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We need help with this and I honestly refuse to pay around $2,000 to some millennial kid who wants us to drive an electric car we both want a big fuel burning paid for truck w big tires.


HELP!

We are doing the Dave Ramsey program and it’s moving along and going good but some questions are not being answered;


1). Old folks disability insurance? Something that will give us home help when we get that old, does everyone need it and what’s it called?

2). A savings CHART like how much exactly will we need for what and how long? One that is reasonable for people 55+ not a person in their 20’s or 30’s

3). Sock portfolio ratio for someone in our age range or are CD’s better since it will be somewhat short term?

4). ANYTHING else you can think of.

Our first thought is to purchase land and we are already ready for that (were thinking of looking this spring/summer) and then save up for the house. Is this good or should it be tweaked?
 

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First:

Go to Vanguard Vanguard and look at their retirement planning tools, you'll end up here at some point: Age 55-65

Then Fidelity at Fidelity

Then Charles Schwab at Charles Schwab

Second:

Repeat the first step, numerous times. You cannot over-educate yourself

Third:

Rinse and repeat

Then, return here and ask questions. You are starting down the perfect path, but it will take a lot of self-discipline and work for you to do this. Split it up, and talk a lot.
 

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My retirement investing started with mutual funds about 5-6 years before I retired from the service, although not to the extent I would have hoped for. One fortunate investment was some utility stock my granny gave me that I let reinvest over the years. Through very good fortune, it turned out to be a very good investment. Then I really socked away every penny I could while working as an army contractor for a few years off and on.

If this land of which you speak is for your homeplace, go for it. As an investment, ehhhhh. It can take years to increase in value, all the while an expense in taxes, insurance, etc. And it make not be very liquid, taking months, years, to unload should the need arise.

R&G gave some good suggestions. Do your homework, don't set unrealistic expectations. Live within your means. My wife and I get by just fine on our SS and my Mil retirement. We really haven't cut back on anything and haven't touched our "savings," although the bathroom remodel will take a bite of it.
 

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Sister-

I’m a CPA and recently retired (although I still do consulting work for my old firm). The best advice I can give to you is to find a financial advisor you trust and discuss your situation with him/her. As great as this site is, you do not want financial guidance from a gun forum.
 

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At your ages, buying land and building a home on it shouldn't be your "retirement" account fall back. If you're going to take a loan, you'll be making payments into your 70's when you should be taking supplement income from your investments. Be out of debt by the time you retire, if your plans mean that isn't going to be the case, rethink your land and house as an investment.

At your ages, if you don't have 100K already into investment vehicles to fall back on, buying land and building a house [ spending money you don't have in cash vehicles ] will only put you further in the hole.

I lost 40% of the value of my place in 2009 during the banking crisis. But it was paid for, so I didn't really lose anything. But people found they were upside down on the mortgage and owed more than their place was worth at that time. Houses are one of the worst investments you can make with a mortgage. Spend 200K on a house, by the time you've paid it off, you've actually paid 400+K for the house. If it's doubled in the same time so it's worth 400K, you didn't make a dime on that investment.
 

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We need help with this and I honestly refuse to pay around $2,000 to some millennial kid who wants us to drive an electric car we both want a big fuel burning paid for truck w big tires.

HELP!

We are doing the Dave Ramsey program and it’s moving along and going good but some questions are not being answered;


1). Old folks disability insurance? Something that will give us home help when we get that old, does everyone need it and what’s it called? Why? Would you lose income if you were disabled in retirement? There is always SSD if needed.

2). A savings CHART like how much exactly will we need for what and how long? One that is reasonable for people 55+ not a person in their 20’s or 30’s Max out any company 401K or similar plan. Get your 6 mo. emergency fund in place and get rid of your debts. Then invest in some no load growth stock mutuals

3). Sock portfolio ratio for someone in our age range or are CD’s better since it will be somewhat short term? What age range? Risk tolerance will likely decrease as you age. Diversification is important.

4). ANYTHING else you can think of. No debt was very important in my plan and gave great peace of mind - debt free including my home at 32 although I took a few pretty high risk ventures to get there but I could restart at that age if I had to. (House is mid 6 figures-not a shack).

