OT:Retirement

[Duneaux Harm]

Just curious. At the end of May, I will be retired for two years and a I am still adjusting to many things. It feels like now I am moving into a more sustained phase where things won’t change much.

The first months were all about Covid and then the election, Then we decided to move out west and in reality, settling in hadn’t occurred yet.

Occasionally I think about a part time job, but to be honest, why pay for gas at todays prices to go to a part time gig. If there would be remote work for CIA type monitoring of countries around the globe that would be fun. LOL. Any secret agents for the U.S. please direct message me for any opportunities.

But in all seriousness waking up, reading the news, reading the sports, reading this damn website, stretching to start my day, bicycling, running (after Achilles recovery), hiking, swimming, enjoying all the sunny weather has to offer pretty much fills up my day. At my neighborhood we have a Mens coffee three days a week that essentially is this board live and in person. Politics, sports, complaining.

Th couple of things I am still a bit mystified with right now is not having any actual active income. I have a pension (thank God for working at a place that does that). Social security in a few years (don’t always believe waiting longer is actually better). And finally a 401K that I stopped looking at recently because market guys get spooked by butterfly farts so they get really spooked by global world wars. I know that between my pension and social security I should have no worries in my life. The 401K is being treated as a fund that I don’t want to have to touch until required withdrawals if possible. And even then I will mostly want to look at other investment options.

So, just asking opinions of folks who have been retired longer if I am missing anything? I enjoy what retirement is but I am still so new to this I Am wondering what else comes up. By the way, I am pretty healthy. I take no medicines for anything which always shocks any doctor I see.

One thing that keeps nagging me is that if we are facing an end of days war with Russia, China, India, Iran and North Korea, I am trying to figure out what bucket list stuff to do before I am melted away. Crazy times.

 

[bayardstreet]

Great part time job for you would be to become a mercenary. Great pay and always cash under the table so it won’t screw up your retirement money streams versus your tax liability.

it’s exciting and dangerous work so you will never be bored. You get to visit some interesting countries and most of all you will be doing your country a great service.

finally you will be the most interesting person at your neighborhood coffee sessions.

 

[ChazzMo]

Just curious. At the end of May, I will be retired for two years and a I am still adjusting to many things. It feels like now I am moving into a more sustained phase where things won’t change much.

The first months were all about Covid and then the election, Then we decided to move out west and in reality, settling in hadn’t occurred yet.

Occasionally I think about a part time job, but to be honest, why pay for gas at todays prices to go to a part time gig. If there would be remote work for CIA type monitoring of countries around the globe that would be fun. LOL. Any secret agents for the U.S. please direct message me for any opportunities.

But in all seriousness waking up, reading the news, reading the sports, reading this damn website, stretching to start my day, bicycling, running (after Achilles recovery), hiking, swimming, enjoying all the sunny weather has to offer pretty much fills up my day. At my neighborhood we have a Mens coffee three days a week that essentially is this board live and in person. Politics, sports, complaining.

Th couple of things I am still a bit mystified with right now is not having any actual active income. I have a pension (thank God for working at a place that does that). Social security in a few years (don’t always believe waiting longer is actually better). And finally a 401K that I stopped looking at recently because market guys get spooked by butterfly farts so they get really spooked by global world wars. I know that between my pension and social security I should have no worries in my life. The 401K is being treated as a fund that I don’t want to have to touch until required withdrawals if possible. And even then I will mostly want to look at other investment options.

So, just asking opinions of folks who have been retired longer if I am missing anything? I enjoy what retirement is but I am still so new to this I Am wondering what else comes up. By the way, I am pretty healthy. I take no medicines for anything which always shocks any doctor I see.

One thing that keeps nagging me is that if we are facing an end of days war with Russia, China, India, Iran and North Korea, I am trying to figure out what bucket list stuff to do before I am melted away. Crazy times.

I passed 2 years in retirement in January.

probably 2 or more times per week, either my wife or I will say: “guess what? WE DON’T HAVE TO GO TO WORK TOMORROW!”

it’s truly wonderful. We don’t work and they still send us money every month. We’re living on 3 out of 4 retirement income sources and holding one in reserve.

