Retirement

[CSdot]

Not sure where to put this, so I'll include a coin collecting question to make it applicable.

 

Has anyone here looked into retiring early? I have always had it in my head that the retirement age in America is 65. However, my father and grandfather were both dead by that age, so I am trying to plan for an early retirement so my wife and I can enjoy life and travel.

 

I just ran the figures with my wife using a conservative 5% rate of return, and it appears I could retire at age 55, with a paid off house, fully funded college funds for all three kids, and enough in the bank/stock market to generate our current lifestyle forever.

 

Has anyone done this? Even though I am planning for retirement at 55, I can always adjust the plan and stay longer if necessary. Plus, we both have professional degrees, so we can pick up part time work at a good pay scale to supplement if need be.

 

Now for the coin collecting question to keep this post appropriate for this forum. Did you find that your collecting slowed down or picked up in retirement? I know mine has slowed down significantly in the last year or two, but I attribute that to my having collected all of the low hanging fruit coins, leaving only those coins that don't make it to my area very often. I am going to a show today in a nearby town (about an hour away). Fingers crossed, as I have been blanked out at my last two shows - meaning I came home with all my spending money still in my pocket.

[pcunix]

I am PMR (Pretty Much Retired). I started retiring at 55, winding down my business. I now work at my business just a few hours a week and although I don't make much any more, it's enough to live decently with Social Security. We have not yet had to touch any of our 401K's and IRA's because of that little bit of work.

 

As to collecting, I was stagnant for decades but have fired up again in the past few months.

[Crazy Mtn Coins]

I ran my own environmental consulting business for mining companies for many years. During the height of the mining activity in the NW I was run ragged. I finally burned out so when I reached 59 1/2 and could draw from my IRA, I retired. That was 7 years ago. I have never regretted it but it took several years before I realized I was retired. I joke about it that now I work 24/7 with no vacation. My wife raises a few horses and I am the caretaker. But it keeps me active. Now related to coins, I always collected some raw coins but never paid any attention to graded coins. Once I retired I collected more raw Morgans and then slowly moved into proof coins 1950-63. That is the area I am really focused on as those years mean something to me. So to answer your one question, after retirement the interest in coins really picked up for me.

[RWB]

I waited until the tread wore thin, then re-tired.

[BillJones]

I retired when I was around 60 years old because my wife and I could afford to do it. We put away about 20% of our income when we were working. Most people can't or won't do that. My wife and I have also done well financially with investments, so I could retire early.

 

It can be done, but you have to say "NO" to some things when you are young, and you have make reasonable investments. I've still got a few coins I bought when I was in high school. Not many people have assets that they acquired at that age that are worth something.

 

I'll admit that some luck is involved, but a lot of it is planning and saving.

[Tyler N.]

Bill,

 

Out of curiosity, what coins have you held on to since high school? As a young collector (24), I plan on assembling, and holding on to, a few nice sets for sentimental and investment purposes. These coins aren't necessarily rare, but some are scarce. I have bought some and inherited some. I am wondering, did you hold on to these coins because they were rare coins, high-grade coins, coins you were "attached" to, or coins that you believed would be worth much more in the future? The answer could be as simple as you just never got around to selling, or that you, simply, liked the coin. It'd be interesting to hear the thought process of someone who has been successful in this hobby.

 

I appreciate any response, and I apologize for somewhat altering the topic of this thread. If you'd like to PM the answer, feel free to!

 

Tyler

[pcunix]

Bill,

 

Out of curiosity, what coins have you held on to since high school? As a young collector (24), I plan on assembling, and holding on to, a few nice sets for sentimental and investment purposes. These coins aren't necessarily rare, but some are scarce. I have bought some and inherited some. I am wondering, did you hold on to these coins because they were rare coins, high-grade coins, coins you were "attached" to, or coins that you believed would be worth much more in the future? The answer could be as simple as you just never got around to selling, or that you, simply, liked the coin. It'd be interesting to hear the thought process of someone who has been successful in this hobby.

 

I appreciate any response, and I apologize for somewhat altering the topic of this thread. If you'd like to PM the answer, feel free to!

