I have retired after 39 years 7 months 16 days as a Senior Staff Consultant in a major telecommunications company. “One job, one wife”- Eddie Robinson Coach, Grambling State University. My last tenure was in a strategic planning organization.
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I started here and ended here |
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If you have not already done so, contract a financial planner. A financial planner will help you figure out your financial goals, help you to determine your risk profile and will direct you on how to obtain your financial goals. Ultimately, you make the decisions. When selecting a financial advisor, I value character and integrity over knowledge. This does not mean find the dumbest person in town. The certification process and experience especially one who has experienced some economic down times, will filter a good enough financial planner. An incremental increase in knowledge may gain you an extra $1,000 over your financial lifetime but at a higher cost of piece of mind. Get to know your financial advisor personally. For example and hypothetically if a financial advisor is cheating on what should be his closest relationships, his or her spouse and family, how can he be trusted with my money. Trust is more important than that possible $1,000. How much is enough? Proverbs 30:8 (NIV) "Keep falsehood and lies far from me; give me neither poverty nor riches, but give me only my daily bread."
Exercise, exercise, exercise. AARP, Amerirpise Financial Services and Ernie Zelinski, whom I will discuss later, all emphasize the importance of exercise. What is the value of a fat nest egg, if it all goes to medical expenses? A membership in an exercise class or club will not buy you good health if you don’t participate. These clubs make their profits on no-shows. Preventable poor health leads to a slow and agonizing death.
My best advice is to work with your financial advisor. If at all possible, I would not make Social Security a dependency for your retirement plan. Use it as a hedge against inflation, future investment and for "mad money". Not everyone can do this. This first thing that I would do is to obtain an Social Security Statement. Social Security Statement Request Form
With this information, you and your financial advisor can make a better decision. This next question is whether to collect benefits at age 62 or at full maturity (FRA). A lot is this is based on probability. For me, from a purely financial perspective, the break even point is age 74. In other words, if I received benefits starting at age 62, at age 74, I would have received the same benefits if I had waited until age 66. Assuming that there are no catastrophe's, look at your family's history of longevity. How disciplined are you is investing your benefits and how disciplined are you in not making your benefits as part of your budget. Also keep in mind that if you work while receiving benefits, they are reduced if you earn over $13,560/year if you receive benefits before you reach FRA(Full Retirement Age). How much can I earn and still receive Social Security benefits?. I am a layman on this issue. Discuss it with your financial advisor and keep up-to-date by reviewing the Social Security Web site. Social Security Web site See the updates listed below.
Estimated taxes is the method used to pay tax on income that is not subject to withholding such as earnings from self-employment, interest, dividends, rents, alimony, etc. In most cases, you must make estimated tax payments if you expect to owe at least $1,000 in tax (2008) after subtracting your withholding and credits. Payments can be made with the vouchers included in Form 1040-ES. The payment schedule in 2008 is as follows:
1st payment |
April 15th |
2nd payment |
June 16th |
3rd payment |
Sept 15th |
4th payment |
Jan 15th |
More information can be found in Publication 505. Also refer to Publication 554 IRS Publication 554
If you have earnings in a state with income tax, most likely the same or similar process will exist.
Per What You Need to Know When You Get Retirement Or Survivors Benefits SSA Publication No 05-10077 SSA Publication 05-10077, “About one-third of all people receiving Social Security benefits have to pay taxes on their benefits. You will have to pay taxes on your benefits if you file a federal tax return as an “individual,” and your total income is more than $25,000. If you file a joint return, you will have to pay taxes if you and your spouse have a total income that is more than $32,000. If you are married and file a separate return, you probably will pay taxes on your benefits.” You can have taxes withheld on the taxable portion of your Social Security benefits.
The information of this webpage is a heads-up only for new recent retirees and for those planning retirement in the near future. It is not a substitute for referring to a tax professional, contact with the IRS and SSA or you own personal research.
See the following websites:
Man cannot live on retirement checks and annuities alone.
A holistic approach to retirement would include the body, soul and spirit with the soul being defined as the mind, will and emotions. I have addressed the financial, physical and activity aspects of retirement.
