Daily Money - If We Could Move Like Jagger

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May 10, 2022

I used to think that aging rock stars should strut off the stage and into the sunset. Like, Mick Jagger doesn’t need any more money, so why doesn’t he hang it up already? I realize now how ungenerous that was: Why should he retire, when he gets to do what he loves and bring people joy in the process? We should all be so lucky. But you can’t always get what you want: A good majority of Americans plan to work in some capacity past the traditional retirement age, but only about a quarter actually do, a new study finds. If you're counting on working longer to make up for any savings shortfalls, remember that life may get in the way — in the form of health concerns, caregiving responsibilities, age discrimination, etc. — so make a contingency plan.

Best wishes,
 
 
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Timely Retirement News, Insights and Advice

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Reader of the Week

We always dreamed of living in Hawaii, but never seriously considered it until real estate prices crashed during the Great Recession. We bought a resort condo in 2009 and leased it out until we permanently retired and moved there in 2017. 
 
I play a lot of golf (about 700 rounds in the past 24 months). My wife doesn’t golf, so while I’m on the course she walks, swims and does what she likes. On nice days (at least five days a week) we spend time near the ocean reading, people watching and talking to friends that do much the same.
 
Before COVID, my wife frequently traveled to the mainland to spend time with our children and grandchildren. I’m more of a homebody, but when my kids want to come and see us I pay for their flights.
 
When I retired, I thought I’d have lots of spare time on my hands.  Nope! My days are full and in those rare times I’m not doing something, there is a “honey-do” list that never seems to end. 

Ha! What’s your spending philosophy?

Though my wife and I didn’t finish college, we did pay for our children’s bachelor’s degrees so both came out of university without debt. We taught them by example to live below their means and both understand the impact of debt on their lives.
 
I use Personal Capital’s free retirement planner and I update it often.  It shows that at our current annual spending level that we have an 85% chance of leaving money at the end of our lives. With 30+ years of retirement to fund, our investments remain primarily in low-cost S&P 500 index funds. We have some down years (most recently 2018), but that’s more than offset by gains in other years. Since I retired in 2017, our net worth has increased by more than 35%, so the strategy is working out so far.
 
My dad’s initial contribution to my RRSP (Canada’s version of an IRA) caused me to learn about saving for retirement. Easy now with the internet, but not so easy back in the '80s. I sought out and read everything I could find. Forty years later, we have about $1.5 million in tax sheltered IRAs (both conventional and Roth) and their Canadian equivalents. If not for my father’s initial contribution, I’d probably still be working.

Wow! Any regrets you’d like to share (money-related or otherwise)?

In our early 20s, we bought a $35,000 car (in 1986 dollars) when our combined income was less than $50K. Worst decision ever! We’ve owned a few new cars since then and plenty of used ones, but we have never spent that much on a vehicle ever again.  

Retirement News From Around The Web

How Much Will Your RMDs Be?
The tables for calculating RMDs changed as of Jan. 1 this year. Here’s how. MORNINGSTAR

Here’s Where I Bonds May Work in Your Portfolio
They could be part of your cash allocation or your bond portfolio, financial advisors say. CNBC

Long-Term Care: The Crisis Everyone Must Face
Check out the caregiver resources in this special report. AARP

Jumpstart Your Search for a Part-Time Job in Retirement
Options for high-quality flexible, virtual and project work have increased dramatically in recent years, a careers expert says. NEXT AVENUE

Elizabeth O'Brien is deputy editor at Money. She has covered retirement and health care for nearly a decade. A Brooklyn resident and mom of two boys, she navigates the alphabet soup of Medicare and the New York City subway system with equal ease. You can email her at elizabeth.obrien@money.com and follow her on Twitter at @elizobrien.

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