 

Tyler

 

I can speak to that a little.

 

I inherited coins. I later sold them, and deeply regret that. I've told the full story of that at http://coins.aplawrence.com/2014/02/coin-collecting-and-genealogy.html but I can sum it up as guilt: the coins I inherited were a family heirloom. I can blame my father for not explaining the significance to me, but he was somewhat estranged from his own father, so he may not have known.

 

I feel that those coins should have been kept and passed down. I realize that it is almost certain that someone would have sold them eventually, but I wish it had not been me.

 

 

[CSdot]

I have been saving a good chunk of my pay since I started working. Unfortunately, the market was stagnant for much of the 2000s, with big drops in 2001 and 2008. I saw big appreciation in the late 90s and 2009-2014, with 30% in 2013.

 

I hope if I keep it up, and avoid debt, I will be well positioned in 10 years.

 

 

[BillJones]

Bill,

 

Out of curiosity, what coins have you held on to since high school? As a young collector (24), I plan on assembling, and holding on to, a few nice sets for sentimental and investment purposes. These coins aren't necessarily rare, but some are scarce. I have bought some and inherited some. I am wondering, did you hold on to these coins because they were rare coins, high-grade coins, coins you were "attached" to, or coins that you believed would be worth much more in the future? The answer could be as simple as you just never got around to selling, or that you, simply, liked the coin. It'd be interesting to hear the thought process of someone who has been successful in this hobby.

 

I appreciate any response, and I apologize for somewhat altering the topic of this thread. If you'd like to PM the answer, feel free to!

 

Tyler

 

I don't have a lot of them, only five or six or so pieces, but they were mostly gold, and they graded between MS-62 and 65. I held them as part of my collection, and in a couple cases did not sell them when I got something better.

[PennyGuy]

I retired at age 58, 9 years ago. Did some part time consulting the first few years just to fund hobbies. My hobby activity picked up significantly, formed a new club in my town, elected to MSNS board, etc. Refocused my collecting on copper, branched out into two cent pieces and CWT's.

[Bomber-Bob]

I am a comic collector but would still like to respond. I retired at age 55 and have absolutely no regrets about it. I survived the economic downturn in 2008, the low interest rate environment, and the high price of gas ! If you eliminate all your debt and live within your means you really don't need as much money to retire as you think. Regarding the collecting aspect, at first I started selling from my collection. However, I had seller's remorse, and within a couple years starting actively collecting again. Actually my current collection is much more focused and I am enjoying it as much as ever.

[DR.X]

I am a comic collector but would still like to respond. I retired at age 55 and have absolutely no regrets about it. I survived the economic downturn in 2008, the low interest rate environment, and the high price of gas ! If you eliminate all your debt and live within your means you really don't need as much money to retire as you think. Regarding the collecting aspect, at first I started selling from my collection. However, I had seller's remorse, and within a couple years starting actively collecting again. Actually my current collection is much more focused and I am enjoying it as much as ever.

 

 

+1

 

I did the same thing as Bob. Paid off my house early, no credit card debt, and invested regularly. 55 I was done.

[pcunix]

I am a comic collector but would still like to respond. I retired at age 55 and have absolutely no regrets about it. I survived the economic downturn in 2008, the low interest rate environment, and the high price of gas ! If you eliminate all your debt and live within your means you really don't need as much money to retire as you think.

 

Our financial advisor came up with an absolutely ridiculous number that she insisted we would need. I guess we would if we wanted to go skiing in Switzerland and eat at the best restaurants every week and buy new cars every year. But we never did live like that, even when we could have.

 

 

[DR.X]

I am a comic collector but would still like to respond. I retired at age 55 and have absolutely no regrets about it. I survived the economic downturn in 2008, the low interest rate environment, and the high price of gas ! If you eliminate all your debt and live within your means you really don't need as much money to retire as you think.

 

Our financial advisor came up with an absolutely ridiculous number that she insisted we would need. I guess we would if we wanted to go skiing in Switzerland and eat at the best restaurants every week and buy new cars every year. But we never did live like that, even when we could have.

