How Much Do You think You Need to Retire? What Age Will You/Spouse Retire? General Retirement Issues (Part 2)

Parent Cafe
9310

The ending “unless you keel over in the prime of life…” made me think that a lot of adoration is reserved for people who do exactly that, Steve Jobs, JFK, John Lennon etc and today Susan Wojcicki. Most everyone else can’t sustain their “heroic victory”…

I’ve always assumed I would just keep working, because that’s what I love to do, and I’ve continued to get better at it throughout my career. Is it better to go out on top, like an Olympic gold medalist who announces they are retiring? But of course even then, many of them can’t resist taking another shot at glory…obviously there are no easy answers.

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9311

If proposed hikes go through, our tax bill would go up almost 25%! 65 and frozen taxes can’t get her quick enough.

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9312

Reminds me of this poem

To an Athlete Dying Young

By A. E. Housman

The time you won your town the race

We chaired you through the market-place;

Man and boy stood cheering by,

And home we brought you shoulder-high.

Today, the road all runners come,

Shoulder-high we bring you home,

And set you at your threshold down,

Townsman of a stiller town.

Smart lad, to slip betimes away

From fields where glory does not stay,

And early though the laurel grows

It withers quicker than the rose.

Eyes the shady night has shut

Cannot see the record cut,

And silence sounds no worse than cheers

After earth has stopped the ears.

Now you will not swell the rout

Of lads that wore their honours out,

Runners whom renown outran

And the name died before the man.

So set, before its echoes fade,

The fleet foot on the sill of shade,

And hold to the low lintel up

The still-defended challenge-cup.

And round that early-laurelled head

Will flock to gaze the strengthless dead,

And find unwithered on its curls

The garland briefer than a girl’s.

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9313

What proposed hikes are you talking about? Is there something new?

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9314

Guess I was never successful enough to actually be considered successful … because I have had no problem enjoying retirement.

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9315

And how do you get frozen taxes? Are you talking about income taxes or property taxes?

9316

I assumed it meant property taxes, with retiree discount at age 65.

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9317

Famous professor at my college…how appropriate!

Obviously from a personal point of view, you don’t get much benefit from dying young. However, history may take a different view…

9318

This reduction in property taxes for retirees is not everywhere! The cost of our property taxes was something we needed to factor into our retirement planning.

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9319

There is no over 65 discount on property tax where I am.

9320

Property taxes. Here, they lock in at 65.

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9321

Yea, discounts not available everywhere. In my county, senior citizens can get a discount (about $600/yr) or a deferral (for those who can’t afford the taxes… it’s essentially a loan until house is sold or owner dies) or “work off” ($10/hr temp community work - I think school volunteering may be one of the gigs).

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9322
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9323

Where I am, the only property tax discounts are for VERY low income seniors. It’s a pretty wealthy town so not likely this applies to many. In some places in GA, I understand that the property taxes are reduced by a %age for those over a certain age.

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9324

In Washington state, the income level is set on what county you live in, to get a property tax reduction. For example, in King county (Seattle area), you can get some reductions at income up to 84K, and more reductions for less income. You only have to be 61 or older.

People should definitely check what their state property tax reductions are, as they can be quite significant.

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9325

Many retirement-aged people, for a variety of reasons may still need to work for financial reasons. Some do work because they love what they are doing so much that it is their routine - or they may be leadership of their company and need to make sure it stays running well.

Sept 2024 Kiplinger had a one page article on PLUS Loans for college, and it said “If you plan to retire within 10 years, you should borrow proportionately less - for example, half of your annual income if you expect to retire in five years.” Earlier it said consider limiting your own borrowing to no more than the amount of your annual income.

Of course there are people that still are paying on their own college loans by the time they have children ready for college.

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9326

Yes, the article does a good job of providing statistics regarding older workers still working for a variety of reasons including financial reasons. It’s interesting to see the trends. I’m less than a decade away from retirement. I don’t intend to need to work for money but I will perhaps work at a small part time business I start, volunteer or spend time helping with grandkids. I’m not close enough to have a real plan yet. I’m glad to have been a saver over my lifetime.

I saved for my kids college expenses since they were young. It was much easier to save and invest a couple hundred dollars a month than to come up with the funds all at once or take out a loan.

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9327

I’m in the midst of this decision-making. I have enough money to retire and not really change my lifestyle. Unfortunately, my husband died earlier this year, and all those mental plans about retiring together, social security, and his pension have changed, since two became one.

In reference to the Lending Tree article above, I am the leadership of a small business. I only own 5% but I have run it for close to 20 years. How do I step away? How do they replace me? Can I continue to be the face of the company with our vendors, but not do the full job? (And what would I get paid for that?)

  • How much longer do I want to work?
  • When will I sell the house and move?
  • Can I have two homes—one near each D? I really don’t want the maintenance of two places. Like many we have lived in this house a long time, so the total monthly payment is less than I would pay to rent a 2BR apartment.
  • How do I execute a move to two places?
  • In real dollars, what will the capital gains tax look like?
  • When will I start Social Security?

Every day, all day. What’s stopping me? My 96 yo father and his 93 yo wife, I’m afraid I will get even further drawn into senior care if my time is seen (by my brothers and others) as unemployed/retired.

I’m thinking of beginning the transition early in 2025. D2 may need childcare help for a few months so I may go visit for 3-4 weeks at a time and possibly rent a VRBO. I’d like to live in a community to see if I really want to move.

I’ve also asked a local RE agent to walk through my house and let me know what projects I should prioritize before putting it on the market. It’s pretty updated. I’m planning that it will need a new roof before too long.

I’ve held off on meeting with my Fidelity advisor because I’m in a take-it-slow stage on making big decisions — and I think he will again propose an annuity and I’d rather stay more liquid.

Decisions, decisions….

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9328

Stay strong about not wanting an annuity. Be aggressive and tell your financial planner if they ask again you will ask to change advisors.

That they ask about you buying something you don’t want is no reason to put off discussion.

That’s what I finally did. Was very firm that we do not want an annuity. Our last meeting was with another person in the firm and we liked him very much.

We have a pension and will have social security. Enough annuities as far as we are concerned.

Your plans sound great. Lots to think about

I get the being too available for aging parents. Or other family members who think you should do the heavy lifting

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9329

I’m sorry. That all sounds very overwhelming.

On the capital gains on the sale of your home you owned with your husband - as it is now, you have two years from his date of death to qualify for a $500,000 exclusion on the capital gains on the home. After that, the amount drops to $250k. You get a step-up in basis for half the value of the home at his date of death. So, you might consider getting an outside appraisal on your home now. Capital improvements (the new roof) will also increase your basis.

Let’s say you paid $100k for the house. The value as of his date of death is $900k. It has appreciated $800k, so you get to increase the basis by half of that appreciation ($400k). Your basis in the house is now $500k. If you sell it for $900k, your gain is $400k. If that sale happens within two years of his date of death, none of that amount is subject to capital gains taxes because the gain is under $500k. If you sell it after two years, $150k is subject to tax because the gain ($400k) greater than the $250k exclusion.

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