A Little Bit of This, A Little Bit of That…

So, I’m back to my game of Financing Retirement. The Money In half of the equation doesn’t start when we turn fifty or sixty.  The things we do all through our adult lives will set the stage for retirement planning. Our habits and practices can make sure we do (or don’t) have a retirement foundation. So…what happens when an impulse buyer marries a thrifty Scot? What if there’s a little of both in each of us?

Over the years in our home, we’ve made big decisions (homes, cars, vacations) together, of course.  But the little stuff… not so much. Each of us has a checking account on which he/she is the primary person. We’ve always had our individual paychecks “direct deposited” into our respective accounts, and we each allocated a certain (agreed on) amount to bill-paying for the household. The relatively small amount left to each of us was for our own discretionary spending – lunches, gifts, hobbies, and other fun stuff. We also each managed to save a little for future fun stuff.

But when it came to retirement saving, we didn’t do much specific planning until our kids were grown. Then, we found that our fairly conservative spending style had paid off.  What did we do, specifically? Nothing big, actually. Just a little bit of this, and a little bit of that.

  • The first thing we did was review where we were at regular intervals. That included updating our wills, and keeping tabs on the extent of our debt (and things like changing interest rates on credit cards.)  If taxes or food prices changed, we adjusted how much each of us paid into bills to stay current on those things, rather than using credit cards.
  • Contributed to 401k plans offered by our employers (or IRAs in the years we were self-employed). We put in the percentage that allowed the maximum matching contribution (free money) from our employers. Our 401k contributions reduced our taxable incomes a bit, and we had the option to pick different types of investments. The downside is that this is “pre-tax” money – we will pay taxes when we access it – but hopefully at a much lower tax rate than we would have pad on that money in our peak earning years!
  • Paid extra into our mortgage whenever we could, and refinanced to lower interest rates when it made sense, allowing us to pay off more principal each month. This helped us build equity in our home. Unfortunately, we bought our first home late and moved quite a bit, so so we have never come close to paying off our mortgage. We are also (like everyone else) at the mercy of the real estate market when we sell this property to buy our retirement home (wherever that is!)
  • Put a small amount into savings each month. The net amount here is paltry as life savings go, mostly because we dipped into it to pay for large purchases, vacations, and some emergencies. That kept our debt (and interest payments) down. The interest on credit cards is much higher than the interest on a savings account. 

So… no huge single thing, but some home equity, pre-tax savings, and a little in after tax savings. Add to that very little debt (a primary goal all along), social security, small pensions from years ago, and a few small investments made over the years, and we have the beginning of our retirement financing plan.

Social Security isn’t as certain as it was, and upcoming changes may affect our decisions on when to begin taking it. More on that will follow. And then, we can start to talk about the Money Out items, and how to get our arms around what those expenses will be!

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Photo credit:  board game: © linno – Fotolia.com

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Future Challenge – What Would be Your Alternate Career?

Challenge #8

Some of us grow up knowing what we want to do, go to school or train in that discipline, and work in our chosen field. Some of us. But many of us fall into our careers by happenstance. I certainly didn’t grow up thinking, “Boy, I really want to place insurance for businesses, and train others to do the same!”

If you could have a second, or different, career what would you choose to do, and do you think you could make it work? Is it something you could do later in life?

As part of my retirement theme,  I offer this weekly Thursday “Future Challenge” to get people of all ages thinking in general about their futures and/or retirement. Each challenge goes with a post of my own on the same general topic. Hopefully we’ll start some interesting discussions!

If you’d like to share what you think, or post on it, that’s great – and I’d love it if you’d share those thoughts in a post or comment (please tag posts TRS Future Challenge and link to this post) so others can also see them.

If you choose not to share them, that’s fine too – but with any luck, you’ll still gain some insight on where you’re headed (or would like to be), and how you can get the most out of your own journey.

To see my own take on this week’s challenge, see my post What to Do, What to Do…

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What to Do, What to Do…

I’ve been looking at some retirement expenses, like Medicare Medigap policies, trips we’d like to take, and more.  When I was working, I could buy a new TV or computer without thinking about it for too long. Now I really have to think about it, and once my beloved retires, we’ll both have to think about things like that long and hard – because our income and savings will run out before we do, if we don’t.

One way I could remedy this for now is to do some part-time work.

