Pre-Post retirement Budgeting

[gbflyer]

Cleaning up my in-laws estate now. They retired too early and burned through his 401K in 6 years. Savings lasted another year. House and car paid for. He was a couple months away from needing a job again.

This is not everyone’s lot in life to be sure. Be careful out there and consider a professional or at least a trip to HR before pulling the pin on the career.

 

[wesfromky]

For the expense tracking, I really like the YNAB app. Pretty much an excel spreadsheet with a nice UI, and the ability to sync across a couple devices, so you and your wife always can enter stuff and see where things are. They have some decent videos on how to setup things for their system as well.

 

[Fullfan]

Guess it is different for some. If you made the right decisions years ago, you should be able to retire and not worry about a budget or spending. But if you are concerned about it, maybe you should not retire.

I retired 10 years ago at 49, never has money or a budget become an issue. And our lifestyle has not changed, just keeps getting better.

 

[browning2480]

Every dollar is a great budgeting app. You can get the free version. The paid version connects to your checking account.

 

[flathead#2]

Getting close myself.
23+ years with the Fed. Govt.
My BS tolerance is getting thin.

 

[Rich M]

Take your bank statement(s) for the past 2 years and catagorize all you expenses. That’ll tell you what/where you spend and how much.

I have a simple table for tracking my dad’s stuff. He pays about 8 bills a month and i can tell quickly, just jot the numbers in.

I’m about 8-10 yrs out and more concerned about whats in the bank and getting a good return on it.

 

[TN2shot07]

I’m amazed at how some people think rental property will just be passive income. The last thing I want to do in retirement is deal with renters and maintenance, that can turn into a royal pain real quick. It’s gotten even worse in some states as they give more rights to renters and squatters than the property owner.

I’ll be taking my chances with the equity investment approach.

 

[5MilesBack]

The real questions (and problems) come into play when our dollar crashes, and it will crash.

 

[LostArra]

If you live below your means for the 40 working years before retirement, save money every paycheck, don't invest your savings with Bernie Madoff or Powerball and you have no debt, it should be possible to comfortably live within your means after retirement.

I admire those who are into budgeting apps and spreadsheets but that is not me. Before I retired I realized I'm more of the bucket guy (Google Christine Benz at Morningstar) which also takes a little expense planning but no Excel sheets.


Remember the great financial/retirement planner Mike Tyson's motto: "everyone has a plan until they get punched in the face".

 

[Rich M]

The real questions (and problems) come into play when our dollar crashes, and it will crash.

This is fear stuff. If you try to structure your life around it you'll be miserable and unprepared for the same-old same-oldness of life.

 

[Weldor]

There's some good advice here, but don't forget when you need to buy $100,000 pick-up or whatever. A good financial guy will help with all the what ifs. Seen to many guys think they can do the investing and saving thing. Most are working again unfortunately. Some things you just can't predict.

 

[Idaho_Potato]

A strategy that several men in my workplace seem to be implementing is to just not retire. “Die with your boots on” mentality. It seems to be working out for now. Several of them are mid seventies and still at it, keeping the business running from the top.

I get it. When we have holidays longer than 3-4 days and I don’t have anything planned I get stir crazy. No wife or kids so that probably plays a part. But still, the thought of waking up and not getting something accomplished makes me uneasy. Being out of the game if you will.

Retiring in your 40s or 50s seems insane. What are you people doing day to day? Anything of value? If you are raising kids I guess that makes some sense. But there’s always something I’m wanting to do, and most of it involves making money as a side benefit.