 

[CaptainMurphy]

I'm envious of you guys. I'm 43 and am bored senseless with my career. But I make good money and don't want to take the pay cut yet. My goal is downshift to something more enjoyable in 5 years (if I can pay the house off by then) and then retire at 53. I've got a Roth, a traditional IRA, and a 401K. I'll start the Roth conversion ladder with the goal of having everything in my Roth by 62. And the beauty of a Roth is that you can start withdrawing contributions at any time after 5 years. Then I'll start taking SS early at 62.

I'm following the FIRE strategy where I need to get to a specific number and then my withdrawls, from that point on, should never exceed the gains. We shall see if I ever get there with things being the way they are today.

 

[HolyPitt]

I'm approaching retirement in a few years. Wondering the same thing you are thinking about now. I worked with guys who were going to retire, COVID happened, worked from home with spouse and pulled papers because they said they couldn't spend all day with the spouse. I dont want to be the person who ends up sitting in front of the tv all day and do nothing. Hobbies eventually become old, when you have all the time to do them. Staying physically and mentally active and engaged socially with others is the most important things.

 

[recruitsreadtheseboards]

For the first time in my life, I have begun to think about retirement. I am probably 10 years away, but my god it goes fast. Unfortunately I am probably the first group of folks were defined pensions went away for most companies as they switched to 401k.

 

[bayardstreet]

I retired at 62. Just turned 66 so my first social security check hits the cookie jar next week. I take money from dividends from a brokerage account and also started drawing down on my IRA. Most of my plan is strategic with the help of a financial planner and an accountant. It’s a must to keep the tax situation in check. The other part of my plan is to be a completely undisciplined party machine because as my father once said. “This isn’t a dress rehearsal for your next life”. You have to cram as much fun into the remaining active years as humanly possible.

 

[benchwarmer04]

good for you! I would try to get into yoga, meditation, and any introspective exercises.get to know yourself. . that three times a week mens activity is great for your emotional balance.

 

[NCPitt]

Just curious. At the end of May, I will be retired for two years and a I am still adjusting to many things. It feels like now I am moving into a more sustained phase where things won’t change much.

The first months were all about Covid and then the election, Then we decided to move out west and in reality, settling in hadn’t occurred yet.

Occasionally I think about a part time job, but to be honest, why pay for gas at todays prices to go to a part time gig. If there would be remote work for CIA type monitoring of countries around the globe that would be fun. LOL. Any secret agents for the U.S. please direct message me for any opportunities.

But in all seriousness waking up, reading the news, reading the sports, reading this damn website, stretching to start my day, bicycling, running (after Achilles recovery), hiking, swimming, enjoying all the sunny weather has to offer pretty much fills up my day. At my neighborhood we have a Mens coffee three days a week that essentially is this board live and in person. Politics, sports, complaining.

Th couple of things I am still a bit mystified with right now is not having any actual active income. I have a pension (thank God for working at a place that does that). Social security in a few years (don’t always believe waiting longer is actually better). And finally a 401K that I stopped looking at recently because market guys get spooked by butterfly farts so they get really spooked by global world wars. I know that between my pension and social security I should have no worries in my life. The 401K is being treated as a fund that I don’t want to have to touch until required withdrawals if possible. And even then I will mostly want to look at other investment options.

So, just asking opinions of folks who have been retired longer if I am missing anything? I enjoy what retirement is but I am still so new to this I Am wondering what else comes up. By the way, I am pretty healthy. I take no medicines for anything which always shocks any doctor I see.

One thing that keeps nagging me is that if we are facing an end of days war with Russia, China, India, Iran and North Korea, I am trying to figure out what bucket list stuff to do before I am melted away. Crazy times.

I retired at 51 and will be 66 this year. My retirement transition was instantaneous. While early ion my career, I defined my life by my job, that changed later and I retired as soon as I met the criteria for retirement benefits.

There is one thing that I missed from your post that also drove my retirement and continues to guide me. That is family. My family is scattered all over - FL, PA, NC, CO, and CA. My mother is 85. I was determined to spend more time with them, especially her. That has worked out well as we all are closer than ever before and it is a great joy in my life.

