one car. bought used, DH maintains. we go for days without using due to biking and walking.
Books: avid readers all from the library. They order anything we want. also, they have donated books they sell for fifty cents or a dollar and we often pick one up and redonate when done. win win. Never a new book unless I have a gift certificate for some reason.
Travel: visit the kids. I spend time monitoring flights and we usually get cheap flights way ahead of time. Rent a cheap car and do day trips in their areas to historical sites. At times do day trips here.
Schooling: read a lot of history books from library, relying on internet to learn a new language.
Continued saving/leaving a legacy: funding grandkids college funds, at each birthday or Christmas give a cash gift for 529. They have so many clothes and toys it is silly. would like to leave to the kids but not a big priority. My kids feel like they have a lot so they have designated charities to donate to (childless couples) and the ones with kids want us to contribute to kids 529's rather than get them yet another gift.
Haven't read the other posts yet but I've been retired over 13 years now (since I was 42) on a pretty low income, and found that it wasn't so much giving up on things, but changing things (and my mind set about what I "needed" to be happy) to more frugal things. For instance I travel alot but instead of more expensive types of trips I did when I was working, I do much longer low budget trips. I can do them off season when prices are MUCH lower, do them longer so i can see/do more in one trip and not have to spend as much on transportation to get to various areas (i.e. do one long car-camping tour around the southwest for a month or 2 rather than various shorter trips. A 2 month long stay on say... the Jersey Shore in a rented beach house off-season for half the cost of what one week in season would cost :-)!. One backpack/hostel tour around Europe for 3 months rather than 6 - 2 week hotel stay trips and the added costs for flights, etc..). Basicly combining several trips I would have taken when working and doing them as one long trip can save big bucks.
I also found ways to change activities to free or low cost things. Go to museums or social things on free days, dine out or socialize at happy hours instead of pay full price - or better go to someones houise for sociallizing. rent DVDs instead of going to the movies. borrow books and cds free from the library. cook at home, make fancy coffees at home instead of going to Starbucks, etc... So it's not about giving things up, it's more about changing them (and often for the better) so that those things are less costly. Now I have mostly free or low cost hobbies and activities, or options for lower cost things like travel, that I didn't have when I was working because of time constraints.
I love all these responses! It helps me think through all my "must haves."
redfox, I think I missed the health category entirely--I'm 61 and I'm thinking I'll make do with Medicare eventually. Right now I pay a LOT for insurance and I was looking forward to being able to cancel it when I turn 65. Maybe I'll look into supplemental insurance if I can swing it.
Also i would definetly downsize my housing (and I did when I retired). In retirement, because you are no longer tied to a certain area for jobs, you can really live anywhere you choose. I was living in expensive Orange County Calif when I left my job. I wanted to stay near my elderly parents (well...only 72 at the time but with cancer) but also wanted to free up some of the equity in my house. And downsizing with so many pets to a condo in The OC would not have been doable. But, because I didn't have to work, I could move up to the local mountain lake and ski resort town and buy a small cabin in town for about 1/3rd of what I sold my house for. No jobs up there except low paying service jobs, but it didn't matter. So I was able to live in a beautiful area, in a very nice house for a fraction of the costy of my sunurban house, had extra money to bank and live on as I was income-less then and living off savings, and yet remain close to my parents as wellas the beach areas of SoCal. Snow ski in the mornings and surf in the afternoons :-)! Downsizing or moving would be numero uno on my lists of what I would change in order to retire.
ETA: Now that my sister and I bought a house together I am living back in expensive OC, SoCal but with shared expenses so it's doable. However, after seeing her get up every morning (at 4:30 am today) and commuting to work in LA traffic for an hour each way, working 9 to 10 plus hours a day, each and every day I litterally cringe on her behalf (and that is putting it extremely mildly). I would give up or change alot of things not to have to go back to work - my free time is that valuable to me. Sis is moving closer to work at the end of the month to avoid the commute but working still takes a lot of one's free time unless you love what you do.
