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Well, it looks like you're going to see a lot of me on this board from now on.

Our master plan for hubby to retire in April 2002 has hit a bump in the road (best laid plans and all that!) It appears that the recent sale of his employer's privately-held company to a huge conglomerate will result in his being downsized (outsized?) within the next few months or so. Polite euphemism for getting sacked... you get the picture.

So... what we're struggling with right now is to determine if he can retire now, 12-15 months sooner than that magical age 59.5 which had been his target.

Of course, I have no plans to retire for a long time but since hubby is the major breadwinner, we need to figure out if we can manage on my income and perhaps reallocate some investments into income-producing securities to supplement our needs.

That's why the Fool's upcoming Retirement Seminar could not have come at a better time for me! I may be a Fool, but there's still a ton of stuff I don't know. For so many years we've been focused on saving and growing our investments -- and now that we may face actually having to tap those investments, I'm like a deer caught in the headlights.

As a result, I've volunteered to assist with the Retirement Seminar, taking the courses along with everyone else and participating in the "classroom message boards" that will be set up for seminar participants. Over the years I've learned so much about investing from this Foolish Community and now I hope to continue that education by learning how we should be managing my husband's unexpected early retirement.

Selfishly, I'd like to invite you all to learn along with me beginning November 8. Here's all the information about what the seminar will offer and details on how to sign up:

http://www.lnksrv.com/m.asp?i=146602

Looking forward to interacting with many of you, both on this board and in the seminar.


Many thanks,

TMF Jeanie
Community Stroller
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TMFJeanie wrote:
It appears that the recent sale of his employer's privately-held company to a huge conglomerate will result in his being downsized (outsized?) within the next few months or so. Polite euphemism for getting sacked... you get the picture.


In my experience, most companies (especially big ones with public images to protect) that get involved in downsizing/merger/acquisition - any activity that eliminates employees - will enhance the retirement benefits of those people who get "sacked".

I would advise your husband to call his HR Manager and find out if this is happening, and if so, when will they be receiving statements of what their benefits will be.

It may not be much but it will help the planning process.

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Whew! When I read the subject and saw your name I was afraid it was you who was retiring. Sorry to hear about hubby, but glad you're still going to be around. I think I'm going to be working on the retirement seminar too. See ya there.

TMF ExRO
Phil Marti
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<<I think I'm going to be working on the retirement seminar too. See ya there.>>

You both better be 'cause I have absolutely no intention of doing it all alone.

Best..Pixy
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In my experience, most companies (especially big ones with public images to protect) that get involved in downsizing/merger/acquisition - any activity that eliminates employees - will enhance the retirement benefits of those people who get "sacked".

Thanks for your comments, bhirs. While his company never had a defined benefit pension plan (new age company), they do have profit sharing and the 2000 contribution hasn't been made yet. Since my husband was a key contributor to that company's profits, we're expecting the distribution to be generous ;-) However, that money is deposited into his 401(k) and we don't want to tap that for some time. Additionally, there was a portion of the acquisition price set aside for all employees in the form of a stay-around bonus. To prevent a mass exodus prior to the new company taking over, I guess. At any rate, we're hoping to make that bonus stretch as his replacement income through much of next year (she said optimistically <g>)

I would advise your husband to call his HR Manager

Good advice and already done. The immediate concerns are when benefits run out, i.e., medical coverage, etc., and making sure to get the proper replacements.

Thanks so much for your helpful thoughts.

Cheers,

Jeanie
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TMF ExRO writes:
Whew! When I read the subject and saw your name I was afraid it was you who was retiring.

No waaay, Phil ;-)

I've always felt lucky as a lottery winner to have a job with the Fool. Don't tell them at HQ, but I'd pay them just for the fun of working here.

They'll have to carry me out in a pine box someday.

Glad you'll be on the seminar team!

Jeanie
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TMFJeanie: ...but I'd pay them for the fun of working [at the Fool].

