NFR How many of you regret retiring?

Vladimir Steblina

Retired Forester...now fishing instead of working
Interesting. I was advised to fund my Roth IRA first and then contribute as much as I could to my deferred compensation account, so I could build up my non-taxable income in retirement.
Bad advice IF your deferred compensation account has a company match. DimeBrite is right.

Always fund your deferred compensation account first, IF the company matches any portion. IT IS FREE MONEY....well, the closest thing to free money you can find.

Once the company no longer matches....I would then fund the Roth.

BTW......if you leave a company. UNLESS there is a real special reason for leaving it....roll into a IRA.
 
depends a lot on your pre and post-retirement tax brackets, and when you'll have to tap those resources.
I see there is an awful lot of incomplete and incorrect advice being given here on whether a person should fund a traditional or a Roth IRA, but your answer, although short, looks to me to be the closest answer to being the correct one.

Both types of IRA’s have their pros and cons. Don’t take anyone’s recommendations here as being the correct choice for YOU. If you don’t fully understand the differences between them, and how they pertain to your specific situation, both now and in retirement, it’s probably best to consult an expert.

John
 
Yeah, for me money went into an IRA during years of very high state/ fed tax brackets, and will be taken out during years of low state/ fed brackets. Many scenarios of return and tax favored the traditional IRA.
 
Bad advice IF your deferred compensation account has a company match. DimeBrite is right.

Always fund your deferred compensation account first, IF the company matches any portion. IT IS FREE MONEY....well, the closest thing to free money you can find.

Once the company no longer matches....I would then fund the Roth.

BTW......if you leave a company. UNLESS there is a real special reason for leaving it....roll into a IRA.
Thanks for that explanation @Vladimir Steblina. I have never had a 401K. The closest I came was when I worked for a small university in Maryland for a couple of years and was enrolled in TIAA-CREF. Otherwise it has been either federal or state government. My deferred comp is with the state.
 
I retired last year on May 1st at 61 after kicking the can down the road a couple of times and have no regrets, I was DONE. My wife didn't want me to retire ( can kicking), but I put my foot down. I started working at 14 and I'd had enough. My wife is 4 years younger than me and is still working a job with good bene's, has some time to put in to build her pension, though I told her she can retire anytime she wants. I took a "job" working @ the church 5-10hrs a week as a handy man, rug shampooer, light bulb changer, get a bid to fix it guy, which is fine but I told them I don't want a schedule or anyone telling me I have too, "I wasn't lookin for a job when I got this one". It gives me walkin around money, but I don't know how long I'll last. I don't fish near as much as I thought I would, but I golf a lot more, and I'm good with that, I got time. A couple post on this thread made me think of my dad who died at 50, and a friend of mine who had a good pension, no debt and kept working for just one more year. When he finally did retire, in 6 months he was dead from a heart attack. That was one of my fears, that I would be that guy, and never fully enjoy the fruits of my labor. Start saving you're money so you can retire and enjoy life.
 
Last edited:

KerryS

Ignored Member
I regret retiring. I was forced into retirement 5 years ago due to medical reasons. My plan was to continue to work until 66 or 67. I’m 66 now. My main reasons to continue to work were to firm up our financial situation. I started late saving for retirement and I didn’t mind working. In fact I enjoyed it. My work was challenging and I looked forward to meeting that challenge.

I was fortunate that I did have some money stashed away in investments and other savings as my medical expenses topped $25,000.00 in the first year. This was my out of pocket costs even with decent insurance. The next 4 years kept eating into retirement savings but we managed to avoid bankruptcy and saved our home, so far.

My issue is I have beat the odds and have lived about 5 years longer than I was supposed to. Of course that longer life cost us our retirement as the medical industry chews through money like my dog eats steak. One moment it’s there, the next it is gone.
 
The medical cost are a real wild card, especially in the five years before medicare kicks in.

I had managed to get by with fairly low cost/high deductable insurance for years, but as I turned 60 I found I had both soaring premiums and some expensive procedures. The ACA (Obamacare) offered relief, but it required altering my investments. I cashed out of several things and got rid of most of my income or dividend producing holdings. Berkshire Hathaway is great for this mode because they pay no dividend, and responsibly reinvest internal income.

I then was in a low enough income bracket to get health insurance at a good rate. The ACA has no concern of net worth, just annual income. I have been sitting on a non-productive cash hoard for several years, but the very steep increase in insurance cost vs income has made it worthwhile. Medicare will kick in before I need to liquidate any major capital gains, and then I will rebalance to a mixture of income/ capital gains investments.

It is a bit embarassingto be fairly well off, and qualify for low income health insurance, but I tell myself part of the ACA was to help the self employed with retirement. It takes some serious planning though.
 
Less than 3% of the workforce has a defined benefit pension plan now, everyone has gone to 401Ks. 401s are ok if you have the income to contribute enough money.
And don't get swindled out of your nest egg. People use to work for years at doing their profession and then have a retirement income administered by professionals in that field. Now you have to shift gears and look after yourself.
 

Skip Enge

Uck Uck Uck, bitches
I regret retiring. I was forced into retirement 5 years ago due to medical reasons. My plan was to continue to work until 66 or 67. I’m 66 now. My main reasons to continue to work were to firm up our financial situation. I started late saving for retirement and I didn’t mind working. In fact I enjoyed it. My work was challenging and I looked forward to meeting that challenge.

I was fortunate that I did have some money stashed away in investments and other savings as my medical expenses topped $25,000.00 in the first year. This was my out of pocket costs even with decent insurance. The next 4 years kept eating into retirement savings but we managed to avoid bankruptcy and saved our home, so far.

My issue is I have beat the odds and have lived about 5 years longer than I was supposed to. Of course that longer life cost us our retirement as the medical industry chews through money like my dog eats steak. One moment it’s there, the next it is gone.
sounds familiar...I had a minor medical set back with zero insurance ($29,000)...didn't even have Apple Care or the ACA then just before actually. this was 4-5 years ago ...but I suppose write good letters and was forgiven the 2 hospital operations...(yeah financial hardship write off) . This was on the heels of a divorce the stubborn hang onto the house crap...unemployed again and ate 3/4 of my retirement acct's...I was an unfortunate dummy... Anyway I figure I will keep working part time until the school office has to call an ambulance and I get rolled out on a stretcher...ha!...This is just my dark sense of humor...I am having fun...and getting exercise...and limping a bit! Ha!
 

Paul Huffman

Driven by irrational exuberance.
I retired at 50! That’s what I told people, anyway. It seemed better than admitting I was unemployed. I quit my job so I wouldn’t have to shoot my old boss, avoiding all the problems that would have entailed. It was a great year of fishing, snowboarding, surfing, and sailboarding.

One morning, I gave the girl a ride to high school. She was complaining that she had to go to school while I got to snowboard all the time.
“Why would you say that?” I asked, looking wounded.
“Because you have your snowboarding pants on!”
“Pay attention in school today. See you tonight!”
 

Latest posts