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OT- Retirement....

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z145fergie

03-10-2005 12:54:32




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Will be retiring, hopefully, in a few years. Experts say you need 80% of current income to maintain same standard of living. Is that a good number? What advice would you retired guys have? What do some of you do to supplement retirement income?




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mj

03-11-2005 21:45:15




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 Re: OT- Retirement.... in reply to z145fergie, 03-10-2005 12:54:32  
I retired after 25 years with the Teamsters and am drawing about 50% of my gross pay while working and I'm doing fine.....just don't buy new vehicles once a year and eat out less often!



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Miser

03-11-2005 16:51:05




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 Re: OT- Retirement.... in reply to z145fergie, 03-10-2005 12:54:32  
I guess living up here in Canada is a bit easier since we pretty much have "free" health care. You can pay extra for limosine service but a guy can get a heart transplant for $0 to be quite honest. Anyways, I retired at 55 after 30+ years of teaching, and the pension $ are OK but not great. Wife still works 4 mornings each week and we get by quite comfortably. Mind you, the house is paid off and we drive two vehicles that are 18 years old but in good shape still. Here's a little hint from someone who has been retired, you don't have a lot of control over your income, but you've got a lot of control over your expenditures. That's my two-cents anyways.

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cockshuttguy

03-11-2005 10:13:14




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 Re: OT- Retirement.... in reply to z145fergie, 03-10-2005 12:54:32  
Sounds about right. Of course a 100% would make it a bit easier and you could restore a tractor or two and begin farming on a small scale.
Tried to supplement the retirement with farming and that was a joke. The deer and coons got most of the profit. Did a bit of consulting which was good and worked for the township for a few bucks each month. Don't work and enjoy. Never know how many trips around the sun any of us have left.
Good Luck

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wolfmantractor

03-11-2005 13:36:52




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 Re: OT- Retirement.... in reply to cockshuttguy, 03-11-2005 10:13:14  
Reminds me of the old boy up the hill that won a million on the lottery. When asked what he was going to do with it, he replied that he'd just keep farming til its all gone.



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rustyj14

03-11-2005 08:33:33




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 Re: OT- Retirement.... in reply to z145fergie, 03-10-2005 12:54:32  
Well, i worked until i was 72, to get most things paid off! We live on my Gov't Disability check! (Lost foot in WW II!) And 2 Social Security checks! And what i make fixing things in the summer! We paid off our home in 18 1/2 years. We still live in it! We don't buy new cars or trucks. We don't buy a lot of gadgets for the home. Most goes for taxes and food, and incidentals! Oh, i would take a million bucks from the lottery! But, i don't buy the tickets! My wife buys one every so often, but hasn't rewarded me with a new pickup! We bought a used motor home once. Cost more than our home did! (House cost $10,000 in 1950! Motor home cost $15,000 much later!) We enjoy getting away for weekends. Our sons are grown and married and have their own places! No, we're not "Money rich"! But we're satisfied with our life, although the years haven't been kind to my wife--Arthur is giving her fits! He hasn't affected me too much! I still drive, and ride motor-cycle! And go to Bluegrass jams several times a week! So, take my advice--learn to enjoy the simple things, love yer neighbors, talk to everybody, join the Volunteer Fire Company, help the old folks, restore old tractors, keep the farm if ya have one, don't move to town, and be happy!;o) by: Rustyj

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Old Time Farmer

03-11-2005 10:51:43




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 Re: OT- Retirement.... in reply to rustyj14, 03-11-2005 08:33:33  
I"m 74, and still farming. My wife keeps telling me I have to retire or slow down, but I"d be happy farming until the day I die. That said, I"ll probably stop milking in the next couple years, but I plan to keep some of the beef cows.

I"m building a new shop this year, so I"ll be spending some time in there and I"ve got my eye on a TO-35 that a neighbor wants to sell.

I"ve put some away over the years, but I can rent my farms out and live comfortably off that. My wife and I don"t get a whole lot from Social Security.

I suppose if you want to do a lot of traveling or buy a second home somewhere, you"ll have more expenses.

