When will you be able to retire?

[BCClone]

I graduated high school with 28 credits. So many schools offer dual credit courses anymore in partnership with a CC. It just requires planning... before you take a course know what it transfers as and does it fit in to your plan. I traded off heavy class schedules in college in exchange for me not having a PT job. Its not for everyone but it can be done.

My son will have 25. 13 will be electives even though they are business classes for a business degree. Don’t transfer well, even though CC said they did, will eat up electives. He is planning 3 1/2 years to squeeze a minor in and find jobs for interns. I have some leads for him already since I am associated with his planned degree. I stressed to him that internships are the biggest lynchpin in the job hunt. I had a 2.99 gpa but had 5 offers out of 6 interviews because of my work history.

 

[BCClone]

Medicare costs not that bad for me. Deere gives us $ credits to use for Medicare and supplemental premiums. I’ve given up no coverage, decreased my deductibles and have lowered my out of picket healthcare costs.

My mom pays roughly 3k a year for Medicare supplements and never sees a bill for anything.

 

[BCClone]

would depend what the credits were. Things that are irrelevant today like dinosaur diet formulation and the science of sundials? Did they combine some things together in one class or make swaps that were lower credit values? Drop a lab? Now I'm curious to see if my degree's credits have changed much.

And I'll debate all day with you that part of a university education vs. CC or trade school is to make well-rounded citizens, not just workers. So giving them that taste of philosophy, humanities, etc. has value to me. I will say I took a class that I thought was absolute crap at the time and was just filling one of those diversity slots for me but the concepts it presented have stayed with me and now I'm really glad I took it. Even though I kinda half-assed the assignments.

Just to see how far apart we are, my son will have roughly 20 totally free electives. No requirement except it is a course that is offered. Doesn’t fill any humanity or diversity or math type area. It’s a whatever you want. Those are the ones I say they can dump quickly. What are your thoughts on those?

He will have more math, a science or two more required, no law anymore. That is what I remember for differences. I changed majors after 2 years so all my botany and organic chemistry were electives and I had none.

 

[cykee05]

My son will have 25. 13 will be electives even though they are business classes for a business degree. Don’t transfer well, even though CC said they did, will eat up electives. He is planning 3 1/2 years to squeeze a minor in and find jobs for interns. I have some leads for him already since I am associated with his planned degree. I stressed to him that internships are the biggest lynchpin in the job hunt. I had a 2.99 gpa but had 5 offers out of 6 interviews because of my work history.

Sounds like he has a solid plan. Not everyone puts in the time to develop one and stick to it. Thankfully I had my parents guiding me, as well. What a difference a year makes...going from spending nearly $20k to making $40k (put simply)

 

[ricochet]

Ok, don’t want cave or anything crazy, but at 47, I’m not understanding this unaffordable health care yet. Does it rocket up once you hit 50-55 and I’m not seeing the cliff? It’s me and 3 kids on a plan and while it’s a decent amount of coin, it not something that would knock me over especially with kids dropping off soon.

Assuming you have insurance through work, are you including what your employer pays, or just your cost? In my case my employer pays everything and it comes out to around $15,000 a year per employee. This if for a high deductible HSA type plan so there is few more thousand out of pocket before the insurance starts. If you start thinking about retiring early on $50-$60K a year, $15-$20K is a significant chunk of money.

 

[BCClone]

Sounds like he has a solid plan. Not everyone puts in the time to develop one and stick to it. Thankfully I had my parents guiding me, as well. What a difference a year makes...going from spending nearly $20k to making $40k (put simply)

Glad it worked for you, but I will say you are probably more of an exception. I see the first year of a CC as fine if it’s a HS type thing. I just see too many that don’t have the savings. I ran quick numbers for what my kids would see. With them being roughly 40 miles away, they would probably have to stay there. If they don’t have a hiccup anywhere they would save. Now if they have the same hiccup that most of the kids going to CC have that graduate from their school, that adds another semester and destroys all cost savings.

If they start at the four year right away, if they have a small hiccup, ISU generally is willing to work with them to stay on course.

 

[BCClone]

Assuming you have insurance through work, are you including what your employer pays, or just your cost? In my case my employer pays everything and it comes out to around $15,000 a year per employee. This if for a high deductible HSA type plan so there is few more thousand out of pocket before the insurance starts. If you start thinking about retiring early on $50-$60K a year, $15-$20K is a significant chunk of money.

I’m self employed. With 3 kids and a 3500 deductible (and total out of pocket) I pay just over a grand a month. So it’s about 1250-1300 monthly with a maxed out deductible. Figure if it goes up some, the savings when a kid drops off will clean that up.

 

[NodawayRiverClone]

Need a little help here, my question is basically simple, at what age do you plan to retire. I reached my 30 years in IPERS this year, and I can hit my rule of 88 in November. Looking at my last IPERS statement I will bring in $2,830 a month being retired after I hit my rule of 88.
I love my current job and plan to work another 4 years, today I received a call about an interview for a teaching job in Missouri for next year. The pay would be a lot less than what I currently receive, but if I can retire in Iowa, and get the job in Missouri, I would be clearing roughly $13,000 more per year.

My wife and daughter are totally against me switching jobs, they keep telling me stay in the job you love and ride it out there for anther four years and then retire. I keep looking at the difference in pay and if the job is offered, to move and take the chance. I need to get my ducks in a row, and will be calling IPERS tomorrow.

Basically what are peoples opinion one way or another?