Our first thought is to purchase land and we are already ready for that (were thinking of looking this spring/summer) and then save up for the house. Is this good or should it be tweaked?
Unless there is a specific reason to get land, concentrate on the home once you have the debt and emergency fund covered.

Just my $.02 worth. What worked for me may not for you but develop a plan and budget and monitor it toward your goals.
 

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Invest in keeping yourself healthy. Healthy enough that you can return to work if you need to. That's your backup plan.

Otherwise, buy stocks, trust financial planners, invest in lottery tickets...send it to a TV evangelist who says you need to "sew the seed to realize true wealth".

Personally, I'd work on making myself a marketable commodity whatever my age.
 

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Sister-

I’m a CPA and recently retired (although I still do consulting work for my old firm). The best advice I can give to you is to find a financial advisor you trust and discuss your situation with him/her. As great as this site is, you do not want financial guidance from a gun forum.
That's okay. I've never bought a gun based on any CPA forum advice. In fact, never bought a gun based on gun forum advice either. Forums are full of people, well, like me!
 

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That's okay. I've never bought a gun based on any CPA forum advice. In fact, never bought a gun based on gun forum advice either.
My accountant told me how to save from paying more in taxes than otherwise. I MIGHT talk to a CFP, which is different than a CPA. My accountant wasn't trained in financial planning, but was great at reducing the tax liabilities of the businesses.

I finished 5 of the 7 courses to become a CFP, found it too dry to get the certification. :wink:
 

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I paid off all my debt long before I retired and had a 401k at Vanguard through my employer. I've been told a tax deferred IRA would have been better since my employer didn't match my 401k contributions. Oh well. I'm not rich but I think I'll survive. Disability insurance is expensive so if you have a home and a caregiver (spouse, children, whatever) that might be your best option. Save as much as you can to supplement your Social Security. Having enough money for retirement requires discipline and giving up or postponing "toys" and other niceties. You might do well with CD's but you have to invest long term to get a decent return - my bank gives 3.5% on a 30 month CD that can be renegotiated if the rates go up. Disclaimer: I am not a licensed financial advisor.
 
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We need help with this and I honestly refuse to pay around $2,000 to some millennial kid who wants us to drive an electric car we both want a big fuel burning paid for truck w big tires.


HELP!

We are doing the Dave Ramsey program and it’s moving along and going good but some questions are not being answered;


1). Old folks disability insurance? Something that will give us home help when we get that old, does everyone need it and what’s it called?

2). A savings CHART like how much exactly will we need for what and how long? One that is reasonable for people 55+ not a person in their 20’s or 30’s

3). Sock portfolio ratio for someone in our age range or are CD’s better since it will be somewhat short term?

4). ANYTHING else you can think of.

Our first thought is to purchase land and we are already ready for that (were thinking of looking this spring/summer) and then save up for the house. Is this good or should it be tweaked?
Are you referring to long term care insurance? If so, that’s generally something to consider if you expect one spouse to outlive the other by a considerable amount of time, and no close family or other support available. My experience has been that even memory care, while expensive is normally a relatively short time and is better self funded.

To determine investment needs, work backwards on a timeline estimating major events like social security, Annual expenses, etc. any deficits would need to be funded from retirement funds. Just use the 4% rule to start and adjust from there, starting withdrawals at your retirement age. You can then get fancy and factor in inflation and compound interest.

I prefer ETFs over mutual funds. But, the bigger question facing today’s retirees is how to diversify and invest the money we have diligently saved while reaching this point. My choices may not be appropriate for others due to risk tolerance and other factors. Also consider our own expertise in the declining years.

Edit: I’m not yet retired. But expecting to retire in a few years - before typical retirement age.
 

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Long Term Care insurance can and will pay for home care as well as nursing home care, depending on what kind of policy you buy. The younger you are when you buy it, the lower your premiums will be. (doh!) Most policies give you the option of what you want to have covered and also how much per day or month you want in coverage. That takes some research and personal planning on your part also.

