OT: Retirement plans

[JayDogSmooth]

Been thinking lately about retirement. If things pan out I have ~10-12 more years, if not it could be 18-20. What are everyone’s plans for retirement? Target age, destination, to do list, places you want to see/go, etc?

In a perfect world, I'd move out of NJ and down to Florida (Tallahassee), and also have a summer place in New England (coastal CT/RI, or Mass). From September - May, I'd really like to be active with FSU boosters, volunteer for worthy causes (Ukraine supplies, etc.), and attend many different sporting events (football, soccer, basketball, baseball, softball for sure, and lacrosse, wrestling and men's soccer if they were ever added).

From June - August, I'd love to live up in New England on or near the coast, or on one of the lakes in Central Mass. Having a boat/wave runner would be great, and going to Red Sox games, eating quality seafood and grilling out / relaxing would be on the docuet.

I've been thinking about retirement since I was a kid as my grandparents moved down to Florida to retire, and we'd go down there for the summer. I don't really enjoy working, but wouldn't mind doing some consulting work or a low stress sales position while in retirement/semi-retirement.

What say you? What are everyone's plans? I always like to get input from this board, as many good ideas come across and it's interesting to see and hear everyone's perspectives.

 

[T2Kplus20]

Been thinking lately about retirement. If things pan out I have ~10-12 more years, if not it could be 18-20. What are everyone’s plans for retirement? Target age, destination, to do list, places you want to see/go, etc?

In a perfect world, I'd move out of NJ and down to Florida (Tallahassee), and also have a summer place in New England (coastal CT/RI, or Mass). From September - May, I'd really like to be active with FSU boosters, volunteer for worthy causes (Ukraine supplies, etc.), and attend many different sporting events (football, soccer, basketball, baseball, softball for sure, and lacrosse, wrestling and men's soccer if they were ever added).

From June - August, I'd love to live up in New England on or near the coast, or on one of the lakes in Central Mass. Having a boat/wave runner would be great, and going to Red Sox games, eating quality seafood and grilling out / relaxing would be on the docuet.

I've been thinking about retirement since I was a kid as my grandparents moved down to Florida to retire, and we'd go down there for the summer. I don't really enjoy working, but wouldn't mind doing some consulting work or a low stress sales position while in retirement/semi-retirement.

What say you? What are everyone's plans? I always like to get input from this board, as many good ideas come across and it's interesting to see and hear everyone's perspectives.

Wife and I are in our mid/late 40s and have a 4th grader. We already have financial independence, which is a fancy way to say that we can retire whenever the heck we want. Our current plan is to go full steam ahead and see where we are at in 8 years (once the little one is done with high school). We are both in easily remote/WFH jobs, so this gives us a lot of flexibility to have our cake and eat it too.....move wherever we want and still work. Also, we can easily shift to consulting and be SMEs for our industries.

Honestly, we enjoy what we do so no rush to retire. I think it depends on finding something we are passionate about that will fill up all the free time in retirement. We are not naturally sit around and chill people. Gotta do something! :)

Anyway, we plan to have 2 homes, one in Stone Harbor NJ and the second whenever life takes our little one. If our daughter stays in NJ/Tri-State area, our second home will likely be in the SW somewhere (perhaps AZ).

 

[mdk01]

My 1 suggestion is to calculate health insurance costs between your potential retirement date and age 65. And don't lowball.

 

[mikebal9]

My wife and I each held onto our condos from our single day,s and now rent them out, which more than pays their mortgage. I have 11 years until I can retire. Our plan is to sell both of them as well as our 4BR home at that time and buy a condo in Clearwater Beach and another somewhere on the Jersey shore. Our boys will be graduating high school at that time, so it all lines up nicely.

 

[RUScrew85]

We're expecting to retire in 4.5 years. Probably to the Carolinas, prob near the ocean because @MrsScrew needs to live within 40 minutes of an ocean for some reason. Maybe she was a whale in an earlier life.

I don't expect to never work again. I'd like to keep busy if I find something interesting to do. Not software or IT related. I'm D O N E with that crap.

