Forced retirement

[boondocks]

S***s getting "old" doesn't it????? I was devastated when the market crashed in 08 but at least I didn't panic and pull all my money out ... took alot of nerve to try to ride it out but when it hit right at where I was before 08, I moved it so fast your head would've spun. Had one advisor tell me that it was foolish to put it in such a low return safe account and I promptly found someone else to talk to. So many around here don't know anything about cattle, and many are too young to remember the long gas lines in the early 70's, or had grandparents to tell them about the recession years....and so many have no idea of how to grow their own gardens or put up food or as the Yankees say ; "Make it useful or use it up, MAKE IT DO, OR DO WITHOUT" . I am sure that is not just a yankee saying, but I grew up with it and even though I have not always made very good decisions, I can at least feed myself and survive...

If you retire on disability, don't you have to be careful about your activities? I'm not sure what disability policies would allow you to engage in such a physical activity as farming (or rental properties if you do the physical work yourself)...I just mention this because my mother had to retire early from teaching due to the aftereffects of a stroke. She really missed the classroom and wanted to volunteer a few hours/wk tutoring kids in science, but was told she would lose her disability coverage if she did so.
I'm sure you are checking all angles with the experts.

 

[hurleyjd]

I am nearly at "retirement age", 63, and due to the joint issues, will probably be retiring within the next 6 months. Have talked to social security, and the investment guy with our 401k at work who has been there for more than the 25 years I've been with the company, and he is close to retirement so has alot of the same concerns as us 60+ group. Also talked to 2 others close to retirement to see what their financial advisors have said and now am talking to a financial advisor of my own. Due to the joint issues, and 5 different doctors/orthopedic clinics in the last several years, my financial advisor is looking at the disability policy we have at work; and along with SS advice I will probably be going out on that. Plus the whole medical insurance thing that we are just now changing due to rising costs and my new deductible is 6,000...financial advisor is also looking into my staying til I am 63 1/2 so then if I go out on disability I will be able to get 18 months cobra to get me to 65 and medicare... SS said that with my age it is highly unlikely I would be refused since I already have a doctors recommendation that I am disabled and cannot continue at my job in my present condition. I always planned for the cattle to supplement my retirement, (haha) and I manage on not much more than what my SS will be so that is good. Also have some in a 401k that I put 5% in that the company matches, the rest I figured I could better spend on cows than lose it in the stock market. Also have a small pension that they are closing out this year so will have a little extra from that and since I am pretty self sufficient should get by okay. Am looking for a small place to buy as a rental, but have also been looking into commercial rentals; there is a couple of different groups that you can get into and "share the investment" kinda like buying into a mutual fund...but without the worry of the stock market falling apart like in 08. I lost 1/2 my meager 401k then, and it took 6 years to make it back before I moved it mostly into a very safe non-stock option that only makes about 2 % but it keeps slowly increasing. I keep talking to everyone I can and LISTENING to them to try to make the right moves. Who ever thought that "retiring" would be harder than a full time job.....

You need to check into drawing SS disability you can and will be covered by medicare at this age instead of 65. Cobra insurance will break you. You will draw the SS disability until you reach the required retirement age for your age group and at that point you start getting the Full SS instead of the SS disibility. Time to really start talking to the SS office near you.

 

[Bigfoot]

I don't pay social security, and I've never been exactly sure why.

 

[D2Cat]

I don't pay social security, and I've never been exactly sure why.

Do you work for the Rail Road, federal employee, religious exemption, non resident alien, temporary student exemption, foreign govt. employee, police and fire fighter, income limitations? All these are reasons.

