Retirement Drama

[PropAddict]

The NZlanders were saying that when they retire, they get a check for $1M, and that's all the gov't ever gives them. While I think there is huge potential to squander it all away, I think I could make it work for me. and I bet it'd be cheaper on Uncle in the long run.

 

[flaps]

$1m before taxes ain't so much.

 

[wlawr005]

$1m before taxes ain't so much.

I think it would be if you got it in a lump sum. Even $650k would go a long way towards paying off a house and reducing your monthly expenses in the long run...

 

[Brett327]

But you can't live the rest of your days off of 1M. The average payout over a retiree's lifetime is substantially more than that.

Brett

 

[eas7888]

But you can't live the rest of your days off of 1M. The average payout over a retiree's lifetime is substantially more than that.

Brett

True, but if you were to invest a portion of your income into a retirement account of your choosing, it's not unlikely that after putting in your 20 years, you could make that $650,000 work for you very nicely, especially if you choose to get a kinder and gentler job after you get out . . . biding your time until the day that you can draw your retirement money.

 

[whitesoxnation]

True, but if you were to invest a portion of your income into a retirement account of your choosing, it's not unlikely that after putting in your 20 years, you could make that $650,000 work for you very nicely, especially if you choose to get a kinder and gentler job after you get out . . . biding your time until the day that you can draw your retirement money.

Working for you as in... your money eroded due to inflation with a flat S&P500 over the last decade? High yield bonds basically come out the same as equity. Short duration bonds don't yield anything, and long duration won't "work for you" unless you already retired, don't plan on being around for much longer, and need the $ to live off of right now. In the mean time inflation will erode that $650,000, and with interest rates basically negative right now, when they are raised your bonds lose value. As for government - 30y is yielding like 3% right now.

Unless you're best friends with a good hedge fund manager or you are smarter than everyone else, the only person your money will be working for is your broker.

 

[eas7888]

Working for you as in... your money eroded due to inflation with a flat S&P500 over the last decade? High yield bonds basically come out the same as equity. Short duration bonds don't yield anything, and long duration won't "work for you" unless you already retired, don't plan on being around for much longer, and need the $ to live off of right now. In the mean time inflation will erode that $650,000, and with interest rates basically negative right now, when they are raised your bonds lose value. As for government - 30y is yielding like 3% right now.

Unless you're best friends with a good hedge fund manager or you are smarter than everyone else, the only person your money will be working for is your broker.

Well, if you want to go out with a smile on your face, $1,000,000 in Vegas would be a damn good start. That's a lot of hookers and blow. There might even be some left over for the poker tables.

But. . .that aside, even with my modest savings, I've managed to come out ahead (that is, above inflation) over the past 6 years. I'm very conservative with my investments, but that's just me. I understand where you're coming from, though, things have been really rough for a lot of people over the past decade. I only hope that means things can only get better. *shrug*

 

[Brett327]

So, I think we can all agree that while 1M would be a decent severance package, it's not realistic to expect to use it as your sole source of income for retirement. One of the reasons I've chosen to stay in past 20 is the potential payoff of the O6 over 30 retirement.

Brett

 

[PropAddict]

So, I think we can all agree that while 1M would be a decent severance package, it's not realistic to expect to use it as your sole source of income for retirement.

Sure. But the same could be said for the 20 yr O-4 retirement benefit now. And in most areas, the O-5 retirement alone is not gonna keep you at your usual standard of living.

But if you handed me $1M at age 40, I'm pretty sure I could work for another 10-20 years to pay the bills, get the kids through college, payoff the house, etc. Then live off the interest from the severance for the rest of my days. Much as I plan to do with my IRA and military retirement now.

 

[Brett327]

Sure. But the same could be said for the 20 yr O-4 retirement benefit now. And in most areas, the O-5 retirement alone is not gonna keep you at your usual standard of living.

But if you handed me $1M at age 40, I'm pretty sure I could work for another 10-20 years to pay the bills, get the kids through college, payoff the house, etc. Then live off the interest from the severance for the rest of my days. Much as I plan to do with my IRA and military retirement now.

Which is why I'm opting for the O6 over 30. It's a six figure gig and I wouldn't have to work if I didn't want to, travel, enjoy my many interests - actually retire. Or, I could work and bank/invest the cash for another 10 years and then do those things at 59 vice 49. More options to squander my money on me.

Brett

 

[phrogdriver]

There's always the,"working for half pay" thing. And before some as swipe points out that doesn't include BAH--yes, I know.

Still, at 20 you get the check to cover basic bills, then you can pursue something else you like for 10 years while getting a paycheck and possibly a new retirement plan on top of your existing one.

To each his own. If you stay past 20, stay because you enjoy it. The money you can get anywhere. The flying's probably done at 20, unless you have serious E time, so you just have to REALLY like the big green (or blue) gun club.

 

[BusyBee604]

To each his own. If you stay past 20, stay because you enjoy it. The money you can get anywhere. The flying's probably done at 20, unless you have serious E time, so you just have to REALLY like the big green (or blue) gun club.

For an example: I retired @ age 39 w/ 22 years (4 enlisted) in 1974. Rough estimate of gross retirement pay over past 37 years... just short of 1.5m & I'm still tickin'! From winging to retirement, I was in an A-4 cockpit w/ the exception of a 2.5 year boat tour in which I bagged 100+ traps in the C-1A COD. Perfect career for a prior with little chance of 0-6 or beyond. At this point, meaningful flying was over. No complaints/regrets here.
BzB

 

[flaps]

been retired a couple of years and i can say its at least as important to stay healthy as to have bucks. i mean like you gotta get religious about it.
..

 

[helolumpy]

Which is why I'm opting for the O6 over 30. It's a six figure gig and I wouldn't have to work if I didn't want to, travel, enjoy my many interests - actually retire. Or, I could work and bank/invest the cash for another 10 years and then do those things at 59 vice 49. More options to squander my money on me.

Brett

Assuming of course you make O-6.....

 

[S.O.B.]

Assuming of course you make O-6.....

also assuming the retirement is still there 10 years from now; I'm not counting on it.