My father tried to buy long term care insurance when he was in his 80's. He was flat turned down. No exam, no interview, nothing. Just turned down. He wound up living in assisted living for 6 years. Fortunately his social security plus the money he had saved were enough to cover the cost. Nursing home costs are triple or more what assisted living costs are. Home health care can be as expensive as assisted living - depending on how much of whatever care and time is required.

We briefly thought about getting LTC insurance at the time my father was turned down, and decided that for the price of the premiums we would wing it on our own. That may or may not have been a good decision and the answer will not be available until we die.

Be very, very careful to read every single word of any policy you are thinking of buying and check out the insurance company itself because they have a way of disappearing sometimes.

You did state that you were planning to buy land and then save money to build a house. That is a good plan, but also plan that the house will cost you 25% more to build than you think it will! That is an area I do know something about. It is also the reason that the houses we have purchased in our retirement years have been existing ones that we could remodel for known costs.

We are in our 3rd "retirement house" which is a condo because Gramps got to the point where he could no longer keep up with the maintenance and yard work. I know that condo living is far, far from anything you want to consider but mentioned it anyway as the way our 'retirement' has developed over 25 years of it. Gramps also worked part time for a lot of those years, and I had a business for a few years, so we didn't depend entirely on the gub'ment checks for our living expenses.
 

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Sister: Please, please please follow @Taxman's advice. Get a really good financial planner who specializes in retirement, and not just saving for retirement, retirement distributions, tax shelters, and long-term care insurance. Unless Dave Ramsey is advising you personally, there is no "one size fits all" plan. My wife and I just semi-retired at 66 and 65 respectively. Our old financial planner, who was a personal friend, told us we couldn't do it. It turns out he was just going through the motions.

We found a really bright young guy with a major firm. He did a ton of work putting together a custom plan tailored to our needs. He provided me his spreadsheet and I checked his work. He rang true every time. No razzle-dazzle, "secret sauce" stuff. Just good solid planning to make the most of what we had saved, have our risks mitigated and our taxes minimized. About four months after we met him and after about a half dozen meetings, we are "living the dream." Retirement distribution math is an eye opener. It also varies from state to state.

Don't get financial advice from a gun forum, or a book, or a tape, or some "guru." Dave Ramsey seems to be focused on people getting out of debt and saving. If that's what you need, fine. But that is "pre-retirement." Post-retirement is about distribution strategies and most financial planners don't know it because that is not what makes them money. You may have to pay a good planner out of pocket, but it will be worth it.
 

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Well, Sister, if all the previous advice sounds too daunting or over penetrating, you could always learn to play the banjo and join a touring Blue Grass band?
 

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Well, Sister, if all the previous advice sounds too daunting or over penetrating, you could always learn to play the banjo and join a touring Blue Grass band?
Q:Why did the banjo player leave her capo on the dash of her car?

A: So she could park in the handicapped spots!
 

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Unless there is a specific reason to get land, concentrate on the home once you have the debt and emergency fund covered.

Just my $.02 worth. What worked for me may not for you but develop a plan and budget and monitor it toward your goals.
lots of good advice here and above. "No debt" is the top of the list.

Retirement? It really is a great thing!

.
 
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Well, he is a little story from a 57 year old truck driver. For quite some time, some of the guys/gals kept giving me crap about getting disability ins. Finally, last Summer, I signed up (Aflac, taken out of check weekly).
6 weeks ago, I slipped on the ice and broke my wrist really bad (plate screwed into the large bone, pin into the smaller one). Looks like I'm gonna be off for awhile. Think I'm not EXTREMELY appreciative of the supplemental income coming in? I could have survived from the small stipend I get from the union, but, just barely.
Moral of the story: Get disability ins. and pray you never need it.
Boredom is my only problem for now. So, I apologize in advance for being a PITA. :tongue:

Oh yeah, look what I got the other day :smile::


Can't head to the range til my wrist heals up. :frown:




p.s. One last thing; I got completely out of debt about 4 years ago, AND, I now live below my means. Life is SO much easier. I'm loving it.
 
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