Mike Xavier

Comments:

• Of course Quinny, but the point I was trying to make which I think you get is that one shouldn't look at retirement spend in a vacuum and be afraid of the dooms day predictions. You sir are a fine example of that... That sweet 14 year Benz that just won't part with... When car prices spiked during the pandemic, me thinks you said, OK, why do I need to get a new car? The prices have since leveled and off, guess what Quinny, you still have the Benz, You managed the inflationary environment of auto purchasing by deferring the purchase, you didn't get bit by that bug. best, Mike

  Post: Hedging your bet in retirement-dealing with inflation. What’s your strategy? R Quinn

  Link to comment from September 29, 2024

• My take is: Not All Inflation is Equal for Retirees The good news is that retirees often benefit from a more stable housing situation. If you own your home and have paid off the mortgage, shelter costs – a significant portion of the Consumer Price Index (CPI) – become less susceptible to inflation. While transportation and food prices can fluctuate, retirees may drive less and potentially adjust food budgets. This could mean experiencing a lower overall inflation rate than the national average. Planning Strategies for a Secure Retirement Here are some key strategies to consider when planning for retirement and inflation:

  • Debt Reduction: Pay off high-interest debt, especially mortgages, to free up more income for future expenses.
  • Nest Egg Building: Maximize retirement savings contributions to ensure a comfortable standard of living despite inflation.
  • Flexible Spending: Plan for lower essential expenses like housing and potentially reduced food costs.
  • Strategic Travel: Opt for off-peak travel periods to potentially reduce travel costs.
  • Part-Time Work: Consider working part-time during early retirement to supplement income and Social Security benefits.
  The Takeaway By focusing on debt reduction, building a healthy nest egg, and planning for potentially lower essential spending, retirees can navigate inflation more effectively. Remember, the key is proactive planning for a secure and comfortable retirement. Source:
  • Pew Research Center: Link to source on CPI basket

  Post: Hedging your bet in retirement-dealing with inflation. What’s your strategy? R Quinn

  Link to comment from September 29, 2024

• You could also add him to an existing credit card even if he doesn't physically have the card in in his possession. Make sure it is a card you use and that will also build his credit history. I personally abhor paying interest for anything, so if I can avoid it I can. As someone else mentioned a secured card will also help teach him to repay his debts on time.

  Post: Student Loan Repayments and Credit Score

  Link to comment from September 29, 2024

• That's the beauty of the question right, SS claiming strategies are unique to the individual and it is never black or white. If i had an inherited IRA that i could draw from, then waiting might certainly make sense. In my case we have nothing inherited and I do want to leave a bit.for kids/grandkids if blessed with those. Thanks for responding to my comment.

  Post: Quinn asks himself, Is delaying Social Security to age 70 the right decision?

  Link to comment from September 24, 2024

• No surprise there Dick. That's what my financial calculator told me too. The decision of when to claim cannot be made in a vacuum. You must take into account all the factors that are going to be impacting you. Those factors will guide you on the decision that's right for you. For you and me its taking that SS cash earlier. Good discussion Dick.

  Post: Quinn asks himself, Is delaying Social Security to age 70 the right decision?

  Link to comment from September 22, 2024

• So why not claim SS now and let the portfolio grow to be even more bullet proof. What happens if you reduce your withdrawals from the portfolio equal to the amount of SS you can get now? Even if your portfolio drops a bit due to a really bad market, how does that impact the income you tol live on? Finally, any thoughts on leaving a legacy? Yes, you get a 30% larger check at 70, but it would mean less money to pass on. SS is shut off once you pass but, you can leave a legacy with retirement account balance. Something to ponder? There is no right or wrong answer, it is just another way to look at the options.

  Post: Quinn asks himself, Is delaying Social Security to age 70 the right decision?

  Link to comment from September 22, 2024

• Exactly. Waiting to get the biggest check at 75, when my knees are shot , back hurts and I'm ready to slow down? No way! BTW, do I pinch pennies between 62-70 to have a decdnt retirement? I plan on retirement at 57-58, 3 years from now. We have liquid assets to fund our lifestyle through 62, then boom💥! Take SS early and draw down some from 401k to reduce the traditional bucket. Enjoy the years if the good Lord allows through our go go years. We'll be fine without the largest SS check I don't want to miss the 10 years or $500k in SS payments for DW and I while I wait for a larger check which could be an extra $30k per year compared to taking it earlier. But then I need to live until aged 82, to break even. Like who the heck cares at that point.

  Post: Quinn asks himself, Is delaying Social Security to age 70 the right decision?

  Link to comment from September 22, 2024

• I brought this up a while back and the responses pointed to me being everything from nuts to naive and that I should consider delaying taking social security. Some pointed me to Mike Piper's calculator that gave you scenarios showing having the lower earning spouse claiming at 62 while the highest earner claiming at 70. That does give the largest total social security payout, however I'm not convinced that on its own is the right strategy. I have run this through several scenarios and it really depends on several factors. - your legacy goals -your non taxable retirement balance -tax planning and optimization -when you plan to stop working -your retirement spending goals. Me thinks, taking the SS money earlier to avoid touching what is already a pretty substantial retirement account balance and allowing that to continue growing is the best strategy for me. I can spend the SS dollars early, to travel, see the world and minimize my retirement accounts drawdown is the optimal plan. I can delay until seventy, but am I supposed to either pinch pennies until then or substantially drawdown my 401k. Then if I die at 71-75, I've lost all of those SS income years? If I live to 95, then the 401ks plus the reduced SS is still enough, actuallymy RMDs would be crazy. I don't want the biggest check at 75, I need it at 62 so I can do my thing with the Missy enjoying our go go years and still leave the 401k to do it's thing and set us up for the later.years. I took into account sequence of return risk and the increased SS cola, after running the numbers, waiting to aged seventy doesn't make our family better off.

  Post: Quinn asks himself, Is delaying Social Security to age 70 the right decision?

  Link to comment from September 22, 2024

• Nah, sorry I don't buy that keeping older already stressed workers at work is the approach of recommend. I am age 53.and i have no interest in working past 57 although i might push it out to 60 but I have no interest in working longer, not full time anyway. I do think expanding and incentives.for work in general is a sound idea so that we can expand the labor force and bring in more taxable revenue. I also think that finding away to guarantee a certain level of benefits once you hit a certain age is something that should be explored. I dont see how we have older folks who may or may not have planned properly living in poverty. This a politically sensitive topic but I'm open to hearing other thoughts.

  Post: Nothing to Trust by Jonathan Clements

  Link to comment from August 16, 2024

• Probably leave my 401k since it's at a large employer, I like the options in the plan and see no reason to move. I also have an IRA which conveniently is at the same firm, Fidelity whete my 401k resides My wife has two 401ks and we'll probably just move those to Fidelity as an IRA when the time comes, but who knows. Right now they are with large employers one with Vanguard and the other with Schwab. Wr arenomly 53, so we have a bit of time. I do like the simplicity of having everything in one place.

  Post: When you retire, should you move your retirement savings to IRA or leave it in 401K plan?

  Link to comment from August 12, 2024