FREE NEWSLETTER
Go to main Forum page »
Well, I tried to stay up until midnight to pop a cork, but it just wasn’t happening. So today I woke up as a retired person! If you’ve read my articles from 2024 on the topic, you know this didn’t sneak up on me.
My road through the logistics of retiring from two university systems and applying for Medicare went…somewhat smoothly. I was pretty meticulous in my preparation. I attended webinars for both systems last year and put the application dates on my calendar. I had a Zoom meeting with an advisor from one of the two systems to make sure I was doing everything correctly.
My retirement application from my current/most recent employer was finalized May 15, and I’ll get my first pension check on August 1. (I just got my last regular paycheck, as we’re paid in arrears.) My Medicare application process also went smoothly, and that coverage also begins today. (I turn 65 next month, but since my birthday is on the first of the month, I got to start Medicare on July 1.)
But there’s one glitch: My retirement application from my previous university system is still not finalized, even though I submitted it on March 3. The hold-up is that I have reciprocity between the two systems. That’s a good thing, but it makes the process more complicated. They had informed me that because of this factor, my final pension calculations could take longer, so I didn’t worry about it…but then last week I realized “wait, I’m only a week out; I should have heard something.” So I got on the phone, and indeed, there was a problem, which turned out to be lack of communication between the two systems. I’ve been on the phone with both several times and messaging with the first system. They all assure me that it will get worked out and that if my first pension check from that system is late, I’ll be made whole retroactively. But it’s a nagging piece of unfinished business that’s dampening my glee a bit today. (And it’s not a small issue. This pension from my first employer is going to represent more than 50% of my retirement income.)
I guess the take-home message is that no matter how carefully you plan, something can still go wrong. But I know I’m in a position of privilege having pension income at all, so I’ll try not to worry about it too much, although I’m naturally wired for fretting.
My next task, which I may actually tackle today, is rolling over my workplace retirement accounts (403B/457) from Fidelity to my Schwab Rollover IRA (already in place from my previous job). (My husband wants/needs me to do this because of his independence audit for the accounting firm he works for.) Again, I planned for this—I spoke to a rollover specialist at Schwab, who sent me detailed instructions of what to tell Fidelity when I call them. Fingers crossed that it goes more smoothly than my pension experience!
On a happier note, we have a nice dinner out planned tonight, and the bubbly will get cracked at some point today! I’m RETIRED!!!
Congratulations, Dana. But…. I surely hope you retired “TO something”, not just “FROM something”. If so, what is it?
I always thought it’s interesting when people asked me what I’m going to do once I’m retired. Isn’t the point of retiring to stop doing at least some things?
That said, I’m not the type to sit around, and I still have a lot of gas in the tank at age 65. I’m going to let the first year or two be somewhat a period of discovery, but the short-term list includes the following:
Those are the things I’m definitely doing. Other possibilities include some non-profit volunteer work (TBD) and more socializing. One of the things I’m most excited about is just having time and energy to hang out with family, friends, and neighbors more.
And I’ve already stacked up my Kindle with reading material and want to catch up on some TV series I’ve missed!
(And talk my husband into us getting a dog…)
That’s probably enough to start with. 🤩
That sounds like a full time job. Maybe more than one. Relax!!
Congratulations!
I had similar hurdles when I retired with 2 pensions, a rollover 401k, HSA contribution timing, and other issues. All went smoothly, except the rollover. Since I went from work and home ownership to retirement and full time RV travel, getting the check to the correct address was quite a challenge. But it did work out. Next month, all these worries will be gone.
Enjoy! I retired on May 30th this year. It has been wonderful doing what I wanted to do each day.
Congratulations to you as well!
Congratulation! It is a big life milestone. Wish you a happy and healthy retirement!
Thanks so much!
I retired too on July 1! Congratulations to the both of us!
Yes, indeed!
Congrats Dr Lefty. Keep planning, be patient, all will work out in time. My mantra is One Day at a Time. There will always be some bumps in the road.
I’ll try! 👍
Congratulations on your retirement.
Thanks, Doug!