I don't know if I count since I'm no longer a wage earner. I planned for my long term unemployment for a few years before cutting the strings to a paycheck and made several budgets for best case/worst case scenarios. The major items that were not in my budget were high cost media entertainment, such as cell phone/ smart phone and cable TV. I would only do a car replacement every 10 or 15 years. And I would be locked into modest sized and priced housing and would probably never be able to move to a higher cost trendy area or city. I consider money spent on quality food well spent, but will never be able to frequent restaurants. Most of my travel is either camping or staying with friends, and cannot imagine dropping several hundred dollars just for a bed to sleep on for a motel vacation. Those were the basics when I planned my budget.
I have really not missed any of these things or felt deprived. Most of my friends live pretty modestly, so I don't feel much peer pressure, but do get some grief from a few folks about being so thrifty.
Now that I've been unemployed for a few years, I'm more comfortable with my spending and finding I can afford a little more. I may be able to get a little more extravagant with travel. I will probably be able to bend some of those assumptions in the future and will qualify for SS in a couple of years at 62. SS was included in my long term plan, but it will definitely ease spending concerns and allow for a few more luxuries. I have been comfortable enough with spending that I may delay taking SS to full retirement age of 66, but have a while to think it over.
try2bfrugal
7-18-13, 1:41pm
My house--Phase 1: The plan is to move to an overbuilt suburb where the housing prices are still depressed after the last housing crash. The new house will be smaller and newer, so repairs and utility bills will be less. Phase 2: Retirement condo or townhouse in a low cost of living area so we can leave it easy to travel.
Food/restaurants: We like to eat out. We either go to a local mom and pop places that aren't very expensive, or use Entertainment book / newsletter coupons with 2 for 1 offers. For food at home we buy loss leader meat, bulk rice, produce from ethnic markets and try to cook from scratch most of the time.
Clothes: On sale at Sears for pants and tops for me. Jeans, capris and T shirts are mostly what I wear since I work from home. Most of my recent shoe purchases were from the outlet mall. I used to make my own clothes and have been thinking of doing that again.
Pet: Small dog.
Entertaining: We tend to do more activities and hobby / social club stuff and not entertaining at our house much. When we do it is cook outs with cute solar lights strung around the patio and beer from Trader Joe's.
Giving: We are donating much of the decluttering stuff to charity plus we support with money and food the local Food Bank. Long term I would like to do volunteer new media type work for an ACLU type organization.
Transportation: When it is just the two of us we will probably have one Prius like car and something that can pull a small travel trailer.
Books: I use the library and look for bargains at the library book sales and thrift shops. Sooner or later I usually find everything I want at the book sales. I see so many books at the library sales that I paid full price for previously it makes it easier not to buy new books any longer and just wait for them to show up at the sales.
Travel: We want to get something like a tear drop travel trailer for local travel and start playing the frequent flyer miles games for longer distances. We do a lot of day trips to state parks, the beach and local attractions with free library passes.
Schooling: We take advantage of free or low cost lectures and workshops at local non profit museums and planetariums, plus lectures at various hobby / science clubs. I like to do a lot of self study with my use book collection. It is the one collection I want to keep even after we downsize.
Health: We are really into alternative health. I have a huge book collection on therapeutic yoga, herbs, home remedies, etc. The dog recently had a bleeding hemorrhoid and we fixed it by giving him soup with greens (vitamin K), so no vet bill required.
I would give up or change alot of things not to have to go back to work - my free time is that valuable to me.
Amen to that! Lately we've experienced some "budget creep" and I've been evaluating whether I need to pick up more work (either in my business or some other part-time job). I really don't want to go back to work! And I'm willing to find some more to take out of the budget/do without so I don't have to go back.