So, the interview should inform you some on how well you might like your new bosses and the work environment. Closing in on rule of 88 puts you about 58 years, around 7 years short of 65, 8+ short of "normal" SS retirement. You will still earn 1% of final average salary in years 31-35 with IPERS, so your retirement will go up. Also depends on whether you will be selecting the joint annuity retirement to help care for your wife if you pass first. If the decision is just about the money, maybe not worth it. If it is about a new challenge in life, might be worth the risk.
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[Blandboy]

Wanna retire early? Live within your means. Don’t borrow money except for a house. Pay off your debt (including your home) asap. Buy cars with cash, and if you purchase new, you really don’t need all of those options they offer (although I’ll never purchase another vehicle without heated seats!).

If your employer offers a 401K plan, max out your contribution; if you can’t do that and you get a company match, at least invest enough to score the match. Start saving early.

If you're just establishing your household, limit dining out. Shop at Aldi. Don’t pay others to do what you’re capable of doing (such as changing your own oil). You CAN retire early; it just takes some effort!

 

[cowgirl836]

Just to see how far apart we are, my son will have roughly 20 totally free electives. No requirement except it is a course that is offered. Doesn’t fill any humanity or diversity or math type area. It’s a whatever you want. Those are the ones I say they can dump quickly. What are your thoughts on those?

He will have more math, a science or two more required, no law anymore. That is what I remember for differences. I changed majors after 2 years so all my botany and organic chemistry were electives and I had none.

Looks like about 28 for my major. I know Ag had more free credits than something like Engineering but I think it gives them a good amount to do things like pick up a minor, work toward a 2nd major or just explore other areas of interest or focus for your major. I filled mine with TA credits, internship credits (think that's where they landed), credits for a minor I didn't end up completing, and choir + another activity related to my major.

 

[Bobber]

I increasingly wonder if the "buy used" for cars is becoming outdated. I was car shopping late last year and the price difference between a new car and a car with 50,000 miles on it was often only a couple grand. You had to start looking at 100k+ miles and over 10 years old before prices really started dropping. And at that point you're buying a car with a much shorter shelf life and higher maintenance costs so aren't really saving anything.

I did a quick check and found on cars.com a 2016 Toyota Camry SE with 53,000 miles on it for about 16K. Brand new Camry SE is about 26 K.. That's buying from a dealers..You can score a used one for less than that from a private party.

53,000 miles is nothing for those cars. You take care of it and it will literally run to 200,000 miles easy.

That extra 10 K savings could be used for a lot of other things..

 

[diaclone]

Agree. I'm also a millennial but find the "poor us" attitude that is echoed so often a bit annoying. It absolutely can be done. You might have to make some sacrifices for a while that aren't fun or flashy but it can be done. Know where every dollar you spend goes and save whenever and wherever you can. You have to take responsibility for yourself. If you want to spend all your money and work forever, that's fine. That makes some people really happy. But with the endless resources we have available online, if you get to be 70+ years old, don't have adequate savings and don't like it, it's your fault. Not the system's fault, not the 1 percent's fault, not Uncle Sam's fault. It's your fault. $100 a month for 45 years in an index fund is 350k with conservative returns. When you're making $300 payments on a new car when you could be driving a paid for car... Let's just say it doesn't take a certified accountant to know what 350k x 4 is.

I don't agree with Dave Ramsey on everything but he hits the nail on the head on 95% of things he preaches.

There is some merit to your argument, but what do you tell people who have had serious illnesses (themselves or in their family) that they've had to pay for that it is their fault that they only have SS to live on?

Your lens into what alot of people face is very, very narrow.

 

[isufbcurt]

I was someone who never, ever wanted to buy new but we did with our last car. The price difference wasn't great enough imo, to offset the mileage and unknown type of usage I guess you would say. And new had some pretty nice warranties.

I will never not buy new again. But I also drive my cars until they die so I get the max use out of them.

 

[diaclone]

I will never not buy new again. But I also drive my cars until they die so I get the max use out of them.

Yes!! I have driven my Honda for 18 years and it is 20 years old. Going to get a new car that I want to keep for fifteen, and have payments for only four of those fifteen years.

 

[isufbcurt]

Yes!! I have driven my Honda for 18 years and it is 20 years old. Going to get a new car that I want to keep for fifteen, and have payments for only four of those fifteen years.

Sadly though my new Explorer that I bought last July has almost 40,000. But I will drive it well past 250,000.

 

[diaclone]

Sadly though my new Explorer that I bought last July has almost 40,000. But I will drive it well past 250,000.

That's great. Nothing like at some point not having vehicle payments.

 

[Bobber]

Yes!! I have driven my Honda for 18 years and it is 20 years old. Going to get a new car that I want to keep for fifteen, and have payments for only four of those fifteen years.

You'll save some money buying used, but what you're doing isn't a bad way to go...We bought my wife's Honda Odyssey new right before our 3rd child was born. It's 13 years old now and at 145,000 mile and still runs like new. Goal is to turn it over to that last child for college.

 

[Bobber]

I will never not buy new again. But I also drive my cars until they die so I get the max use out of them.

Well that is the way to maximize the value...

 

[diaclone]

You'll save some money buying used, but what you're doing isn't a bad way to go...We bought my wife's Honda Odyssey new right before our 3rd child was born. It's 13 years old now and at 145,000 mile and still runs like new. Goal is to turn it over to that last child for college.

Holy smokes that's fabulous.

 

[BCClone]

If you do simple maintenance to a vehicle they should hit 200k with no problem unless you only drive 5k miles a year. We have had several that we took to 210k+ and the body or other things give out.