No need to do that, Jeanie, pay me instead. I'll even accept minimum wage. You know my e-mail address. Just make those checks out to "Cash".

As you know, you can start distributions from a 401(k) before the magical 59.5, provided they are in "substantially equal" amounts and continue for 5 years. I think that rule kicks out when 59.5 kicks in, however.

Gonna run to the mailbox every afternoon,
Jim
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TMF Jeanie wrote:
"Selfishly, I'd like to invite you all to learn along with me beginning November 8. Here's all the information about what the seminar will
offer and details on how to sign up:

http://www.lnksrv.com/m.asp?i=146602"

Jeanie, how come this seminar is so much more expensive than the ones of the past? I was considering it, but even with the discount it seems kind of pricey to me. It's not usually in the Fool's nature to gouge us. What gives?
--kogrady
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Jeanie, pay me instead. I'll even accept minimum wage. You know my e-mail address. Just make those checks out to "Cash".

Yeah, you bet, Jim. Can I postdate them October 2005?

As you know, you can start distributions from a 401(k) before the magical
59.5, provided they are in "substantially equal" amounts and continue for
5 years. I think that rule kicks out when 59.5 kicks in, however.


Yes, our wonderful TMFPixy just reminded me of that. Nice to know we have that option.

Thanks,

Jeanie
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Ok, Jean, now that you're the new major breadwinner in the family, the first thing you should do is ask your boss for a big raise. <BSEG>

See you on the "Road to Retirement."

Lee
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Greetings, Kogrady, and welcome. You asked:

<<Jeanie, how come this seminar is so much more expensive than the ones of the past?>>

I'm more closely involved with the seminar than Jeanie is, so I know she cannot answer your question. That's because even I don't know how the price was established. That's done by the Soapbox folks. I'm attempting to get an answer, though. My suspicion is because there will be some extensive materials included. I just don't have a full listing yet.

Regards..Pixy
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As you know, you can start distributions from a 401(k) before the magical
59.5, provided they are in "substantially equal" amounts and continue for
5 years. I think that rule kicks out when 59.5 kicks in, however.


Jeanie,
Be careful if you go this route... the distribution timetable for substantially equal periodic payments (SEPP) is the longer of 5 years or until age 59 1/2.

At least Pixy's there to help walk you through some of the more detailed parts.

*Cat
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I said:

<<I'm more closely involved with the seminar than Jeanie is, so I know she cannot answer your question. That's because even I don't know how the price was established. That's done by the Soapbox folks. >>


And that's an oops on me. That should be FoolMart.com folks, not Soapbox. Sorry about that.

Regards..Pixy
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Be careful if you go this route... the distribution timetable for substantially equal periodic payments (SEPP) is the longer of 5 years or until age 59 1/2.

Thanks for the caveat, Bobbcat.

At least Pixy's there to help walk you through some of the more detailed parts.

Yes, I feel lucky to have him around. Not only that, but he's able to take the words right out of my mouth ;-)

(re: the seminar cost)
I'm more closely involved with the seminar than Jeanie is, so I know she cannot answer your question. That's because even I don't know how the price was established.

There ya go, Kogrady! As time draws nearer, I'm sure we'll have a clearer answer for you.


Jeanie
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>>I'm like a deer caught in the headlights.<<

TMF Jeanie,

We too are rocking in your same retirement boat. My hubby,Captain Dick,is being forced to retire when he reaches age 59.5 because of the idiotic FAA age 60 ruling regarding airline pilots. He is now 57 and frankly da boy don't know nuthin' else but flyin'! ;0) I know we can't make it on my salary alone. We are starting a new business of raising Alpacas before his designated retirement. Dick and I have so much more to learn about retirement and truly welcome this seminar with open Foolish arms. :0)

Alpacas R Us?