Another thing you didn't say is travel. Covid dampened ours but we are getting geared up to do more this year. Related the previous paragraph to it, we travel a lot with family. We just spent a week in FL with my sister from PA and we will spending a week in Acadia NP later this year with all my siblings.

 

[Duneaux Harm]

I retired at 51 and will be 66 this year. My retirement transition was instantaneous. While early ion my career, I defined my life by my job, that changed later and I retired as soon as I met the criteria for retirement benefits.

There is one thing that I missed from your post that also drove my retirement and continues to guide me. That is family. My family is scattered all over - FL, PA, NC, CO, and CA. My mother is 85. I was determined to spend more time with them, especially her. That has worked out well as we all are closer than ever before and it is a great joy in my life.

Another thing you didn't say is travel. Covid dampened ours but we are getting geared up to do more this year. Related the previous paragraph to it, we travel a lot with family. We just spent a week in FL with my sister from PA and we will spending a week in Acadia NP later this year with all my siblings.

My parents are both passed. The only person I had in PA was and aunt that passed. My siblings are all older than me so at this point in life they are more like strangers than friends I currently have.

I don’t mention travel because we are adjusting to that here. Right? 59 years on east coast meant vacations in Duck and then Kiawah. We would fly to Palm Springs and drive in to LA. Now we are trying to figure out which California beach to vacation at each year. Probably Huntington Beach. I know Rocky Point is closer but I will admit I am not interested in having to think about safety of driving through Mexico to get there.

 

[HailToPitt1985]

My parents are both passed. The only person I had in PA was and aunt that passed. My siblings are all older than me so at this point in life they are more like strangers than friends I currently have.

I don’t mention travel because we are adjusting to that here. Right? 59 years on east coast meant vacations in Duck and then Kiawah. We would fly to Palm Springs and drive in to LA. Now we are trying to figure out which California beach to vacation at each year. Probably Huntington Beach. I know Rocky Point is closer but I will admit I am not interested in having to think about safety of driving through Mexico to get there.

You said the magic word...Kiawah. My wife and I have been vacationing there since the early 80's and were just there last year for a little while. Sorry I didn't buy property there back in the 80's. It would be worth millions now.

Good luck with your new life in retirement. Just have fun. As someone else said, this isn't a dress rehearsal. I'm not retired yet, but I enjoy my work and it pays really well. I'm 70, will be 71 in August. I've been collecting 3 pensions since I was 65 and have a 401K with my employer and an IRA. My wife and I are also collecting SS for the last couple of years. I think I'll work until either when it's not fun, until I can get back some of what was lost in my 401K in the recent downturn, and/or until I just feel like traveling more and working less.

 

[Duneaux Harm]

You said the magic word...Kiawah. My wife and I have been vacationing there since the early 80's and were just there last year for a little while. Sorry I didn't buy property there back in the 80's. It would be worth millions now.

Good luck with your new life in retirement. Just have fun. As someone else said, this isn't a dress rehearsal. I'm not retired yet, but I enjoy my work and it pays really well. I'm 70, will be 71 in August. I've been collecting 3 pensions since I was 65 and have a 401K with my employer and an IRA. My wife and I are also collecting SS for the last couple of years. I think I'll work until either when it's not fun, until I can get back some of what was lost in my 401K in the recent downturn, and/or until I just feel like traveling more and working less.

Kiawah is heaven. Some weeks the winds are a sand storm but still awesome.

 

[HailtoPitt]

I retired at 51 and will be 66 this year. My retirement transition was instantaneous. While early ion my career, I defined my life by my job, that changed later and I retired as soon as I met the criteria for retirement benefits.

There is one thing that I missed from your post that also drove my retirement and continues to guide me. That is family. My family is scattered all over - FL, PA, NC, CO, and CA. My mother is 85. I was determined to spend more time with them, especially her. That has worked out well as we all are closer than ever before and it is a great joy in my life.

Another thing you didn't say is travel. Covid dampened ours but we are getting geared up to do more this year. Related the previous paragraph to it, we travel a lot with family. We just spent a week in FL with my sister from PA and we will spending a week in Acadia NP later this year with all my siblings.

Acadia is a nice place. Try the popovers at Jordan Pond.

