Stock Market & Retirement Planning

[Gyro25]

Not saying bs but kind of I have a high school diploma and make 112k a year bought a house at age 24 and no student loan debit. A high school diploma can make you money just need to not do drugs do what your told and not be afraid to work hard.
Plumbing , electrical,HVAC, fire sprinkler fitters, pipe fitters all have apprentice programs all you need is diploma or GED and pass drug tests. That is the hard part pass drug test and be willing to work

I had a buddy in HS who was dumber than rocks but got licensed as an electrician and works on like high tower lines and such, makes a crazy good salary but it is dangerous work obviously

On the other side, I had a client in the last who was a genius in engineering I think, and he has a job offer from Boeing to make like 200k a year and all he had to do was stop smoking pot... He couldn't/wouldn't do and last I gathered he was fixing copiers for like 20 bucks an hours a few years ago.

I went into a "helping profession" and have an ok salary now, but the first 8 years I could have made more selling cars.. hopefully the kiddos will learn trades and may not need the college route, they can avoid loans and start investing early

 

[robs1964]

Find a new advisor. Anyone that tells you to hold off taking SS benefits after age 62 has simply not crunched the numbers. Even as your monthly benefit increases each year closer to full retirement age, statistically speaking you are likely to be dead by the time it becomes worthwhile. It will take years to make up those five years of benefits you didn't take. If you don't "need" the money, take it and invest it.

The wife and I both said the same thing. The advisor said based on investments and annual income from my military retirement/VA disability to hold off on SS. We already determined the minute we are eligible, we are taking it and enjoying retirement to the fullest. Never know, I might get run over by a bulldozer

 

[fuffle master]

Our financial advisors talk about two phases of retirement. Active retirement goes to about 78 for most. It’s period of higher activity - travel, golf, shows, etc - and higher expenses. By 78 or so, most of the bucket list items have been knocked off and people are starting to slow down. This is passive retirement, when they do less and spend less. This continues until the last year or so of life, when medical expenses spike.

They say one of their saddest experiences is sitting across from a couple in their early 80s: “We scrimped once we retired because we feared outliving our money. Now we still have money but can’t do anything with it. I wish we had taken those trips.”

That is the scary part in everything. Your mind will always think you can do things, but your body will eventually say no more.

 

[Acesteve]

Our financial advisors talk about two phases of retirement. Active retirement goes to about 78 for most. It’s period of higher activity - travel, golf, shows, etc - and higher expenses. By 78 or so, most of the bucket list items have been knocked off and people are starting to slow down. This is passive retirement, when they do less and spend less. This continues until the last year or so of life, when medical expenses spike.

They say one of their saddest experiences is sitting across from a couple in their early 80s: “We scrimped once we retired because we feared outliving our money. Now we still have money but can’t do anything with it. I wish we had taken those trips.”

I think statements like your advisor shared need context else people who are not really ready to retire go crazy and run out of money. for those with enough saved, this is good. One only needs to be lucky enough to have parents that make it to 80 to see it firsthand

My primary financial advisor has models to 100 and I'm saying who cares after 85

 

[CTRosarian]

Yes, everyone has different needs. I did a ton of travel when I was single on my employer's dime. They didn't mind back then if I extended my trip a few days to go sight seeing. Then I got married and did even more travel! Two big trips a year. Many many many day trips. Don't need to do that again.

If I move back to Hawaii that would be moving back to where I grew up with lots of family already living there. To me that is a lot different than someone who moves to a warm climate for the first time. Many who do that only last a couple of years.

 

[HulaGolfMom]

Did a search and only came up with a few posts, but do any of trade covered calls and cash secured puts? My bf has been doing it since 2020 with his 401k. He only does it on a few stocks he really likes such as Apple and Amazon. He knows them really well and uses the premiums to accumulate shares and for our entertainment, vacations etc. He always asks friends and acquaintances if they do it or are interested, and nobody seems to be, I assume it is because people assume options are risky, (or my boyfriend is bad at explaining it) His next thing is trying to figure out how to take advantage of gains or losses past his strike price. Thanks for reading and we look forward to seeing if anybody else does this.

 

[Slot708]

for me investing is something I’ve really enjoyed.Its really exciting watching my numbers go up.And a bummer watching them go down.Our goals should be $600k to $800k by the time we retire in our accounts.If you don’t have that your in some dire straights.Work with an advisor and work with them at an early age

I know people who strictly live off of credit cards and have debit 5 miles high.Dont be that guy

 

[jonnys009]

Wife is retired and I will retire in 2026 at the end of the summer before we move. Luckily I have a military retirement and been investing in Roth and Traditional IRA while on active duty and now invest in our companies 401K (for the past 14 years), wife invested in her 401k when she worked. We have to build a house beginning next summer so it is ready at the end of summer 2026. My financial advisor is telling us not to take Social Security until we are 67 (we are both 60 now). What are you thoughts, as she is retired and I will retire in two years?