^^^TMF Rockie^^^

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We too are rocking in your same retirement boat. My hubby,Captain Dick,is being forced to retire when he reaches age 59.5 because of the idiotic FAA age 60
ruling regarding airline pilots. He is now 57 and frankly da boy don't know nuthin' else but flyin'! ;0) I know we can't make it on my salary alone. We are starting a new business of raising Alpacas before his designated retirement. Dick and I have so much more to learn about retirement and truly welcome this seminar with open Foolish arms. :0)

Alpacas R Us?

^^^TMF Rockie^^^




IMHO it seems foolish (small "f") in this day and age to discriminate based on nothing but age, as is the case with airline pilot retirements. Especially when air traffic is increasing rapidly and there is a real need for pilots with experience. Hopefully one day the FAA will realize how wrong they are.

In the meantime, how about Alpacas.com? Maybe an IPO?

Taylor
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We are starting a new business of
raising Alpacas before his designated retirement. Dick and I have so much more to
learn about retirement and truly welcome this seminar with open Foolish arms. :0)


Dear Rockie,

Alpacas, hmmm. Maybe you and the cap'n will need a marketing guy to help you launch Alpacas R Us, and then you and I can hunt for venture capital to take ARU.com public, and then we won't have to worry about affording retirement at all!

Ok, ok... just dreamin'

Jeanie ;-)
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Or you could post on the Spinners and Weavers Board, and if there isn't one, start one.
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Dear Jeannie,

I retired in 1986 and as you are considering I put most of my retiremnt funds into income producing investments. Then I discovered the joys of investing in growth companies under the tutelage of the Fools. I've very happily lived off capital gains ever since in a manner I never dreamed of. Did I just hit a lucky streak in the market - or is this a better approach to retirement investing? I think you should raise this question in the retirement planning seminar.

Fred Clemens
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TMFRockie, just out of curiosity, is the Age 60 FAA rule for pilots universal, or is it limited to scheduled airlines? So, could you form Alpaca Air with him as pilot, ferrying alpacas and emus around (or whatever), you as office manager when you aren't toiling for TMF, and maintenance contracted out?

Hm, this musing may be silly, but maybe Alpaca Air could be a possibility even if Captain Dick couldn't himself fly. He has to understand all aspects of making an air service go, and there have to be profitable niches. I know young pilots are often so eager to earn flying hours that they will work for little more than a Wal-Mart clerk does.

I understand this would be a huge risk, given that a plane has to cost $4 million or more. So I'm not making any suggestion, just wondering.
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Did I just hit a lucky streak in
the market - or is this a better approach to retirement investing?
I think you should raise this question in the retirement planning
seminar.


Better yet, Fred, take the seminar with me, and YOU raise the question ;-)

Seriously, that would make for a very interesting discussion.

Thanks,


Jeanie
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If the age limit is only for large scheduled airlines, can he fly for smaller airlines, or can he teach flying? I know there is a pilots' magazine out there that had one or more articles on this in the last two years, but can't remember the title of the magazine.
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TMFPixy Date: 10/6/00 6:49 PM Number: 25352
------------------------------------------------------

<<And that's an oops on me.>>

With reference to another more serious oops, have you given any consideration to taking another look at the propriety your model retirement portfolios which apparently still seem to contain the Foolish Four as the sole stock component for retirement portfolios upon which retired people might have to rely during their retirement.

You do write well, convincingly, and with great enthusiasm, however one of the hallmarks of greatness is the ability to change one's mind after appropriate deliberation.

If you have not yet done so, please do click on, view and consider:


http://www.fool.com/ddow/2000/ddow001005.htm


Sincerely,

DHatch

P.S. I certainly hope that you do not intend to suggest or approvingly refer to any of those flawed model retirement portfolios in any retirement seminar with which you or TMF might in any way be involved.


