How do you guys retire?

[Craigzjeep]

Must be a night for old phone guy posts , and hats off to @sunset In the above post.

I have spent the last 33 years installing just about every part of the phone system you could think of.
Then 2020, When I said no thanks to the clot shot, they transfered me to a desk job.
Fast forward to 2023, At 56 years old I just got laid Off, my job replaced by Phippiine call center folks.
A real shitty way to retire but I'm done.
Lucky I have been wise with money and saving, and the wife still has a great paying job.
FyI, health insurance is expensive, about $1600 per month for me and the wife.

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[Boatbuilder88]

May God Bless Senator William Roth for his namesake creation and may he Rest In Peace. I am a complete advocate of the Roth IRA and recommend everyone start one, and the earlier the better.

100% agree with @sunset

I used to oversee my company's 401k and pension plans. The Roth IRA and Roth 401k are underutilized by most folks. Let's face it...Tax rates are only going to go up! This country is serious debt.

For those higher income folks... Look into a backdoor Roth IRA and - if your company 401k plan allows - the mega backdoor Roth 401k.

 

[BRuby]

My wife and I practiced F.I.R.E. (Financial Independence, Retire Early) principles before F.I.R,E. became a financial movement. We lived very frugality and invested HEAVILY (401k / Roths / taxable brokerage accts) in our 20s and 30s. We stopped worrying about money in our 40s and retired at age 55. I worked for two Fortune 100 companies (engineer and middle management jobs) during my career and have two pensions that I have yet to tap.

Nice

Started consulting firm at 28
By 30 paid off everything
30 years since have been semi-retired
Spending a couple hours a week "on work"
Overseeing investments and income properties

Lucky to be at the right place at the right time
With a bit of hard work and hands-on expertise
Starting at age 7 - which helped a lot
Not a cent handed or asked for

Will probs never fully "retire" though
Too much fun working and solving problems
Most of the time is spent on "continuing to learn"
As you can always teach an old dog a new trick
Haha!

 

[dragoneggs]

Opportunity presents itself a few times in your life. Created or otherwiese. Whether the risk/reward fits your particular situation is something you have to weigh. Life is what you make it. PERIOD.

 

[roaniecowpony]

I retired Jan 2020, at 63, from a job I loved and paid well. I was a regulatory compliance engineer for a large aircraft manufacturer, but had no scheduled workload. I provided regulatory compliance consultation within my company and to airlines. I consider myself very fortunate to have been able to "...participate in ‘missions of consequence’ and travel the world." Some of those missions are things that many people know about, but most were below the public's view, but every bit as significant.

My path wasn't assured. I started out working in machine shops and did so for a decade. Upon marrying a double degreed engineer, I realized a path out of the shops was education and began night school. That enabled a series of career moves leading to a great career.

However, I always lived with the idea to do everything while young, because I would not want to do much of it when old. I spent like a drunk and figured I'd just work till I couldn't. Somewhere in the blur, I had the foresight to invest the maximum the company matched in my 401k and bumped that to 20% of my salary Upon reaching 50 years old. My ability to retire was enabled by significant savings coupled with predictable market trends, and a whole lot of luck at the right time. We also chose to not have children. My wife carved her path in a similar way, although she was more conservative in her investing. She retired a year before I.
My advice to young people is to seek at least some financial education in addition to any education for their chosen career. To me, proper higher education is the second most important thing a young person needs. The single most important thing is to have strong drive to survive and prosper.

 

[G-Oil Guy]

40. Recently married and new dad. 16 years in oil and gas as an engineer. Only debts we have are our home and the new mommy mobile and my jeep and the jeep is about to be paid off.

Wife and I were doing new year budgeting and I did a full net worth statement for the family. Even with the two car loans and house, we are over seven figures between fixed assets, capital assets and liquid funds. I’ve given the wife the green light to not go back to work if she wants to take a few years until the little guy is school ready. Also gave her the green light to go research potential properties for us to purchase/build on for in any of the places we’ve discussed retiring to.

and that’s before our companies pension which we somehow still have.

 

[third coast]

I’m never gonna retire. A few people I’ve known in the past either died within a couple of years of retirement, or their health went to schitttttttt in a hand basket.

I retired at age 61 after a good career in engineering and management. I discussed with one of the guys that worked for me that he should retire soon. Not long after I retired he died at his desk during lunch. Why work long hours at a challenging job all those years, building savings, pension and social security credits only to go out the door your last day in a body bag.

 

[AcesandEights]

I'm still working, but don't really have to, except for medical benefits I guess.

401K and IRA are things someone young should figure out how to use to their advantage.

 

[NeilP]

If I could do it all over again, I would have put WAY more into Roth IRA's and less into the 401K's. I thought I was outsmarting the IRS, but they are going to get the last laugh.

 

[roaniecowpony]

I'm still working, but don't really have to, except for medical benefits I guess.

401K and IRA are things someone young should figure out how to use to their advantage.

If you can afford a standard of living you're comfortable with, do it. Best thing I did was punching out of my engineering job. I had it good. But this is better, way better.

 

[NWJeepr]

How much is needed to retire? $250 bucks? 2 Million? 3 Million? 10 Million? That's the question I can never answer. 40, still working, and trying to come up with a minimum number and age at which it becomes possible is tough. Not knowing an end date is tough too.

 

[wibornz]

I believe the correct answer is comfortably.

 

[NWJeepr]

I believe the correct answer is comfortably.

I've deduced that most retirement calculators are configured to assume you own nothing in retirement and, as a generalization, assume you'll need 80%-ish or more of your pre-retirement income on an annual basis. They include things like mortgage and rent payments, car payments, and assume one's level of spending will be maintained. It's not wrong, and it encourages people to save more than they might need to, which also benefits financial institutions in the present.

A quick google search says the average retirement balance for those aged 55-64 is $408k and 65-74 have an average of $426k. Another source says $208k, and $233k, respectively. The latter source lists median balance which is telling, $48k and $71k.

It's all over the map. Typical of these threads is people tell you how they came to retire but few people actually say what their balance and net worth is at the start, because those are taboo conversations to have with strangers. But I think younger people could benefit so much from that information.

I think a lot of people like to shroud themselves in mystery as well, particularly a cohort of the FIRE crowd. Lots of people FIRE with great resources and I think there's a lot of FIRE looking forward to Van Life, if you know what I mean.

 

[AcesandEights]

I had to look that up, FIRE. I don't think I'm young enough to be considered part of the FIRE crowd, but I think some FIRE principles, as well as individual assessment of needs and wants makes for a good retirement plan.

 

[WRGLR-JL]

Retired after 43 years. Each person's retirement goal is unique but taking advantage of IRA's, 401k's and 100% of any company match is vital. Nothing helps more than consistent contributions and the power of compounding!

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