 

[farmerjan]

boondocks : as long as I do not make any money as in paycheck, SS said that I would be able to qualify for the disability without penalty. And since my job as a milk tester requires me to be standing on my feet, in the milking parlour, ON CONCRETE, that is where the problem is and it would be different if I were to be sitting on a tractor, say raking hay. That said, Yes I would be very careful about what I did and "where" i was "helping" to do the farming. Since it would be for only about 1 1/2 years the SS guy told me that there would be little reason for them to question me, especially with the doctors letter of advising me that I am unable to continue my job due to the joint/ankle issues. But I am always open to anyones suggestions.... seems like your mom could have volunteered her time regardless....they did tell me that if I were to be paid cash .....not traceable income. It bugs me a bit that I have been paying in on the disability policy at work for the 25+ years I have been there, but cannot collect it and SS disability. Since we have short term and long term, I will be going out on short-term, then filing for SS disability.
hurlejd : yes, the SS guy did say that I would be smart to go ahead and apply for the SS disability as soon as I left work, that it would take a bit to get it but that at my age there shouldn't be any problem. He DID NOT tell me that I would qualify for medicare at that point though. So that is interesting... That would negate my worrying about any medical insurance; other than the fact that I have not yet managed to use the "deductible" up so that it ever started paying for anything; in essence I have been paying all my own medical for the past 10 years anyway....and the treatment that I am trying now is considered "experimental" and does not qualify for insurance coverage so it's on me anyhow....I have heard that cobra is expensive so it would be a definite plus if I qualified for medicare too. I don't like taking anything from the govt but figured I paid in for the past 40 years so am entitled to get some of it back....sad thing is, my son is 43 and has paid for the past 20 & will be paying in for the next 20+ more years, and yes it will be paying for me but he will probably never see any of it cuz it will be bankrupt by then I'm afraid.

 

[farmerjan]

Oh, it would be for 2 1/2 years as full retirement age for me is 66 not 65

 

[shaz]

Price, I've had rental property's, and I'm glad they're gone. You will probably do quit well with it. I couldn't stand it. Between the maintenance, insurance, taxes, and dead beats that wouldn't pay I had to get out. Still have one house left, had the same person in it for nearly 20 years. If they was all like her it'd be fine.

Been there. The norm is making about 10%. People who claim to make more are probably new in the business and haven't replaced a roof or heat pump.

 

[Rafter S]

I don't pay social security, and I've never been exactly sure why.

Do you work for the Rail Road, federal employee, religious exemption, non resident alien, temporary student exemption, foreign govt. employee, police and fire fighter, income limitations? All these are reasons.

...or a public school teacher (at least in Texas).

 

[Dave]

I retire the end of March. Back in about 2000 we had a boss who came in and changed our retirement program. We are close enough related to state government (although we are not state government) that we could get on the state public employees retirement system. I know at the time I was not in favor of the change. I was able to roll money out of our old 403B plan to buy up previous time I had worked here. Now as a near retirement I am really glad he changed it. Between that and SS I will make nearly what I make now. Close enough that once the wife gets to full SS age we will be making what we make now.

 

[RanchMan90]

Price, I've had rental property's, and I'm glad they're gone. You will probably do quit well with it. I couldn't stand it. Between the maintenance, insurance, taxes, and dead beats that wouldn't pay I had to get out. Still have one house left, had the same person in it for nearly 20 years. If they was all like her it'd be fine.

Been there. The norm is making about 10%. People who claim to make more are probably new in the business and haven't replaced a roof or heat pump.

Is that 10% annually?

 

[shaz]

Price, I've had rental property's, and I'm glad they're gone. You will probably do quit well with it. I couldn't stand it. Between the maintenance, insurance, taxes, and dead beats that wouldn't pay I had to get out. Still have one house left, had the same person in it for nearly 20 years. If they was all like her it'd be fine.

Been there. The norm is making about 10%. People who claim to make more are probably new in the business and haven't replaced a roof or heat pump.

Is that 10% annually?

Yes, averaged over time. You can get about the same thing in REITs but not much capital appreciation.

 

[Caustic Burno]

The big thing most don't account for is how is my income going to keep up with inflation.
When I retired in 07 income to maintain a comfortable lifestyle is 700 dollars more today.

 

[Anonymous]

The big thing most don't account for is how is my income going to keep up with inflation.
When I retired in 07 income to maintain a comfortable lifestyle is 700 dollars more today.

That's what I've been saying. How can you even come close to making an educated guess what the cost of living will be in 20 years, or even 5 years for that matter. We received our 2017 health insurance premiums today. A few years ago we were paying $800 every other month. Then $800 per month, then $1000, then $1300. Now its $1800 PER MONTH. We are in our 40s with 3 daughters. Affordable Care Act. HA!!! I will retire when they shovel dirt over me.

