Thoughts on retirement budgeting - Page 5 - Fiberglass RV


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Old 11-23-2014, 09:36 AM   #57
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This retirement thread has be an interesting read. This has been an eventful year for me: I turned 60, my wife and I bought a tug and new Escape 17b trailer; then my daughter and son-in-law asked us to consider selling our residence in order to move into a co-living arrangement with them so their mortgage burden would be less.

We are in the midst of moving into a basement suite in a home which was built with a spacious in-law-suite. It is a bit of a shock to my system but lots of benefits. We are close to assist with grandchildren when or if they come; we can leave to go Escaping and the kids are there to watch our suite. And the kids are around to help us as we age.

We live in the Vancouver B.C. area where realestate is quite expensive. Apparently my wife and I are part of a new trend of parents going into co-living arrangements to assist their children. There are lots of big issues to consider: financial, estate, co-living arrangements to be made. But the benefits to family make it worthwhile for us.

I may end up retiring a year or so earlier than planned and go Escaping more often.

(By the way, I enjoy reading this Fiberglass Forum - lots of great info and helpful people posting)
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Old 11-23-2014, 09:38 AM   #58
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Oops - I edited my original post to reflect this:
I should have said we bought a new 17b Escape trailer earlier this year.
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Old 11-23-2014, 09:44 AM   #59
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I'm curious what bank is paying 3% on savings. Even the credit unions, which generally pay more than the banks do not seem to be offering 3%. Perhaps a CD?


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If you read the whole thread you will notice I was using the same numbers CPAHarley Jim chose. He picked 3% as an example. Best rate around here is a 2.1% 6 year CD.

That said, your comment does bring up what I think is a very serious threat to the retired, low interest rates on "safe" savings accounts. In an effort to boost the economy the fed has kept interest rates very low for a very long time. And the country is going into debt to do this. Both impact the long term buying power of savings. Raz
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Old 11-23-2014, 11:01 AM   #60
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I'm curious what bank is paying 3% on savings. Even the credit unions, which generally pay more than the banks do not seem to be offering 3%. Perhaps a CD?
Here in Canada you would be hard pressed to be able to obtain more than that if you simple do your investments with the over the counter options offered at the bank level. You normally need to use the services of a detached investment company/advisor to do better. If your wanting to play it safe but do better than a savings plan - long term 5 to 10 year corporate bonds are a farily popular option.
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Old 11-23-2014, 12:11 PM   #61
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Here in Canada you would be hard pressed to be able to obtain more than that if you simple do your investments with the over the counter options offered at the bank level. You normally need to use the services of a detached investment company/advisor to do better. If your wanting to play it safe but do better than a savings plan - long term 5 to 10 year corporate bonds are a farily popular option.

Actually, I do have the services of a financial planner available, and do keep some of my money in a credit union. I wasn't asking because I was looking for something that paid 3%; it was a rhetorical question because I was aware that 3% from a bank is unrealistic in today's world. If I were relying on getting 3% to have a comfortable retirement I would be in trouble. And I don't think Canada has a monopoly on being hard pressed to obtain higher savings rates. It is the same south of the border here. I doubt interest on savings will ever climb to what it once was. :<)


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Old 11-23-2014, 12:20 PM   #62
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Actually, I do have the services of a financial planner available, and do keep some of my money in a credit union. I wasn't asking because I was looking for something that paid 3%; it was a rhetorical question because I was aware that 3% from a bank is unrealistic in today's world. If I were relying on getting 3% to have a comfortable retirement I would be in trouble. And I don't think Canada has a monopoly on being hard pressed to obtain higher savings rates. It is the same south of the border here. I doubt interest on savings will ever climb to what it once was. :<)


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Sorry Carl, my comment wasn't intended as a personal slight to your investment knowledge, simple an answer to what apparently theoretical question.
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Old 11-23-2014, 12:26 PM   #63
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Sorry Carl, my comment wasn't intended as a personal slight to your investment knowledge, simple an answer to what apparently theoretical question.

I didn't take it as a slight at all Carol. I was aware that you were using figures previously used in the thread. Originally, I was trying to point out that no bank I know of is offering anything approaching 3%. Believe me, I am not offended and I'm sorry if I gave you the impression that I was.


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Old 11-23-2014, 12:34 PM   #64
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One point that hasn't been mentioned on retirement spending - You may not need as much as you did while working. With a combination of a pension, Social Security & saving interest, my current income is 76.9% of my last year at work (2002) and without job related expenses, I have more to spend. I travel more, and seem to be able to buy more "toys" while still adding to my savings. While your lifestyle may not match mine, it is something to consider.
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Old 11-23-2014, 12:58 PM   #65
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Check out Lendingclub.com

A peer to peer finance company with over 5 billion in outstanding notes. It is not too difficult to get a net return of 8% or more with a maximum risk of $25.00 per note purchased. You receive monthly P&i payments on the notes you purchase.