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DHatch writes:

<<With reference to another more serious oops, have you given any consideration to taking another look at the propriety your model retirement portfolios which apparently still seem to contain the Foolish Four as the sole stock component for retirement portfolios upon which retired people might have to rely during their retirement.>>

The portfolios are not due for an update until December 10. As I told you last December or maybe January, nothing will be decided until then. So I guess you'll just have to wait and see, won't you?

<<P.S. I certainly hope that you do not intend to suggest or approvingly refer to any of those flawed model retirement portfolios in any retirement seminar with which you or TMF might in any way be involved.>>

If you're so concerned, why not take the seminar to see what I have to say? That way if you object to anything the seminar contains, you will have the seminar participant message boards to point out the errors of our ways.

Regards..Pixy


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> The immediate concerns are when benefits run out,
> i.e., medical coverage, etc., and making sure to
> get the proper replacements.

Is the COBRA act national, or just local to California? Iirc, it allows you to continue health benefits for at least a year (or is it 18 months?) and longer in some cases.

You get to pay at the employer's rate plus up to 2% (iirc) administrative costs.

We used it a long time ago, and it really helped us.

-- Roy
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COBRA is a national item, but only for employers with at least 20 employees for the calendar year. For all others, there is a state continuation provision lasting 6 months.

Jenn
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TMFPixy Date: 10/11/00 6:55 AM Number: 25438
------------------------------------------------------

DHatch writes:

<<With reference to another more serious oops, have you given any consideration to taking another look at the propriety of your model retirement portfolios which apparently still seem to contain the Foolish Four as the sole stock component for retirement portfolios upon which retired people might have to rely during their retirement.>>

<<The portfolios are not due for an update until December 10. As I told you last December or maybe January, nothing will be decided until then. So I guess you'll just have to wait and see, won't you?>>

Ok, in accordance with your not-so-subtle suggestion, I shall wait with optimistic anticipation.

<<P.S. I certainly hope that you do not intend to suggest or approvingly refer to any of those flawed model retirement portfolios in any retirement seminar with which you or TMF might in any way be involved.>>

<<If you're so concerned, why not take the seminar to see what I have to say? That way if you object to anything the seminar contains, you will have the seminar participant message boards to point out the errors of our ways.>>

Why not indeed? Well for a number of reasons.

1. It is not the errors of "our ways". It is the error of "your ways".

2. If you could be convinced of the error of "your ways", because of your innate intelligence and your basic sense of honesty, you could and would convey your then held belief to others in a much more effective manner than I ever could.

3. To be effectively accepted the message must come from you. You have a great mind, a great ability to communicate, and occasionally even a sense of humor. You have helped and guided many and have earned the respect of all. If you could merely somehow get over the insanely enthusiastic conviction that the Foolish Four should be the sole stock holdings of a retiree's portfolio, you would probably be almost perfect. Heck, you would be almost my Favorite TMFer.

4. If you remain unconvinced of the error of "your ways", you will remain adamant against my warnings and there would be no point in my "apparent heresy" merely arousing anger among your choir of disciples, believers, adherents, admirers, and others who would be unlikely to admit that they might have wasted their money on your seminar.

5. You are such a free, caring, and giving person that I doubt that you would withhold from this board any new breakthough information which might be revealed in your seminar.

6. I find it hard to believe that any intelligent knowledgeable investor could derive significant additional benefit from a seminar given by one who actually advocates that a retiree's portfolio should have as its sole stock components only four stocks, no matter how those four stocks might be chosen.

<<Regards..Pixy>>

Well, warmest regards back to you.

If you should wish to consider a possible Better Foolish Four (F4.3?) or an alternate or addition to the present Foolish Four (F4.2), please do click on and read:


http://www.fool.com/ddow/2000/ddow001011.htm


However, in any event, please do stop limiting the stock component of any retiree's portfolio to only four stocks.

Sincerely,

DHatch

P.S. I still believe that TTT (SPY, QQQ, and a bit of cash at short-term interest) should be seriously considered as at least a "core" holding in any retirement portfolio.

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