Pre-Post retirement Budgeting

[Grandkids7]

Sounds like you’re financially self taught and won’t be living beyond your means. Good luck

 

[5MilesBack]

Life expectancy in US is 73. Take your dad and his dad's years on earth, add together and divide by 2.

That would put me at 89, which may not be far off. Historically, the men on my dad's side mostly live into their 90's. My dad smoked a pipe most all of his adult life, and still lived to 86. My grandpa had a stroke at 90. I remember going to the hospital with my dad. The Dr came out and said "mentally he's not all there right now, but physically......it took 6 orderlies to hold him down on the gurney......and he was still throwing them around". Yep, that's my grandpa.

When I first started working back in the 80's, I asked about some kind of "opt-out" for social security. I knew that I could do better with that same money on my own for retirement. Unfortunately, that option didn't exist. I will take what I can get back out of it, but I have never "planned" on SS as part of my retirement plan. Just always considered that gravy. At some point in the next few years I will run the numbers to see what age makes the most sense to start taking it.

 

[Z Barebow]

I have never "planned" on SS as part of my retirement plan. Just always considered that gravy.

Exactly my approach when I start my career. (1985) And why I started an IRA at 19. (My employer did not have any retirement/saving offerings)

Chasing that squirrel. SS is a ponzi scheme and political football no party has the seeds to "really" make it sustainable (For perpetuity)

Additionally, any needed changes for SS won't affect me. (I am 58) The political powers (no matter which side of the aisle) understand a few things.

• The closer you are to retirement age, the less ability/time a citizen has to adjust to any new rules (For sake of argument, 50 and older)
• Politicians also know citizens 50+ vote at a statistically higher rate and would be mighty unhappy if you mess with projected retirement
• It is our kids/grandkids who will pay the price for the constant "kick the can'/bandaid approaches to date. (And my daughters are smart enough to recognize this also)

 

[Z Barebow]

@Z Barebow - care to share why you might doubt your financial planner, or the plan he has put together, if one exists?

To be clear, he is a financial advisor. (Apologize if stated planner) (Edward Jones) Even though I know him personally, I only have 25-30% of my monies under their "umbrella". (And one of the reasons I have monies with EJ is financial advise, even though they have higher expense ratios/IE reduce our yield) The remainder I self manage. (401K, traditional and Roth IRA, SEP IRA). But even when he evaluates my outside holdings, he has no issues with my diversified approach. Although he would like to see everything under his umbrella, I also state that having monies with different organizations is also part of my diversification strategy.

Lastly, the financial advisor does not track our spending. That is on us. EX If I had 10M for retirement but spent 1M a year in retirement, I likely would run out of money.

 

[Z Barebow]

Sounds like you’re financially self taught and won’t be living beyond your means. Good luck

Yes, and I appreciate your confidence!

 

[30338]

Honestmath.com offers a retirement calculator that allows for many relevant inputs based on your situation. Its free and provided me with a very clear picture of best worst and average stock market/investment results over my retired years. Works well if a guy logs onto it and checks it out.

Honest Math - Free and Powerful Retirement Planning Software

Honest, powerful and affordable financial planning software for everybody. Retirement calculator, portfolio analysis, Monte Carlo simulation, and unbiased personal finance insights.

www.honestmath.com

 

[TaperPin]

I’ve taken a sabbatical for a year to remodel our house and it’s become painfully clear that I normally spend way too much on hobbies and eating out every week. lol

 

[SDHNTR]

To be clear, he is a financial advisor. (Apologize if stated planner) (Edward Jones) Even though I know him personally, I only have 25-30% of my monies under their "umbrella". (And one of the reasons I have monies with EJ is financial advise, even though they have higher expense ratios/IE reduce our yield) The remainder I self manage. (401K, traditional and Roth IRA, SEP IRA). But even when he evaluates my outside holdings, he has no issues with my diversified approach. Although he would like to see everything under his umbrella, I also state that having monies with different organizations is also part of my diversification strategy.