In reading this section, don’t be surprised to see spiritual answers to spiritual questions. Just keep an opened mind.
“The first few months of retirement can be difficult particularly for people who didn't have an excellent work/life balance in the their careers. Suddenly all those hours that used to be taken up by work are open for leisure activity. For some people, this is a frightening and challenging situation. Getting used to freedom and having to make their own decisions on what sort of activities to pursue can tax uncreative minds. For that matter, it can tax a few creative ones.” How to Retire Happy, Wild and Free by Ernie Zelinski page 38.
What thing or project will provide lasting fulfillment? When one gets to the point of realizing that the pursuit of a new thing or project is to meet an inner need, one looks inside of his or her self for meaning and purpose. In being alone, one becomes aware of aloneness, not necessarily loneliness, and becomes discouraged or bored. As David Jeremiah puts it in Slaying the Giants in Your Life page 34, discouragement “sends us inward where pity parties and are common and perspective is rare.”
The creation of a retired identity or new life is the spiritual side of retirement. Rather than trying to make something new out of something old, why not turn to the creator who says “ I make all things new”, II Cor 5:17, and His promise is in His Son. His Son says, “I am come that they might have life and that they might have it more abundantly.” John 10:10. That word life in Greek is ZOE from which we get the English word ZOO and ZOOLOGY. Beyond biology, in this case, ZOE means “life as God has it”, An Expository of New Testament Words by W.E. Vine.
How do I apply this to my retirement? “But as for me and my house, we will serve the Lord” Jos 24:15
More information on this subject can be found at
The Hope Project with the conclusion at The Hope Project Conclusion
This is not about religion. Religion makes one a judge but a relationship makes one a son. Rom 8:15, Gal 4:6
With this, now dreams can provide purpose, meaning and fulfillment rather than just something to ward off boredom and loneliness.
These retirement notes were written within my first three months of retirement. They captured the transition from "What you do" to "who you are". For those of you who are presently retired, do you remember this transition? I have seen many of my peers return to work as contractors due to boredom. We re-invent ourselves through dreams. Even before I retired, my financial advisor told me to determine my retirement dreams. I made a short list. I also did some research. I recommend the following books:
| 1 | Floss |
| 2 | Take Drawing Classes Dream 2 Retirement Arts |
3 | Take Painting Classes |
| 4 | Take a Priscilla Coote art class in Key west |
| 5 | A+ Certification |
| 6 | Take HTML Classes Retirement Arts |
| 7 | Take Dreamweaver Classes Retirement Arts |
| 8 | Develop a web site |
| 9 | Go back to photography as a hobby |
| 10 | Take Digital Photography Class |
| 11 | Teach Internet Class to Senior Citizens |
| 12 | Teach Sunday School Class |
| 13 | Take Italian Cooking Class |
| 14 | Take French Cooking Class Retirement Arts |
| 15 | Learn to Grill and Take a Grilling Class Recipes Retirement Arts |
| 16 | Work a season at a KOA in the Keys |
| 17 | Work as a greeter for Disney |
| 18 | Work as a greeter for Royal Caribbean |
| 19 | Photograph and paint camping trips and cruises Dream 19 |
| 20 | Learn to Sail |
21 | Take more cruises |
| 22 | Garden |
| 23 | Buy a house with a pool in Florida Dream 23 |
| 24 | Learn to sail a Catamaran and sail regularly |
| 25 | Take more culinary classes |
| 26 | Go on a foreign missions trip |
| 27 | Write a book |
| 28 | Return to SCUBA Diving (NAUI Rescue Certified) Dream 28 |
29 | Continue work on the family tree |
| 30 | Create web site for my wife Spanish Moss |
| 31 | Add tax considerations to retirement page |
| 32 | Visit DisneyWorld at Christmas Christmas at Fort Wilderness |
| 33 | Learn to draw in color Dream 33 Retirement Arts |
| 34 | Add to Dream List |
| 35 | Take Caribbean Cooking Class Dream 35 Retirement Arts |
| 36 | Learn Spanish |
| 37 | Learn French |
| 38 | Add Animation to this website Dreamweaver Pro Image Show |
| 39 | Go Deep Sea Fishing again |