If you can drive tractor, you can pick up some work during planting and fall harvest working for some of the bigger operations around here.

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Nolan

03-11-2005 06:01:50




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 Re: OT- Retirement.... in reply to z145fergie, 03-10-2005 12:54:32  
Expenses. That is what determines how much money you need going into retirement. If you go into retirement with a mortgage, car payments, credit card bills and the like, you're going to need a lot of income. If you go into it with the house paid off, the car paid off, and no debt, you don't need much.

Most expert advice is based on the typical american going into retirement heavily in debt.

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toomanycases

03-10-2005 22:58:32




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 Re: OT- Retirement.... in reply to z145fergie, 03-10-2005 12:54:32  
Fergie, I retired about 1989. Make sure you have good medical insrance. If not it can break you financially. I know. Had a renal bypass and neuro surgery after a fall. Scratch off $250,000. Thank God I had it. Left me a little short and now I am collecting (restoring) old Cases. 70% seems a little high tome but it depends on the person. See a finanical advisor or planner by all means, but watch and listen carefully to what is said.Oh yeah I'm 73 now.

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Rob in Mo

03-10-2005 21:14:12




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 Re: OT- Retirement.... in reply to z145fergie, 03-10-2005 12:54:32  
You have rceived alot of good advise from some who have answered so I can't add alot more. I retired last September at over 69 years old and can tell you that if you plan right it doesn't take anywhere near the 80% you have heard. My house,car and truck are all paid for and I live in SW Missouri where taxes and cost of living is very reasonable. My advice is to get out of debt
and keep any future purchases reasonable. You will have to get supplemental insurance to go along with medicare if you don't have some already
You will be suprised at how much you may be able to save.

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leland

03-10-2005 20:14:59




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 Re: OT- Retirement.... in reply to z145fergie, 03-10-2005 12:54:32  
I was forced to retire at 40 due to major illness and boys I was not even close to being ready,1200 a month from SS and a part time job don't really cover what I used to make.and beware medicare really sucks my doctor was ill whem medicare became my primary ins.



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Bill Drew

03-10-2005 19:33:59




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 Re: OT- Retirement.... in reply to z145fergie, 03-10-2005 12:54:32  
Health insurance is probably the key point: my Social Security covers for me & the wife though at the rate it is going up ...

Property tax, house & car insurance are another good chunk.

Beyond that, a firewood pile and a library card keep me busy through the winter while the garden (getting toward a couple of acres) keep me going in the sumer. YMMV



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skycarp

03-10-2005 18:18:00




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 Re: OT- Retirement.... in reply to z145fergie, 03-10-2005 12:54:32  
I speak from experience as I retired in 2001. You will not need nearly as much income during retirement as you did during your working days. 80% is high from my experience. Heath Insurance and Long Term Care insurance will be an expense you must plan for. The sooner you sign up for LTC, the less you will pay per month.

Nothing else will increase at a greater rate for you. You should spend less as a retiree than you do as a working person. I can assure you that you will have more money than you can spend, provided you stay reasonably healthy and have a financial plan for retirement.

And I can assure you that you will be a happier retired person than you were when you were working, and that is worth more than more income.

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Bill(Wis)

03-10-2005 17:56:37




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 Re: OT- Retirement.... in reply to z145fergie, 03-10-2005 12:54:32  
I started planning for my retirement when I was 17 years old. I'll be 69 in May of this year and I still can't afford to retire. My accountant says it's because I've accustomed myself to a standard of living that I don't want to give up. He also says age 75 is a good retirement age because people are living longer. He's about 85 and still working every day - in between rounds of golf. I love what I do and it doesn't seem like work. Didn't Henry Ford say "Find something you like to do and you'll never work a day in your life"?

