Saving for retirement is hard. Knowing how to spend it down is harder.

[Zorro]

One of the biggest things on my mind these days — right up there with the Washington Nationals’ woeful bullpen — is retirement.

I am a few months from turning 64, so I’m not putting in my notice anytime soon. But 25 million or so Americans, ages 55 to 64, are, like me, wondering what they will live on during their “golden years.”

I have to be honest: I thought the hard part was living within your means and saving for retirement. It’s not. Trying to figure out how to cash out your nest egg — your tax-deferred retirement account, your taxable investments or both — so it will last the rest of your life can be even harder. It has me gnawing at my fingernails.

There are many variables when figuring out retirement finances. How well do you want to live? Do you want to leave anything? Do you want to help the kids or others? Charity?

https://www.washingtonpost.com/business/economy/saving-for-retirement-is-hard-knowing-how-to-spend-it-down-is-harder/2019/04/19/14fa43d4-6083-11e9-9412-daf3d2e67c6d_story.html

[SWBTATTReg]

1. I found one thing is to keep saving money by pretending you still have a mortgage (I don't), but...

I still pay myself that 'mortgage payment' amount every month, and put it into savings. Don't over react, you'll have plenty of time to decide what to do w/ money should you want to gift any of it, be sure to do those things that you're still young enough to enjoy.

Best wishes!

[doc03]

2. I have been doing the 4% rule for the last

6 years, it has worked well for me so far. My principle has actually increased 18%.

[mitch96]

3. What initially got me was the 800lb gorilla in the room...

When you gonna die?? AKA when your children cash in your accounts. The simple math is, years left / money in the bank = money per month.. BUT what if you last longer than expected? What do you do for money in your "golden,golden" years.. uffda..
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[PoindexterOglethorpe]

4. While not having a mortgage in retirement is nice,

sometimes things happen that means you'll have one. For instance, I divorced at age 60, relocated to another part of the country, and bought a house. I did not have the financial means to pay cash, and I couldn't afford the payments on a 15 year mortgage. So I'm now a bit more than 10 years into a 30 year mortgage and I'm fine with that.

I didn't read all of the comments, but as far as I got in them several people trashed annuities. I honestly don't understand that. Annuities may not be for everyone, but they have their place. My financial advisor got me to purchase 2 annuities back in 2012. I started taking income from them at the end of last year. The return on them, in terms of income, is better than the 4% that's considered safe to take out of other investments and savings. In fact, my income has increased during the early years of my retirement, and I'm able to put money in my savings each month.

I've also just started making extra payments on my mortgage, because now I have the money to do so.

I don't understand why so many stay in a huge house after the kids are grown. Often the excuse is to have a place when kids and grandkids come visit, but even people who had only one or two children and now have only one or two grandchildren often stay put. I don't get that. Oh, well.

[mitch96]

5. "Annuities may not be for everyone, but they have their place"

I just recently discovered that my pension is actually an annuity that the employer took out. I get the proceeds and they keep the principal..
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[PoindexterOglethorpe]

6. At least your pension is funded.

Too many companies and government entities don't properly fund their pensions, leaving retirees high and dry. I have one of those. Getting a pension that's a bit less than a third of what it should be because the company couldn't be bothered to fund it, declared bankruptcy at least twice, then shifted the pension over to the Pension Benefit Guaranty Corporation. At least I never counted on that pension to be very much money, as I only worked there 10 years. Those who worked 30 or more, who fully expected a decent pension in retirement, they're screwed. And this is happening over and over.

[mitch96]

7. "Too many companies and government entities don't properly fund their pensions"

I worked for a county hospital that had is's head screwed on straight. They realized as a hospital they had to make money to advance new medical treatments. That thinking went to it's care of the employees. They took care of us but they also took their pound of flesh out of you. You had to work hard and be responsible for what you did. They saw a mistake or error as an opportunity to make things better.
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