Just found this a minute ago….Congratulations, You have passed the finish line and all you have to do now is to wait for your Blue Ribbon!! When I retired on Aug 1 of 2001, I had already submitted requests to get $$ from various company retirement funds Xferred to Schwab. It took until the middle of February 2002 before it all got accomplished. Over than period, the market dropped, so when I finally was able to buy some funds, I thought that I had gotten ahead….oh well, the market kept falling until the end of the year…..
I guess I shouldn’t overanalyze it all. I’ll get the pension glitch sorted and figure out how to roll over my funds. I don’t love that it will take my money out of the market for a couple of weeks, but it is what it is.
I’m surprised that Fidelity won’t do the rollover directly to Schwab and “in kind”. I wonder if they’d do it “in kind” if you did a rollover into a Fidelity Rollover IRA? If so, then you should be able to immediately do an electronic transfer of an IRA from Fidelity to Schwab. That should then be an ACATS electronic transfer of “in kind” so you don’t have to be out of the market and there wouldn’t be any paper checks.
I called and asked. The Fidelity rep said the way they disburse funds is plan-specific, and my plan requires that they send the check to me—no electronic or in-kind transfers, no check sent directly to Schwab. And it will take 7-10 business days. We’re away from home until July 20, so I’ll get it started a few days before we head home. Then I deposit it with Schwab, hopefully using the mobile deposit app (I’ll call and check that it’s OK, first) right into my existing rollover IRA. No matter how you cut it, it’s probably going to be a minimum of two weeks that my money will be in limbo.
Bravo
Mazel tov!
Thank you!
Congratulations, Dana. Hope you enjoyed a lovely dinner last night and are having a relaxing time in SD. When I retired 10 years ago, I also had a trip planned that departed the very next day, and enjoyed it even more, knowing I didn’t have to return to to work.
Thanks, Linda! My husband and I just took a walk down the beach, and he was asking me if I was happy with our trip so far. I said that I knew the trip would be mostly “unformed”–meaning that we don’t have a lot of specific plans because we’re rolling with what our family members would like to do and taking each day as it comes–and that it’s a metaphor of sorts for my new phase of life.
I’m a planner. I’m usually so meticulous with our trips that I’ve joked that I could pull off a military invasion. My adult life has been run by calendars and to-do lists. So parking for three weeks at the beach without a major plan is very out of character for me. But I think it’s good.
People have asked me how I feel about the transition, and I’ve said it hasn’t really sunk in yet. I think that’s because as a professor, June is always about wrapping up a school year and anticipating a summer break. So the past few weeks haven’t felt much different from other years. I think when it’s August, and I don’t have to start thinking about prepping my fall classes, it will seem more real.
Congrats to you, Dana.
Retirement from teaching didn’t seem real for me either until the first fall. Then I was out biking on what would have been the first week of the semester when suddenly the feeling struck that I needed to be in class. The same feeling washed over me multiple times that September, but ceased soon after. I still, however, occasionally dream about arriving late or not prepping for class; those dreams are waning though, now that I’m retired for a few years. Being in or around academic environments continuously since kindergarten, as you may have been, and then retiring, necessitates a rather big mental shift.
I think it will be a big mental shift. For basically all my life I’ve thought of time in terms of the school year. I absentmindedly said something to my husband like “Oh, that would be a good week; it’s spring break,” and I realized there is no more spring break for me (though I still have to pay attention to other people’s spring breaks to avoid crowds!). Or, another way to look at this is that it’s always spring break!
Congratulations on your new freedom. From personal experience, our mental habit would not change easily unless we deliberately subject ourselves to new demands or routines for a while. After 2 decades of hospital on-call duties, and despite 4 years into retirement, I still have not escaped the startled / surprised / anxious feeling when I got unexpected night call or text. Just be amused how work life conditioned us. Now that work is no longer a part of our life, we are free to unlearn and recondition ourselves to new happiness. Goodbye the old golden cage, and good ridden.
“Unlearn and recondition…” I like that!
That’s one thing I’ve loved about this new phase: booking trips when far fewer are also free to travel. Get ready for lower trip costs (or longer vacations), and fewer crowds.