Gerald Iversen
7-18-13, 3:43pm
Giving Ourselves Ten Years to Retire (http://simplelivingworks.wordpress.com/2013/04/08/giving-ourselves-ten-years-to-retire/)
http://simplelivingworks.files.wordpress.com/2013/04/1-a2748.jpg?w=291&h=219 (http://simplelivingworks.files.wordpress.com/2013/04/1-a2748.jpg)Graphic: Spirit of Simplicity
1. Voluntary Simplicitiy
Planning for retirement is much more than socking money away.
When we were in our early 50’s, Rita and I pledged to each other that in preparing to retire, we would reduce our possessions by ten percent per year for ten years. Doing the math, we’d end up with 30% of what we started with. We planned to retire in my hometown on the California Central Coast. We figured we could move there with 30%.
We discovered that it takes time to find a good home for usable stuff.When I retired from ministry of music, I gave all my choral music to our daughter’s alma mater, Augustana College, Sioux Falls, SD. I gave my organ music to our son’s alma mater, Wartburg College, Waverly, Iowa. They were appropriately grateful. And after the third car-load they said they had plenty, thank you.
Rita devised her own plan to reduce. She really likes clothes. So each January she would reduce her wardrobe by 10% and give it to a worthwhile non-profit thrift store. Then she practiced the one-for-one rule. One item in, one item out. As we got closer to the end of our ten-year pledge, she had to start with two-for-one. Two items out for each incoming.
Because we gave away rather than selling – garage sales are such a pain – we got a nice tax deduction each year. That’s important to us because we don’t want our tax money used for war.
The plan worked well. We were able to move to Calif. in two compact cars. No moving van, no trailers.
Hand-me-ups?
Most parents pass some of their precious possessions to their children. They’re called hand-me-downs. We have a similar tradition but in reverse – hand-me-ups. Our kids give us their obsolete items. After college our son gave us his old car. It gave us five more years of service. In fact, we’ve never bought a new car. Our daughter gave me her old laptop when she needed a faster one. It serves me very well.
On my speaking tours I’ve met elders who complain, “I’ve been saved all this stuff for my kids, and now they don’t want it!” Rita and I vowed that we would not make our possessions a burden for our kids, so we save the few things they do want – memorabilia mostly – put their name on the bottom, and find a new home for the rest.
If you are set to inherit over 20 tea cup/saucer sets like Rita was from her mother or hundreds of old pop bottles from her father, then save one or two to focus all your love and attention on. Remember, it’s not about tea cups. It’s about memories.
Another way to preserve memories is to take a picture of some precious objects. Put the pictures in a scrap book, go through it from time-to-time to bring back that flood of sentimental memories. But don’t keep all the cups and bottles. They slow us down and collect dust!
Is it time for you to make or update your retirement plan? Give yourself time so that useful items don’t end up in the landfill or as a burden to you kids.
TheComonGoodPodcast.com Simple Living – Practical Implications (http://traffic.libsyn.com/thecommongood/tcg-028.mp3) contains these and other ideas to hear and share. | Program notes. (http://www.jubilee-economics.org/podcast/episode-28-simple-living-practical-implications.html)
Peace,
Gerald
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Gardenarian
7-18-13, 3:55pm
I don't think I would have to give up anything to retire, as we are living very lean right now. I'm only continuing to work to pay for my outrageous health insurance, and because I'm not quite psychologically ready. I like the people I work with and think I need some time to ease into retirement. I'm planning on retiring some time next year. (I'll be 55.)
I don't feel like I live a deprived life; I really have no interest in TV, restaurants, fancy cars, fashion - most of things that suck up income.
flowerseverywhere
7-18-13, 4:52pm
I love all these responses! It helps me think through all my "must haves."
redfox, I think I missed the health category entirely--I'm 61 and I'm thinking I'll make do with Medicare eventually. Right now I pay a LOT for insurance and I was looking forward to being able to cancel it when I turn 65. Maybe I'll look into supplemental insurance if I can swing it.