I’ve been thinking about this a bit. I have some general business skills, as well as some highly specialized expertise. A higher pay scale goes with the expertise, but there aren’t a lot of part-time opportunities there, and I really don’t think I  want to go back toward my old career. I want something I leave behind when I go home.

On the other hand, I’m pretty sure I can get part-time office work. It’s either that, or write and publish the great American novel…

Doing a little research, I’ve found I’m not the only one thinking about working a little in retirement, or considering a different type of work than I’ve always done.  Online ads for training in new careers (everything from paralegal work to truck driving) abound, and their are sites to help you find what you’re looking for. Some employment agencies even have Facebook pages with tips, and AARP sponsors a site and Facebook page called Work Reimagined. This is a great site, because it encourages us to think outside the box a little, and to consider the pros and cons of all kinds of options.

So, I’m thinking about all the different possibilities – How much time am I willing to work in a week? Do I want a regular gig or different temp jobs? How far from home am I willing to go? Decisions, decisions…

“…So a job I’m getting, possibly,
I wonder who my boss’ll be?
I wonder if he’ll take to me…?
What bonuses he’ll make to me…?
I’ll start at eight and finish late,
At normal rate, and all..but wait!

…I think I’d better think it out again. ”

– Fagin, in Reviewing the Situation from Oliver!, lyrics by Lionel Bart

As Fagin would say, I’m reviewing the situation…

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Love in its Many Forms

Love isn’t simple. The ancient Greeks understood this so well that they had three different words to express it:

1)   Agape –  Perfect, unconditional love – Often characterized as the love of God. Most of us mere mortals have to work hard at achieving this.

Thou shalt love thy neighbor as thyself. –  Leviticus 19:18, KJV

Lord, grant that I might not so much seek to be loved as to love.   –  St. Francis of Assisi

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It’s wonderful how love of one sort or another tracks throughout our lives.

Most of us first feel it from our parents and caregivers when we’re babies and children. This is selfless and embracing love. This is where we first learn the importance of trust and forgiveness. Sometimes these relationships follow and sustain us for many years.

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2)   Philos – Brotherly love – the kind we feel for our friends and family, our daily companions throughout our lives. This is based on trust, community, and caring – and it can last a lifetime.

“Piglet sidled up to Pooh from behind. “Pooh?” he whispered.    “Yes, Piglet?”   “Nothing,” said Piglet, taking Pooh’s hand. “I just wanted to be sure of you.”   ― A.A. Milne, Winnie-the-Pooh

“Friendship,” said Christopher Robin, “is a very comforting thing to have.” – A.A. Milne

P1000145 (2)We develop friendships and alliances of many kinds that carry us through and sustain us – even in childhood, when we’re learning to get along, and in the strange years of adolescence.

Later, these are the friends we rely on to support and advise, or sometimes just comfort us. How would we survive without them?

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3)  Eros -Romantic (or sexual) love – An often temporary feeling based primarily on the physical. Throughout ages of literature, this is the type which often leads to irrational behavior and passionate, often physical expressions of devotion or desire.

At the touch of love everyone becomes a poet. – Plato 

Falling in love consists merely in uncorking the imagination and bottling the common sense. –  Helen Rowland

Rec_StefLee002_Haag_415As we enter adulthood, we begin to look for a different kind of companionship. Some would say mature; others might say a little crazy.

We feel a biological imperative to find our “other halves,” and complete ourselves through uniting with that one other, special person.

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If we’re lucky, we find it in someone who can travel through the years with us, and help us begin our own families, coming full circle.

I’ll go out on a limb here, and suggest that truly successful marriages contain a little of each kind of love, to keep things going through the years as we grow and change.

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“We’ll be Friends Forever, won’t we, Pooh?’” asked Piglet.  “Even longer,” Pooh answered.  ― A.A. Milne, Winnie-the-Pooh

 Now that’s love.

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This post was written in response to the WordPress Daily Post’s Weekly Photo Challenge: Love.  To learn more about this challenge, and to see other bloggers’ responses, click here.