 

[Parkview57]

At the end of May, I will be retired for two years

Congratulations, it is great to see people who have worked hard their whole life get a chance to see the fruits of their labor! If you don't have to get a "job" because of money then don't!!!! I am not retired (yet) but many friends and guys i worked with have. Some didn't make it and some either had health problems or spouse does that really limit their plans. So since you asked for advice, I say ,the only thing to work on is your health!

 

[HailtoPitt]

For anyone bored in retirement, try Age of Empires 2. The greatest computer game of all time. You will wonder where the time went.

 

[HailToPitt1985]

Congratulations, it is great to see people who have worked hard their whole life get a chance to see the fruits of their labor! If you don't have to get a "job" because of money then don't!!!! I am not retired (yet) but many friends and guys i worked with have. Some didn't make it and some either had health problems or spouse does that really limit their plans. So since you asked for advice, I say ,the only thing to work on is your health!

I agree and second that. Stay healthy any way you can so you can enjoy your life to its fullest for many years to come. Not one of us knows when this adventure will be over, so just stay healthy and make it last as long as possible.

 

[pittdan77]

Can't believe anyone would leave the utopian paradise of the 9-5 world but to each their own.

Seriously, congrats and enjoy yourself. My dad stayed active as long as he could and did a lot of reading. He's approaching 82 and still pretty sharp.

 

[jivecat]

Hope you enjoy it. Gen X is probably going to get a shell of the social security you get despite paying into it and will also have to pay off the loans of the Millennials. We got hosed.

 

[bayardstreet]

In 2006 I take the bride to Kiawha and we stay at the sanctuary. I meet a friend of mine for a round at the Ocean Course. The wife stays back for a spa day. They pair us up with a young man and his 12 year old son. This guy was a scratch golfer and had won a handful of amateur titles in the state of Georgia. Best golf day of my life. He gives me pointers when needed. I shoot an 87 with no lost balls. The scratch takes a double bogey on #17 due to a huge gust of wind. Other than that he was even par on the round. His score was 74 from tips. Watching a stud bomb from the tips at the ocean course was worth the $280 green fee.

a crab cake and a beer that evening followed by a nice late evening walk in the beach.

A day when all men are Kings

 

[FreeportPanther]

Just curious. At the end of May, I will be retired for two years and a I am still adjusting to many things. It feels like now I am moving into a more sustained phase where things won’t change much.

The first months were all about Covid and then the election, Then we decided to move out west and in reality, settling in hadn’t occurred yet.

Occasionally I think about a part time job, but to be honest, why pay for gas at todays prices to go to a part time gig. If there would be remote work for CIA type monitoring of countries around the globe that would be fun. LOL. Any secret agents for the U.S. please direct message me for any opportunities.

But in all seriousness waking up, reading the news, reading the sports, reading this damn website, stretching to start my day, bicycling, running (after Achilles recovery), hiking, swimming, enjoying all the sunny weather has to offer pretty much fills up my day. At my neighborhood we have a Mens coffee three days a week that essentially is this board live and in person. Politics, sports, complaining.

Th couple of things I am still a bit mystified with right now is not having any actual active income. I have a pension (thank God for working at a place that does that). Social security in a few years (don’t always believe waiting longer is actually better). And finally a 401K that I stopped looking at recently because market guys get spooked by butterfly farts so they get really spooked by global world wars. I know that between my pension and social security I should have no worries in my life. The 401K is being treated as a fund that I don’t want to have to touch until required withdrawals if possible. And even then I will mostly want to look at other investment options.

So, just asking opinions of folks who have been retired longer if I am missing anything? I enjoy what retirement is but I am still so new to this I Am wondering what else comes up. By the way, I am pretty healthy. I take no medicines for anything which always shocks any doctor I see.

One thing that keeps nagging me is that if we are facing an end of days war with Russia, China, India, Iran and North Korea, I am trying to figure out what bucket list stuff to do before I am melted away. Crazy times.

Just a thought about that 401k. You might want to think about doing annual conversions into a Roth to lessen the impact of those mandatory withdrawals.

Don't know what your situation is, but remember, when those withdrawals start, the Gov will tell/require you to convert a certain amount based on your age. This could really knock you for a loop tax wise, and if you would unfortunately pass away, and your wife would be responsible, remember she'll be paying as a single filer, not jointly with you, and that will make the tax even higher.