As some other people have stated.. this is pretty lazy analysis on his part. Not even the most optimal long term if they are only looking to maximize benefits.

If you guys want to draw right away do that. At least one of you should start right at age 62 and that individual should be the lower earner. There is some benefit for the higher earner to wait a little. The 8% additional per year is great (just note this is only a simple adjustment, not 8% compounding year over year, though you will get the annual COLA on it as well). The other real benefit is around spousal protection. If you wait a few extra years to get the increased benefit and something happens to you later on, your spouse will take over the higher of the two benefits from that point going forward.

In the end, it is your money. Do what seems to make the most sense for you (and maybe get a smarter wealth manager )

 

[CTRosarian]

Wealth is nice but you also need cash flow to pay the bills! I have a Social Security check and an annuity as a surviving spouse every month.

 

[tahoebum]

As some other people have stated.. this is pretty lazy analysis on his part. Not even the most optimal long term if they are only looking to maximize benefits.

If you guys want to draw right away do that. At least one of you should start right at age 62 and that individual should be the lower earner. There is some benefit for the higher earner to wait a little. The 8% additional per year is great (just note this is only a simple adjustment, not 8% compounding year over year, though you will get the annual COLA on it as well). The other real benefit is around spousal protection. If you wait a few extra years to get the increased benefit and something happens to you later on, your spouse will take over the higher of the two benefits from that point going forward.

In the end, it is your money. Do what seems to make the most sense for you (and maybe get a smarter wealth manager )

Genetics can also be used to help estimate life expectancy and when to start SS benefits. None of my wife’s grandmothers or 6 great aunts died before age 84 and the one that did was a 4 pack a day smoker for 6 decades. Many lived to 95-100.

 

[wubears71]

We had our update on Thursday with our financial advisor. It is so cool seeing what 20+ years of savings has done so far and mind blowing where we will be at retirement. It’s nice
To be in our mid 40s and never have to be concerned with Money again.

I look back and when we were maxing out or 401k back in our early 20s living in cheap apartments, our friends were buying boats and luxury vehicles acting like ballers. Now they live paycheck to paycheck with zero savings still trying to impress the world and we are set!

 

[jonnys009]

Genetics can also be used to help estimate life expectancy and when to start SS benefits. None of my wife’s grandmothers or 6 great aunts died before age 84 and the one that did was a 4 pack a day smoker for 6 decades. Many lived to 95-100.

Exactly. I think someone else had mentioned the breakeven point. Usually this is between 76 and 84 depending on how the benefit disparity plays out. If you have a shorter life expectancy, then definitely lean on the earlier side. If you need to make the money last longer, just another data point to consider in the higher earner waiting until FRA or 70. Again, so much plays into other funding as well. Just a couple things to consider depending on your circumstances.

 

[Slot708]

We had our update on Thursday with our financial advisor. It is so cool seeing what 20+ years of savings has done so far and mind blowing where we will be at retirement. It’s nice
To be in our mid 40s and never have to be concerned with Money again.

I look back and when we were maxing out or 401k back in our early 20s living in cheap apartments, our friends were buying boats and luxury vehicles acting like ballers. Now they live paycheck to paycheck with zero savings still trying to impress the world and we are set!

And your friends will have to work until they day they die

 

[tahoebum]

We had our update on Thursday with our financial advisor. It is so cool seeing what 20+ years of savings has done so far and mind blowing where we will be at retirement. It’s nice
To be in our mid 40s and never have to be concerned with Money again.

I look back and when we were maxing out or 401k back in our early 20s living in cheap apartments, our friends were buying boats and luxury vehicles acting like ballers. Now they live paycheck to paycheck with zero savings still trying to impress the world and we are set!

My wife and I have a similar story. We were much more conservative and saved more than most of our friends and neighbors by living below our means. We got married at age 29 and soon after met with a financial advisor and maxed out our 401k and Roth plans. We determined that we should save 15-20% of our income if we wanted the option to retire by age 55. I remember 1998 moving into our tract home neighborhood in CA and wondering how all of our neighbors could afford such expensive cars, boats, RV’s and motorcycles when we couldn’t. We realized 20 years later that a vast majority were prioritizing things like luxury cars over college or retirement savings.

We did spend on things like family vacations and have no regrets that we have those memories. It’s satisfying to not have the money worries and afford things like allowing your kids to attend whatever college they want. My wife and I are both soon to be 59 but I retired in 2018 and she only is still working because she loves her job. She’ll likely hang it up next year.

 

[TLuke]

We don’t have children, so not in the know. Do high schools and colleges require financial literacy as mandatory classes?

