Retirement question
 

I still have 20 some years to go before retirement, but there is this nagging question/concern of mine I like to share and see what you guys think.

We keep hearing by the time the baby boomers retire, there will be no Social Security left for us, and our 401K and pension are no safe haven either. So what is there to do when I get ready to retire?

I have a 401K and contributing to the max the Gov't allows since it was first introduced. I have a pension plan left over from the days I worked for the RBOC. I also have a 6-figure saving accounts from deducting certain percentage every pay check since the first day I entered the workforce.

However, base on the inflation rate, whatever money I have just don't seem enough to retire comfortably like our parents do. Not to mention any of those savings are in perile and go up in smoke at any moment - natural diaster (especially when the database got wipe out), corporate greed, changes of the law, etc.

So.......I was thinking.......how about retiring to a country where living cost is low. Say, Central America, South America, Brazil, India, China, Thailand or some island in the Pacific?

I would imagine by the time I retire, these so called developing countries will be rather developed, i.e. better medical, better transportation. And though they will never be as developed as we are here in the U.S. If worse come to worse, I can always come back to the States for major medical treatments. If I am not on death bed, that is.

Have you guys ever thought about packing it all up and live somewhere life is cheaper and simpler? Or my Starbuck was a little strong this morning?

I've had similar thoughts. Look at www.escapeartist.com
I also have friends who have done it.

Yes I guess a lot of us have though about that...problem is in old age is when you will most likely need exactly what my be non-existant there....even European countries are lacking in many ways....

If you have ever seen the Medical system in Italy up close it would scare you...Private Hospitals are better than the Public ones by a long shot.

in 1990 a friend of mine was involved in a traffic accident....serious enough that it required a trip in an ambulance to the hospital....at 27 he went in cardiac arrest in the ambulance...there were no trained EMS personal riding in the ambulance and nobody even know how to do CPR.....can you believe that? He died as a result...they have recently started requireing EMS people on Ambulanses....hell you woul dthink that would be a given..but its not.

I have thought about it a lot!

I think now I'm going to buy a real nice sail boat, similar to Joshua Slocums "Spray" and just go!

To hell with all the logistic of becoming old and Alzheimer, or Alzheimered, and just let mother nature seal me away!

Costa Rica;)

Right on...Dude!

Hehehe, I'm eligible in 34 days!

My immediate boss can pull the plug in a little over a year. He and one of his long time pals are planning on heading to Costa Rica. They've made a couple exploratory trips to hunt down the perfect beachside spot. From everything I've heard from them CR is a very affordable place and you can get legal residence there by having either $30K in the bank or earning $30K per year (should be easy enough to qualify just of the pension) but I don't remember which it is.

I have no plans to retire for a few more years though.

Can you bring your benz?

I just talked to a friend and she also suggested Costa Rica. I may just have to check that out too.

Howdy All,
El Mirage!¡ Actually any place out in the country is cheaper than the cities. I'm settled in right here. When I retire I can stay right here and keep running my dogs. But if things get crowded I'll look to Arizona or New Mexico and run dogs there.

Hey, Frank - Come on over. You'll like AZ just fine. I came here from CA about 10 years ago. Mainly because CA taxes were too burdensome on my business.

Anyway, I retired in 2002. My wife gets a teacher's retirement (that evaporates if she does) and I have investments from the sale of my business.
She doesn't get SS because she was exempt due to the teacher thing. I put into SS for years (mostly at the max and had to pay both the employee and employer portions because I was self-employed). I didn't start taking it back out until I was 67 in 2002. Now I'm trying to make my life last long enough to get most of it back, although, if SS went away, I could get by. I was always under the impression that SS was not a retirement program. It was intended to keep you off welfare if you didn't plan for yourself (or had a major problem that depleted your retirement funds). People have tended to expect it to be their retirement. They're in for a surprise. After Medicare is subtracted, there isn't enough left to live very high on the hog, especially if they are still making payments on a house, car, etc.

Good strategy: Invest all that you can and keep it diversified. Change your investment strategies based upon where you are in life. Don't depend upon someone else for your retirement.

Cheers,
Wes

I have 8 more or less. I'm not shooting for a particular date but I am aiming for a certain portfolio. I'm looking to have about 3/4 of my present income for 25 years after retirement. I don't spend 3/4 of my present income so I wont take a lifestyle hit and I'll probably still be saving a bit of money growing the legacy for my kids or grandkids.

But if my Mom and my grandparents are any indication, I might want to rethink the retirement length--those ol' farts all lived into their 90's and hunnerts.

Mom is 88 and drives her C230 Kompressor std and publishes genealogy books 2-3 per year. Waiting for her nest egg is a losing gamble. I hope to leave my own kids with exactly the same expectations!

Bot

I learned a little something yesterday about possible retirement. One that really changes possible plans.

I got into Gov't service just after the retirement program shake-up, basically I was on hold for a couple years. If I had gotten in when I started applying I would have been a CSRS employee, who would have gotten 60% of my base after 20 years and 2% for each year active afterward, to a max of 80%. Not too shabby depending on what one's final grade level was.

Instead I fell under the FERS plan, which guarantees I'll get 34% of my base in 30 days (20 years) and 1.7% for each additional year, for a max of 48% of my high three (highest three years grade level). This was sooooooo much better for the employees because it saves the gov't boucoup dollars...but you'll augment your retirement by investing in the Thrift Savings Plan (nice, but can be volitile depending on markets). My grade is sufficient that I'll be OK, but not as comfortable as a CSRS employee.

Now for the kicker. SES - senior executive service, they retire at 100%. Until yesterday I had never given serious thought to trying for the SES ranks. I'm 46 and if I can make the next grade level in a year or so, it is possible that I could be in a position to land an SES position in approximately 5 years. Question is can it be done without prostituting one's ideals? It takes longer to get up in grade without being a yes man...I'm living proof of that. I just don't know if it is possible in this day and age for a headstrong, type-A person to make that final leap. SES positions do have to bow to politics quite often.

Mike,
You may want to look at it at a different angle. You do the SES because you are thinking of your future - ultimately your livelihood when you are no longer needed in the society (to some extend, anyway). After all those years as public servant, you already paid your dues. Now it's Mike you have to look out for. Just my thoughts.