I expect we'd travel and I'll play golf as long as my back holds out.

 

[mildone]

My advice is to quit today. Life is too short to waste it working.

Then open a H&B concession to cover life-expenses. It'll be legal soon enough. Beginner's tip: don't forgot to put a lawyer on retainer.

 

[Rutgers Chris]

Early 40’s here. Wife will be retired within 5 years from teaching. Kids will be off to college in 10-12 years and I will be in a position to retire then or sooner. I like what I do and it isn’t difficult, so I can see myself working beyond when I can comfortably retire. Also have a business or two I’m a partner in that will provide passive income.

Already have a house in LBI that we stay at in the summer. Will see where the kids end up and won’t be far away from them. Would also like to have a small place in Hilton Head for some part of the winter.

 

[yesrutgers01]

late and mid 50's. Both healthy and still feel very young and are both still in prime earning. plan to work another 10 years and hope for house to be paid off and 2.5+ liquid.
Current calc with SS would have us at a combined $7k a month if things do not change.. Always wanted to move out of state to better weather and lower taxes. but now, the grandchildren are starting and harder to leave them then it would have been to leave the kids lol

 

[T2Kplus20]

Always wanted to move out of state to better weather and lower taxes. but now, the grandchildren are starting and harder to leave them then it would have been to leave the kids lol

The solution to this is 2 houses. :)

 

[RUBlackout]

I’m mid 40s and no chance I can retire soon.,,prob 65 as single income takes its toll

 

[tom1944]

The solution to this is 2 houses.

You really do not save significantly on NJ taxes when you keep a house here since you pay property tax

NJ income tax for seniors is not significant. Including social security I figure my income will be close to $150,000 and my NJ income tax would be zero

I like to attend as many of my granddaughter’s events so being gone 6 to 9 months does not work for me

 

[T2Kplus20]

You really do not save significantly on NJ taxes when you keep a house here since you pay property tax

NJ income tax for seniors is not significant. Including social security I figure my income will be close to $150,000 and my NJ income tax would be zero

I like to attend as many of my granddaughter’s events so being gone 6 to 9 months does not work for me

The poster cited multiple reasons for moving out of NJ (not just financial). However, you can mitigate NJ property taxes by living down the shore. In retirement, you can only be in NJ for 6 months minus 1 day. Great rule of thumb for all.

 

[Knight Shift]

You really do not save significantly on NJ taxes when you keep a house here since you pay property tax

NJ income tax for seniors is not significant. Including social security I figure my income will be close to $150,000 and my NJ income tax would be zero

I like to attend as many of my granddaughter’s events so being gone 6 to 9 months does not work for me

?????

New Jersey Retirement Tax Friendliness - SmartAsset

Our New Jersey retirement tax friendliness calculator can help you estimate your tax burden in retirement using your Social Security, 401(k) and IRA income.

smartasset.com

 

[T2Kplus20]

?????

New Jersey Retirement Tax Friendliness - SmartAsset

Our New Jersey retirement tax friendliness calculator can help you estimate your tax burden in retirement using your Social Security, 401(k) and IRA income.

smartasset.com

tom (a.k.a., brianoc) is/was a long time state employee that is very defensive on this topic. :)

 

[Knight Shift]

tom (a.k.a., brianoc) is/was a long time state employee that is very defensive on this topic. :)

Yeah, but were is the zero income tax on $150K of retirement income, unless he is counting Social Security, which technically is not really retirement income (don't want to start an argument on this).

Interesting that SmartAsset lists Delaware as a tax friendly state for retirees, but they have one of the most heinous income tax rates on retirees. I have heard they don't tax government pensions, including state government pensions from other states. But for private sector employees, DE sucks.

Back to NJ, did a quick calculation of $150,00 in income (not including Social Security) and came up with $7,400 in state income tax. Compared Arizona and came up with about $5,000, and property taxes are infinitely cheaper there (paying about $2500 on a house valued close to $1M).

 

[tom1944]

?????