If you want some Arbitrage take out a 3% mortgage and loan it out at 10%. That's exactly what banks do.


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Old 11-23-2014, 01:05 PM   #66
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I didn't take it as a slight at all Carol. I was aware that you were using figures previously used in the thread. Originally, I was trying to point out that no bank I know of is offering anything approaching 3%. Believe me, I am not offended and I'm sorry if I gave you the impression that I was.


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No problem, I BTW only mentioned Canada as I am well aware that the banking practices are VERY different to those in the US especially when it comes to large ticket items such as mortgages & retirement savings plans as well as small stuff such as certified cheques .... so was not totally sure as to what the practices in the US banks are/where in regards to what investment services one can get directly over the bank counter.
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Old 11-23-2014, 01:51 PM   #67
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....."The DAY you retire (he said it twice!).....will be FIVE YEARS too late.".....

I am afraid that may be true! As a person gets closer to that final working day it becomes an issue - when should I retire? Will I have enough? I also need to remind myself to careful of that OMY syndrome.

Here is another quote I've read about when its time:
when you have enough
when you've had enough
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Old 11-23-2014, 02:01 PM   #68
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Lending Club ????

glad it's working for you...but personally, I wouldn't go near that thing with a "ten foot pole" !....it raises LOTS of red flags in my book....and it's not that I am super "risk averse" either

(ALL of my nest egg is invested in the stock market....my decisions, my choices, using the "discount brokerage" model....a fair amount of work to keep up with it all... but satisfying and intersting as well)

The Clubs customers are basically people who banks would not lend to....that does not give me a nice warm feeling....no matter how far and wide you spread the risk around...BTW wasn't that the recipe the mortgage market used from 2000 to 2007 ? I can only wonder what would have happened to the Lending Club if it had been around in 2008?

on the other hand, we hear a lot about banks in the US not lending to anybody these days (once burned, twice shy and the consequence of ridiculoously cheap money from the Fed)....so maybe this is just the "new normal" and there is nothing to be worried about.....flip a coin

For me, I think that at this point in time it is "better to be an owner than a lender" and that's what I'm going with....good luck to all of us
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Old 11-23-2014, 02:28 PM   #69
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What works for one does not for the other. I would not trust the crooks manipulating the stock markets with one cent. I have been extremely happy with Lending Club for three years now. Only a total collapse of the financial system that put EVERYONE out of work could put my notes at risk. And yes these may be folks that cannot get bank financing, but by using the screening model you can restrict note purchases to only A credits with 750 FICO scores if you are happy with 6% yields.


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Old 11-23-2014, 03:13 PM   #70
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Retirement Plans

In May 2015, I am taking early retirement at age 59 1/2 years which is allowable with my employer's retirement plan. I've crunched the numbers many times, and it's doable. I am very fortunate in that my retirement benefits include a decent health care plan at minimal cost to me. This may not last forever, as many employers are changing the health care benefits for retirees, but I'll take it as long as it lasts. Hopefully, I'll continue to have this benefit until age 65 when I become Medicare eligible. If not, I'll have to adjust my budget accordingly.

One of the reasons why it is doable is because I have had a lifelong habit of living below my means and not taking out loans other than to mortgage a home. Members of this forum seem to be a frugal lot, so I think I am among like-minded company. Another reason why I am able to do this is because my children have achieved comfortable and stable lifestyles without needing much help from me. This has been a great blessing, and I am very grateful to them.

I have been prepping for retirement for the past two years. My action plan includes the following: 1. Paid off mortgage. 2. Sell second home to minimize expenses. 3. Sell my boat, a 1985 Albin pocket trawler (a BIG expense item). 4. Consolidate all taxable investments into a single account and choose a modest withdrawal rate for income to supplement employer's monthly pension. 5. Be on the lookout for a fiberglass trailer so that I can spend the winter months down south.

I cannot imagine that I will spend, in inflation-adjusted dollars, as much as I spend while working. I have a small, modest summer cottage in Michigan on Lake Huron which is very inexpensive to maintain during that time of year. I hope to spend 5 or six months per year in warmer weather using the trailer to travel to different places, maybe interspersed with one-month condo rentals through VRBO (vacation rentals by owner) rental units. These can be found in places like Hilton Head Island and Gulf Shores for $1000 per month, including utilities.

I am looking forward to this next phase of my life, and May cannot come soon enough.
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