40 | Go Back to Cross Harp (harmonica) |
41 | Bike a centurion |
42 | Deep sea fish with my brother |
43 | Deep sea fish out of Islamorada |
44 | Take a portrait drawing class |
45 | Obtain Basic Boating Certification |
46 | Obtain Sail Certification |
47 | Read The Rise and Fall of the Roman Empire |
48 | Visit Tahiti Dream 48 |
49 | Paint The South Pacific Dream 49 |
50 | Work Part Time as a Web Designer |
51 | Memorize 25 scriptures with reference that apply to my Retired Life |
52 | Attend Culinary Institute of Tuscany |
53 | Take An Oil Painting Class Retirement Arts |
54 | Obtain Motorcycle License COMPLETED NOV 7, 2010 |
55 | Cruise A1A on a Motorcycle Dream 55 |
56 | Create A Tropical Garden Dream 56 |
57 | Kayak Dream 57 |
58 | Create an after 5 years webpage Dream 58 |
59 | Sail on Disney Cruise Line |
60 | Build A desk for My Office |
61 | Visit Hawaii again Dream 61
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62 | Tour Kauai on a motorcycle
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63 | Create an after 10 years webpage Dream 63 |
64 | European River Cruise |
65 | Dine on the Amalfi Coast |
| 66 | Create an after 15 years webpage Dream 66 |
You are never too old to set another goal or to dream a new dream
C.S. Lewis
ONE YEAR LATER
When I first created this webpage, my intent was to journalize the transition from working stiff to retirement. I was aware of those who had made the last day of work the goal rather than retirement itself. Some returned to work, some died of boredom and some spent the nest egg on poor health due to bodily neglect. It is like comparing the wedding day to a marriage. Keep adding to your dream list. As my wife said, “Have a glass of iczed tea”.
That is not an easy task for an engineer or anyone who has a scientific viewpoint. Science is based on observation and repeatability. To step back, observe and analyze retirement is to lose it. As C.S. Lewis puts it “You cannot hope and also think about hoping at the same moment; for in hope we look to hope’s object and we interrupt this by (so to speak) turning round to look at hope itself.”… “The surest way of spoiling a pleasure was to start examining your satisfaction”… “In introspection we try to look ‘inside ourselves’ and see what is going on. But nearly everything that was going on a moment before is stopped by the very act of our turning to look at it.”
Similarly, professor, song writer, author and management consultant, Robert Waller makes the same analogy about romance. “Romance dances just beyond the firelight, in the corner of your eye. She does not like you to look at her directly; she flees from the cold light of logic and data collection when it is turned toward her. If you persist in trying to study her, however, she first disintegrates, then dissolves into nothing at all.”
Over the past 17 years, the water pressure regulator in our house slowed the flow to a point where if the washing machine was running, there was no water pressure to any other appliance or faucet. It happened so gradually that I did not notice it until the frog had been boiled to death. It was recently replaced. Now I can fill the washing machine, flush two toilets and take a shower at the same time. I rejoice every time that I take a shower. I do not lose this simple joy by thinking that I should have replaced it 17 years ago. Nor do I lose the joy of retirement by stepping back to analyze or second guess it. To say “should have” is to lose your joy. So enjoy your īczed tea without analysis. Don’t look at it, drink it!
SANITY CHECK
This Sanity Check is subjective and is based on what I have researched and what I have applied to my retirement strategy.
One year into retirement, I decided to read Preparing for Retirement by Larry Burkett. It is intended for those planning retirement and for the newly retired.
Be forewarned that is based on the timeless wisdom for King Solomon of Israel, 960BC- 925 BC and is most appreciated after the reinvention of the retiree and the spiritual side of retirement is embraced on this webpage.
“How blessed is the man who finds wisdom, and the man who gains understanding. For its profit is better than the profit of silver and its gain than fine gold.” Proverbs 3:13-15. Preparing for Retirement, page 16.