 

 

Be you're own financial advisor. No one is going to look after you're money like you.

[comicdonna]

I am a comic collector but would still like to respond. I retired at age 55 and have absolutely no regrets about it. I survived the economic downturn in 2008, the low interest rate environment, and the high price of gas ! If you eliminate all your debt and live within your means you really don't need as much money to retire as you think. Regarding the collecting aspect, at first I started selling from my collection. However, I had seller's remorse, and within a couple years starting actively collecting again. Actually my current collection is much more focused and I am enjoying it as much as ever.

 

 

+1

 

I did the same thing as Bob. Paid off my house early, no credit card debt, and invested regularly. 55 I was done.

I hope I can retire at age 55 like you and Bob, Tim.

[Crazy Mtn Coins]

Verrrry good advice.

[CSdot]

We learned the credit card lesson in the 90s. It is real easy to add a little here and a little there, until you realize that the balance is becoming uncomfortable. We paid off the credit cards as a New Years resolution in 2000 using stock market winnings from the huge 1999 run up (when the market collapsed in March 2000 we were glad we did), and never looked back. We have the house on a 15 year note, and it is amazing how much goes towards principal now vs when it was a 30 year note. We will have the house paid off before retirement.

 

The power of compounding is fun to watch in my 401(k) and Roth accounts.

[DR.X]

We have the house on a 15 year note, and it is amazing how much goes towards principal now vs when it was a 30 year note. We will have the house paid off before retirement.

 

The power of compounding is fun to watch in my 401(k) and Roth accounts.

 

(thumbs u

 

I took a 15 also, and had to explain to everyone I was shaving $80,000.00 in interest off the back end of the loan vs a 30. They all thought I was nuts. " But you'll have a lower payment ". Making the payment was no problem. I had no intention of giving the bank a penny more than I had too. It was paid off in 11. Done. Good move on you're part.

[Bomber-Bob]

I am a comic collector but would still like to respond. I retired at age 55 and have absolutely no regrets about it. I survived the economic downturn in 2008, the low interest rate environment, and the high price of gas ! If you eliminate all your debt and live within your means you really don't need as much money to retire as you think.

 

Our financial advisor came up with an absolutely ridiculous number that she insisted we would need. I guess we would if we wanted to go skiing in Switzerland and eat at the best restaurants every week and buy new cars every year. But we never did live like that, even when we could have.

 

 

Be you're own financial advisor. No one is going to look after you're money like you.

 

Absolutely correct. Upon my retirement I tried using a no fee financial advisor. I soon realized she was getting me to invest in things I didn't really want, so she could collect a commission. Another retiree friend tried a financial advisor with fees. That didn't work out either.

You know the old saying, nobody cleans your house like you do. Same for your financial house. Manage your money yourself and stay out of debt. Don't buy anything you can't afford.

 

[pcunix]

I am a comic collector but would still like to respond. I retired at age 55 and have absolutely no regrets about it. I survived the economic downturn in 2008, the low interest rate environment, and the high price of gas ! If you eliminate all your debt and live within your means you really don't need as much money to retire as you think.

 

Our financial advisor came up with an absolutely ridiculous number that she insisted we would need. I guess we would if we wanted to go skiing in Switzerland and eat at the best restaurants every week and buy new cars every year. But we never did live like that, even when we could have.

 

 

Be you're own financial advisor. No one is going to look after you're money like you.

 

Absolutely. The key word is "advisor". To many, that may mean "I do what they say", but to me it has always been *advice* which I listen to and weigh and often ignore.

[jkrk]

Not sure where to put this, so I'll include a coin collecting question to make it applicable.

 

Has anyone here looked into retiring early? I have always had it in my head that the retirement age in America is 65. However, my father and grandfather were both dead by that age, so I am trying to plan for an early retirement so my wife and I can enjoy life and travel.

 

I just ran the figures with my wife using a conservative 5% rate of return, and it appears I could retire at age 55, with a paid off house, fully funded college funds for all three kids, and enough in the bank/stock market to generate our current lifestyle forever.

