I was able to retire at 63 because I went on my wife's insurance and I had invested in the stock market over the last 15 years fairly heavy and it was a strong time for the market. I could not have retired without investing in my 401k etc. I will say take into consideration you will be paying Medicare and taxes on your social security so the number that you are presented with when calculating needs to take into consideration those factors factors. it kind of caught me by surprise. Overall social security was much easier to deal with than one of my pensions who were just a pain in the butt. Once everything is taken care of it's a great time for life!
Social Security Benefits/Retirement Lesson
- Thread starter middleagecrisis
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I have always said, if a person has NO debt, life is easy enough no matter. But my standard of living I require, desise..is not that high on the hog.
Bad part so inflation will eat away at a fixed income.
Bad part so inflation will eat away at a fixed income.
middleagecrisis
Well-Known Member
So much good information is being shared in this thread!I know this situation is niche specific, but even younger folks who aren’t going to be taking retirement anytime soon are getting a good idea of what’s involved to actually get to that point. One of the “wins” in my life was to convince my son to become knowledgeable in his TSP (401k plan) and invest enough to maximize employer matching when he was in his early 20’s. Thanks everybody for contributing your experiences to this post!
I had to get the ID thing a few months ago. Same stupid stuff. It would not recognize my drivers license, concealed/carry or the other photo id I had. Ended up with face time phone call and it was done in 15 minutes. Most of those people are gems. Just hang in there for a little longer.
That employer matching in a 401K etc. We used to have an 6% limit with the employer matching up to 3% of our pay as contribution. Instant 50% return. Don't turn that down.
The other thing I say. If someone is under 35, do not invest in anything but higher risk investments like the QQQ/Nasdaq. No bonds/mutual funds (high fees on MF) and stay away from those guaranteed growth things that limit upside (Annuity type garbage in a different wrapper). As much as I dislike Jim Cramer, the idea that the first 10K invested should go in the SP500/SPY isn't a bad approach. Then start grabbing individual stuff and learn how to work with options, especially if the funds are in a self directed IRA. Most money managers don't beat the market after fees. Do it yourself, stick with the big etfs SPY QQQ IWM to start and save that 1+% you lose every year for under performance!
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JDMopar
Well-Known Member
I was 20 years old in 1978, when I went to work for Carolina Power & Light. I had to wait 6 months to participate in the 401K. When it came time for my first raise at 6 months, my boss brought me in for the sit down. He told me the most important thing I need to do for 65 year old me, 45 years from now is to first, continue to work safe, and second, to put at the very least into my 401K as the company would match, which was 6%. I trusted that old man (he was 58!) and did as he said. I never missed the money I never saw and after CP&L morphed itself into Progress Energy, we had to ability to manage our 401K ourselves thru Vanguard. I got pretty good at monkeying with mine, and for several years in the early 2000's I made more money on my 401K than I did with salary and OT. When 65 year old me was retiring in 2023, I wished Mr. Batt H. Davis was still around so I could thank him for the sound advice.
Docmcg
Well-Known Member
I retired at 63 (12 years ago). Going away breakfast I advised the young ones to start with 10% and add 1% each year when they get a raise. 10 years later they’re putting in 20% and don’t even know it. In 30-35 years they could retire with $1 mil +. Told them to ask me how I know. How many actually listened, don’t know.
Inertia
Well-Known Member
bcschief
Well-Known Member
I still have mine that I got in 9th grade.
Docmcg
Well-Known Member
Still have my original from 61 years ago!
mopowers
Well-Known Member
Not exactly SSI-related, but what would you guys recommend for additional retirement savings/investment vehicle(s) for someone who already maxes out their deferred comp and Roth options?
Medicare Plan B premium is going up $17.00 starting in 2026.
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Open a taxable account and invest there. No day trading, long term holdings only. Minimize any taxable event other than dividends, etc.
Buy lower priced equites that mirror SP500/nasdaq. No fricken Mutual Funds! Get 100 shares and start selling calls on them. Buy shares with the CC premium received, like a monthly dividend. Set the account up so transactions are "last in-first out". Keep enough liquid cash in the account, some type of MM vehicle that pays 4%+ now that allows for margin on your shares at a high percentage. Schwab has SNOXX at around 90% iirc. If you know that you will be called away on your shares, buy them at market before close. The last in shares go out and you may book a loss... even though you have a gain + cc premium. Thst is where a sharp manager or cpa on the ball with tax issues gets you more benefit than his fee! I've posted some of this stuff in that other investing thread.
I had a client that owned shares with a $1 basis and was selling calls at $150. Warned that he was playing with fire. Didn't do what I suggested and was first in first out accounting. He got called away, too lazy to roll the option another cycle and take in $, got a hefty $149 gain on 500 shares of stock. 75K in profit added to his tax return via cap gains at 20%, 15K to uncle sam. Had he done it the way I suggested, LIFO and buy shares near close that he knew would be called away, he would have booked a small loss. We can manage the loss away with time, use it to offset gains. Once you trigger the cap gain, you are essential done.
