Living Well in Retirement By Teresa Germann Master Financial Volunteer How Much Money Do You Need to Retire? It depends On post-retirement goals & lifestyle decisions On post-retirement work plans On availability of employer benefits On health and life expectancy 70% to 90% of income- often recommended 100% to 110% of income some retirees reality, at
least in the initial retirement years. Steps to Successful Retirement Planning Identify/set pre-retirement & post-retirement goals Estimate length of retirement Determine assets available Estimate retirement expenses Estimate retirement income Balance expenses and income Plan for the effects of inflation Evaluate and revise your plan Looking Ahead to Retirement
Where do you plan to live? Will you work part-time? For how long? What hobbies/activities will you spend free time on? Will you be caring for family members? Goals to accomplish before retiring Goals to accomplish after retiring? Spending Plan Changes at Retirement Housing costs may decrease (paid off loans) Work-related expenses will be lower Home improvements, furnishings lower No more deductions for SS and pension
Savings & investments may decrease Disability insurance no longer needed Life insurance may end Federal/state income taxes may be lower Spending Plan Changes Likely to Increase Medical expenses Dental expenses Health insurance premiums (early retirement) Travel & entertainment (every day is
Saturday!!) Likely to Decrease Clothing/commuting/other work-related costs Employment taxes Housing expenses (mortgage paid-off; fewer improvements) Income taxes (maybe) Average Retiree Spending by Expenditure Category
Category Monthly Expenditure Percentage of Total Housing $1322 35% Transportation
$567 15% Healthcare $499 13% Food $483
13% Insurance/Pension $237 6% Cash contributions $202 5% Entertainment
$197 5% All Other $293 8% $3800 100%
Source: BLS 2016 Spending Survey of Older Households, Marketwatch Sept. 8, 2018 Age Banding Model of Retirement Spending Research into actual retirement trends over past 20 yrs reveals 3 distinct spending intervals. Spending Patterns in Retirement Over Time 4% Withdrawal Rule & Implications of Age Banding Fin plannerslong recommended a 4% annual withdrawal from 401k or other retirement accts
to insure retirees dont run out of money Problem is that 4% rule is a very conservative Assumes retiree lives till 95 yrs old Many retirees are leaving a lot of retirement joy in the bank Age banding suggests that withdrawal in early retirement yrs can be somewhat more than 4% 4% Rule and Implications of Age Banding (Continued) UPSHOT: 4% withdrawal rule is a decent starting point for retirement planning However, if you dont exactly hit it, or need somewhat more early in retirement to meet your
goals, dont beat yourself up. Just be ready to adjust spending later, when you may not have energy/health to travel, incur loads of golfing fees, or for long, expensive nights at the opera. How to Save on Housing Costs Downsizing many retirees find moving to a smaller place economical and liberating Moving to less expensive area, including overseas Co-housing with other seniors Renting out rooms or accessory units: in-law suites in basement, apts over garage, cottages Renting out property as a short-term rental
(VRBO, Homeaway, Airbnb) or to military/fed Retirement communities, senior affordable housing Housing Cost Savings, cont. Look into property tax breaks for seniors Arl Cty has a r.e. tax relief/deferral program Energy utility programs for 65+ Solar energy installation Low cost mobile phone options Consumer Cellular, Verizon/AT&T 65+ Plans Negotiate with your cable/internet provider can yield 20% savingsdont be afraid to switch for a better deal. Neflix, Hulu & Amazon make cord-cutting
attractive. Stream for savings! Transportation Savings Tricks Buy used, rather than new, cars and SAVE Metroseniors ride for peak fare on subway or $1 on any metrobus ($8.75/wkly) Uber & Lyft make getting around without a car easier than ever before. UberX for more savings. Check out bus svc like Megabus Bolt, and Vamoose for inter-city transportation. Cabs can be cheaper than parking at sporting events or concert venues. Gas affinity programs with your grocery storeSafeway/HT deals can save you 20 cents a gallon.