Make sure you look into what medicare costs and covers before you make any decisions. With all the talk about entitlements I would not be very surprised if costs continue to rise for medicare recipients. Here is some excellent info from the Kaiser foundation. http://kff.org/medicare/ It also has a lot of info on seniors and poverty.
flowerseverywhere
7-18-13, 4:53pm
I don't feel like I live a deprived life; I really have no interest in TV, restaurants, fancy cars, fashion - most of things that suck up income.
this says it all, doesn't it?
We will have to give up the city we have called home for the last 28 years as moving to a less expensive area is at the top of our list for musts in order to retire. We had no idea when we moved here that things would escalate like they have so we are investigating small towns close by where property tax is one third of what we pay now. Where ever we end up, the plan is to pay cash for the house with proceeds from selling this one.
The biggest issue for us when it comes time to retire will be figuring out where to live. We currently rent in one of the most expensive cities in the US. It makes sense for us now both career-wise and because we really enjoy living here, but it's simply not going to be feasible financially once we retire. (we're both late 40's so we still have some time to figure this out...) And frankly, the older I get the less need I feel for living in a dense urban place. I can see us in a decent college town getting much of what we love about big cities at a much better cost of living overall, especially housing.
Food/restaurants: We cook well at home and will always do so unless our finances take a serious nosedive for some reason. Eating out. We only do so once a week now, but in a cheaper city would likely spend less on it.
Clothes: SO likes to buy clothes. Me, not so much. SO is starting to see that spending like this will likely delay his departure from his semi-soul-sucking job. He'll never likely be a thrift-store kinda guy though.
Pet: two 9 year old cats. Don't plan to spend a fortune on expensive medical treatments. Will definitely get more once these guys pass on.
Entertaining: SO LOVES to entertain. I like to entertain. Right now we put a bit more money into it then I would if it were all my decision, but we don't do it that often. If we were retired and doing it more frequently it would have to be with less nice bottles of wine...
Giving: I don't see this as optional really. If money gets tight (and even if it doesn't) I plan to give more time once retired.
Transportation: This is the one area where our expenses will likely go up. No car currently, just two $66 transit passes. We do rent cars maybe 6 times/year for out of town trips, but even so, owning a car, insuring it, etc, will likely cost more.
Books: The library is my best friend. Hopefully wherever we retire will have as great of a library as San Francisco's (and NYC's when we lived there). I buy maybe 2-3 books per year. The rest I get from the library.
Travel: We do maybe 1-2 longer trips per year and 4-5 short weekend getaway type trips. Once retired and out of the city neither of us sees ourselves needing/doing the weekend getaways. Bigger/further away trips will hopefully still happen.
Schooling: Not a major concern/budget item now or in our forseeable retirement.
Continued saving/leaving a legacy: Neither of us has kids. I've got a couple of aunts/uncles who have outlived their savings. I don't want to be in that situation, but I don't see any reason to die rich either. If only we could know exactly when we were going to die, it'd be so much easier to plan... :-)
Deciding where to live is also my biggest dilemma. Currently in SoCal owning a shared house with my sister but with the intent to sell in a bit over a year. Next place I get I want it to be the last place so location and type of place will be important. Property taxes and utility costs will probably be just as important as location and housing style. Condo? Small house? Cabin in ski resort? Ex pat in atiny European flat? No idea!
I am currently semi-retired, working from home. I hope to be fully retired by the end of the year. I had always thought I would work until I was 70 because I like to work, but then I recently developed a lung condition and so I have changed my mind. I just turned 69 years on July 1. I have pretty much been structuring my life in preparation for retirement. I left my legal career in the O.C. nine years ago and moved further South to be closer to family. I sold my condo when prices were high in Newport Beach; but, of course, I bought high where I am now. Still, my mortgage, taxes, insurance, and HOA are all under $1,200 a month. I love my townhouse - I live on a golf course and have a beautiful view. My house is under 1,300 sq ft. My car is paid for and I have kept it in good condition.