If at the end of a year, you have some losers you want to cull, sell them along with some that are gains. Net it to zero profit and reallocate into a different vehicle.
As an investor you are limited on Cap Gain losses to 3K a year, sucks if you have a real stinker hit you.
mopowers
Well-Known Member
So, no other tax-advantaged options? I guess at that point it's just a matter of making sure any gains are long-term.
For the younger crowd
Whole life insurance.
I started two policy's in my early Twenty's
Part of the premiums paid I can invested and move around as I desire.
I can borrow from the cash value policy.
4% interest
marksmopars
Well-Known Member
I retired at 66 and six months two years ago and would say my experience with ss was very positive. Good luck and happy retirement
Inertia
Well-Known Member
What Crackedback said .. I'm 75 now, retired early 62.
Work the market a coupla hours daily now, - as a sport.
I did similar after I realized my Banks Mutual Funds were worth less than my money paid in.
Changed to "self directed Retirement Fund" and bought shares of the Bank. Got way better returns.
Then bought a few ( 1 or 2) shares of the " best of breed' stocks.
Apple, Microsoft, Dell, GE, Northern Telecom ( Nortel).
These stocks and others have doubled/tripled numerous times, then split, Netflix just split 10 for 1.
Sell 1/2, take cash. - the stocks you keep are essentially free.
Started 25 years ago, - the $100k+ I play in the market now, - is all free money. - Money I made on the market investing in "blue chip" stocks.
There are Electronically Traded "Mutual" Funds (ETFs)
that hold specific stocks like "tech, real estate, others" paying huge monthly dividends for retirement income, often tax free.
This is stuff you can do yourself no fees -, while here .
Do some research on what Crackedback, mentioned using less cash intensive "puts & calls", - way less cash intensive than my style .
- Look up "OPTION TRADING".
The great thing with options is you always know what you stand to loose, much less than buying the stock itself, and losing much more $$$
Work the market a coupla hours daily now, - as a sport.
I did similar after I realized my Banks Mutual Funds were worth less than my money paid in.
Changed to "self directed Retirement Fund" and bought shares of the Bank. Got way better returns.
Then bought a few ( 1 or 2) shares of the " best of breed' stocks.
Apple, Microsoft, Dell, GE, Northern Telecom ( Nortel).
These stocks and others have doubled/tripled numerous times, then split, Netflix just split 10 for 1.
Sell 1/2, take cash. - the stocks you keep are essentially free.
Started 25 years ago, - the $100k+ I play in the market now, - is all free money. - Money I made on the market investing in "blue chip" stocks.
There are Electronically Traded "Mutual" Funds (ETFs)
that hold specific stocks like "tech, real estate, others" paying huge monthly dividends for retirement income, often tax free.
This is stuff you can do yourself no fees -, while here .
Do some research on what Crackedback, mentioned using less cash intensive "puts & calls", - way less cash intensive than my style .
- Look up "OPTION TRADING".
The great thing with options is you always know what you stand to loose, much less than buying the stock itself, and losing much more $$$
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BSB67
Well-Known Member
Do not rely on what anyone else says or does. You and your significant other need to decide what you want your retirement to look like all of the way to end of days for you both. Furthermore, none of the models I’ve seen take into account all of the variables. They are very over simplistic.
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BSB67
Well-Known Member
Max out your HSA. Use a institution that has investment options
mopowers
Well-Known Member
Thanks. I'm not too familiar with HSA's. I'll have to look them up.
BSB67
Well-Known Member
Your current health insurance coverage needs to meet certain criteria. The term is “qualified high deductible health insurance plan”. I honestly don’t know exactly what that is. But that is what my employer offers.
If it’s available to you, it is better than a Roth. We max that out. $10,750 in 2026 for us. It’s for medical expenses, but we don’t use it now. We just pay our medical expenses out of pocket and let the HSA grow.
HSA work. 20% penalty for early withdrawls that are not qualified medical expenses. Know the landmines before you step in.
Once you hit 65, taxed same as a conventional IRA. Since it goes in tax free, distributions are taxable.
Must have changed the rules, IIRC, early on HSA's weren't allowed to carry balances forward. It was a use it or lose it deal at year end. If they are allowed to carry balances, decent tax deferred approach.
Once you hit 65, taxed same as a conventional IRA. Since it goes in tax free, distributions are taxable.
Must have changed the rules, IIRC, early on HSA's weren't allowed to carry balances forward. It was a use it or lose it deal at year end. If they are allowed to carry balances, decent tax deferred approach.
BSB67
Well-Known Member
I’m over 65. No tax in or out. Average annual medical expenses in retirement is over $6,500 per person, not including elderly or long term care. Considering where medical expenses are going, hard to imagine a down side to maximizing this opportunity. Passes tax free to your spouse. Taxable to other heirs.
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bcschief
Well-Known Member
Whole life insurance in any form is a horrible investment. Life insurance is a temporary need and only for income replacement. Term life for about 30 years an while your children are young is important
Young ish guy. Get the cheap term, take the difference between that and whole lie, put that is a good mutual fund.
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