“By wisdom a house is built, and by understanding it is established; and by knowledge the rooms are filled with all precious and pleasant riches.” Proverbs 24:3-4. Preparing for Retirement, page 178.
When I first open the book, it opened to page 132. “Take at least a year after retiring before you make any relocation decisions”. The book grabbed my attention. Notice that it says before making any decisions and not before relocating. Item 23 of my dream list is to move to Florida.
Larry Burkett also says that task oriented Type A personalities like myself should not retire unless retirement can be redirected to new projects. Hence, the value of the dream list for me. Pleasure seeking and consumption will be short lived, my insight.
The investment advice is conservative which I believe is wise. In my case, at this time, I have no new income and I have less economic life ahead of me to recover from severe risk than when I was younger.
When I was younger, my most expensive commodity was time. Now I have time and the time value of money has decreased. In other words, if one is in good health, mow the lawn yourself and shovel the snow yourself. The benefits are
For the past 26 years, my wife has done an excellent job managing the household internal budget. She essentially does not spend what she does not have and partners with friends for wholesale purchases. To encourage her and to reiterate what she has been doing, I recommended that she read Larry Burkett’s Preparing for Retirement, “Retiree’s Budget” chapter pages 229 to 243.
To reiterate, I would not budget Social Security as part of one’s budget. This is especially true if you are not presently collecting Social Security. http://www.hhs.gov/news/press/pre1995pres/910517.txt
My next retirement milestone is age 65. I don’t want to lose the taste of today’s īczed tea by focusing on checkout group thinking but there are considerations to made with strategic thinking. Some considerations are medical expenses, medigap insurance, retirement service availability, state inheritance taxes and opportunities to volunteer.
MEDICARE
I received my Medicare Part A & Part B card in the mail 134 days prior to my 65th birthday. As long as one is receiving Social Security, the process is automatic. See the updates listed below.
This is preliminary information.
Medicare is broken into four parts
Part A Hospital Coverage
Part B Medicare Insurance
Part C Medical Advantage
Part D Prescription Drug Plans
More information can be found at http://www.medicare.gov/navigation/medicare-basics/medicare-benefits/medicare-benefits-overview.aspx
Coordinate this with your employer’s health plans. In my case, my former employer will provide their Part D and a supplemental medical package. I will update this site when I learn more about my employer’s supplemental plan. If your company does not provide this coverage, consider a Medigap policy. http://www.medicare.gov/find-a-plan/questions/medigap-home.aspx
In the month in which my Medicare subscription became effective, $99.90 was subtracted from my Social Security check to pay for my Medicare Part B premium.
The schedule for Part B premiums can be found at Medicare Part B Premiums
The Part B deductible is $140.
2013 SOCIAL SECURITY AND MEDICARE UPDATES
This page is a living document. Therefore I will present the changes in the form of updates rather than changing the historical data.
Higher payroll tax cap. The payroll tax cap increased by $3,600, from $110,100 in 2012 to $113,700 in 2013. Workers who earn more than this threshold don't need to pay Social Security taxes on that income.
Higher earnings limit. People between ages 62 and 66 who work and collect Social Security benefits at the same time might have part or all of their Social Security benefit temporarily withheld. Workers between ages 62 and 65 can earn up to $15,120 in 2013, after which $1 in benefits will be withheld for every $2 of income above the earnings limit. People who turn 66 this year can earn up to $40,080, and then $1 of benefits will be withheld for every $3 earned above the limit. However, once you turn age 66, the earnings limit no longer applies. And benefits may be recalculated at age 66 to reflect the withheld benefits and continued earnings.
The Part B Medicare deductible increased to $147.00 in 2013 and my Medicare subscription increased to $104.90 which is subtracted from my Social Security check to pay for my Medicare Part B premium.
2014 MEDICARE UPDATES
Medicare Deductibles and Premiums did not change from 2013 to 2014. The Part B Medicare deductible did not increase from $147.00 in 2014 and my Medicare subscription did not increase from $104.90 in 2014 which is subtracted from my Social Security check to pay for my Medicare Part B premium.