Today
marks the completion of four years of retirement and the first day of year five. So far, so good! It has definitely been a journey, but a
journey well traveled. I am settling
into retired life rather nicely, learning a lot about myself and enjoying my
own company on the regular while I make my way through each day. It has been a rather remarkable time in my
life.
In
reviewing my finances I was pleasantly surprised to see that my overall net
worth has changed a bit from where I was when I retired in 2022 and for the
better! With careful spending and
adhering to a budget I’ve been able to live rather well with the proceeds from
my very part time job which has allowed me to continue investing and growing my
wealth. Hip, hip hurray! By working an average of fifteen hours a week
at my dream job I have been able to
pay the utility bills, buy my groceries, clothing, fill my vehicles with fuel
as well as maintain them and have some fun too.
I had a
certain amount set aside to cover my expenses these first years while I waited
to turn 62 and start collecting social security this year in September. I also have an emergency fund, which I am fortunate
not to have needed to touch. I was able
to use some of the extra money leftover from my retirement funds to buy the Subaru and complete repairs, pay my
annual insurance payments each year, plus have a tree service come and remove a
dying maple tree and prune my big sycamore.
By reinvesting other funds I have made enough to cover those expenses
and then some so as of today I have not just broken even, but I’m ahead. Because I have been doing so well, I was able
to increase my Fun & Leisure budget this year and I am able to be a little
more generous with my grocery spending as well.
Some of
you have questioned the wisdom of taking Social Security at age 62 and suggest
I wait, but I can assure you that the numbers have been crunched and I’ve met
with my financial advisor to ensure this is the right decision for me,
especially as my “break even” age is 79¾.
The pros far out way the cons. Remember,
finances are different for everyone and decisions in that regard need to be
structured for each individual. My plan
is to wisely invest those funds and
continue to grow my wealth so I am very comfortable with this decision.
Currently
I do not have any big travel plans, but I do have some smaller scale ideas I am
working on. I plan to do more
entertaining and going out with my friends this year too. Other than that I imagine it will be business
as usual. I am rather pleased with how
well things have been going. With all of
that in mind I am definitely ready for year five. Time to get busy!
Congratulation to you on four very successful years of retirement. That is a huge accomplishment, and you have proven it can be done. It has been fun to follow you along this journey and learn even more.
ReplyDeleteThank you Lori. I am so happy to have you follow along with me. :)
DeleteCongrats!!! Doing a great job . Janie
ReplyDeleteThank you so much Janie! :o)
DeleteI took Social Security at age 62 --on the advice of our financial advisor -- and have not regretted it. BUT you must be very careful to stay below the maximum amount earned at other things (like your dream job), or your SS will be docked. (I'm already assuming you know that, but just in case...) Then you can use Medicare, too! Our Devoted supplement plan doesn't cost us a cent in premiums, and in addition to the regular medical help, gives us over-the-counter free allowance each quarter, and a $54 grocery allowance each month. Which I know you'd stretch nicely! (We have a Medicare advisor who has been incredibly helpful. No fee -- they get paid for the companies. Let me know if you want his contact info. He might cover Idaho, too.)
ReplyDeleteI love that you have all of these wonderful benefits. Good job my friend!!
DeleteYour post just firmly planted my decision to take SS at 62 which I was playin doing anyway. I will also be drawing off my investments at 5%. I also plan to keep working as a sub nurse for the school district I work for 2 days a week. Let me you by doing this I will be able to afford retirement very well. 7 years to go. I could punch myself saying that.
ReplyDeleteGood for you! I'm rooting for your success! :0)
DeleteCongratulations.
ReplyDeleteThank you Judy. :o)
DeleteGood post as usual. I always admire the way you do thorough research on financial matters. I would like to address something another commenter said that may be a bit misleading if I may. While people can certainly take Social Security at 62 if they so choose, they cannot take Medicare at that age. Medicare starts at 65 unless you meet certain disability qualifications, Then and only then can you take Medicare before age 65. I just do not want anyone reading these comments to think they can automatically take Medicare at 62 if they take their Social Security at that age.
ReplyDeleteThank you
DeleteCongratulations on your 4 year anniversary! I am in my 2nd year of retirement and plan to apply for SS next year at age 62. I crunched all the numbers as you said and it works for me. Thank you for sharing all of your experiences, advice and words of encouragement on your journey. It has truly helped me in many ways.
ReplyDeleteAngela :)
Thank you Angela! :)
Delete