 

[Weldor]

I retired at 60, 41 years as a Welder. I have plenty to do around here. I always have some repair work needs done. So alittle side money never hurts. The pastures are a full time job. the house repairs, Cabin always require work. The retirement is fishing hunting camping or just goofing off when I want on my schedule. I really like the part of not having to rush to get anywhere or go back to work Monday. You'll see when you do retire that you'll be busier than you thought. The work til you drop is for the birds, not much of a life to benefit a company and not yourself. I just had 2 Machinist friends pass 74 and 72 both still working. Crazy. Not to mention SSN loves you for never drawing your benefits. JMHO

 

[riversidejeep]

It's not really how much you saved it's how much you spend. Some guys retire and do exactly what they want and spend $30,000 a year, others , $30,000 wouldn't be able to take a vacation trip on. I retired at 50, Home and property's paid off , all rolling stock is free and clear and we have no debt. 15 years later and we have done exactly what we wanted to in retirement and we probably do it on about 1/2 of our working years income.

 

[Novahunter]

I’m amazed at how some people think rental property will just be passive income. The last thing I want to do in retirement is deal with renters and maintenance, that can turn into a royal pain real quick. It’s gotten even worse in some states as they give more rights to renters and squatters than the property owner.

I’ll be taking my chances with the equity investment approach.

I'm 40 years old, my wife and I have 5 rental homes and rent out the basement of my main house.

They can be a PITA, but overall they generate income and wealth. There are certain states I would not own a rental in, such as Maryland in my area. Try to be smart too with the houses I buy.

Houses are an income producing asset. Rentals are not our only plan, as I have a 401K as well, and my wife has her retirement account. Income diversification is my goal.

 

[Weldor]

I think of my rentals like a boat , I was happy the day I bought them even more happy the day I sold them. Right on though .I owned them for 30 years and they do produce income with some re- investment.

 

[rayporter]

Dad retired at 60 and they got to travel for 2 years before he had a heart attack in Iowa. i flew from columbus oh to bring home the trailer for mom. when i landed in Des Moine i found out he pulled through. he actually got to travel for 12 more years.

it left a mark on me. i vowed to not repeat that. i saved even harder and was debt free for over 10 years before i retired at 51. that was in feb of 03. yeah, it was worth it.
i recommend it to all!

 

[bozeman]

buy a stock that pays a dividend to cover each of your monthly bills.........pay off all debt......you cant take a single $ with you when you die.......also keep in mind to 'lay up treasure in heaven'.........it will be worth it one day!!!

 

[TN2shot07]

I'm 40 years old, my wife and I have 5 rental homes and rent out the basement of my main house.

They can be a PITA, but overall they generate income and wealth. There are certain states I would not own a rental in, such as Maryland in my area. Try to be smart too with the houses I buy.

Houses are an income producing asset. Rentals are not our only plan, as I have a 401K as well, and my wife has her retirement account. Income diversification is my goal.

They definitely generate income and you benefit from the equity once you liquidate them later, no arguing that. It’s just more hassle factor than I personally want in retirement.

 

[Z Barebow]

This has been great discussion! I have realized my first step is to track spending. Currently I have different "buckets" that I put monies into (earmarked for different purposes) Currently my wife's SS goes into an account that is her "mad money" at this time. It should not be too difficult to filter my CC and bank accounts to categorize current spending/revenue.

One of the plus's about my job is I like it (but stressful) and it isn't physically demanding (IE Not breaking down my body) I also have a side hustle (consulting) that I can do for 3-4 years post retirement (If I so choose) Good gig as I sell what I know. (Intellectual property) I have also figured out I will NOT be able to retire/quit working cold turkey. My head would explode. (IE Why the side hustle might be a good transition to full retirement)

I started an IRA at 19 years old, so saving for retirement has always been part of my plan. I have always approached my retirement with the thought I will NOT have SS. (Now have several IRA's, traditional and Roth, 401K) and will have decent SS. My "foot is on the accelerator" as I fund retirement (20% above my employer contribution, max HSA withholding for current and future medical expenses). Family history/longevity is on both me an my wife's side. BUT anything can happen in life.

I have always had a "hoped for the best, prepare for the worst" mentality. But "hope" isn't anything I can hang my hat on. A clearer road map is what I need to establish. (But don't stop posting! Great ideas and conversation topic.