Jimwinger did a masterful job of describing retirement in the USA but one clarification is needed:kevin burton said:Is there a compulsory age in USA for you to retire or do you guys retire when it suits you. In UK we have a retirement age of 65 for men 60 for woman when we get our Government pension.
Any wisdom you can pass on? I think I'm doing pretty good but I don't see retirement at 50. Although, if the economy stays as good as it has been ... it's possible.Hubie said:I was lucky! I retired at 50!!
I had a 401K that I was able to manage, and did very well!!
I don't miss work at all, and I have been off for 2 1/2 years.
The best wisdom I can give you is to retire debt free. That means no bills for any purchases, no car loans, ans especially no mortgage. Contribute all you can to your 401K which is as you know, tax deferred, pay off your mortgage if you have one, and keep on working until you can afford to retire comfortably. Don't set an age for retirement, but rather focus on how much income you will have to live on, and how confident you are that your investments will continue to grow to provide future income when needed. Finally, diversify your savings plan! :wink:Any wisdom you can pass on? I think I'm doing pretty good but I don't see retirement at 50. Although, if the economy stays as good as it has been ... it's possible.
Are you sure? Did you work for the state or federal government? If you paid your 40 quarters then you are entitled to SS benefits. For example if I were under the Civil Service Retirement System(CSRS) then I wouldn't be paying into SS and wouldn't receive benefits. But, if I had paid my 40 quarters before going on CSRS I would still receive benefits though they would be smaller (the more you pay in the more you get in SS).Diablo said:Won't get a dime from Social Security, even though I paid in and have the required amount of credits. It's a little quirk in the Social Security law called "government offset". :evil: