Who Else Will Retire To Full-time In 2018?

[DallasSteve]

I don't know if this will be a popular thread or a dumb idea, but here goes. I saw a post here recently (maybe two) where members said they plan to retire and begin full-time RV life in 2018. That's my plan, too. What does your plan look like? Here's my plan (and long-term members here can feel free to comment, even with their often snide remarks).

1 - I turn 62 in August, (and my car lease is up then) but I won't take early Social Security
2 - I have savings to buy a nice, maybe even new, travel trailer with cash
3 - I can afford to lease a new tow vehicle with no worries, so I probably will; but I may try to rent a big truck for the first couple of months just to be sure this is where I want to go
4 - I've toyed with the idea of a CD-secured personal loan, but there's not much point (most banks want the CD rate plus 2%)
5 - I can burn my savings at the rate or $2,000 or even $3,000 per month with no problem until I start to draw Social Security
6 - I will probably do South Texas the first winter, but I might consider inland Florida, if I can find it within my budget
7 - I will probably set up near a big city for June-August and work a computer programming contract because 1 - it's easy money and 2 - I don't want to fight the summer crowds in the parks
8 - I'll travel the country in Spring and Fall seeing parks and cities big and small
9 - When I hit about 67-68 I will start Social Security and it will be plenty for me (if the government doesn't break all their promises)
10 - Since I'm in good health I'll probably buy cheap non-ACA health insurance until I qualify for Medicare at 65
11 - If I enjoy the life, I'll just keep repeating every year; if I find a place I like a lot I might set up a winter or summer home in an RV park
12 - If I don't like the life I can sell the RV at a loss and return to regular apartment life, but maybe in a new city that I like better. But I will always be Dallas Steve because that's where I was born.

Finally, I may get a bumper sticker that says "All my exes live in Texas, that's why I live in an RV".

[DallasSteve]

John&Joey wrote:
Just wondering did you factor in inflation? Been pretty low for awhile, but that's what killed my F&MIL after 10-15 years of their retirement.

Social Security payments get an annual cost of living increase based on the amount of inflation, so I will stay at about the same level of real income. The increase is not perfect and it's not a lot (in 2017 it was 0, in 2018 it is about 2%). But currently it can also get eaten up by Medicare premium increases. Maybe that is where your in-laws got wrecked, I don't know.

[John_Joey]

Just wondering did you factor in inflation? Been pretty low for awhile, but that's what killed my F&MIL after 10-15 years of their retirement.

[DallasSteve]

rockhillmanor wrote:
IMHO I would sit down and do the math on taking SS at 62. Do the financial figures and then sit back and think about if in 3 years if you SS will even be there for you. Seeing all what is going on.

Burning thru your savings and borrowing for all new TT and TV could be disastrous if you find you don't like fulltime RV'ing. Just saying.

My degree was in Accounting so I can and have done those types of analysis. It's true that I won't break even until mid-70s so if I die sooner I lose money. But I don't get to spend that money in the afterlife so it doesn't make much difference to me. My kids will have a little less money, but they are healthy and smart and hard-working so they will do just fine.

On the other side if I live into my 80s I may be happy to have that extra monthly income. As for whether the money will be there in 3 years, I put the likelihood at 99%. I trust my forecast in that regard, but you can make your own estimate. Seniors aren't going to stop voting. If there is another recession the government will just print a little more money. If there is a tremendous financial crisis there will be more cuts, but it won't go to zero. If we are destroyed in nuclear war or a meteor what difference does it make?

There is talk that in about 15 years the SS trust fund will run out, if Congress doesn't make changes. That doesn't mean SS payments go to zero. That means they would be automatically cut by about 25%. I'll still be happy to have 75% of more than 75% of less. But once again, seniors aren't going to stop voting. They probably won't cut current benefits; they will probably cut future benefits and raise the FICA tax. In other words, it's somebody else's problem.