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JP in GA

03-11-2005 12:21:34




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 Re: OT- Retirement.... in reply to Bill(Wis), 03-10-2005 17:56:37  
Bill you remind me of a conversation I had with my dad a few years ago. He's farmed all his life, and at age 65 I asked him if he was going to retire. He said "What do I want to retire for? I'm doing what I want to do." John



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jwm

03-10-2005 17:39:07




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 Re: OT- Retirement.... in reply to z145fergie, 03-10-2005 12:54:32  
I got divorced when I was 38. Started planning my retirement for age 55. Thats what I did and have not looked back. My cost of living went way down, but I'm a low maintenance type of guy. Started investing in the stock market at age 40. Have done very well. Never had a hobby until a year ago when I bought a 48 8N. Best money I ever spent. Got more money than I can ever spend or that my child can ever spend. Biggest secret. DON'T GET REMARRIED. Thats the most costly thing a man can do. James

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James2

03-11-2005 05:54:51




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 Re: OT- Retirement.... in reply to jwm, 03-10-2005 17:39:07  
Your story is amazing, similar to mine. I divorced at 36 and will retire at 55 in 7 months. Prudent (or luckly) land investments and the stock market have been my key to success. And no I never remarried, just found someone else that was financially secure. I have my two children covered, if they choose not to live too extravagant, probably wouldn't need to work. Goal is now to see what I can do for any future grandchildren.

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nubs

03-10-2005 17:05:35




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 Re: OT- Retirement.... in reply to z145fergie, 03-10-2005 12:54:32  
health ins is the big issue. I went out early on a buyout at 59 1/2 but I was partial;ly funded on ins.. minor of which I am thankfull. my brother in law is paying over 9 grand for ins. I couldn,t handle that. I still go to plant and work outages but mainly to get out of house. I can,t sit still but am enjoying it.amnd grandkids



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wolfmantractor

03-10-2005 16:44:29




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 Re: OT- Retirement.... in reply to z145fergie, 03-10-2005 12:54:32  
Retired from two jobs (4 & 6 years ago). Still seem to have two jobs. Have come to the conclusion that I don't know HOW to retire! Raising a few beef cattle & tinkering & dealing in antique & collectable tractors; also bale & sell 2 to 300 tons of hay. I need a day off. But I'm such an idiot that if I'd retire from these three jobs, I'd start raising strawberries or something.



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Nebraska Cowman

03-10-2005 16:01:37




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 Re: OT- Retirement.... in reply to z145fergie, 03-10-2005 12:54:32  
I run a few old cows and swap tractor parts. And I spend a LOT MORE than I did when I was working.



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kyhayman

03-10-2005 15:45:12




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 Re: OT- Retirement.... in reply to z145fergie, 03-10-2005 12:54:32  
While I am a ways from retiring yet I have looked into it. Also both my parents are retired (for years now). I think the 80% number is high, esp in the first few years. With inflation, who knows. What I do know is 53% of my income on the top end is taken in local, state, and federal taxes, plus retirement and health ins. With the pension plan I have that will drop to 15% coming out for federal income tax with maybe a little of the top end at the 28% rate. That means that I should be able to make it on 73% right off the top. Take out a commuting expense, work clothes (I wont be wearing many dress shirts and ties on the farm), and I think that 65-70% will be about right for me. But, I dont plan to spend any more retired than I do now, in fact I plan to spend less.

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Midwest redneck

03-10-2005 14:50:25




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 Re: OT- Retirement.... in reply to z145fergie, 03-10-2005 12:54:32  
My dad retired at 64, they offered him a 6month of his pay buyout and he said....sure. I dont ask about my parents financial situation, it aint my business, but it will become my business when they are gone. One bit of advice that I know of.....If your house is worth $250,000 you can sell it and buy a say $150,000 house and pocket the $100,000 and not pay taxes on it, I am pretty sure this is right, ask a tax accountant first before taking my advice. I would like my parents to sell their house and pocket some money but I dont tell them what to do. One last thing about investments, be your own boss, dont get scammed and remember that preferred stocks like GM and Ford and Exxon are paying 7.5% return on the dividends, and thats not bad considering CD's from banks.