 

[Caustic Burno]

The big thing most don't account for is how is my income going to keep up with inflation.
When I retired in 07 income to maintain a comfortable lifestyle is 700 dollars more today.

That's what I've been saying. How can you even come close to making an educated guess what the cost of living will be in 20 years, or even 5 years for that matter. We received our 2017 health insurance premiums today. A few years ago we were paying $800 every other month. Then $800 per month, then $1000, then $1300. Now its $1800 PER MONTH. We are in our 40s with 3 daughters. Affordable Care Act. HA!!! I will retire when they shovel dirt over me.

It is doable we retired with 2.5 times the income needed to live comfortable at the time. That is figuring on the average life expectancy .
You have to have your ducks lined up going in on debt. You have to be wise on money management as every year you get older the less potential to make it up to keep you from eating cat food or having the government to get everything but your last 2k.
Burying your money in a coffee can doesn't cut it either.
Lot of expenses go down lot go up like car insurance starting at 60 then they keep popping you, of course medical and health care.

 

[BK9954]

If I lost my job today it would hurt but we would make it. Me and my wife work full time. Would have to make budget cuts. I WILL NEVER RETIRE. I will work until the day I die. I am almost 40 and have hardly anything saved in 401K. We have some property already paid off. The house will be paid off in less then 10 years. Either my career, raising cattle, goats, chickens, selling fruits and veggies at the farmers market or being a greeter at WalMart but I will work until the day I die. I was made that way. I dont have a retirement plan.

 

[Caustic Burno]

If I lost my job today it would hurt but we would make it. Me and my wife work full time. Would have to make budget cuts. I WILL NEVER RETIRE. I will work until the day I die. I am almost 40 and have hardly anything saved in 401K. We have some property already paid off. The house will be paid off in less then 10 years. Either my career, raising cattle, goats, chickens, selling fruits and veggies at the farmers market or being a greeter at WalMart but I will work until the day I die. I was made that way. I dont have a retirement plan.

Your not in total control of that plan.
You assume that your body and health will cooperate with the plan
You are one day away from not working ever again.

 

[Cross-7]

CB you aren't painting a very good picture of the golden years

It is doable we retired with 2.5 times the income needed to live comfortable at the time. That is figuring on the average life expectancy .
You have to have your ducks lined up going in on debt. You have to be wise on money management as every year you get older the less potential to make it up to keep you from eating cat food or having the government to get everything but your last 2k.
Burying your money in a coffee can doesn't cut it either.
Lot of expenses go down lot go up like car insurance starting at 60 then they keep popping you, of course medical and health care.

 

[slick4591]

I'm not on expert on the disability part because my wife deals with it. She has a son that qualifies because he is MR. She found out the hard way that he can only have a max of 2k in the bank. Grandma gave him some money and mom deposited it in his savings. She declared it on one of the countless forms they send you and the next thing she knew they had cut his benefits until they were paid back.

 

[hurleyjd]

I'm not on expert on the disability part because my wife deals with it. She has a son that qualifies because he is MR. She found out the hard way that he can only have a max of 2k in the bank. Grandma gave him some money and mom deposited it in his savings. She declared it on one of the countless forms they send you and the next thing she knew they had cut his benefits until they were paid back.

You may being thinking about medicaid coverage. That is the way that works. Once on SSI there is not limit of the assets you can own and the same if you are on SS.

 

[dun]

If I lost my job today it would hurt but we would make it. Me and my wife work full time. Would have to make budget cuts. I WILL NEVER RETIRE. I will work until the day I die. I am almost 40 and have hardly anything saved in 401K. We have some property already paid off. The house will be paid off in less then 10 years. Either my career, raising cattle, goats, chickens, selling fruits and veggies at the farmers market or being a greeter at WalMart but I will work until the day I die. I was made that way. I dont have a retirement plan.

Only one problem with the work till you die concept. Health has a tendency to throw a monkey wrench in the works.