I have been eagerly anticipating this, being an enthusiastic traveler who also plays the points-and-miles game. Having an academic schedule where I got summers and holidays off was great except when it came to traveling. I look forward to fall and spring travels, and we went to South America in February (summer there) when I was on sabbatical.
Congratulations!!!
Thanks, Mike!
Congratulations! Keep on writing for HD!
Thanks! And I will!
Congratulations! I hope your retirement is all you’ve planned it to be, and more.
Thank you, Ed. It feels like unknown territory, for sure, but I’m going to try to enjoy the adventure of figuring it all out.
Congratulations and welcome to your next stage of life. You will have plenty of time to work out the remaining pension issue (ans if you needed something to do) and I’m confident it will be resolved soon.
All the best and keep us posted.
Thanks! 🤞
Congratulations Dana on a well planned retirement. My experience is that transitions form one thing to another here the worst. Once rouge things set it should go smoothly. Enjoy San Diego and you daughter.
Best Wishes, Rick
Thank you, Rick.
Welcome to what’s next.
Indeed!
Woohoo! Go, Dana! Go, Dana!
👍🎉👏🍾🪅✨
Thank you!
Congratulations!
Thank you!
DrLefty, congratulations and welcome to joblessness.
I want you to know that I am contributing to your family finances. I have streamed Randy’s music about 13 times now. I calculate that to amount to nearly 4 cents!
Seriously, I hope you guys have a long and happy retirement.
That’s awesome. I’ll tell him! We’re in San Diego visiting our daughter, who’s also a musician, and they’re probably going to do some open mics together while we’re here. Pretty lively music scene here. If you hear a young female voice singing harmonies on some of the songs, that’s her.
Congratulations and welcome to retirement! Maybe when your husband sees how happy you are he’ll want to join in!
I’ll keep you posted!
Congratulations, Dana, I am happy for you. Chris
Thanks, Chris!
Congrats!
Thank you!
Congratulations Dana! Your planned retirement was way better than mine and well thought out.
I wish I had spoken to a rollover specialist beforehand, but that doesn’t mean they know everything to think of asking you. Fidelity knew that I had just retired and they hounded me to do a rollover. Pro rata now lives with me forever.
I’ve been getting lots of emails from Fidelity as my retirement date approached. They’d like me to keep my funds there, I’m sure.
I begin my eighth year in retirement today. I experienced minor glitches during the retirement process, but nothing significant. Enjoy the bubbly!
Congrats! My experience with Fidelity rollover (maybe 4 years ago) is that they will insist on sending you the check personally. They won’t send it to Schwab.
I rolled out of my employer’s Fidelity 401(k) for a Schwab IRA. I never understood why Fidelity wouldn’t go straight to my Schwab account. I was uncomfortable holding a check that large.
Yep. Waiting a couple of weeks for a big paper check made the Fidelity to Vanguard rollover uncomfortable for my wife and me.
Ugh. We’re away from home for several weeks, and I don’t really want a check that large sitting in my held mail. I’ll see what they say when I call, and maybe I’ll have to wait until we get home.
Yes, same experience here with a rollover from Fidelity to Vanguard.
Fidelity won’t do in kind distributions from a 401k, so they will sell everything and let it settle before cutting the check. You can pay a small fee to have it sent overnight.
When it arrived, I did a mobile deposit of the check to my rollover IRA using the Vanguard app, which was a hoot.
I have T-bills and TIPS in my Fidelity 401(k), so I asked whether I could roll them over in kind to an IRA, and they said yes, as long as I did the whole account at once.
I wish I could do that (the mobile deposit). All of that $$ floating around in paper checks makes me really nervous.
EDIT: Your comment made me curious, so I just looked. The Schwab app also has a mobile deposit feature. I’ll call first to make sure I can deposit the check that way, but in any event—I’ll still have the paper check.
Welcome to the club.
Thanks!
Congratulations!
Thanks, Kristine!
Well done. You now have a new full time job of liberating your husband!
Stay tuned…
Congratulations, Dana!
Thank you!
Mazel tov!
Thanks! 🍾