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Dug

03-10-2005 16:30:15




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 Re: OT- Retirement.... in reply to Midwest redneck, 03-10-2005 14:50:25  
Midwest,

You are correct about taking capital gains tax free. The rule is you must have lived in the home at least two of the past five years, and you can take upto $250K tax free as an individual and $500K tax free as a couple.

You can thank the Rebublican Congress from about 9 years ago for this little "gift".

Dug



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Dug

03-10-2005 14:20:29




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 Re: OT- Retirement.... in reply to z145fergie, 03-10-2005 12:54:32  
What you need to retire on comfortably depends on many factors. How much debt will you carry into retirement? Hopefully, none! What are your plans? Travel? Hobbies? It would be money well spent to find a certified finanical planner (CFP) who is paid on a fee basis (not commission) and let him assess your situation. Typical fees will be a few hundred dollars.

Dug



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Dave H (MI)

03-10-2005 14:19:04




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 Re: OT- Retirement.... in reply to z145fergie, 03-10-2005 12:54:32  
I am one of those "experts" and I will tell you that I don't necessarily agree with what you are saying. You have to remember that a lot of what you are being told is coming from people who are in the business of SELLING retirement investments.
I don't do that and come from an entirely different perspective. How much you need depends on what you want to do. The media is in the business of scaring people these days, so take into account WHERE you are reading this stuff also. I am curious as to what Rusty is wanting to discuss with you. I wonder what business he is in? Seems like everyone is trying to sell something and don't care what means they use to accomplish their goal.

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RustyFarmall

03-10-2005 14:29:17




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 Re: OT- Retirement.... in reply to Dave H (MI), 03-10-2005 14:19:04  
Not selling anything. Just know of some investment programs that could be lucrative. I will make nothing.



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Dave H (MI)

03-10-2005 15:37:34




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 Re: OT- Retirement.... in reply to RustyFarmall, 03-10-2005 14:29:17  
Yah know, Rusty, I read that post after I placed it and thought that it sounded like I was accusing you of something. Just so you know...I wasn't. In my business I get asked to advise people on their finances multiple times each day and I get a little cynical about brokers, financial planners, bankers, etc. I hope no offense was taken as none was intended. I'd rather talk about tractors.



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Joe (Wa)

03-10-2005 14:01:12




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 Re: OT- Retirement.... in reply to z145fergie, 03-10-2005 12:54:32  
I retired 7 yrs ago @ 53% of gross income. I have at least double the savings I had when I retired. I've only had 2 major expenses in that time that I paid cash for, a small house ($150K) on 6 acres already owned and 1 new truck ($35K).

Fed taxes and living expenses are down more than 50% since retiring.

Try to be debt free before you retire and live within your means after. Stay debt free if you can, interest is a killer.

Joe

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I'd...

03-10-2005 13:21:29




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 Re: OT- Retirement.... in reply to z145fergie, 03-10-2005 12:54:32  
...find some new experts. Your drive to work is 20% of your standard of living?



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RustyFarmall

03-10-2005 12:57:33




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 Re: OT- Retirement.... in reply to z145fergie, 03-10-2005 12:54:32  
I am sending you an e-mail.



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RustyFarmall

03-10-2005 12:58:56




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 Re: OT- Retirement.... in reply to RustyFarmall, 03-10-2005 12:57:33  
I guess you will have to send me an e-mail.



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ljl

03-10-2005 16:01:41




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 Re: OT- Retirement.... in reply to RustyFarmall, 03-10-2005 12:58:56  
i would only say you might want to start thinking about it today you never know what tomarow will bring. april 15 2000 got up in the morning went to bathroom fell down and was uable to get up went to the hospital that evening they said i had a stroke 21 days in hospital 56000 dollars latter without insurance at the age of 50 have been on ss disability since iam very thank full every day now to be able to get around by myself money is nice but your health is far more inportant have a nice day larry

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Jerry Cent. Mi.

03-11-2005 05:20:11




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 Re: OT- Retirement.... in reply to ljl, 03-10-2005 16:01:41  
All of the above but I believe its less expensive to be out in the garage working on tractors than sitting in the bars. Have experience with both.



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