New Jersey Retirement Tax Friendliness - SmartAsset

Our New Jersey retirement tax friendliness calculator can help you estimate your tax burden in retirement using your Social Security, 401(k) and IRA income.

smartasset.com

The calculator was incorrect for my data

NJ does not tax social security and exempts all other retirement income for a married couple up to $100,000

 

[tom1944]

tom (a.k.a., brianoc) is/was a long time state employee that is very defensive on this topic. :)

You are correct that I was a long term State employee. You are incorrect that I am brianoc

 

[T2Kplus20]

Yeah, but were is the zero income tax on $150K of retirement income, unless he is counting Social Security, which technically is not really retirement income (don't want to start an argument on this).

Interesting that SmartAsset lists Delaware as a tax friendly state for retirees, but they have one of the most heinous income tax rates on retirees. I have heard they don't tax government pensions, including state government pensions from other states. But for private sector employees, DE sucks.

Back to NJ, did a quick calculation of $150,00 in income (not including Social Security) and came up with $7,400 in state income tax. Compared Arizona and came up with about $5,000, and property taxes are infinitely cheaper there (paying about $2500 on a house valued close to $1M).

Interesting info on DE. I know countless people that have moved to DE for retirement. Get out of NJ, but staying close for family reasons.

+1 - many better states than NJ for retirees.

 

[T2Kplus20]

You are correct that I was a long term State employee. You are incorrect that I am brianoc

 

[tom1944]

Yeah, but were is the zero income tax on $150K of retirement income, unless he is counting Social Security, which technically is not really retirement income (don't want to start an argument on this).

Interesting that SmartAsset lists Delaware as a tax friendly state for retirees, but they have one of the most heinous income tax rates on retirees. I have heard they don't tax government pensions, including state government pensions from other states. But for private sector employees, DE sucks.

Back to NJ, did a quick calculation of $150,00 in income (not including Social Security) and came up with $7,400 in state income tax. Compared Arizona and came up with about $5,000, and property taxes are infinitely cheaper there (paying about $2500 on a house valued close to $1M).

My post said I will have retirement income of about 150k including social security

 

[tom1944]

The poster cited multiple reasons for moving out of NJ (not just financial). However, you can mitigate NJ property taxes by living down the shore. In retirement, you can only be in NJ for 6 months minus 1 day. Great rule of thumb for all.

He also said he wants to be involved with his grandkids. Over 6 months away impacts that

 

[nutfromSEC117]

5 more years , shooting for 50 years old
Then a part time job of needed 12-16 hours a week.
going from 50-55 Hours a week to 12-16 will feel like a don’t really have a job !
All really depends on health care costs

 

[yesrutgers01]

The calculator was incorrect for my data

NJ does not tax social security and exempts all other retirement income for a married couple up to $100,000

Though, Federal does based on your additional income. Myself- don't plan on working at all once I retire- I will be in spend mode. 50-55 years of working is enough.
So- my wife and I should qualify for it all being tax exempt. If you are earning enough between SS and partime income where you are at 150k- I believe the current plan would make you have to claim up to 85% of your SS as income for federal taxes.

This is why I want house paid and 2.5 in the bank and the extra $7k per month in my pocket. I don't feel I would have too many worries at that point.

 

[vkj91]

46 and can’t wait to leave NJ. Youngest will be out of HS in 5 years. Financially we can retire today but will work until that time. Trying to stear the kids to southern colleges so they will be more likely to follow us but we will cross that bridge when it happens. SC, Florida, Georgia, or Az are most likely destinations.

 

[ru109]

I just turned 50 last year, wife is turning 50 this year. She'll be fully vested in her pension at age 59 so she figures she'll retire then, I'll work till 62 and then retire. We'll keep the house in NJ and maybe rent it while we go see the world for a few years.

 

[Knight Shift]

Interesting info on DE. I know countless people that have moved to DE for retirement. Get out of NJ, but staying close for family reasons.

+1 - many better states than NJ for retirees.

Plus it's Delaware. The place just seems soulless and has no identity.

 

[mdk01]

The calculator was incorrect for my data

NJ does not tax social security and exempts all other retirement income for a married couple up to $100,000

Social Security tax free definitely, But isn't there a threshold based on other income where the 401k, rollover IRA etc. gets folded back in?

