Retirement

CarolinaFever said:
I think everyone should be able to retire between 50 and 60. 30 years of working is enough. Unfortunately, our society isn't made that way, and greed is still a thing.
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Funny thing is that retirement is a fairly new concept in the human history. I understand pensions began in mid 1800's in the US, but i wonder if those folks actually stopped working. Retirement communities in Florida were a thing in the 20's apparently...
 
I retired at about 58 except for some extended consulting gigs and a moderate number of tax returns primarily for friends and family. It's been great and easing into it is a good plan. The biggest challenge is finding and paying for decent health insurance until you qualify for Medicare. I opted for a high deductible plan and an HSA. It worked out that I touched very little of the HSA and now have a sizable account that's done well in mutual funds that I can tap tax free if needed using all the receipts I've squirreled away.
 
One of the benefits of quasi-retirement: three trips in the next three months.First one up is a ten day stay in Durham, headed to watch basketball practices. Late in October headed for two weeks to Spain, and then a weeklong stay in Miami for Thanksgiving. The idea is to do remote work from all three spots.
 
gregh1 said:
Funny thing is that retirement is a fairly new concept in the human history. I understand pensions began in mid 1800's in the US, but i wonder if those folks actually stopped working. Retirement communities in Florida were a thing in the 20's apparently...
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I would imaging that increased life expectancy is a variable.

With increased age we get to a point that some jobs we just can't do. Example, I'm no longer able to work loading moving trucks and I've decided that I'm not mentally or physically up to running for president. And I'm not nearly as old as one of the candidates. 😁
 
With interest rates declining and Treasuries less attractive - tell me why Altria (MO) is essentially flat YTD, has a P/E of 11.2, and a 7.2% dividend? It seems too good to be true?? Is the dividend essentially a liquidation to the share holders?

This is for my 90 year old father who is interested in income and not all that interested in risk.
 
dcf2 said:
With interest rates declining and Treasuries less attractive - tell me why Altria (MO) is essentially flat YTD, has a P/E of 11.2, and a 7.2% dividend? It seems too good to be true?? Is the dividend essentially a liquidation to the share holders?

This is for my 90 year old father who is interested in income and not all that interested in risk.
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I have owned the mighty Mo since 1990. It has been my best investment. Since then MO has spun off Phillip Morris (PM ) and Kraft (KHC )

I sold my KHC years ago for a tidy profit but I have kept MO and PM. Both stocks increase their dividends each year in good times and bad times. It pays out around 80% of its earnings in dividends.

MO and PM will provide me with $22k in dividend income this year until next September and then will raise their dividend as they have for last 35 years.

If you are looking for a growth stock, then MO is not for you . 5 years ago it was selling for around $40/share. Today its at $59/share.

If you are looking for a bond proxy that increases its dividend and outpaces inflation every year with little downsize risk and modest growth, then it has been a reliable stock to hold in retirement .

To answer your question about why the stock price is flat YTD ? Mo is a defensive stock that does not benefit much from a soaring AI driven stock market.
 
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dcf2 said:
With interest rates declining and Treasuries less attractive - tell me why Altria (MO) is essentially flat YTD, has a P/E of 11.2, and a 7.2% dividend? It seems too good to be true?? Is the dividend essentially a liquidation to the share holders?

This is for my 90 year old father who is interested in income and not all that interested in risk.
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You'll receive roughly $14,500 per year for every $200k invested in Altria - taxed at regular income rates.
 
p5mmr9 said:
You'll receive roughly $14,500 per year for every $200k invested in Altria - taxed at regular income rates.
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I'm not sure what you mean by regular income rates. Do you mean ordinary dividend income rates ?

If your taxable income next year is less than 100k and you are married filing jointly you would pay zero tax on MO dividends because MO is a qualified dividend. If your taxable income is over 100k but less than 600k you would pay 15% tax on those dividends.
 
JCTarheel82 said:
I'm 42 and ask my wife on a near-daily basis if I can retire.
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I truly don't understand WANTING to work beyond the point you have to

My old boss is super wealthy. Has 7 rental properties in very nice areas that almost quadruple his already large salary. He's 67. Wants to work 18 more months. I don't get it at all.
 
aGDevil2k said:
I truly don't understand WANTING to work beyond the point you have to

My old boss is super wealthy. Has 7 rental properties in very nice areas that almost quadruple his already large salary. He's 67. Wants to work 18 more months. I don't get it at all.
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Some folks enjoy their career and the work they do.

If that's the case, why would you want to rush off to retirement?
 
SnoopRob said:
Some folks enjoy their career and the work they do.

If that's the case, why would you want to rush off to retirement?
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I guess. Just hard for me to identify with that.

Of course he also needs to be pushed out because he can't focus anymore and clearly doesn't have the drive because he doesn't need the job
 
aGDevil2k said:
I guess. Just hard for me to identify with that.

Of course he also needs to be pushed out because he can't focus anymore and clearly doesn't have the drive because he doesn't need the job
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I like what I do and I believe my work makes a difference for others, so I'm pretty inclined to keep working beyond when I can likely afford to retire. (I'm not even 50 yet, so I might feel differently closer to when I can actually retire.) But I also have a plan for semi-retirement that I think/hope will work where I plan to take a significant step back in responsibilities in my early 60s - with a likely corresponding reduction of salary that I can manage - but that will keep me doing stuff I like while passing many of the parts I don't find as fun off to others.

I do think that recognizing when you've lost the focus and/or drive to succeed is a major part of knowing when to retire (or at least cut back) and it is a struggle for some folks to have that self-awareness.
 
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