Paying the tax on these investments is inevitable. What I've done is project how much I can convert each year to keep my income below where the tax bracket rate really jumps. You also want to be aware of the level of income where it will affect your medicare payment when you are eligible.

Pay the taxes out of non deferred $$ if possible. That preserves the tax shielding of your deferred money. It also gives you some control over how much tax you're required to pay instead of being told later on.

It also shelters any $ you pass on to heirs, and doesn't shoulder them with tax situations.

Mandatory conversions don't start until age 72, but the actuary table might mean you have to withdraw a pretty hefty sum each year and the tax bite, and the affect on your SS and Medicare will be severe.

Just something to think about. Talk it over with an estate planner or tax accountant for advice.

 

[HailToPitt1985]

Kiawah is heaven. Some weeks the winds are a sand storm but still awesome.

You said it about the wind sometimes. But Kiawah is one place you can go and just forget the rest of the world is out there. Your job, anxieties, stresses all disappear just listening to the ocean and walking that pristine 10 mile beach. My only regret is that now more people are discovering it and sometimes this makes for some additional people where there weren't any before. It's still not as crowded as Hilton Head and I hope it never gets there. Kiawah is just a very special place. I've been to beaches all over the country and Kiawah surpasses all of them. At least in my humble opinion.

 

[HailToPitt1985]

Kiawah is heaven. Some weeks the winds are a sand storm but still awesome.

You said it about the wind sometimes. But Kiawah is one place you can go and just forget the rest of the world is out there. Your job, anxieties, stresses all disappear just listening to the ocean and walking that pristine 10 mile beach. My only regret is that now more people are discovering it and sometimes this makes for some additional people where there weren't any before. It's still not as crowded as Hilton Head and I hope it never gets there. Kiawah is just a very special place. I've been to beaches all over the country and Kiawah surpasses all of them. At least in my humble opinion.

 

[CaptainMurphy]

What I've done is project how much I can convert each year to keep my income below where the tax bracket rate really jumps.

That is the tricky part for me, given my trad IRA and 401K are going to be much larger than my roth when I retire. Keeping it under 40K will be ideal, though I'm sure the top of that tax bracket will expand with inflation. I'd like to start converting now but don't want to take the tax hit on top of my salary.

 

[rutgersdave]

I retired at 53 in 2010 and I am now 65 years old. I just started my social security last August and started receiving a small pension when I reached 65. I was living off my savings the last 12 years but my asset balance didn’t drop. I also was thinking about a PT job especially during the 12 years I didn’t have an income but never did get one. It takes about 2-3years to figure out what you want to do during your retirement years and feel comfortable. I didn’t know if I had enough assets but majority of my assets go to the next generation. If you can, do a little traveling when you can since you don’t know how long your health will last. At 65-70 years old, you will start encountering some health problems, hopefully not too serious. I also took care of my father who passed last year at 96 and still taking care of my mother 91. I spend a lot of time with siblings and relatives.

 

[Parkview57]

We got hosed.

Not really, these are government programs, so you get the government you elect.

 

[rutgersdave]

Hope you enjoy it. Gen X is probably going to get a shell of the social security you get despite paying into it and will also have to pay off the loans of the Millennials. We got hosed.

They should receive a huge inheritance from their parents. Pretty much all the assets I accumulated as well as my siblings will give the kids a net worth in the 1-5% level. Our family grew up in the ghetto so we did well.

 

[CaptainMurphy]

Hope you enjoy it. Gen X is probably going to get a shell of the social security you get despite paying into it and will also have to pay off the loans of the Millennials. We got hosed.

I don't think we'll get a shell of social security, at least us Gen X-ers. It may not be full benefit but I don't expect it to be greatly reduced. I am factoring it into my calculations but its a minor part of my future projections.

There was a proposal (I forget what it is called) to reduce SS benefits for those with substantial other retirement benefits. That would be tantamount to theft IMO, though I doubt it ever happens.

 

[Parkview57]

I doubt it ever happens.

Why? It seems certain in the current social climate to me.