There is one more reason that I like my strategy. Some seniors get senile or they make bad decisions and they lose a large part of their savings to fraud or, as I said, bad decisions. By waiting I am effectively converting some of my savings into a government-insured annuity for life. Something that (for the most part) can't be touched by lawsuits either. I like that. I still like my plan better.

[Walaby]

rockhillmanor wrote:
IMHO I would sit down and do the math on taking SS at 62. Do the financial figures and then sit back and think about if in 3 years if you SS will even be there for you. Seeing all what is going on.

I agree. Compare drawing your SS at 62 (at reduced rate of course), and then if you wait until full rate. By my calculation, in my situation, I would 'break even' at age 73 or 74 (my spreadsheet is at work). After that age, I would lose (reduced rate vs full rate). I figure I will take it when I can because Im not sure it will still be around when Im mid-70's.

Mike

[rockhillmanor]

IMHO I would sit down and do the math on taking SS at 62. Do the financial figures and then sit back and think about if in 3 years if you SS will even be there for you. Seeing all what is going on.

Burning thru your savings and borrowing for all new TT and TV could be disastrous if you find you don't like fulltime RV'ing. Just saying.

[kerrlakeRoo]

Am going FT this year as well, monthly budget is similar, but I will have an easier time than some because I can use Military Famcamps in some areas for an inexpensive FHU location, and also have health insurance covered as a military retiree. Will be leaving with new truck and likely a new TT.
Just waiting for the house to close.

In my case no resorts, hoping to boondock for a month, use a famcamp or COE park for a couple weeks and then back to nowhere in particular.
Happy motorin

[mat60]

Ill never be able to retire. Would be great to travel someday. Enjoy.

[Lwiddis]

“Crusty” posters really means those who might or do disagree with you. Why post at all if you don’t want opinions?

[DallasSteve]

Dennis

I'm sorry that I wasn't clearer. I meant the crusty "veteran posters" on RV.net. I was not referring to military veterans and I apologize for the misunderstanding. I've edited my comment to remove the word "veteran". If you've got better terminology I'll edit it again.

[Dennis12]

Your boss must have been a veteran. No wonder you only have 2 or 3K to live on after statements like "and veterans can feel free to comment, even with their often snide remarks)". You need to call Walmart and maybe you can get a cart pushers job for lot rent.

[DallasSteve]

AFChief_and_Pilot wrote:
Is $2K-$3K all you've got until SS kicks in? If so, it will be tight ... doable for sure, but you will need to be frugal. We full time comfortably on about $4K a month with no debt, and we are on Medicare ... admittedly, we eat out often and stay in nicer RV resorts. YMMV.

I am used to being frugal (I'm a former CPA). Maybe Taco Bueno once a month. Chili's once a year. $4K sounds like you're staying on the beach (that is to say in an expensive RV park). Plus, my brother is a few years ahead of me on this road and he's been living cheap, mostly in COE campgrounds. I will probably do some of that. I've got more that I can throw at the budget, if I need it, but I've "crunched the numbers" and I think I can keep my average under $3000 per month with a travel trailer. With a new motorhome, probably not. With a diesel pusher, forget about it. LOL.

[AFChief_and_Pil]

Is $2K-$3K all you've got until SS kicks in? If so, it will be tight ... doable for sure, but you will need to be frugal. We full time comfortably on about $4K a month with no debt, and we are on Medicare ... admittedly, we eat out often and stay in nicer RV resorts. YMMV.

[GordonThree]

Congrats on your plans, they sound well thought out and flexible.

I'm either an entitled millennial or a jaded gen-x depending on what anthropologist you follow, having recently left my 30s behind.

Either way, retirement isn't an option. My dad was a Boomer and subscribed to the work hard and retire plan, then he passed away a year after doing so.

Self employed, I take month+ long vacations when I can and plan to die at my desk. Not being negative about it just realistic / fatalistic about it.

[Lwiddis]

“I turn 62 in August, (and my car lease is up then) but I won't take early Social Security”

Aren’t SS benefits greatly affected by earnings the last few years before you hit 66 when in theory you earn the most money?