I have Medicare and a supplemental policy and drug policy. This is costing me more than the Medicare Advantage plan I had previously with SCAN; however, I wanted to be able to choose my own dr's, so a couple of years ago I went with original Medicare during the open enrollment period. I am so glad I did because I was able to choose my wonderful pulmonologist at UCLA.
I have always been able to enjoy my life even when I had very little money; therefore, I knew I could make retirement work even without all the $$$ the media says you have to have. I enjoy eating out once in awhile. Sometimes I meet a friend for breakfast or lunch instead of a more expensive dinner. I enjoy knitting, Netflix, and my Nook. The hardest part for me in retirement is not being around others at work. I am somewhat fearful of the isolation.
I may choose to adopt a little dog for companionship and routine. I take care of my son's little dog when he and his family are gone overnight. She is a wonderful companion.
So far, everything is working out financially. I must say that I have never worried about money that much because I just adjust where I need to. Currently, I receive Social Security and wages from my part-time job. I haven't had to touch my retirement funds as yet; but once I am fully retired, I will have to start my annuity.
jp1: I so agree with you about retiring to a college town. I live just outside of one now (Princeton) and I love the vibrancy and the youth and all the cultural and educational opportunities. However, Princeton ain't cheap, so I'll probably be moving on at some point. When I was reading an article about cheap towns to retire to, State College, PA came up. I thought that might be an interesting choice. Alternatively, as I mentioned, I love VT, and so Middlebury and Burlington are definitely college towns I'm going to look into.
Spartana: Sorry, I can't see you ever picking one place to live!!! :) I feel just the same way you do. I've always wanted to live on the Jersey Shore in the winter and VT in the summer, but frankly, I'd also like to maybe do SoCal in the spring and Minnesota in the fall. Or maybe Minnesota in the summer and VT in the fall.
polliwog, congratulations on a long, good working life and also on your imminent retirement! Sounds like you have all your ducks in a row. Thanks for sharing your plan. I also plan to work (if I can) until I'm 70 or close to it.
I have been doing some arm-chair looking at college towns and Google Image is great for getting a visual "feel" for a place.
"Continued saving/leaving a legacy: Neither of us has kids. I've got a couple of aunts/uncles who have outlived their savings. I don't want to be in that situation, but I don't see any reason to die rich either. If only we could know exactly when we were going to die, it'd be so much easier to plan... :-)" Same here.>8) Although I think I must be getting closer.....
Spartana: Sorry, I can't see you ever picking one place to live!!! :) I feel just the same way you do. I've always wanted to live on the Jersey Shore in the winter and VT in the summer, but frankly, I'd also like to maybe do SoCal in the spring and Minnesota in the fall. Or maybe Minnesota in the summer and VT in the fall.
Yes, so many places to visit and see, so little time :-)! I've never been a settle down in one place permanently kind of person, and really have only done it over the last few years because of pets (and 2 of them inheireted). Ideally, if I didn't have a dog, I would just get rid of everything to travel full time for a few years before settling down somewhere. But, since I do have a pet, I'd like to have a permanent home base somewhere that I could stay in the summer and winter and travel for a few months in fall and spring. Deciding where that home base should be is difficult though. So many factors currently - as well as future factors to consider. However, while I'm currently in SoCal, my sister and I are in the process of making some decisions about our current owned/shared housing situation as she need to move closer to her work soon. So she may be getting a place that will allow her to have a dog. If that happens we'll sell the house and I'll pay her to pet sit so I can travel over seas. Helps her, helps me, and the dog would love it! Then, once I got my travel-Jones out of the way I'd be ready to find a permanent place somewhere I loved for the pup and I. Probably in a small college town on the New England coast somewhere as I also love those too. Can visit the sis in Calif as often as I want and stay as long as I want too
I didn't give up anything. If anything Ive added.
Nothing. I save so much now retirement might actually be a step up. :)
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