{"id":619195,"date":"2023-03-17T21:04:00","date_gmt":"2023-03-18T02:04:00","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/03\/17\/help-me-retire-ill-be-60-have-95000-in-cash-and-no-debts-i-think-i-can-retire-but-financial-seminars-say-otherwise\/"},"modified":"2023-03-17T21:04:00","modified_gmt":"2023-03-18T02:04:00","slug":"help-me-retire-ill-be-60-have-95000-in-cash-and-no-debts-i-think-i-can-retire-but-financial-seminars-say-otherwise","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/03\/17\/help-me-retire-ill-be-60-have-95000-in-cash-and-no-debts-i-think-i-can-retire-but-financial-seminars-say-otherwise\/","title":{"rendered":"Help Me Retire: I\u2019ll be 60, have $95,000 in cash and no debts \u2014 I think I can retire, but financial seminars \u2018say otherwise\u2019"},"content":{"rendered":"

I will be 60 in September, have $95,000 in cash, work part time ($30,000 yearly) for insurance and contribute 10% plus the employer match of 8% to a small 401(k). My home and car are paid for, I don\u2019t have any other debts, and I am single. I live in South Carolina where the cost of living is manageable.<\/em><\/p>\n

\n

I would like to start taking my Social Security at 62, (around $1,100 per month) and maybe still work part time. The job is very physical and not something I would be able to do for more than a few more years. At 64, I will have a pension of $1,900 per month. I don\u2019t spend on anything unless it\u2019s really needed. For example, a new roof last year.<\/em><\/p>\n

I have a potential inheritance of $300,000, but I know not to count on it as a sure thing.<\/em><\/p>\n

I think I will be fine financially, but have been to a couple financial seminars that say otherwise.\u00a0 Are they truthful or just looking for a customer?\u00a0<\/em><\/p>\n

Curious George<\/em><\/p>\n

See:<\/strong> \u2018Is my financial planner crazy?\u2019 We\u2019re 55 and 60, five years from retirement and were told we should invest more aggressively<\/a><\/p>\n

Dear Curious George,\u00a0<\/p>\n

Financial seminars can be a really great starting point to vet for yourself where you are in your journey to retirement, so kudos to you for attending multiple!\u00a0<\/p>\n

A word of caution: some financial seminars are sales pitches disguised as information sessions that use scare tactics and misinformation to pressure unsuspecting participants into inappropriate investments \u2014 or even scams \u2014 that ring up big commissions for the salesperson. <\/p>\n

Just like those financial seminars, I have limited information on your financial situation so I can\u2019t say for sure whether or not you\u2019re set for retirement in a couple of years. For example, you mention having $95,000 in cash and savings in a 401(k) but I don\u2019t know for sure how much is in that 401(k). I can, however, tell you that if they\u2019re saying you should hold off on retirement, it\u2019s definitely worth considering why.\u00a0<\/p>\n

For example, in retirement, you\u2019ll have your pension and Social Security, which is great \u2014 not a lot of Americans have a pension anymore \u2014 but will those be the heavy drivers of your retirement income? If the $95,000 you have is the primary nest egg for your retirement, maybe not. Think of it this way: let\u2019s say you were to retire at 64 when you get that pension, you could live another 10, 20 or even 30 or more years. That approximately $100,000 likely won\u2019t stretch that long.\u00a0\u00a0<\/p>\n

If you have more stored away in your 401(k), ask yourself the same question \u2014 is what you have invested enough, based on a few factors like cost of living, life expectancy, expected and unexpected expenses and so on? Here\u2019s a retirement calculator<\/a> that can help you crunch a few figures to get an idea. A note on this \u2014 financial calculators are just like a drawing board. They\u2019ll give you an idea of what you may need, but you shouldn\u2019t base your retirement on one.\u00a0<\/p>\n

A qualified financial planner is a much more reliable choice, and if you can afford to see one even once for a financial check-up, it may be worth it for you. They\u2019ll look over all of your information, unlike a financial seminar, and if they\u2019re a certified financial planner, they\u2019re required to work in your best interest. Here are a few questions<\/a> you can ask a professional to see if he or she is a good fit for you.<\/p>\n

