Retire Smarter

  Stretch the dollar of limited income

Happy retirement?


   Apr 30

Happy retirement?

The vast majority of published advice for retirement age people are dedicated to money.
Retirement planning, planning the money, starts from the assumption that a person will be happy if he/she can replicate his/her current lifestyle. Hence the person needs same income he/she is happy with while working plus real inflation. Real inflation includes the impact of perpetual growth of taxes, government fees on persons disposable income. The problem is that the methods to achieve the retirement planning objective assume “normal” economic growth to prevail with short and shallow recessions.

Today many of us face a very stark reality as we retire during or after the “Great Recession”. Some are already on “fixed income”. Worse, others are in the employment “doughnut hole”; they are too young for social security benefits, but too old to be hired. Many of us saw their retirement nest-egg disappear completely or shrink substantially. Who is at fault? The greedy Wall Street fat cats or the power hungry and irresponsible politicians inside the beltway who let the fat cats feast on our savings? Identifying the culprit changes nothing in our economic reality.

Of course, we should vote the current politicians all out come November. If we succeed we will enhance the chances for our kids, but achieve nothing to improve our bottom line. More likely sooner rather than later the new crop of politicians will become as corrupt and power hungry as the previous was. Don’t hold your breath if you hope that the current or a succeeding administration will make Goldman Sachs, JP Morgan and the others refund the billions they swindled from us. The current case against GS will end with few billion dollar settlement that the government will collect. There will another few billions to the ruling party’s re-election fund. The same will happen with suits against other fat cats soon to be followed. There will be nothing for us.

We are on our own. Shortage of money is our problem. While money does not buy happiness it is a necessary component for it. Like our forefathers centuries ago we will find the solutions without the government. This blog is about one of a very real solutions. This solution may not suit everyone, but I believe it fits many. Enough to make it worth publishing.

It is a real solution, not hypothetical. I live it as I write. You will read the summary of the initial research, reasons and reasoning behind each decision. This is followed by the adventures of implementation: all the twists, kinks, and challenges I have encountered and will encounter in the future while implementing the plan for happy retirement on limited and fixed income.

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