Yesterday I had a phone appointment with one of the brokers at my brokerage firm. He had mentioned that a financial plan is included with the account, so I decided to take him up on his offer. Everything I read online said that there would be a fee, so I made sure to get it in writing. He assured me there would be no charge.
He asked me some interesting questions. I think they would be helpful to anyone.
Do I have any debt? How much do I pay for health insurance? Do I have Long Term Care Insurance? How old is my car? Will I need to budget for a new one? How is my roof? (Fortunately, I replaced it recently, as well as the original windows.)
I gave him the basic numbers of my budget. We discussed when I would take Social Security. Although I had planned to wait until I am seventy, I decided to take it earlier, following my dad's advice. He invested the money himself and made far more than 8%. I think I could do the same thing, based on what my stocks are now averaging. I manage the portfolio myself, and I enjoy the challenge.
He asked about my health. My dad lived to be 88, so he came out ahead, even taking Social Security when he did. My mom didn't live nearly as long, so it was also better for her to take Social Security as soon as she was eligible. How long we think we will live is a big factor. We just never know.
I really enjoyed the meeting. We will have a follow up Zoom session next month. He praised me for handling my property and legal matters without paying a lawyer. Being self-employed prepared me for a lot of those issues. I also am glad that I had my hips replaced when I was fifty.
Have you consulted a financial planner on your retirement plans? How was your experience?
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Sounds like it was a good consultation, Stephenie. There are lots of things to think about, isn't there?
ReplyDeleteYes, there are, Bless. I was very happy with the outcome. I am looking forward to seeing the projections.
ReplyDeleteYour planner seems to be very professional and knowledgeable. My dad also claimed his Social Security early and since he lived to be almost 92, he certainly made the correct decision.
ReplyDeleteThat's interesting, Anita. I had it in my mind that I should wait to claim until I am 70, since I follow Suze Orman. The younger age does work better for some people.
DeleteYour advisor sounds great. My 30 year old Grandson works as an investment person, so I would ask him. I rent, so I always have "backup" money in case I need to move somewhere else (surprisingly, it costs quite a bit), I also always have a certain amount set aside each year for the cost of using a car - tyres, servicing, repairs, registration. Everyone in New Zealand gets a pension when they turn 65. We do have to apply for it, plus we can get extra for accommodation costs, and we get extra in winter for electricity. But overall, the best advice that I would give anyone is, live below your means, and save some money for all of those things that urgently pop up. Life can still be really nice, doing this.
ReplyDeleteIt sounds like you are well prepared, ratnamurti. Rents here have become astronomical. It is sad.
DeleteI keep thinking about getting an advisor, but I worry about the cost, we have so little to invest as it is! Do you use one of the "established" companies, ie Schwab, Fidelity, Ameriprise? We are debating whether my husband should take his social security (67 y.o.) whilst we're both still working... I'm 62 and "lucky" to work in a company that matches 401k contributions at 6% (hate the job but don't have much choice)
ReplyDeleteHi WW, Thanks for commenting. I do have my investments with one of the larger companies. I don't pay them a percentage, though. I manage the account myself, and pay a fee for a sale or trade. It sounds like in your case it would be better to wait to take Social Security.
DeleteThanks Stephanie. I might investigate the free consultation you mention as I do have my little stash with one of the larger companies. I also do a little dabbling and sometimes it pays off (literally)! Have a lovely weekend.
ReplyDeleteI'm glad that it's working out for you, WW. They are salespeople, so it's important to keep that in mind. The man who did my consultation wanted me to buy stock in the company and also asked me to switch my savings to their bank. I didn't, but they are working to make their commissions.
DeleteHi Stephanie, I'm commenting very late as I've just gone back and re-read all of your posts on retirement and finances. Here in Australia you cannot get the equivalent to Social Security until age 67 (give or take, it depends what year you were born as they are trying to move retirement age later and later).
ReplyDeleteSo I'm just wondering have you already started social security or do you live off your investments? I went to part-time work (self-employed) once the mortgage was paid off last year but I have 12 years until I can claim the aged pension. I am just starting to invest and am very encouraged by your posts on this! Because I'm a pianist and teacher I imagine I can really keep working forever as long as my health stays strong, but the thought of being able to stop before age 67 and just pursue the things that really matter to me has me researching how others are doing it.
Hi Anonymous, I have not started collecting Social Security. If I collect it early, that will be when I am sixty or sixty-two. Congratulations on investing. California real estate has been very viable for me. My parents lived in their home for fifty years, and my brothers and I sold it after my dad died. I watched and waited for the stocks I wanted to go on sale, and bought shares at that time. I followed Dave Ramsey's formulas when I was younger, and listened to his podcasts. My dad suggested Finance.Yahoo.com. Those articles have been helpful, too. I hope you are able to retire early. It is inspiring to read people's experiences who have. They usually have a paid off home, a modest car, and are able to live on less than most people. Thank you for reading and for commenting. I have had excellent results in my dividend stocks. Even if their value drops, I have still received the dividend at the end of each quarter. Sometimes a company can get in trouble, though. It's important to do your research and to stay abreast of how they are doing. Crime is hurting a lot of businesses right now, and they are having to close locations.
DeleteHi Stephanie, thank you so much for replying. I'm full of admiration that you had the courage to start investing and this is now giving you money to live on. So many women are frightened of investing and won't take the time to learn about it. I feel so encouraged to keep on this path. I was very interested in buying real estate properties and fixing them up to rent out but at the moment prices are crazy here in Australia, even in the country town I live in. So I will wait and see. I also plan to hold some savings in precious metals given all of the crazy things going on in the world at the moment.
ReplyDeleteMadeleine
Hi Madeleine, I come from a family of investors, so this definitely gave me a head start. My father owned a handful of dividend paying stocks. Some of those I kept, others I let go and replaced with companies like Costco, Mc Donalds, Altria, etc. Had I sold my first home, I could have made four or five times what I paid for it. It was definitely a fixer upper. It is the perfect retirement cottage, so I decided to keep it. It would be too expensive to buy another house in California. My initial plan was to buy a second home in someplace cheap, like Nebraska. My parents wanted me to stay here, closer to them as they aged. So much of it is market timing.
DeleteOh, and I meant to say, we've got a large vegetable garden and orchard and also put in large water tanks so that we are always able to grow food even during droughts. We also keep some very sweet hens who give us plenty of eggs. This is also part of the retirement plan and we feel so lucky to have this as it saves us thousands each year. Did your parents grow fruit and veg or did you just decide to do this for yourself?
ReplyDeleteMadeleine
That's fantastic, Madeleine. My dad took care of the garden, and my mom was a master homemaker. They did have a few fruit trees: a Meyer lemon, grapefruit, and Granny Smith apple. Up at the ranch we had orchards of apricots, pears, walnuts and grapes. Those were cared for by the ranch hands, though. It was very expensive and involved. That whole area now is developed. Both of my parents were very good with plants. My mom loved her orchids, camellias, and roses. They didn't grow vegetables. My dad said that my grandma in San Francisco eagerly planted a Victory Garden during the war, and everything died. It takes time to build the soil, and I don't think they realized that...they used sprays, chemical fertilizers and pesticides. I use compost, manure, and mulch.
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