Creative Ways to Save on Food Cooking at home is most economical Shop strategically based on weekly circular & fill up the freezer when staples are on sale. Check out the managers special bin for discounted meat, poultry, and fish. Spices, sauces, some types of produce/seafood, & specialty items are far cheaper in ethnic mkts Some people swear by couponing: great savings but a lot of work. Food Savings, Continued Frequent farmers markets for better quality and
often cheaper produce. Go at the end of the day, vendors want to offload remainders & offer deals. Go meatless at dinner for several meals a week. Egg dishes for dinner like quiche and frittatas Lentils, beans, quinoa are all high protein options Frozen vegetables are less expensive than fresh and can be even more nutritious. Shop the perimeter of your supermarket, not the center aisles. Staples are outside, processed in middle Entertainment Deals (Dining Out) Lunch is cheaper than dinner, & dont forget early bird & pre-theater specials.
Happy hours are an economical way to eat before a show. Restaurant guide websites: Eater, Thrillist, TC Ethnic Dining Guide. Washingtonian, NoVa & Arlington mags have cheap eats editions. ArlNow lists local dining deals. Get on your favs restaurants emailprivate offers. Ethnic restaurants are bargains & interesting. Eden Center for Vietnamese, Koreatown, Bolivian in FC. Explore! For chain restaurants, Groupon can yield big savings. Entertainment Deals (Plays, Music, Theater) Washington has volumes of free & low cost ttds. Check WaPo Fri weekend section. Get on Culture Capitals email for Wednesday weekly list of events.
Pay-what-you-can previews for plays (WM & Studio) Shakespeare Theater FFA in Sept & $25 rush tickets. Free concerts at LOC, Lubber Run, DAR Schlesinger Hall. Festivals & Holiday events. Millenium stage at Kennedy Center. All fed museums are free & many have concerts: NGA summer jazz & winter classical. Culture at the moviesMet Opera, National Theater, ballet. Check out Fathom Events. Entertainment Savings (Movies) Every theater chain has deal nights AMC - $5 Tues; Regal Potomac Yd Tues - $7. Anjelika: +55 Thurs -$6, Couples Wed -$7.
If you go to movies a lot, memberships can be a money-saver (exampleAMC Stubs costs $19.99/mo. for up to 15 movies). Free Summer Outdoor Movies Arl, FC, DC AFI & museums have classic/foreign films Recent Bergman film festival at NGA General Tips on Travel Flexibility is youre the frugal travelers friend. Have a list of places you want to go, & pounce if a deal presents itself. Consider longer stays (at least a week in large cities) in places that warrant it. Avoid If its Tues, it must be Belgium tours. Dom travel to big cities like NY, LA, Chicago--best between Thanksgiving & Xmas, Jan-Mar (great hotel rates/no crowds).
Consider lower-cost destinations: Central & So America, Asia, Europe outside the main tourist hubs. 2nd US Cities: Austin, NO. Travel offseason. The advantage of being retired is not having to travel when everyone else does. Summer in Europe is by far the worst time. Travel during spring & fall. Best time at the Atlantic beaches is right after Labor Daythe water is warmer, the weather temperate, & the rates significantly lower. Travel Discounts & Deals Best general travel sites: Travelzoo, ShermansTravel, TripAdvisor Get to know the discount airlines like Norwegian Air, Primeria, Icelandic, Wow Allegiant, Spirit (if you dare). Use aggregator sites like Kayak, Skyscanner & the new Momondo to ferret out the cheapest af. Must use Southwest site for its afs.
