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Re: O/T Please list your best tips for Retirement Planning

On 8/29/2014 twopeas said:

I started planning two years ahead of time. I calculated what my job retirement pay and my social security pay would be. I wrote down all of the monthly bills and accounted for increases in the bills. I made sure I always paid every credit card in full each month. Lastly, I paid my car off. Yes, I am married and my dh is still working; however, I had to figure everything out if, God forbid, something happened to my dh. I retired six years ago and we live very comfortably. My dh wants to retire in 2016 (although that changes occasionally depending on what kind of day he had at work {#emotions_dlg.scared}). Our biggest challenge will be healthcare. Aside from medicare, we will need supplemental health care as well as dental. We plan that our Roth IRA's and other investments will hopefully cover our premiums and help with any major medical issues that may arise. Fortunately, I have always been frugal even as a single mom and since we married 21 years ago we have put money aside and not spent foolishly.

Edited to add: My best friend since we were 12 years old died this month. I thank God every day that He has allowed me to still be here (pretty healthy) and enjoy my retirement years.

Hi Twopeas, I do hope I have at least two years to plan this, but I'm not sure due to my health. I do pay off the cc in full every month, and the car is paid for.

Yes, in my opinion the biggest challenge will be healthcare as well.

So sorry to hear about your friend. I am also trying to deal with (my) estate planning at the same time, which is rather grim.

Do the math.
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Re: O/T Please list your best tips for Retirement Planning

Hi Mariel, we actually started using my in-law's financial planner because they trusted him and he really helped them to get set up well for retirement. He is an independent financial planner not affiliated with any one company or brokerage house. We had several consultations him (free) before deciding to go with him. What I liked about him in those first few meetings was that he was very honest and did not ask for any specific personal information. He explained exactly how his fees work and the process he goes through for financial/retirement planning. He asked general questions about our savings and retirement funds so far (ballpark figures, no specific info like bank accounts, etc) and our goals/hopes/dreams for retirement. He made it clear that he was offering advice only, that it was our money and we would be the decision makers. Both my husband and I felt very comfortable with him from the outset. We also met with a few other financial planners, but never got past the first consultation with them. They asked for specific financial info for the second meeting (bank account numbers, copies of all our bills, copy of tax returns), which we weren't comfortable with.

I think the trust issue is huge. I know that our financial planner is honest because he doesn't just try to sell us products, he looks at our whole financial picture and what's best for us. For instance, I currently have an IRA managed by someone else at another company. Our financial planner looked at the statement and said the portfolio was very good with excellent returns, and I should continue with it because he couldn't offer anything better. He does give us advice on how to allocate funds and he also gives advice on how different options will affect us tax wise. He helped me tremendously when I was doing our taxes this year (we had some inheritance money that was tricky) and did not charge us for the time he spent answering my questions.

Our financial planner is a fee only planner, which means he charges us a specific percent of our account value and does not receive commission from the companies when he sells products. The percentage is quite small and reasonable, and less than some of the planners we consulted.

The following is an excellent article on financial planners from CNN. It includes what they are, the different types, questions to ask, how they get paid. It seems long (5 pages), but it's very clear, easy to understand, and I found it quite helpful

http://money.cnn.com/magazines/moneymag/money101/lesson15/index.htm

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Re: O/T Please list your best tips for Retirement Planning

On 8/29/2014 poregirl said:
On 8/29/2014 jlkz said: Suggest you talk with a stock broker and stipulate that you want solid income with low risk. CD's and savings accounts pay negligible amounts. Unlike mutual funds, there are no monthly mgmt. fees with stocks. There's a fee when you buy the stock and when, if, you sell it. If the stock splits, you do not pay any fees. Make sure the dividend rate is consistent: a few of my stocks are getting almost 9%. Most average 3 - 4%. Obviously you shouldn't put all your money in the stock market. H T H.

only invest in index funds before hand. super low charges. more money for you.

I do have my IRAs, and roll-over IRA from my last job in Vanguard index funds.

Do the math.
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Re: O/T Please list your best tips for Retirement Planning

If you are under 65, you will be eligible for ACA insurance.

It costs a LOT less than COBRA for similar coverage and is based on your annual income.

So the best time to retire would be the beginning of the year - your ACA payments will be lower.

If you retire in July, for example, your previous 6 month's income will count for your July-Dec. tax subsidy for ACA...so you may end up paying full price.

I was able to use ACA to start my own business at 59...a co-worker whose husband is 65 (she is 61) was able to retire along with her husband and get affordable health insurance (he, of course, is on Medicare). The only questions asked to determine your premium are income and age...no medical tests required.

Good luck!

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Re: O/T Please list your best tips for Retirement Planning

On 8/30/2014 cassiem said:

Hi Mariel, we actually started using my in-law's financial planner because they trusted him and he really helped them to get set up well for retirement. He is an independent financial planner not affiliated with any one company or brokerage house. We had several consultations him (free) before deciding to go with him. What I liked about him in those first few meetings was that he was very honest and did not ask for any specific personal information. He explained exactly how his fees work and the process he goes through for financial/retirement planning. He asked general questions about our savings and retirement funds so far (ballpark figures, no specific info like bank accounts, etc) and our goals/hopes/dreams for retirement. He made it clear that he was offering advice only, that it was our money and we would be the decision makers. Both my husband and I felt very comfortable with him from the outset. We also met with a few other financial planners, but never got past the first consultation with them. They asked for specific financial info for the second meeting (bank account numbers, copies of all our bills, copy of tax returns), which we weren't comfortable with.