Check out MarketWatch\u2019s column <\/strong>\u201cRetirement Hacks\u201d<\/strong><\/a> for actionable pieces of advice for your own retirement savings journey\u00a0<\/strong><\/p>\n

People do retire with that much money, some even retire with less if they have to, but if you\u2019re in a situation where you can continue to generate an income \u2014 is it worth giving that up?\u00a0<\/p>\n

I know you mentioned maybe continuing to work part-time if you were to claim Social Security at 62, and that you have a physically demanding job. Instead, is there a way for you to find another type of job utilizing your skills and experience? You could probably translate what you know and do now to something that\u2019s less strenuous, such as staying in your field but taking on a teaching or consulting role. If you do that, you may make the same amount of money \u2014 or more \u2014 and could potentially live off of that while letting your Social Security benefits (and 401(k) assets) continue to grow.\u00a0<\/p>\n

When you claim Social Security at 62, you\u2019re getting a reduced amount, and that amount will remain reduced for the rest of your life. If you wait until your full retirement age, you\u2019d get 100% of the benefits you\u2019re owed. The longer you delay until age 70, the more you get in your benefit. I\u2019m not suggesting you wait until age 70, but just know if you can keep bringing in an income and enjoy your life all the same, it\u2019s worth thinking about holding off on Social Security as long as you can. (This decision depends on numerous other factors, though\u2026 not just if you\u2019re able to afford delaying your benefit, but if you think you\u2019ll live long enough to enjoy it after you begin claiming. Longevity is a key component when deciding when to claim Social Security).\u00a0<\/p>\n

Also, depending on how much you earn as a part-time worker after you claim, the Social Security Administration may withhold<\/a> a portion of your benefit. You\u2019d eventually get that money back when you reach full retirement age, but it\u2019s something to keep in mind.\u00a0<\/p>\n

Also see:<\/strong> \u2018I don\u2019t think I can wait until 70\u2019: I\u2019m still working at 66. Should I wait or claim Social Security now?<\/a>\u00a0<\/p>\n

Healthcare is very important. It\u2019s also very expensive. Working a job that offers that benefit would save you a lot of money until you\u2019re eligible for Medicare at age 65. <\/p>\n

One more note on your spending. It\u2019s great that you\u2019re able to live comfortably without spending so much, and that you live in an area where the cost-of-living is manageable. Still, you did highlight a very real possibility of an emergency situation. A new roof probably costs a pretty penny, and situations like that can arise well into your retirement. It could be a home or auto repair, a health expense or anything else really. If you\u2019d have to tap heavily into the amount you have saved, that could easily derail your plans and make you much less comfortable in retirement.\u00a0<\/p>\n

You\u2019re also right not to rely on an inheritance. Anything can happen until you expect it, and while it would be a nice inflow of cash to use in your old age, it\u2019s definitely not something to bank on. Make a Plan B or Plan C that incorporates that money in your financial plans, but don\u2019t make it Plan A.\u00a0<\/p>\n

I hope this helps. It makes absolute sense why you wouldn\u2019t want to jump on something you see in a financial seminar, because it\u2019s true \u2014 sometimes, these sessions really are a sales pitch \u2014 but it doesn\u2019t hurt to do a bit more reviewing before you start your retirement.\u00a0And it\u2019s great that you have clearly already started! <\/p>\n

Readers: Do you have suggestions for this reader? Add them in the comments below.<\/strong><\/p>\n

Have a question about your own retirement savings? Email us at <\/strong>He**********<\/span>@*********<\/span>ch.com<\/span><\/strong><\/a><\/p>\n<\/p><\/div>\n

Read More<\/a>
\n Elida Damron<\/p>\n","protected":false},"excerpt":{"rendered":"

I will be 60 in September, have $95,000 in cash, work part time ($30,000 yearly) for insurance and contribute 10% plus the employer match of 8% to a small 401(k). My home and car are paid for, I don\u2019t have any other debts, and I am single. I live in South Carolina where the cost […]<\/p>\n","protected":false},"author":1,"featured_media":619196,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36428,534,36934],"tags":[],"class_list":{"0":"post-619195","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ill","8":"category-financial","9":"category-retire"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/619195","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=619195"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/619195\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/619196"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=619195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=619195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=619195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}