Become an Airfarewatchdog hound--its the webs best list of cheap airfares. Updated hrly. Register to get lists of cheap domestic & international flights from yr local airport. Eschew hotels for more spacious home/condo rentals on sites like VRBO, Homeaway, AirBnB, Booking.com, TripAdvisor. To search all: aggregator Hometogo.com. Negotiate rates! Also check local rental agencies in popular resort areas, which can have specials or be cheaper. Saving on Medical Costs: Prescription Medications Aggressively compare prices on the meds you use daily Excellent comparison tool is GoodRX
For Cymbalta, for exampleprices range from $6.00 at Kroger to $46.57 at Walgreens & RiteAid Savings tips tab is a very valuable resource FamilyWize is another comparison tool & offers a discount card that reduces costs on a variety of me Inquire about Patient Assistance programs for your particular medication. Good listing of these is at NeedyMeds.org. Call manufacturer of yr med for company-specific programs. Ask dr for assistance--free samples or discount card Sources of Retirement Income
Social Security Employer pensions & tax-deferred savings plans Personal savings and investments Taxable accounts Rental real estate Tax-deferred accounts (e.g., IRAs) Other assets (e.g., house, coins, antiques) Employment earnings Inheritance Retirement Income Ideas Part-time jobs--any money you make reduces your withdrawal from savings
Flexjobs.com, Flexforce.com have listings of professional jobs that are part-time or temporary Seasonal jobs like tax-preparation or working in national parks as a guide/ranger for those who want part of the year off for snow-birding etc. Consulting, freelance writing, teaching English, tutoring Online sales on Amazon, Ebay, or Nextdoor About Social Security Based on lifetime earnings (35 years) Must meet work requirement yourself or be married to eligible worker for 10 years 36% of women get benefits on their own record
Benefit estimates available online www.ssa.gov/mystatement Can claim at age 62 BUT reduced benefit and earnings limits Full retirement age is increasing 67 if born after 1959, 66+ for most people approaching retirement now Can let benefit grow to age 70 (+8% per year) The Ballpark Estimate Can do online at www.asec.org Six easy steps Three key assumptions: Percentage of current income to replace Life expectancy Inflation and return (pre and post retirement) Use your green and white statement as guidance (but choose inflationadjusted numbers)
Other calculators www.troweprice.com & www.fidelity.com Interesting video from LearnVest http://bcove.me/7la6kp5x 10 Tips To Prepare For Retirement
Plan for inflation Practice living on retirement income Live beneath your means Pay yourself first each payday Start planning and preparing early Save and invest wisely Explore later life career possibilities Mentally prepare yourself for retirement Carefully analyze early retirement incentives Stay invested Class Wrap-Up
Curl Demo and Roller Placement. Complete 1 on-base roller in top center area, 1 no-stem flat pincurl on right side of head and a three-ridge fingerwave (4x2) behind roller. Time:15 minutes. 1 point each. Procedure Criteria: Sanitizes own hands using...
Who Is Fannie Mae and What Do We Do? Fannie Mae's mission is to expand homeownership. We have a special focus on helping underserved Americans overcome the unique barriers they face.Fannie Mae provides private capital to all communities, at all...
There can and must be restrictions on the time, place and manner of speech, but the campus is committed to ensuring the availability of places for speeches and protests.And so, we will safeguard freedom of speech. But in addition, we...
"Messy" or "Ill-structured" questions… Always ask students to create or produce something. Always ask students to employ research skills. Are often related to real-world problems or scenarios. Often ask students to consult experts in the field. Always ask students to...
M/G/1 Queue & Renewal Reward Theory. ... Average rate a which reward is earned is the ratio of the average reward per cycle and the average cycle duration. Renewal Reward & Excess Time. Average excess time assuming a busy server...
(It's one thing to see the solution to a problem explained, your depth of understanding will be deeper if you have to re-create it from scratch yourself). JT's note: you may find this unnecessary for the simple examples in this...
3-Bureaucratic Control. Bureaucratic Control. Control through a system of rules and . standard operating procedures (SOPs) that shape the behavior of divisions, functions, and individuals. 8-Rules and SOPs tell the worker what to do (standardized actions) so outcomes are predictable....
Ready to download the document? Go ahead and hit continue!