Subj: Re: An Intrusive QuestionDate: 95-07-26 13:45:00 EDTFrom: MF HamPosted on: America OnlineBrazen1...First, I must say you made a wrong assumption about my own retirement situation and I don't have the problem you pose. Actually I'm glad I don't have the problem. I hate to admit this but here goes: I have taken a lot of wrong turns in my lifetime and the bottom line is that I spent almost all of my active working life either as a member of, or employee of, the Army and Air Farce(sic). As one result of that I never really paid much attention to retirement until my family physician suggested one day that I should seriously consider early disability retirement. With some mixed emotions I finally concurred with his recommendation and very soonI was retired with 56% of my former salary. It was based on a three-year average I think.So anyhow, I don't have to worry about the annuity running out before I croak unless the U.S. goes broke, and I guess that is a distinct possibility unless some drastic action is carried out by the wonderful folks inside the D.C. Beltway.Otherwise your plan looks pretty interesting. Have you given any consideration to any of the various annuity types offerred by the few reputable insurance companies? Also, at what age are you planning on hanging it up? And do you believe there will be any form of Social Security still operational? And Medicare? I can tell you from lots of experience over the past four years that Medicare is very nice to have although I do have enough other insurance that I wouldn't be destitute without it. The growth of that MUST be curtailed or it will go down the tubes in a few years.Does your employer have any form of retirement plan, 401K, ESOP or whatever? Do you have any dependents who might be expected to outlive you, like a wife, for example? If you quit at 65 how many years do you expect (or hope) to live in continued luxury? I wonder what money market rates will be for your first year's cash and short term rates for the next four years?I'm not sure about the short term bond portfolio, either. Maybe CD's of varying terms would be better(safer)? Of course if you can stash "enough" away it'll be no problem. How much is "enough"?It seems to me that your basic approach is very intelligently thought out but what worries me are theimponderables. None of these are pleasant but that's the waylife is sometimes. Like, will you stay relatively healthyand then check out quickly and inexpensively, or will you be subject to any one of a myriad of things which can be long,drawn-out and terribly expensive?I'm afraid this lengthy reply to your question is not very helpful and surely raises more questions than it answers. I'll bet there are lots of publications treating this subject in as many conflicting ways. So who's to say your approach is not at least as good, if not better, than anyone else's?I happen to have a very close friend who will be facing the same dilemma in a few short years and I'm going to start a dialogue with her on this perplexing subject; if I see any insightful result be assured I'll post it. Meanwhile maybe some others will soon weigh in here with some good answers.Best, Irv
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