Retirement... it's one of the reasons why I have been frugal

 The Question:

Husband and I assumed we would retire at 67 (which is our full retirement age). We assumed we had to wait that long so we could afford to retire. 

However, after using a retirement software, it showed us we can retire a lot earlier. This is mainly due to the fact that we have been saving through 34 years of marriage and have no debt. We have no mortgage and our only expense is our daughter's college tuition that we are cash flowing (from funds saved for this purpose). 

She is also working and contributing. While doing some research about retirement, I learned that you need a clear and specific plan. How will you afford medical coverage if you retire before age 65? What can be done to alleviate taxes - should I do Roth conversions and if so, how much and when? What about RMD's. As of now they are required at age 73 (and may change to 75). How will these required distributions affect my income and taxes? When is the best time to turn on SS? 

When is the best time to turn any annuity you may have? Will my retirement savings last until I am 95 (some people live this long). What about long term care? 

What about money to travel or do things we dreamed of doing in retirement - does the amount we need per month include expenses for this. What about if we need a new car, or home repair ... the list goes on and on! 

Our heads were spinning - you can't even retire without worry!! 

Given we were not sure if we could trust that we used the software correctly, we decided to invest in a fee only financial advisor who specializes in retirement. He provided a full financial review with a spend down plan for retirement (which was different from what the software showed and was a better plan for taxes). 

My husband can retire at age 61 - he can certainly work for as long as he wants but knowing he can successfully do so 6 years earlier then he assumed he could, has been a game changer. 

For anyone close to retirement or currently retired, are you considering or have you already completed a retirement plan?

Just curious because as of a few months ago, we had no idea such a plan was necessary to not only find out when you can successfully retire but also the best plan for what order you should spend the money to preserve it as well as prevent paying unnecessary taxes.

What did people say?

⇒ Zaida: Whatever you do, try not to take Social Security early because it will cost you a lot.

⇒ Susan: I'm in the..."running around in the summertime, pocket full of gold. A$$ hanging out in the wintertime, lordy ain't it cold."

My husband and I did not save anything for retirement sadly. He recently passed without any life insurance. Thankfully the house and cars are paid for. I wish he would have listened to my ideas on budgeting. Now I'm left to survive on disability and the little money my son helps bring in. I know that I can still save and invest some (he did have a small stock investment. Need to get that info.)

I hope that others do not waste their productive years blowing money on frivolous things. When you get near your 60's you never know what life is going to throw at you. My husband died suddenly from complications of diabetes. Bless all of you.

⇒ Annette: My biggest concern is how much care I will need toward the end and what that might cost. The rest of one's expenses can be estimated by a financial advisor. I have lived on 30k or less the whole of my life but at this point I am working toward having enough money that it creates 50k a year once I retired. This I hope will fund my passion for travel and any medical needs. I have a financial advisor I have been working with for about 10 years. I think everyone should talk with more than on to better understand money and retirement.

⇒ Erika: Check out Mr. Money Mustache- he writes about FIRE (Financially Independent Retire Early)

⇒ Corlyn: I think you have way too many questions for this caring group of people to realistically help you with. Everyone will give you their own experience, which may or may not be exactly what yours is. I would HIGHLY encourage you to go find a financial advisor that can look at your specific situation and advise you appropriately. 

I know everyone here means well. I just worry that it may not be specifically what you need. Congratulations on being debt-free! And being able to retire early! You have achieved what many of us will never be able to do!

⇒ April: I agree that paying a fee-only financial advisor to help you develop a solid retirement plan is money well spent. I had one done a few years ago and plan to do one again soon as my circumstances have changed. Gives me a lot of peace of mind knowing what I can afford to do w/o running out of money.

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