Retirement Planning for ex-JW's

by Simon 37 Replies latest social family

  • LongHairGal
    LongHairGal

    SIMON:

    It was very good of you to post this and it is almost a humanitarian gesture to help a lot of ex-JWs (and current ones who lurk here).👍

    Many JWs who are born-ins and denied education (even in practical things) are lacking in knowledge about something as important as retirement.

    Thankfully, I ignored the religion's criticisms and never quit my full-time job, and am retired now!

    You might want to dedicate a section of the forum for practical advice like this!

  • Simon
    Simon
    You might want to dedicate a section of the forum for practical advice like this!

    Thanks, I have some ideas for better forum categories. Just have some technical things to change first but watch this space (well, not this space ... there will be a space ... watch for that space)

    I think the biggest factor for exJWs is the mental effort to face it. Retirement planning is one of those things that you don't need to to today, or tomorrow, or the day after that ... but at some point it becomes more and more difficult if you don't.

    Making an honest assessment is the first step but I wanted to try and remind people not to get too down if they do that and see things as hopeless - it never is, you can always make things better.

  • GrreatTeacher
    GrreatTeacher

    Have your savings automatically deducted from your paycheck so you never even think of it as money to spend. My husband has always diverted 6% of his income to his 401k. That's the max they provide a match for (88%). We've never missed that money because we haven't had to move it anywhere. It's always been automatic. Now, we've finally got 6 digits saved for retirement!

    Also, in addition to life insurance, consider disability insurance, especially if you do physical labor. The likelihood of being disabled is shockingly high. If it happens at work, you will be covered, but if it doesn't, you are faced with a devastating possibility of not being able to work and support yourself. Our policy covers 50% of my husband's income for up to two years and it's very inexpensive. And, yes, my husband has hurt himself. His body is pretty beat up from 25 years of physical labor.

    Good advice, all. We have done pretty well except I graduated from college with lots of student debt right after the economy melted down and have not found a good, permanent job. So, student loans are killing our financial health right now.

  • GrreatTeacher
    GrreatTeacher

    Oh, almost forgot. If you have investments that wil automatically rebalance themselves, definitely sign up for that option.

    We have a fund that we keep 80% stocks and 20% bonds. If one sector or the other is making more money and we're too heavy in either category, it automatically reinvests the entire amount with the appropriate split.

    This manages your risk and does it for you automatically.

    I believe in automaticity. It makes your finances lazy-proof.

  • James Mixon
    James Mixon

    What happen if you have medical expenses. A JW ex-friend had a nice

    nest egg, but his medical expenses depleted his nest. His insurance only

    covered a certain amount. You have this other friend that never saved a penny,

    but he have a guarantee incomes until the day he dies and unlimited health care, substantial income that comes in every month and no agency can touch.

    It's a bitch growing old....Which guy is better off????

  • wannaexit
    wannaexit

    Thank you Simon for starting this very educational and necessary topic as many of us are at the age where we are starting to think retirement.

  • James Mixon
    James Mixon

    Good advice Simon, but this something to watch for.

    Failing health could drain your retirement saving.

    www.investopedia.com/retirement/07/ long-term-care.asp

  • dubstepped
    dubstepped
    Giordano: Dubstepped: I'm looking at a Roth IRA invested in good index funds from here to retirement.
    "in his recently released letter to Berkshire Hathaway shareholders, Buffett gives us a glimpse into how he views long-term investing. As arguably the greatest stock picker of our time, his perspectives may surprise you.
    Buffett describes advice he has left in his will as to how the trustee should invest money Buffett is leaving for his wife. Here’s Buffett’s advice:
    “My advice to the trustee could not be more simple: Put 10 percent of the cash in short-term government bonds and 90 percent in a very low-cost S&P 500 index fund. (I suggest Vanguard’s.)”

    Thanks for the share. I went through most of Tony Robbin's book on money (it was long winded and full of fluff but I got the main points) and that's where I was introduced to index funds. I've already picked out my funds on Vanguard, actually. I'll take care of it myself instead of giving a percentage to other people to manage it for me.

    For us, by retirement our house will have been paid off for some time. If we save as we hope to we can retire semi-comfortably. The reality though is that anything can happen. A weird physical ailment could be devastating even with insurance if it cuts one or both of us off from working. We clean houses so we aren't exactly making a huge salary each, though together we do fine and we're willing to hustle and work as much as we need to, always taking on extra work here and there. It is a physical job, and who knows how long we can physically keep up the pace. All we can do is the best we can with what we've got and see where the chips fall. Life is unpredictable.

    I watched my dad "retire" when his kidneys failed and he went on disability and such. He was near 60 years of age. My parents didn't have any preparation for retirement. No money at all. No real assets to speak of. They'll survive for sure, and with a low income his entire working life my guess is that his benefits and such probably aren't high. I just want to be sure that we are taken care of, and especially my wife should something ever happen to me.
  • adjusted knowledge
    adjusted knowledge

    I left the organization early so I started a Roth IRA in 1998 and a 401k in 1995. I still plan to work another 25 years so i should be sitting decent at 63.

    Even if you're 50 you can save something before 65. But really, any financial advice is so dependent on the person. How old are you? Are you healthy to continue working for another 10, 15, or 20 years? What country you live in? Taxes are a big factor. Try deciding on various tax accounts in your early twenties, and not having a clue what tax laws will exist in 45 years.

    One thing too is for me retirement is not a big deal but my daughter and future children education is. I starting paying for my daughters education when she was born. It will be paid off before she is 12, all four years. I don't even plan on retiring but working or doing what I like. That is what retirement means to me. Having the financial ability to do what I want and not worry how much that "job" pays.

    I would like to join Dr. without borders and help provide nursing care, but can't afford to do that now but hoping I can when I retire.

  • kaik
    kaik

    My advice to financial well being is:

    1. Do not spent money you do not have
    2. Build a rainy day fund
    3. Drive car until repairs became liability
    4. Take advantage of 401K and max it
    5. Put extra money to Roth IRA
    6. Buy a house you can afford on one income
    7. Don't buy shit you do not need
    8. Keep in mind, even if you cut your expenses to zero, your income will not go up by a cent
    9. Do not neglect your health, it will become costly
    10. Stop smoking or drinking out. Have martini at home instead spending $12 on happy hour with your coworkers
    11. Learn how to fix stuff around the house yourself, but let pluming and electric cables to professionals
    12. Enjoy life and learn how to spent your hard earned money wisely

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