Rainy Day Review to Retirement Next Year

I'm taking in the stormy weather we've been having in the Northern California area to stay in to do a little writing. It's been a few days after Christmas and I'm really feeling the sense that my desire to retire in 2025 is literally around the corner! 

As I select July 1st as my last day in the office, standard protocol in submitting a retirement/resignation to my employer is generally 3 months. This allows all the paperwork to be processed just in time before I walk out the door. So starting in April I'm letting my director know I'm leaving. 

Personally, I still feel the anxiety and wonder if it's the right time, will I make a mistake by retiring too early, all these crazy thoughts start to surface in my head and making me second guess my decision. 

But as there is constant rain pouring outside my window, I'm given some calmness that all my preparation has been more than enough. I've crossed all my T's and dotted my I's, and it's really going to be my best foot forward to make the move at this stage in my life. 

As for the following, I think I've covered them all, well the ones that I'm aware of. 

FINANCES, ✅

SOCIAL ATMOSPHERE, ✅

HEALTH & FITNESS, ✅

HOUSING, ✅ 

To be honest the only thing that might surprise me is the roller coaster of mentally being prepared. Cross fingers all the networking with previous retirees, watching retirement preparation videos on YouTube, and simply talking to family and friends, sort of "calms" me versus freaking out. 

One person told me that I can prepare as much as you want and also holding off one more year before retiring will never establish reassurance. But I know one thing is that I'm embracing the TIME I have for me to take on another chapter or take on something new. Sure, spending time with family and friends more is a given, and traveling will be top of my to do list, i.e. bucket list new destinations will be the fun part. But going it alone might be a tad stressor for me versus thinking independence. That's for another blog. So for now, enjoying the sound of rain outside my window gives me pause to really settle in and hope 2025 will be exciting, comforting, and new for me. I need to change it up ! 

Where Do I Live After Retiring?

 

This has been such a common and important question many soon to retiree(s) need to make a decision. Do I stay or should I go? Sounds like a song lyric, but the truth is, yes where do I decide to live after retiring? 

City Living 

Here's my predicament, I live and work in the city where my job is so, it makes sense to be centrally located to where my job is - right? But, when you decide to leave, should you relocate? I live in an apartment in the city that has rent control. Many say once I leave, I can't come back as the cost of living for housing will never be the same. On the other hand, I also have real estate property outside of the city. This will be paid off soon. I could live there and forego any additional rent paying in the city. But I don't want to live in a remote setting. For me, I'm a city slicker, I love the city vibe, the convenience of walking out my door and getting a cup of coffee and sit and take in the city setting. Where as living in a remote location, I have to get in a car and drive somewhere to get coffee. Financially it makes sense, your saving money on rent in the city and soon enough no mortgage to pay in a couple of years with the real estate outside of the city. 

In reality, I could keep both and enjoy living in the city to bide my time until my real estate property is fully paid for and I still have a place in the city. All I have to do is just pay for property tax, utilities, and maintenance, which will still be manageable. I think I answered my own question(s), it will be tough for a couple of years, but there's an expense for traveling I must contend with. 

Soon after retiring, I'm told no big decisions should be made for the first month. For example, moving, making a large purchase, etc. Also, from what I've read, it takes about 4 months after retiring that you feel that you've really retired. That's when reality really sets in. I need to set aside funds for some travel once retiring, that should really hurt me, but a budget is needed. 

As much as I prepare in advance in my inevitable retirement date of July 1st, there's always something nagging that I have yet to do or need to do. I constantly look at my check list on items in my financial, social, mental columns to be sure I didn't miss a thing. 

But I can only hope that I've covered as much as I can prior to retiring. Like the movie directed by Mel Brooks, The Twelve Chairs, set in the 1920s Soviet Russia, a fallen aristocrat, a priest, and a con artist search for a treasure of jewels hidden inside one of twelve dining chairs, lost during the revolution. A song in the movie titled, "Hope for the Best, Expect the Worst". I rather think of the positive aspect of retiring. 

Overlooking the City from Angel Island 

The journey continues! 

Will I Have Enough to Retire?

This is always the question, many who plan to retire are faced with. Do I have enough to retire well? 
How do you begin to approach this? Do we base it on our life expectancy? Do we base it on our lifestyle after retiring? So many factors. But here's a few guidelines I think I'd like to apply. 

Image Source: 
 https://womenwhomoney.com/calculating-your-retirement-number/

• COST OF LIVING EXPENSES 
• WHERE YOU'LL BE LIVING 
• TYPES OF ACTIVITIES 

I think to start a conversation with these few key items will help you decide if you have enough to retire. 

COST OF LIVING EXPENSES

I think this would be based on your personal circumstances. For me, I think as I retire and age in place, my expenses will become much lower. Say, less expenses when it comes not working anymore. No more real transportation costs, clothing, dry cleaning, lunch expenses, etc. Anything that has to be an expense when traveling or dealing with work, expenses will be minimal or way less. 

But on the other side of the coin, you'll be home more, so most likely you'll incur more electricity costs, or water bill - simply because you are at home more, so living expenses may go up a tad. Also consider your grocery bill, you'll be having more meals at home, snacks, drinks, as well as personal care will be added to the costs. Overall, there's going to be some savings in one area, but another area will go up. So, this are things one must consider when you are retired. 

WHERE YOU'LL BE LIVING

The only reason why you live somewhere is because of work in my case. As I no longer have a job to go to, you'll have more flexibility to move elsewhere. If you so choose, housing may be a little more affordable but again there are positive and negative things that will come of this change. If you move somewhere that isn't familiar to you, that will be a challenge. You'll need to get familiar with area for shopping, activities, culture, you name, it will be work to be in a less than familiar location. Leaving where your at will lose people who are in that area, the shops, the arts, culture will be left behind, I think that would be a problem for me. Where I live has all the bells and whistles but cost is currently high, but moving elsewhere will save much more. The only thing that was constant was your job. Not having one in the current location will be a bit odd, I guess, but who knows, you won't experience the change until your fully in it. By then you might be at odds on your decision on where you ended up landing. 

TYPES OF ACTIVITIES

This one might be really hard for me. My social aspect if any will be left behind. Friends, family will also be left behind. Sure, my gym is here but it's a chain so I can be at another location with no issue. How about hospitals, access to your doctor. What about going to the theater, another place might not have the caliber of what you have in your current setting. About those renowned or go to restaurants? Will I be open to new ones and leaving the others behind? Who knows. 

One thing for sure in all of these is that it will be different, but making the change to retire elsewhere will allow me to retire more comfortably. One financial planner mentioned that I should save 8 times my salary to retire comfortably. For example. If I made $100k a year, I need $800k to live through a 25 year life span, basically, $32k a year as your living expenses. If your lucky, you have a pension that can cover that same about, so your looking at $64k. Not too bad, but remember, taxes.....then when you are ready for receiving Social Security that can add up to your yearly income, it may work for some but not everyone is lucky with a pension - some will require saving their funds for their own retirement account, so some will be prepared, others not so much. 

To answer that question, will I have enough to retire? I would say yes and no. We have to consider the topics above to see if we can do it, as we have no other choice or do we?