Facing Retirement

Time has a way of catching up with one. I have long said that I don't plan to retire until I'm 72, but that may no longer be the wisest choice. With all this Covidiocy about, I've shifted to 100% work from home. That in itself isn't a bad thing, but I happen to live in one of the nastiest attitudinal locations in the United States. When I look about, it seems that nastiness has permeated every corner of this country now. I don't need it.

Next month at this time, I will be heading off on vacation with the intent of scouting a location where I can work remotely, and possibly leverage into a retirement locale.

The government doesn't like people working into retirement. They almost force you to bow out when you're 70. So, considering I live in an area with a high cost of living, it would be hard for me to stick around when the paychecks stop coming. The plandemic has made it nearly impossible to visit my family, which is the primary reason I stay here, so if I can only visit them on my grandkids' birthdays, what point is there is going poor by sticking around?

A major consideration is the cost of moving. I'd sell my cars, my house, furnishings and... guitars? I have too many guitars to pack and ship. Since a lot of my free hours are spent with a guitar in hand, I'd have to go through the wrenching decision about which to sell and which to keep. Three (solidbody, acoustic and hollowbody) seem to be my comfort level. Which three? Fortunately, I don't have to decide today.

I really didn't think about moving again. I bought my current home three years ago thinking this was my "final resting place." But things being what they are now, that doesn't seem to be the case.

Any advice from you retired guys? Suggestions? I've posted here before about places to investigate, but now I'm moving forward with the first step.

I work with a "retired" school superintendent who decided to work a few extra years for some extra income and to keep busy. That was 20+ year ago and he is still running strong. He's 81 now, drive 80 miles each way to work every day and loves what he does. I'm 67 at the end of this monthly and I, like you, am planning on going around 72, but who knows? COVID has made all of us a little crazy, and that's normal. I'd take some time to see how this all plays out before making too much of a commitment, although having a plan B is always a good thing, anyways. Take your vacation - I'm sure you've earned it - look around, but mostly, get some rest!

Yeah, I'm trying to understand your comment "the government doesn't like people working into retirement, They almost force you to bow out when you're 70."

That's not the case as I see it, many of my friends have retired and worked well past 70 at very lucrative enterprises.

I'm still working but the company I work for is moving more and more of it's work offshore. That sucks for the younger people but for us "retirement age" people it can mean a lucrative package. Love my work but at this stage of the game if the right deal came along you never know.

Chuck

Perhaps OS is employed by the government and there’s some sort of retirement age policy?

I work for the feds in Canada - there’s no mandatory retirement age, but minimum retirement age with an unreduced pension is age 60. Depending on your years of service, there comes a point where working is more expensive than retiring. Then we have a couple of federal pensions that kick in at age 65. The incentive to stay in the workforce is reduced, assuming you can afford it. I’m pulling the plug at 60, will likely do some consulting work (private sector) or finish the PhD I started a decade ago. House is paid off, no debts, daughters education fund is fully topped up, other tax sheltered investments are doing well. Unless I want a bigger house or more toys, I won’t be working full time after age 60. Assuming I make it that far!

A bit of clarification. Maybe. :hmm

My comment about the government was based on the fact that Social Security (this is just the U. S., so only applies here) has something called a Minimum Required Distribution (MRD). At age 70, one has no choice but to start accepting checks. Yet, the Social Security Administration penalizes people who continue to draw a paycheck by reducing the amount of the MRD. Since the theory is that social security is based on one's earnings and withholdings, this seems to be a disincentive to continue working.

I'm glad I cleared that up. :eyes

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Originally Posted by OldStrummer

A bit of clarification. Maybe. :hmm

My comment about the government was based on the fact that Social Security (this is just the U. S., so only applies here) has something called a Minimum Required Distribution (MRD). At age 70, one has no choice but to start accepting checks. Yet, the Social Security Administration penalizes people who continue to draw a paycheck by reducing the amount of the MRD. Since the theory is that social security is based on one's earnings and withholdings, this seems to be a disincentive to continue working.

I'm glad I cleared that up. :eyes

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He he, you really need a tax accountant. There are so many ways around that I've lost count. My wife is in her 70's and has no problems whatsoever. My mom worked until she was nearly 80 and was making a bundle being fully tenured. No problems.

Besides, SS is supposed to be helping hand, not your sole source of income. I couldn't live on SS alone. That's what the 401K, investments, market funds and other things are for.

Chuck

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Originally Posted by Offshore Angler

He he, you really need a tax accountant. There are so many ways around that I've lost count. My wife is in her 70's and has no problems whatsoever. My mom worked until she was nearly 80 and was making a bundle being fully tenured. No problems.

Besides, SS is supposed to be helping hand, not your sole source of income. I couldn't live on SS alone. That's what the 401K, investments, market funds and other things are for.

Chuck

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Totally agree. Minimum RMD age increased to 72 in 2020. CARES Act allows you to skip RMD in 2020 altogether, depending on your age.
If you made a RMD before the CARES Act was passed this year, you can spread the tax over more than one year. Rest assured, tax laws are so complicated, -snip- almost got to political.

A tax accountant may be in your best interest.

Bill

Thanks for your feedback, guys. I do have a financial advisor; I need to get together with him and go over my situation. I suspect part of what I'm feeling is ennui from this COVID stuff.