 

[robcac26]

I'm planning on retiring at 55 (or maybe 57 since I think I need to hit that to keep my dental insurance). I'll have a pension, but I won't max it out unless I work another 8-10 years or so. I wasn't counting on having a pension when I started saving, so I don't mind leaving a good chunk of that on the table to be done working that much earlier, and I could always just work an easy part-time job to make up the difference. I'm 34 now, so still a ways to go. I've been planning on retiring in my mid-50s since I was 27 and began maxing out an IRA and eventually got my previous employer to offer a 401k. I don't understand why the yearly contribution limit for an IRA is so low, if you don't have an employer-sponsored retirement plan, you're pretty much screwed. I've been working a side job since starting my 401k so that I can contribute a lot more to it, I put about 20% of my income towards retirement. No kids.

As for what to do when I retire, I've been half-jokingly telling people I want to retire early enough to still learn how to skateboard, and maybe learn guitar too if I don't pick that up before then. I'm into astronomy so I'd like to spend more time with a telescope under dark skies, and I've driven through Nevada and Utah twice and really like it out there, but not sure I'd want to live there.

 

[fsg2]

The idea of retirement never particularly excited me, but past couple months I've been meeting folks just killing it. One lady, must've been like 70, solo road-tripping cross country and snowboarding off days on her epic pass, another super-chill guy having the time of his life, bought some land on the coast to surf through retirement.

Ideally would be healthy enough to live on the road (in a small camper van, not a monster RV) for a few years. Would love to travel one continent for a year or two at a time, then the next. After that, settle down in the desert if I'm sick of dealing with snow, mountains if not.

 

[tom1944]

Social Security tax free definitely, But isn't there a threshold based on other income where the 401k, rollover IRA etc. gets folded back in?

It was 1 dollar over the cap however if I recall correctly they phased out the immediate elimination to a more gradual process

 

[RUinPinehurst]

North Carolina is closed to retiring Yankees. Sorry. South Carolina is open, though.

Seriously, though, I would advise you to go and "live" in a town/state for at least a month as a "trial run" before permanently relocating. In one month, you should know if it works for you and your spouse.

I've been a resident of NC since 1982. It's changed a lot, of course. And the growth? Making things challenging. I've lived in Raleigh, Cary, Pinehurst, had a second home on the coast for a decade. Now reside in the northwest corner by the TN/VA line. The mountains suit us, for now.....

 

[fsg2]

Plus it's Delaware. The place just seems soulless and has no identity.

I always thought the same, but the beaches are nicer than most of the JS, imo. Except for the nasty biting flies, not sure how often they're there, but a deal breaker if a lot.

Not that I'd move there, but it's not as terrible as it sounds on paper. I got dragged on vacation, was not at all excited, but really enjoyed it. Would go back.

 

[ru66]

My advice--- vote for people that are good for your investments--we have plenty of $ and 3 high end real estate properties .We spent a year trying to protect our assets/ inheritance so as to leave our kids plenty. Now??? With high inflation and a messed up economy , you " youngsters "should start worrying and we have traditional pension plans. Serps and 401ks that pay us very significant annual incomes. If you've got future years to recover ( like 10 to 20) less to be concerned about.

 

[Doctor Worm]

I do hope that no contributor to this thread ever again gets cranky when a NJ kid commits elsewhere.

 

[RUinPinehurst]

I do hope that no contributor to this thread ever again gets cranky when a NJ kid commits elsewhere.

That fence works both ways... LOL.

 

[jtung230]

don’t know when I’m going to retire but have a feeling that it’ll be obvious when the time comes. Won’t make any moves until the kids are out of high school. After that, will move to the Jersey shore. Probably buy a place in Hoboken as well. But all that can change depends on where the grand kids are.

 

[Steveriknight]

I'm 43, work as a school business administrator at a school district... so will have a pension one day (hopefully), but it was a mid-career change to improve quality of life/working hours so I won't get the full pension until I'm about 65. Will collect social security around the same age.. the max allowable probably.