 

[anon_4dfwm2pijbr0a]

I have just a short 3 yrs and 9 months until I slide my papers across the table. Luckily I'll still be a young 48 when I do that. Love what I do but I'm looking forward to having zero responsibility and getting a chance to put some stamps on my passport.

I'll definitely get bored but will just go to a swanky country club and work in the groundskeeping department. I did that at Nevillewood for 2 summers in college and loved. Something about cutting razor thin straight lines in grass that makes me happy.

 

[Parkview57]

Luckily I'll still be a young 48 when I that. Love what I do but I'm looking forward to having zero responsibility and getting a chance to put some stamps on my passport.

That is impressive! good luck!

 

[CaptainMurphy]

Why? It seems certain in the current social climate to me.

I don't think it is. I think they are far more likely to raise/eliminate the social security tax cap than start cutting benefits to those with 401ks, IRAs, etc...

 

[TIGER-PAUL]

No influence from where your kids are? Grandkids?

 

[Duneaux Harm]

Just a thought about that 401k. You might want to think about doing annual conversions into a Roth to lessen the impact of those mandatory withdrawals.

Don't know what your situation is, but remember, when those withdrawals start, the Gov will tell/require you to convert a certain amount based on your age. This could really knock you for a loop tax wise, and if you would unfortunately pass away, and your wife would be responsible, remember she'll be paying as a single filer, not jointly with you, and that will make the tax even higher.

Paying the tax on these investments is inevitable. What I've done is project how much I can convert each year to keep my income below where the tax bracket rate really jumps. You also want to be aware of the level of income where it will affect your medicare payment when you are eligible.

Pay the taxes out of non deferred $$ if possible. That preserves the tax shielding of your deferred money. It also gives you some control over how much tax you're required to pay instead of being told later on.

It also shelters any $ you pass on to heirs, and doesn't shoulder them with tax situations.

Mandatory conversions don't start until age 72, but the actuary table might mean you have to withdraw a pretty hefty sum each year and the tax bite, and the affect on your SS and Medicare will be severe.

Just something to think about. Talk it over with an estate planner or tax accountant for advice.

Just curious. In your calculations what rates of return did you consider for your IRA vs 401K?

 

[upj87]

Just curious. At the end of May, I will be retired for two years and a I am still adjusting to many things. It feels like now I am moving into a more sustained phase where things won’t change much.

The first months were all about Covid and then the election, Then we decided to move out west and in reality, settling in hadn’t occurred yet.

Occasionally I think about a part time job, but to be honest, why pay for gas at todays prices to go to a part time gig. If there would be remote work for CIA type monitoring of countries around the globe that would be fun. LOL. Any secret agents for the U.S. please direct message me for any opportunities.

But in all seriousness waking up, reading the news, reading the sports, reading this damn website, stretching to start my day, bicycling, running (after Achilles recovery), hiking, swimming, enjoying all the sunny weather has to offer pretty much fills up my day. At my neighborhood we have a Mens coffee three days a week that essentially is this board live and in person. Politics, sports, complaining.

Th couple of things I am still a bit mystified with right now is not having any actual active income. I have a pension (thank God for working at a place that does that). Social security in a few years (don’t always believe waiting longer is actually better). And finally a 401K that I stopped looking at recently because market guys get spooked by butterfly farts so they get really spooked by global world wars. I know that between my pension and social security I should have no worries in my life. The 401K is being treated as a fund that I don’t want to have to touch until required withdrawals if possible. And even then I will mostly want to look at other investment options.

So, just asking opinions of folks who have been retired longer if I am missing anything? I enjoy what retirement is but I am still so new to this I Am wondering what else comes up. By the way, I am pretty healthy. I take no medicines for anything which always shocks any doctor I see.

One thing that keeps nagging me is that if we are facing an end of days war with Russia, China, India, Iran and North Korea, I am trying to figure out what bucket list stuff to do before I am melted away. Crazy times.

fear not...we are not facing end of times war. turn off your damn tv for a week or so..for that matter, turn off all your electronic crap.. .now that that is out of the way, relax.