I think the trust issue is huge. I know that our financial planner is honest because he doesn't just try to sell us products, he looks at our whole financial picture and what's best for us. For instance, I currently have an IRA managed by someone else at another company. Our financial planner looked at the statement and said the portfolio was very good with excellent returns, and I should continue with it because he couldn't offer anything better. He does give us advice on how to allocate funds and he also gives advice on how different options will affect us tax wise. He helped me tremendously when I was doing our taxes this year (we had some inheritance money that was tricky) and did not charge us for the time he spent answering my questions.

Our financial planner is a fee only planner, which means he charges us a specific percent of our account value and does not receive commission from the companies when he sells products. The percentage is quite small and reasonable, and less than some of the planners we consulted.

The following is an excellent article on financial planners from CNN. It includes what they are, the different types, questions to ask, how they get paid. It seems long (5 pages), but it's very clear, easy to understand, and I found it quite helpful

http://money.cnn.com/magazines/moneymag/money101/lesson15/index.htm

Thank you Cassiem, Your financial planner sound wonderful. I see now it is a bit of work to find one you are comfortable with. Thank you for the article. I am going to read it in a few minutes, after I respond to the other posters. Thank you again.

Do the math.
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Re: O/T Please list your best tips for Retirement Planning

On 8/30/2014 nomless said: IMO, a certified financial planner is a must. Interview several before picking one. Look for one who is independent, not tied to a brokerage house (because they will recommend only products offered by that brokerage, which may not be the best for you).

Hi nomless, Yes, I had met one several years ago who was affiliated with a fund company, and he really made me very uncomfortable. He was pushing those products and they have a very high expense (front load) tied into them.

Do the math.
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Re: O/T Please list your best tips for Retirement Planning

You're welcome, Mariel. I'm hoping you are able to find someone you trust who can truly help you. When we were consulting with planners, red flags for me were if they were not clear about fees and how they were paid, asking for too much specific personal information up front, and talking about rolling all of our current investments over to be under their management for "convenience".

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Re: O/T Please list your best tips for Retirement Planning

We found a stockbroker who only does retirees accounts. He has a small portion of our savings in the stock market but the vast majority of it is in various municipal bonds where it is safe and sound , making a good chunk of money for us. We know nothing at all about the stock market so we always take his advice and so far (4 years now) that has been a good idea.We do take a monthly stipend from our savings but not as much as it is earning so it continues to grow.

As for the non financial aspects - we decided to move to Florida for our retirement and we snowbird to Pa for the summer for a few months and when in Pa we stay in a camper trailer. You will have to find something to occupy yourself - we both volunteer and we also belong to, and daily use, the YMCA that is very close - walking distance - to our home. Volunteering makes you feel you are still relevant as a person and gives you an opportunity to make new friends as well. I also belong to a water aerobics group and a sewing club that I enjoy.You need to have some time away from each other. I miss that when we are up north - it seems when we are here we spend ALL our time together. We also have a new build home in Florida and as most new homes - it is basic so we have at least one project every winter we like to do - this year we are going to replace a floor in a hallway and I have a vanity that needs refinished.We usually do our projects together.

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Re: O/T Please list your best tips for Retirement Planning

Lucky for me I started early and was fortunate to have the company I worked for buy out my pension and my financial advisor has done a great job investing it for me. The one thing I know is how much I can live without. I need very little to survive. I still can and do invest in my Roth IRA, I couldn't express to anyone enough what an important vehicle it is for retirement planning. Start early, save as much as you can and trust but verify your financial planner. I would go to somebody recommended by a trusted family member or friend, never a bank or investment house. Keep an eye on your funds. It's not that difficult to do and most of all, stay healthy so your medical expenses stay low AND you can enjoy what you have saved! Best of luck.
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Re: O/T Please list your best tips for Retirement Planning

On 8/29/2014 makeupaddicted1 said:

I was forced into an early retirement due to my family situation. It has worked out okay partly because I had been pouring as much money into my 401k for a couple of years as I could. I receive a pension and social security benefits at 62. One thing I wish I had done was had a discussion with my accountant about what my tax liability was going to be. Even though my income was greatly reduced from what I was earning, I am quite surprised at how much I still have to pay in taxes as a retiree, including taxes on social security. Also, remember a few things after you retire, depending on where you live and if you own a house, you might be entititled to a reduction on property taxes. I also got a reduction on my auto insurance due to the fact I am now driving fewer miles. I must say that I have not missed working one bit! I love retirement!!

Hi Makeupaddicted1, Glad to hear that you love retirement! (Understand about the family situation. The DH thinks what we went though taking care of my parents through their long term illnesses is what ruined our health.)

I have to pay estimated taxes now, on top of what is withheld from our paychecks. (Both DH and I take 0 deductions and have extra withheld, and pay estimated, so I am sensitive to taxes.) My thoughts are that healthcare and taxes are our main concern. We will be looking to move out of State after we both retire, or if DH can find a comparable union job out of state, sooner.

Do the math.