# Retirement?



## USAFretired (Jan 26, 2016)

I don't mean to make this long and drawn out but I feel I need to explain my situation as well as possible in order to get the best possible advice I can get.  I'm looking for opinions from anyone who is already retired or dwelling on the possibility of retirement just like I am.

I'm just your average middle class person who doesn't have millions saved.  As noted in my user name I am retired from the USAF.  I am currently 56 and trying to decide if I am ready to retire from my second job.  Here's what I do have that makes me wonder if I am ready to retire.

---Medical insurance for life from the military with very low premiums and deductables.
---$4000 per month retirement/disability income from the military for life.
---$500-$700 per month retirement from my current job when I retire for life.
---$300K in 401K and savings.
---A wife who still works and is willing to work for a few more years.  She makes about $36K a year.
---No mortgage.  House is paid off.
---No credit car debt.

MY heath is average.  I've had two major surgeries in the past 6 years and at least 5 other hospital stays because of the surgeries.  My biggest worry is working until 62 or 65 and not being in good health to enjoy retirement.  So, based on all that I've said can I afford to retire from my current $63K job a year and still be able to enjoy retirement?


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## tnthomas (Jan 26, 2016)

My numbers are very close to what you posted, except that I am 63, and have half the $$ of your 401k.    I wish I could 'advise' you. I don't know what the future will bring in my finances.    I just want to be able to afford health insurance for my wife and I, everything else takes backseat....Best wishes


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## imp (Jan 26, 2016)

Do you honestly believe, given the variables of recent health history and unknowns we are not aware of (smoker, heavy drinker, chronic minor illness, etc.) that you will be physically-equipped to enjoy retirement 6 to 9 years from now, as fully as you could, now?

I'll cite my own experience; it's unique, but similar in that I quit the "rat race" at 57, with one helluva lot less backing up that decision, financially, than you have. Wife quit working also, sold home outside Phoenix for $150 K, it was owned outright (only because I built it myself), bought a farm in Missouri for $40K, paid off in full $42K in credit card debt, then kicked back to await age 62 for the S/S bureaucracy to spit back some of my dough. Rough going, until then, PLUS, no medical coverage for either of us. Living expenses with no income until 62, ate up the nest egg pretty completely.

I was nuts to do what I did back in 1999, but given the experience of having survived to 73, I'd do it the same way over in a heart-beat!   Just my two cents.   imp


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## fureverywhere (Jan 26, 2016)

I am 53, by the grace of whatever hubby still works, Fair Credit Reporting and age I am out of work since October...he should be considering disability...yep when I find employment I will work until I die. Feel better?


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## imp (Jan 26, 2016)

fureverywhere said:


> I am 53, by the grace of whatever hubby still works, Fair Credit Reporting and age I am out of work since October...he should be considering disability...yep *when I find employment I will work until I die*. Feel better?



What, working is so enjoyable ya wanna die at it??    imp


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## Linda (Jan 27, 2016)

I think another side of the coin to look at is WHAT is retirement to you?  If you are going to sit and watch TV all day you just as well stay on the job as long as you can.  If you are going to retire and sit and obsess about what health problem you might have next, you just as well keep working.  

My husband has had 3 different kinds of serious cancer in the last 3 or 4 years plus he's diabetic and had hernia surgery.  He's happy he retired 6 or 7 years ago.  He fishes, works on cars and other projects around here, has an active sex life (much to the surprise of the Dr who removed his prostate), spends time with his dogs, lots of time helping other people, helps me work on jig saw puzzles, reads, keeps up on a couple TV shows that bore me (Gold Rush and Wild Alaska), putters around in his shop doing this and that, does all sorts of work around the house including building another car port a month or so ago.  If you don't have some enjoyable things lined up for retirement I wouldn't retire if I were you.


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## texmax (Feb 21, 2016)

USAFretired said:


> So, based on all that I've said can I afford to retire from my current $63K job a year and still be able to enjoy retirement?



That's something only you can really answer. You've told us about your income and savings, but not about other half of the equation: your expenses. If $63K per year ($5,250 per month) will cover your costs in retirement, then you can recreate it from your pensions and savings. $4000 military retirement/disability + $500 from your current job = $4,500. Withdrawing 4% per year from your $300K savings gives you another $1000 per month, for a total of $5,500. By that calculation, yes you can retire.
BUT ...
What will your actual expenses be in retirement? Your medical insurance premiums? Homeowners insurance, property tax, and maintenance? Do you want to travel frequently to visit kids/grandkids or vacations? Hobbies? Will your wife be covered by medical insurance when she retires? How about long-term care?

What I'm trying to say is, you'll want to figure out what your monthly expenses will be in retirement, and then see whether your retirement income will cover them. This worksheet might be good to start with: http://www.theglobeandmail.com/glob...irement-readiness-calculator/article28794648/

One last suggestion ... if you have major expenses coming up, like home remodeling or major car repairs, better to take care of those while you're still receiving a paycheck.

Incidentally, I'm retired USAF as well. Thank you for your service.


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