Also have a two-family rental property that cash flow's about $1,500 per month now... probably will cash flow $3,500 per month (in today's dollars) by around 65 when it's paid off by the rental income. Own my house in Cranford but have close to 30 years left to pay off. I refi'd both properties at 2.75% and 2.25% about a year ago. May liquidate them in retirement or keep the two-family for the cash flow, or rent both out. Not sure yet... tenants tend to destroy your property unless you get lucky.

I like NJ... I've lived in other states, and I think NJ is pretty hard to beat. Not the cheapest but not the most expensive either. The people in the different states make all the difference in my experience, and I like NYC metro area people the best. Not a fan of ultra-liberal obnoxious Californians.. or slow-moving slow-talking, slow-everything southern people. Chicago area is colder than here, Florida is too humid. So I dunno... I loved living in Manhattan and my current plan is to try to retire back to the upper east side. But most buildings are co-ops and the maint fees are ludicrous... and you don't get much space. So, perhaps a brownstone in uptown Hoboken. Not sure yet.

My kids are 5 and 8 so that's part of the calculus too, grandkids one day etc. Was divorced about 3 years ago, and got out clean with zero financial burdens.. which I'm thankful for. Just dating chicks with the apps now... so not sure where life will take me. May get re-married, but may not. Marriage is a high risk proposal, especially if you have moderate to significant assets you bring to the table, and they do not.

Also, I like to joke that I have ants in my pants. I like to stay busy... and love the energy of cities. I can enjoy a tranquil setting, but for a vacation only to decompress. Need stimulation... so, for the same reason I'm not sure what I'd do in retirement. Travel of course, but probably I'll continue to do school business administrator work on an interim basis while collecting my pension. Another reason to stay in NJ.

 

[jtung230]

I'm 43, work as a school business administrator at a school district... so will have a pension one day (hopefully), but it was a mid-career change to improve quality of life/working hours so I won't get the full pension until I'm about 65. Will collect social security around the same age.. the max allowable probably.

Also have a two-family rental property that cash flow's about $1,500 per month now... probably will cash flow $3,500 per month (in today's dollars) by around 65 when it's paid off by the rental income. Own my house in Cranford but have close to 30 years left to pay off. I refi'd both properties at 2.75% and 2.25% about a year ago. May liquidate them in retirement or keep the two-family for the cash flow, or rent both out. Not sure yet... tenants tend to destroy your property unless you get lucky.

I like NJ... I've lived in other states, and I think NJ is pretty hard to beat. Not the cheapest but not the most expensive either. The people in the different states make all the difference in my experience, and I like NYC metro area people the best. Not a fan of ultra-liberal obnoxious Californians.. or slow-moving slow-talking, slow-everything southern people. Chicago area is colder than here, Florida is too humid. So I dunno... I loved living in Manhattan and my current plan is to try to retire back to the upper east side. But most buildings are co-ops and the maint fees are ludicrous... and you don't get much space. So, perhaps a brownstone in uptown Hoboken. Not sure yet.

My kids are 5 and 8 so that's part of the calculus too, grandkids one day etc. Was divorced about 3 years ago, and got out clean with zero financial burdens.. which I'm thankful for. Just dating chicks with the apps now... so not sure where life will take me. May get re-married, but may not. Marriage is a high risk proposal, especially if you have moderate to significant assets you bring to the table, and they do not.

Also, I like to joke that I have ants in my pants. I like to stay busy... and love the energy of cities. I can enjoy a tranquil setting, but for a vacation only to decompress. Need stimulation... so, for the same reason I'm not sure what I'd do in retirement. Travel of course, but probably I'll continue to do school business administrator work on an interim basis while collecting my pension. Another reason to stay in NJ.

Divorced and no financial burden? That’s like an oxymoron. Do share you divorce attorney.

 

[RULoyal]

I retired in January. I'll be in NJ for the foreseeable future as the wife wants to stay close to our daughter in north NJ.

 

[tom1944]

I do hope that no contributor to this thread ever again gets cranky when a NJ kid commits elsewhere.

The kid only has to say I love Rutgers but mom and dad are retiring to the Sun Belt