 

Has anyone done this? Even though I am planning for retirement at 55, I can always adjust the plan and stay longer if necessary. Plus, we both have professional degrees, so we can pick up part time work at a good pay scale to supplement if need be.

 

Now for the coin collecting question to keep this post appropriate for this forum. Did you find that your collecting slowed down or picked up in retirement? I know mine has slowed down significantly in the last year or two, but I attribute that to my having collected all of the low hanging fruit coins, leaving only those coins that don't make it to my area very often. I am going to a show today in a nearby town (about an hour away). Fingers crossed, as I have been blanked out at my last two shows - meaning I came home with all my spending money still in my pocket.

 

Quite bit to deal with.

 

Retirement early?

 

I'm afraid I can't do it.

 

I'm 60 and paranoid. I've been a private investor for the past 30 years. My paranoia always has me wondering if I have enough assets to last my life? I'm using a 3%

return on assets into the future. I still don't know if my equity/Fixed income/ commodity mix is correct and I do this for myself as an occupation. Thus my paranoia always has me thinking whether I have enough assets to retire. I am not an adviser so all my thoughts are solely my own. Based on all my experience, I'm not sure, going forward from here, where any big returns are going to come from?

 

Good for you in putting yourself in the best financial position you could at your age. (thumbs u

 

My only thought harkens back to the days when I left the corporate world to trade for myself. I said, if it doesn't work after a year I can always go back to work and do what I did before.

 

As for the coin world, it's above my pay grade.

 

Good luck.

[O mint bug]

I retired at 55. Like you the my three kids were educated and the house paid off. Frankly for me retirement was boring, especially if your spouse still works. I had my 30 plus years in, vested in SS, etc. The big issue is insurance as Medicare and Medicaid are for the 65 year old retirees. It gets old with little to do. If you can start a coin dealing operation it would help keep you busy. I am back full time and when I reach age 62 my wife will get her teachers pension and I my SS it will definitely be time. Any extra $ would be taken from the IRA (dividends ) if needed. I wish I had taken a leave of absence to see if it was all it is cracked up to be before making the decision. An empty house gets old when all the family is gone and you are used to being around people. Try it and see. Just be thankful you are in a position to do so. Most of my friends are still working and when they quit I will have fishing buddies, as well as a golf game and of course collect coins more aggressively. I will say I know people that quit working at age 55 and loved it but none had any kids. Sounds like you have done all the right things to prepare, now it is time to see if in fact you are ready.

 

Something to consider is doing something you enjoy that is not very stressful and pays for a nice coin once in awhile and keeps you busy,

 

Good luck.

[DR.X]

Sounds like you need to go and buy a Harley. You'll meet so many new people you'll have plenty to do.

[O mint bug]

Had the same issue and determined all bonds are good for in this economic environment is getting out of jail and I don't plan to ever be arrested. Quality common stocks like Conoco Phillips and Bristol Myers will cover your 3% withdrawl rate and on a weighted average pay MORE income than bonds. I feel a 4-5% withdrawl rate out of a good mix of quality dividend payors is a good number ( closer to 4% ). That way your capital base should grow over the long haul and you will not outlive your $. Bonds are a sure way to take a beating as soon as the economy picks up the Fed will bump up rates pushing down bond values. There is no real return in a govt. security at present after taxes and inflation are considered. I like good stocks that pay you to own em via dividends, This way your income does not change even if we have a market selloff, Strange times. Another good retirement vehicle is a MLP called Enterprise Products Partners (ticker EPD ). Yields a bit below 4% and has increased their distribution to unit holders 30 of the last 31 quarters and covers the distribution about 1.25/1 with free cash flow. A very well run company in a very good industry. Sure beats the 30 year govt. bond rate and you get periodic pay increases via the distribution increase. Share price does very well to. A great retirement security and a fine company. GL

[DR.X]

Quality common stocks like Conoco Phillips and Bristol Myers will cover your 3% withdrawl rate and on a weighted average pay MORE income than bonds.

 

+1

 

Lot's of good quality companies like you say. SYY, MO, COP, GAS, KRFT, just to name a few.

