Can we talk about retirement?

[addertooth]

Interesting perspective, I think this is happening in many industries. I know I can’t replace skilled workers, we have to grow them. It takes a decade or so with quite an investment in off site training.

Yep, businesses respond by segmenting efforts into smaller bites. This way, any worker only needs to know a very small piece of the entire pie. Where the critical bleed happens is in the higher skilled "generalists" who had a global (total) view of every step of the process (and could perform it ALL solo). They are also the ones who would spot process failures when a collaborative process was used. They had a total cradle to grave view view of processes and outcomes; that perspective is slipping away. This means that even with (simpler) segmented processes, those who understand how those processes mesh, and interlock, will not be around. The classic rule is: Those who do not understand something, cannot manage the processes effectively. They do not understand the resources required in terms of hardware/supplies/manning. Segmentation only had a hope as long as those who had mastered the entire scope, were around to manage, guide, and provide technical oversight.

 

[Bamban]

When our first grandkid was born, my wife went to work the following day, she informed her manager she was retiring so she cam be a full time grandmother. She did,, she left me for a year to help our daughter-in-law. My wife was 55 at time. She is now 66. I retired from the company at 55, but got pulled away by a friend who jumpstarted a new division in another company. It was a good gig. I finally retired retired at age 59, I am now 68.

Retiring early is well worth it. Staying put and visiting grandkids beats the heck out of working. The 4 lathes, including a brand new PM1440TV, a Bridgeport, and other stuff in the garage, and shooting in competition keep me busy when we are not with the grandkids.

In our retirement we have no desire to travel outside the US. We traveled all of Asia and most of Europe when we were both working while the kids were in college. Son graduated from Duke and daughter from Johns Hopkins.

The best benefit I can see in retirement is the spontaneous lifestyle. In 2013 I asked the wife of she wanted to go for a ride, she asked where, I said pack enough for a week. We pointed the car to the West, a month later we were back. No reservation, no plans, just played it by ear where we ate, and where we stayed.

Yes, no regret retiring early.

 

[7milesup]

With all due respect to Bruce... Never pay for your kids college cost. Sure, help them with some rent or whatever, but every financial advisor will tell you to take care of yourself first. The kids have their whole life to pay for college; we only have a finite time to pay for retirement.
Again, not to say you made the wrong decision at all Bruce, just that for most people it is not a good decision. We have some friends that worked just "normal" worker bee jobs. They paid for their kids college. Not sure when they are going to retire...
My parents didn't pay for anything nor was there any support. I clawed my way up in life. It is a pure miracle that I got to where I ended up.

 

[7milesup]

My mother lives on $2,000 a month social security and dividends from a half a million at Edward Jones. Her rent is $2,000 a month. The investment is growing.

Information like that is what a lot of people look for. By the time I take SS we will have our new house paid for and no debt. The SS will easily get us by. I hate traveling but the wife wants to do some. I would like to spend more time out west. Maybe I can come and see some of you guys that live on the left coast... LOL.

The average retirement savings of a 55 year old (me) is $117,000 according to some sources.

 

[BGHansen]

Bruce,
You and your wife are a perfect example of working hard, raising kids and providing for college, investing wisely in the end pays dividends. You can have your cake and eat it too.
I’m finally getting my boys to invest for tomorrow. They have time, I just hope my 32 year old teacher son has retirement income like his mother.

The wife and I are blessed, no doubt. I started putting away 15% in my 401k at 23. Wife did 20% starting at 28. We budgeted ourselves off my check and took another 20% of her check after taxes for our kids college education fund. We ended up never touching the college fund as we made/make enough to just write the checks. We got where we are by falling into good paying jobs with stability. Also both of us have higher education degrees which helps to separate yourself from the masses.

We also did without items we considered frivolous which for now has us in a wonderful position. More bragging than anything, but when I approached my wife about buying the Tormach mill last year she was good as long as it was under $100k.

I used to be our son's cub scout leader and remember having to open the pole barn door to get enough light in the shop to use my table saw for a pack project. Fluorescent lights don't work below 20F. I didn't want to spend the money essentially heating another house so dealt with freezing in the shop. Granted, mostly managed my projects around the weather. Now there's a 125,000 BTU heater out there and have enough saved up that I'm comfortable in two respects setting the thermostat to 60.

Best advice is to start saving early and learn to live within your means. Because you want it doesn't mean you can afford it or really need it. If you buy frivolously and get in trouble, it's your own d*mn fault. The hardest thing can be accepting your place in society. Just because your chosen profession doesn't give you a champagne budget doesn't make you less of a man.

I really feel for people trying to run a small business, then have a change in technology blow them away. My dad was a shop teacher and ran a photofinishing business on the side. They processed Ektachrome slide film, did special effects slides, duplicated slides, etc. Then LCD projectors and PowerPoint came out. They went from processing film 9 times a week to maybe once every 9 weeks. Fortunately they budgeted their life off the stable teaching job when the bottom fell out on their business. Plus good timing as the market changed when he was around 65 and was ready to retire for good.

Wow, way off topic!

Bruce

 

[Reddinr]

Never pay for your kids college cost

Though I would never say "never", I think there are benefits of having to work some to get through school. For one thing it can help prepare you for work life after school, especially if you can land the rare summer internship in a related field. On the other hand, college costs seemed to have skyrocketed since I went to school back in the stone age. My parents had no money so I didn't have a choice. I'm not sure how I would have gone to school without help at today's rates. Big debt, I imagine.

My brother and sister in law paid for both of their kids schooling. The kids came out great. They are married, gainfully employed and good people. They were/are fine parents. However, my brother-in-law, near retirement, died recently and my sister in law is in a very tight financial situation. They were comfortable while working and generous with their kids but they just didn't leave enough for retirement. So, pay for school, don't pay for school but I suggest that you be sure that you won't be retiring to a very tight situation for yourself if you can help it. (PS. I find it maddening that about 5% of her annual investment income goes to the financial advisor for annual management fees while she is stretched so very thin.)

Also, great advice above, Bruce! Can you buy me a Tormach?

 

[pdentrem]

5%! Getting shafted! I hope you can help her move to another company.
Pierre

 

[BGHansen]

Also, great advice above, Bruce! Can you buy me a Tormach?

Tell you what, IF I decide to sell it I'm make you a deal It was only used on the weekends by a very conservative hoppy machinist!

Some old adage about how a millionaire got to be a millionaire? By not giving away a million!

Bruce

 

[Just for fun]

My plan is to retire at 62 and take my SS at that time. I'll have 30 years in the company. That date is coming up the end of May next year, actually 194 days left but who's counting! I have lots of nice tools but no mill or lathe yet.

Tim

 

[Reddinr]

I hope you can help her move to another company.

It is 5% of her income, not her investment. But, it is a waste of money in my opinion. She is still in a fragile state after the loss of her husband so does not want to deal with changing things right now. I think in time my wife and I can help her get to a less expensive investment situation.

... by a very conservative hoppy machinist

You really shouldn't drink beer while machining.
There are a few variations on your adage. For example, how to make a million dollars starting a winery...start with three million.