As I said before, “retirement” can be a four letter word to some people but the fact is that many of us will face it eventually…whether we like it or not.
I don’t know about you but when I retire, I want to play golf…A LOT. Not get a part-time job or worry about money…just live and enjoy!
One of my subscribers sent me a message the other day about his retirement story and I thought you’d like to hear it. He wanted to update me on his golf game but what I found in his letter was much more than that.
Zach Kelleher worked til he was about 65. He had no pension but had some money saved up from IRA’s and 401k plans. Zach retired for four years and then came to the realization that he was going to live a lot longer…but he didn’t have the funds to cover himself for the foreseeable future. So, he bit the bullet and went back to work…kind of.
See Zach was not able to get his old job back but instead got something more along the lines of minimum wage. So, back at work now for a few months, his health took a turn for the worse and Medicare would not cover his claim. So now he’s got a substantial medical bill, peanuts for income and a dwindling reserve of savings.
Sound familiar?
I really was feeling bad about Zach’s situation when I read his letter but here’s where it gets interesting…
Later in the letter, Zach tells me he is now fully re-retired. He laid out exactly what he did and I want to share it with you below:
(I will paraphrase to be concise)
Zach’s advice:
“A couple of years before you plan on retiring you should begin to create a preliminary budget. This checklist below will give you a good idea of what to expect during retirement.
Categories you must include in your retirement budget are:
- Housing (taxes, insurance, home repairs and maintenance)
- Utilities
- Transportation (car payment and gas)
- Vacations
- Personal expenses
- Entertainment
- Miscellaneous loans
Some of these categories will stay “fixed” from month to month. For example, your mortgage is not likely to change – unless you have an adjustable rate loan. On the other hand, there are categories that can and will change such as home repairs and entertainment. You may spend $1k on a home repair this month but $0 next month. Make sure you are prepared for these fluctuations.
Just because you are retired does not mean you should stop saving money. 85% of retirees and prospective retirees underestimate how much money they will need. You either need more income or more savings.
For me, the answer was simple. I was able to leverage the biggest asset I owned (my house) and for me, it made all the difference in the world. In one fell swoop I was able to virtually quit my minimum wage job and get back to my golf game.
The nice part of this whole learning experience is that the people I talked to are real people who specialize in retirement. They answered all my questions, gave me some very helpful advice and really came across as caring and sincere.
My handicap still lingers around 17 but at least now I know I have got enough to retire comfortably. feel free to share this with your readers. Retire Easy is the name of the company I talked to.”
One thing Zach forgot to mention is that the company he talked to offers free consultations.
Anyway, I hope this helps those of you who are in “retirement” mode. As they saying goes “It’s never too early to start thinking about retirement”.
Thx for the great story Jack! I agree. not enough people use the assets they have.
Lots of different ways to retire but fewer of us are doing so at an early age. forget 65. i’m looking at about 70 to retire.
Thanks a lots for sharing the story..
Want to play lots of golf.. I’m 76. After taking a long hard look, my wife and I decided that the cost of living in the
USA was prohibited, and will get worse. I live abroad. It’s
not for everbody, but my income goes much further and the
health care is excellent. We are surronded by many courses.
One of the lessons I have learned is as we get older the numbers don’t mean as much. Just as long as you can get
out, play and enjoy the game