[thehumantorch]

I am a comic collector but would still like to respond. I retired at age 55 and have absolutely no regrets about it. I survived the economic downturn in 2008, the low interest rate environment, and the high price of gas ! If you eliminate all your debt and live within your means you really don't need as much money to retire as you think. Regarding the collecting aspect, at first I started selling from my collection. However, I had seller's remorse, and within a couple years starting actively collecting again. Actually my current collection is much more focused and I am enjoying it as much as ever.

 

 

+1

 

I did the same thing as Bob. Paid off my house early, no credit card debt, and invested regularly. 55 I was done.

 

I can retire next year at the age of 55 with a 70% defined payment pension. Won't be paying off a mortgage or contributing to IRA/RRSP so shouldn't need as much money. There's nothing wrong with finding a part time job you enjoy to generate some spending money and keep you active and social.

 

Money is nice but there's nothing more important than savoring life and enjoying your golden years - the sooner you start the better.

[O mint bug]

Passed that stage. Restored a 57 T Bird and sold it after driving it for a while.That is one of the reasons I collect coins. Airplanes are the best way to travel, especially after a friend that bought a Harley lost his life in an accident. People seem to look for cars while driving and not motorcycles.

[O mint bug]

Well said. If you are able and ready you will have the best job around. paying yourself to enjoy life is not a bad way to make a living. The key is No Debt. All the BS about your having to replace 80% of your income while working is just that. An affluent person is a person that spends less than their income and either saves the rest or in invests it.

[CSdot]

O mint- thanks for the posts. I am 44, so I still have a decade before I retire. I was just testing the waters to see if 55 seemed like a reasonable age to retire. I have many coworkers who are or over 55, and they seem to have no interest in retirement. Most of those can't retire due to poor saving habits, or divorce, or investments gone wrong, or living to high on the hog their whole life.

 

I guess I just wanted some reassurance that I wasn't nutty for wanting to retire at age 55 when everyone I know works until 65+.

[O mint bug]

A big factor and good to know. The rule of 72.

 

It is hard math and no theory. The rule of 72 is to divide your expected return on investments ie 10.2% ( a good number for a good group of quality dividend paying common stocks ). The products is 7.14. If your assets (stocks ) are in a tax sheltered plan such as an IRA and you reinvest the dividends you double your money every 7.14 years, assuming no additional investments during the period. Calculate what you would have if you had $15,000 in an IRA at age 24. Then recalculate starting at age 31. You will see the difference is tremendous. The points:

 

Start when you are young and right out of school.

Invest in quality common stocks.

Reinvest the dividends - no speculation in small stocks your friend heard about.

You will be what I define as a wealthy person - someone that that makes more than they spend and invest the rest. Also known as a future millionaire.

 

Take a guess at what you think the $15,000 grows to with no other investments and then calculate. Future investments in your retirement should be made during your working years. 401-K, which are often matched by your employer and vest immediately. This will further increase the size of your nest egg. You can reach financial freedom. It is all about planning. priorities and starting young.

 

You will see the essence of investing in stocks, reinvesting the dividends and STARTING EARLY and the value of a 15 year mortgage note. A 30 year note at 6% $200,000 principal amount will result in your paying another $284,000 in interest relative to a 15 year note.

 

I started a Roth IRA for all 3 of my kids and they are starting as illustrated above. No taxes paid on a Roth when money withdrawn. Traditional IRA withdrawals taxed as ordinary income when taken out.

 

If you invest money along the way you can ask yourself What will I do when I am a millionaire? This coupled with a 15 year FIXED rate mortgage on the house you raise your family in will SIGNIFICANTLY improve your financial profile as you will have your home paid off if bought before you start educating your kids in college. Just wish someone pointed this out to me right out of school. No starter house. Save enough to buy the one you are going to raise your family in and wait until the 15 year note fits your budget. Not all that much more on a home to raise a family in. Putting kids through college without much debt ( no mortgage ) won't ensure happiness but it will help you avoid the kind of misery you can live without. Thereafter you can start to acquire the really nice coins you always wanted.( after kids are educated. retirement will be a viable option and comfortable. NO DEBT. You will have the best job - paying yourself to enjoy life.