 

[wubears71]

@tahoebum - the piece of advise I give every person I talk to coming out of high school or college is to pay yourself first and if you think you can only save 10% of your paycheck, try saving 12%.

When I was 23 and looking at my 401k seeing a few thousand in it, my first thought was “what is the point”. Then when the compounding interest started kicking in, I was floored at how quickly it starts to end up.

 

[Joshnoble01]

@tahoebum - the piece of advise I give every person I talk to coming out of high school or college is to pay yourself first and if you think you can only save 10% of your paycheck, try saving 12%.

When I was 23 and looking at my 401k seeing a few thousand in it, my first thought was “what is the point”. Then when the compounding interest started kicking in, I was floored at how quickly it starts to end up.

Same boat here. I’ve maxed out since I was 30 and am 45. I started contributing at 25 and increased it each year until I finally maxed. At a minimum my wife and I will be able to continue our lifestyle at 60.

I save on top of that but it should be the minimum everyone does.

 

[Reframmellator]

There is hope if you start late. In March, 2009 I was 53 and had $35k in my retirement accounts. I retired in 2022 with the balances at $780k. About $80k of that came from pension lump sum buyouts. The rest came from maxing out my 401(k) and transferring funds to a self-directed, later advisor managed, IRA. More choices there. With our pensions, Social Security, and IRA distributions, we have a fairly robust income stream. But we’d be a lot less comfortable without my wife’s pension from 20 years of teaching.

 

[Luchnia]

All of you share some great information!

I have been retired starting my fourth year now and so far I have not had to touch any of my financial accounts such as 401s, cash, etc. I do keep a bit more cash in 3 accounts than I should, but I want to make sure I have cash money readily available should something happen to me or my wife and we need additional funds. Wife and I simply think we should be making something halfway decent instead of the lame banking style interest.

The problem is checking, normal savings, etc., don't pay jack on the money. I have been looking into accounts like SPAXX and others, but at my age I do want something insured even if it pays a little less. I notice that SPAXX is insured with SDIC (?) and I was wondering if anyone has some longer term experience with those type of accounts and be willing to share more about their experiences? Are these type of accounts with minimal risk? At my age, I prefer less risk.

 

[DataDude]

Genetics can also be used to help estimate life expectancy and when to start SS benefits. None of my wife’s grandmothers or 6 great aunts died before age 84 and the one that did was a 4 pack a day smoker for 6 decades. Many lived to 95-100.

Guy at our church has a family like that. His grandmother is a twin and her and her sister will both turn 100 in May.

 

[Slot708]

I’m always more impressed by the folks who came from a meager background.And had to make their way from scratch.Instead of the ones who got money from good old mom and dad to invest.Hard work stories like that are the best

 

[tahoebum]

Guy at our church has a family like that. His grandmother is a twin and her and her sister will both turn 100 in May.

My paternal grandmother died at 85 had 5 of her 7 siblings outlived her. Neither of my grandfathers made it past the age of 71 so with me, who knows.

 

[tequila4kapp]

Wife is retired and I will retire in 2026 at the end of the summer before we move. Luckily I have a military retirement and been investing in Roth and Traditional IRA while on active duty and now invest in our companies 401K (for the past 14 years), wife invested in her 401k when she worked. We have to build a house beginning next summer so it is ready at the end of summer 2026. My financial advisor is telling us not to take Social Security until we are 67 (we are both 60 now). What are you thoughts, as she is retired and I will retire in two years?

The morbidity tables tell us men live to an average age of 74. Women last a handful of years more, maybe 79.

My take on his advice is that you (man), on average, will be asked to live with partial retirement (no Soc Sec income) for 5 years (ages 62-67) then full retirement for 7 years (ages 67-74).

I'm not an expert on this stuff by a long shot, but I see 2 questions:
1) Can I live without the SSN income for 5 years and still have a proper quality of life?
2) Is 7 years of full benefits enough to make up for the 5 years of lost income?

 

[tequila4kapp]

Find a new advisor. Anyone that tells you to hold off taking SS benefits after age 62 has simply not crunched the numbers. Even as your monthly benefit increases each year closer to full retirement age, statistically speaking you are likely to be dead by the time it becomes worthwhile. It will take years to make up those five years of benefits you didn't take. If you don't "need" the money, take it and invest it.

Another factor in favor or what you say: the advisor has him starting to receive full SSN benefits in @2031. SSN is currently projected to become insolvent and is very likely to make partial payments staring in 2033. If that happens he literally never recoups those lost 5 years.

If someone believes the government will fix that Soc Sec funding problems and they will live long enough to make up the money, go for it. But that's a risky proposition, IMO.

 

[tequila4kapp]

We don’t have children, so not in the know. Do high schools and colleges require financial literacy as mandatory classes?

Not in my kid's schools. There's a single 1 semester Personal Finance class at the HS that is an elective. Both my kids took it but most don't.