I am not retired yet. I married a cougar and she is retired at 63. She bikes twenty miles plus at a time. She is at the gym about 4 times a week. She made me buy kayaks and we use them in rivers and streams all across PA and the East. Just scouted out the PA grand canyon for a combined kayak/bike trip when it warms up. Hit wineries when we are done. She was never that active before retirement. She is loving life. It is now that I realize I should have married a younger lazy woman as she is enjoying herself to my death...

bottom line is just find some activities to do. does not have to be expensive. We live in a beautiful country, go see it.

 

[Duneaux Harm]

fear not...we are not facing end of times war. turn off your damn tv for a week or so..for that matter, turn off all your electronic crap.. .now that that is out of the way, relax.

I am not retired yet. I married a cougar and she is retired at 63. She bikes twenty miles plus at a time. She is at the gym about 4 times a week. She made me buy kayaks and we use them in rivers and streams all across PA and the East. Just scouted out the PA grand canyon for a combined kayak/bike trip when it warms up. Hit wineries when we are done. She was never that active before retirement. She is loving life. It is now that I realize I should have married a younger lazy woman as she is enjoying herself to my death...

bottom line is just find some activities to do. does not have to be expensive. We live in a beautiful country, go see it.

UPJ. The first target for Putin is Krebs Hall.

 

[FreeportPanther]

Just curious. In your calculations what rates of return did you consider for your IRA vs 401K?

Do you mean projecting ahead for retirement?
I always used 3%, pretty conservative.
Always got much higher than that.

OK, I went back and read your previous post.
You can calculate what your "income" is going to be, SS, Pension, plus any conversions out of traditional IRA or 401K.
Say it is $100,000 just to simplify.
Then rough calculate your tax, not forgetting the Standard deduction, etc. Say it comes to 17% or $17,000.
Now, convert as much traditional IRA/402K $ as you can afford in additional taxes, making sure you don't get to the level where the tax rate jumps from 24% to 32%.

If you're on Medicare, also be mindful if your taxable income exceeds something around $160,000, you Medicare premium goes up.

It sucks to pay these taxes, but that's the deal. Funny how many people go gaga over how much they have in these accounts, only to realize that 25% of it is tax obligation.

 

[Duneaux Harm]

Do you mean projecting ahead for retirement?
I always used 3%, pretty conservative.
Always got much higher than that.

Yes projecting ahead. 3 for IRA and what for 401k? Because there has to be a balance in what you might get out of a 401k over time than what you would get on a lower return vehicle? It could have as almost as much effect as taxes.

 

[FreeportPanther]

Yes projecting ahead. 3 for IRA and what for 401k? Because there has to be a balance in what you might get out of a 401k over time than what you would get on a lower return vehicle? It could have as almost as much effect as taxes.

I projected 3% for both. Projections don't matter for taxes. It is what it is when you convert or cash out.
Once I made too much to get any immediate tax benefit from a traditional IRA, I immediately started to max out the Roth. Wish I had done more at the time, but oh well.........

The other thing about converting large amounts to Roth. Be careful about paying estimated taxes quarterly on what it owed otherwise you'll be assessed a penalty.

 

[Duneaux Harm]

I projected 3% for both. Projections don't matter for taxes. It is what it is when you convert or cash out.
Once I made too much to get any immediate tax benefit from a traditional IRA, I immediately started to max out the Roth. Wish I had done more at the time, but oh well.........

The other thing about converting large amounts to Roth. Be careful about paying estimated taxes quarterly on what it owed otherwise you'll be assessed a penalty.

Certainly not about taxes but guess wrong on how much to convert and you could lose a significant amount of money overall. If you have a family history of living longer you could easily live another 20 years beyond 72 and your eventual gain from one vehicle over another could readily wash out any tax savings.

 

[CaptainMurphy]

I projected 3% for both. Projections don't matter for taxes. It is what it is when you convert or cash out.
Once I made too much to get any immediate tax benefit from a traditional IRA, I immediately started to max out the Roth. Wish I had done more at the time, but oh well.........

The other thing about converting large amounts to Roth. Be careful about paying estimated taxes quarterly on what it owed otherwise you'll be assessed a penalty.

I'm planning on going the FIRE route with 3.25% yearly withdrawals. So I'm certainly hoping for greater than 3% return! But I am also very conservative with my estimates (same when estimating SS). That way I never (hopefully) fall short.