Lastly, the financial advisor does not track our spending. That is on us. EX If I had 10M for retirement but spent 1M a year in retirement, I likely would run out of money.

I’m not here to tell you you’re wrong, but keep in mind that your “diversified” approach with using multiple different firms can create a lot of complexity for your heirs/successor/executor after you’re gone. Even with proper joint/trust titling and beneficiary designations, that’s a separate set of estate settlement paperwork and procedures, contact people, chances for things to go wrong, policies to adhere to, etc., for each of those firms. You’ll be gone, but those you leave behind are not gonna be happy with you.

There is also an economy of scale you may be missing out on, as generally, more $ under management at one place means a lower fee. Make sure that, collectively, you aren’t paying greater fees than necessary. If you don’t completely trust your current guy to manage the totality of your financial life, perhaps you need to look elsewhere. Sadly, most “financial guys” have zero formal training or education or certifications in finance. If your guy doesn’t, find one who does. Many are just salesmen, trained in sales, not finance. Those letters after a name mean something. Find a guy who has some and ask what they mean. If nothing else, designations show a commitment to professional development. Professional accolades and recognition mean something as well. It’s not hard to find talent with a little knowledge of what to look for.

Then there’s also a matter of convenience. The well-established asset management firms these days have everything your financial life may need. Mortgage, banking, credit cards, Trust services, investment management and financial planning, etc., all under one “roof” and accessible via one online portal/app. ONE username and password. Want to pay extra on your mortgage? Want to pay off a credit card? Want to move money from checking to savings? From savings to brokerage? Make an IRA contribution? That’s done in seconds with a few clicks. No multiple websites, phone calls, emails, voicemails, etc. This may become more important as you age and wish to simplify your life, especially if adult children are needed to step in to manage affairs.

And lastly, what you think may be is probably not diversification at all. Back when we were stock brokers 25+ years ago, the multiple firm approach made sense to achieve proper diversification as each broker had their own unique style. Some liked growth stocks, some liked value/dividend paying stocks, small, large, domestic, international, etc. Now, with most approaches to investment strategy, these components are already included in most client relationships via packaged investment vehicles (mutual funds, ETF’s, SMA’s). It’s just not necessary to have multiple firms and only adds complexity to one’s financial life.

Again, I’m not here to convince anyone otherwise, I’m just playing devil’s advocate and perhaps offering some insight maybe you haven’t previously considered.

 

[buffalojim]

For a detailed monthly budget, an excel spreadsheet is hard to beat. I built one with every spending category broken down into line items and it proved useful for my first year of retirement. PM me your email address and I’ll send you the template.

Still have the spreadsheet?

 

[Revolting Peasant]

To be clear, he is a financial advisor. (Apologize if stated planner) (Edward Jones) Even though I know him personally, I only have 25-30% of my monies under their "umbrella". (And one of the reasons I have monies with EJ is financial advise, even though they have higher expense ratios/IE reduce our yield) The remainder I self manage. (401K, traditional and Roth IRA, SEP IRA). But even when he evaluates my outside holdings, he has no issues with my diversified approach. Although he would like to see everything under his umbrella, I also state that having monies with different organizations is also part of my diversification strategy.

Lastly, the financial advisor does not track our spending. That is on us. EX If I had 10M for retirement but spent 1M a year in retirement, I likely would run out of money.

Retired at 56, now for almost 8 years.
You are not alone. I did the same thing. Same diversification strategy. Same EJ’s financial advise. I still self manage my 401k.
After Enron, scams, hackers, and other issues, I did not want all my eggs in one basket. Your golden eggs, trust no one.
I put almost all my expenses on one main credit card. Pay it off at the end of the month. The credit card software identifies and classifies expenses by type, and I can go in and change it. I can download it into a spreadsheet. Gives me a fairly clear spending picture. I hide it lol. My addiction to fine barrels and actions adds up pretty quick. EOY picture looking back will tell the tale on where your money goes. Various insurance is a problem right now, major $.
I had a mentor already retired for 20 years, while in my 40’s and 50’s. He knew his financial stuff. A lot of this was his advice. I miss him.