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Weekly Travel Challenge: Walls

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Mending Wall   by Robert Frost
 
P1110838 (2)Something there is that doesn’t love a wall,
That sends the frozen-ground-swell under it,
And spills the upper boulders in the sun;
And makes gaps even two can pass abreast.
The work of hunters is another thing:
I have come after them and made repair
Where they have left not one stone on a stone,
But they would have the rabbit out of hiding,
P1110830 (2)To please the yelping dogs.  The gaps I mean,
No one has seen them made or heard them made,
But at spring mending-time we find them there.
I let my neighbor know beyond the hill;
And on a day we meet to walk the line
And set the wall between us once again.
We keep the wall between us as we go.
To each the boulders that have fallen to each.
And some are loaves and some so nearly balls
We have to use a spell to make them balance:
‘Stay where you are until our backs are turned!’
We wear our fingers rough with handling them.
Oh, just another kind of outdoor game,
One on a side.  It comes to little more:
There where it is we do not need the wall:
He is all pine and I am apple orchard.
My apple trees will never get across
And eat the cones under his pines, I tell him.
He only says, ‘Good fences make good neighbors.’
Spring is the mischief in me, and I wonder
If I could put a notion in his head:
Why do they make good neighbors?  Isn’t it
Where there are cows?  But here there are no cows.
Before I built a wall I’d ask to know
What I was walling in or walling out,
And to whom I was like to give offense.
Something there is that doesn’t love a wall,
That wants it down.’  I could say ‘Elves’ to him,
But it’s not elves exactly, and I’d rather
He said it for himself.  I see him there
Bringing a stone grasped firmly by the top
In each hand, like an old-stone savage armed.
He moves in darkness as it seems to me,
Not of woods only and the shade of trees.
He will not go behind his father’s saying,
And he likes having thought of it so well
He says again, ‘Good fences make good neighbors.’

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As usually happens when I read a challenge topic, my mind goes to a song or poem that resonates on the topic, and Robert Frost is often the poet whose words come to mind. That may be because Frost used the New England countryside for many of his metaphors, and I see that landscape every day. But I think it’s more because he distills the complex world around us into simple truths we all understand.

I expect I won’t be the only person to select Mending Wall for inclusion in my post responding to Ailsa’s weekly Travel Challenge today, but here’s how close to home Frost’s illustration is for me… this long-neglected, typical New England stone wall is in the woods behind my home. I have photos of Great Wall of China and other walls from my travels, but somehow, on this icy gray day, this one seems to fit best.

Why is it that we tend to build walls around ourselves? I suppose some of it is to keep from wandering too far afield, but I really suspect that we are mostly trying to keep others out – to protect our privacy, our  thoughts, our feelings. I’m not sure how well any of us is able to do that while maintaining relationships – or even how much we should. Still, we have an innate understanding that boundaries are very important.

The area where my house stands was once farmland, and the farmers used the readily available stones, left by ancient glaciers, to divide their land. I’m sure those folks, a hundred or so years ago, felt good fences make good neighbors. The farms are long abandoned, and an opportunistic new forest now occupies the land, completely mindless of their efforts. Because life marches on.  Something there is that doesn’t love a wall.

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Standing in the woods, looking left toward the house, and right deeper into the woods.

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This post is in response to a weekly travel theme challenge by Ailsa of WheresMyBackpack, on the subject of Walls.  To see other bloggers’ responses and get more info on her challenge, click here.  

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Future Challenge – What Defines Your Personal Independence?

Challenge #7

Our days are full of things we take for granted. We have the internet, which gives us a window on just about everything we can imagine. We have books, movies, and television which narrow our focus a bit, but still show us a wild variety of fantastic (and sometimes scary) things. We have cars and other types of transportation to carry us around our real world.  We have many conveniences which help us cook our food, heat our homes, and perform a thousand other tasks we rarely think about. We have our incomes. And we have our own bodies and minds.

The inability to use any of these things could hamper your personal independence. As we age, some of them start slipping away from us, but these things could be lost at any age. What do you depend on most – and what would you most hate losing? (Ideas: the ability to drive, to use the internet, to travel…)

As part of my retirement theme,  I offer this weekly Thursday “Future Challenge” to get people of all ages thinking in general about their futures and/or retirement. Each challenge goes with a post of my own on the same general topic. Hopefully we’ll start some interesting discussions!

If you’d like to share what you think, or post on it, that’s great – and I’d love it if you’d share those thoughts in a post or comment (please tag posts TRS Future Challenge and link to this post) so others can also see them.

If you choose not to share them, that’s fine too – but with any luck, you’ll still gain some insight on where you’re headed (or would like to be), and how you can get the most out of your own journey.

To see my own take on this week’s challenge, see my post Facing a Scary Moment.

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