Finances

Waaay back in May, I wrote a post about various criteria one might use for assessing a life, and made this list:

Marriage 
Kids 
Family (everyone else) 
Friends 
Work 
Finances
Health 
Fun 
Experiences

 I have written about some things on the list, so now it looks like this:

Marriage  
Kids  
Family (everyone else)  
Friends  
Work  
Finances 
Health  
Fun 
Experiences

 So, making progress, and finances are next.

Unlike some people, I think the main goal behind getting your finances in good shape is to retire as early as possible with at least a decent income.  We will see if I feel the same when I get there, but I see not having to go to work as the ultimate luxury.  Imagine every day is Saturday.  Sleep in whenever you want.  Never commute again.  Devote the majority of every day to something you want to do.  I can't wait.

On a more serious note, I have seen a lot of couples get to their retirement years with plans to do things together, only to have something go wrong with one or both of them.  When people get into their middle sixties, they start to have serious health problems.  A lot of times, only one of them makes it that far.

My father retired on his 65th birthday; a month later he was diagnosed with colon cancer that had gotten into his liver.  He had about three more good years and a few not-so-good months after that.  My mom's health was already deteriorating by then as well, so she was not able to walk far and was limited in her activities.  I want to retire before that happens to Jackie and me.

From what I have seen, retirement planners set the bar too high, causing people to work too long and leave a bunch of money to their kids.  I usually see numbers that say you should expect to spend 70-80% of what you spend now after you retire.  Really?  There are families of four who live on half what I make.  Even though my kids will be out of the house and I will not have a mortgage, I'm going to spend 70% or more?  I wonder.

Here's a better plan:  Jackie and I will both receive social security for all the years we worked.  I have a pension -- an actual old-fashioned pension -- coming to me from my current job at Farmers.  In addition, I have equity in my house that should at least be enough to purchase another house outright, plus three 401Ks between us.  Why not just reduce our standard of living to the point that we can live on what we take in?  We live a relatively posh lifestyle currently compared to what we should need in retirement, with a smaller house, no kids, and no jobs to go to.  Without family, I just think our needs will be simpler.

In the end, we have less than financial planners think we should, and more than most people.  We'll make do.