Multi-topic thread on retirement and second car

[rubberduck]

Regarding healthcare cost, it’s going to depend on your income in retirement. But I suspect most people who can afford these cars are going to have a decent retirement income.A good number for a single person in reasonable health is $14K a year.

 

[CBH]

Man, this thread hits home.

I also plan to retire in about 2 years. The 5BW purchase was definitely part of the plan. I realized that 2 specialized cars weren't nearly as good as one great car that I could enjoy every time I went anywhere. So I went the other direction.

When I bought the Caddy, the loan payoff coincided with my retirement plans, but I think I can get away with that extra year.

All my kids have finished college. My wife has been retired for 3 years already. Every day I'm at work I feel like its such a waste of time. We're in better health now than we likely ever will be, so I constantly regret not doing it sooner. I can afford it, just wanted to avoid the 10% tax penalty for dipping into IRAs before you're 59 1/2. That last 1/2 year age requirement is so ridiculous. Seriously ? I've been working for 40 years and I have to wait 6 more months ?!?!?

Health benefits at work are great too. Unfortunately or fortunately - depends on how you look at it - I've had more health benefits paid than I've had salary for the last 2 or 3 years.

I did a cursory look at the government health insurance site, and it looked like about $1,500 for us as a couple. My wife can get it as a retiree for about the same price, but not sure about coverage details yet.

 

[FI Fiend]

Given your user name, interesting/cheap option could be a 1 series BMW. My friend uses a 128 as his track car. He's modified suspension and brake components, but the naturally aspirated 6 has been very reliable/cheap to maintain. It's light and has enough power to be fun (still more than the 4 cyl options). Could make for a good hobby too

 

[MookdocOE]

@BimmerFan ....for what it's worth, I retired early (2018) and don't regret it at all. Good job, really good money. Just got tried of the ever worsening BS at work. Every quarter, new rules, new requirements. All stupid shit. I've been working since I was 15 (maybe 14?). My wife still works, so it's nice to send her off to work every day and I can do what I want. The real nice part is I do a lot of reading, work on growing the portfolio, and travel when and where I want. I try to "get away" ever other month for a few days, weather dependent. She just wants to work, and doesn't really care about travelling right now. I have a few trips planned for 2025, so we'll see how that pans out.

My advice to anyone, if you can afford it, retire. Your employer doesn't give a crap about you, and when you're gone, nobody will care. Been there, experienced it, lived it.

You mean the ship isn't going to sink when I hit the eject button?

 

[dinkman]

Man, this thread hits home.

I also plan to retire in about 2 years. The 5BW purchase was definitely part of the plan. I realized that 2 specialized cars weren't nearly as good as one great car that I could enjoy every time I went anywhere. So I went the other direction.

When I bought the Caddy, the loan payoff coincided with my retirement plans, but I think I can get away with that extra year.

All my kids have finished college. My wife has been retired for 3 years already. Every day I'm at work I feel like its such a waste of time. We're in better health now than we likely ever will be, so I constantly regret not doing it sooner. I can afford it, just wanted to avoid the 10% tax penalty for dipping into IRAs before you're 59 1/2. That last 1/2 year age requirement is so ridiculous. Seriously ? I've been working for 40 years and I have to wait 6 more months ?!?!?

Health benefits at work are great too. Unfortunately or fortunately - depends on how you look at it - I've had more health benefits paid than I've had salary for the last 2 or 3 years.

I did a cursory look at the government health insurance site, and it looked like about $1,500 for us as a couple. My wife can get it as a retiree for about the same price, but not sure about coverage details yet.

fyi you can tap into your current employer 401k after 55 without penalty

Charles Schwab

 

[DCV]

IRS clearly states that you cant get access to it, without the 10 percent penalty unless you are 59 1/2. In some cases for financial needs that changes a bit.

 

[FI Fiend]

In case you don't trust charles

Topic no. 558, Additional tax on early distributions from retirement plans other than IRAs | Internal Revenue Service

When the additional 10% tax on early distributions from retirements plans does and does not apply and how to report it

www.irs.gov

"Distributions made to you after you separated from service with your employer after attainment of age 55."

 

[rubberduck]

I encourage people to talk with a retirement planner at their financial institution and have some meetings with their tax accountant. 401k is generally not the first thing to draw down on.

 

[DCV]

When it was obvious Trump would win and stock futures hit a 2.5 percent on the SP500 after the bell on election day, I moved a bunch of money into my C fund that tracks the SP500 before noon the day after the election, made a nice chunk after the bell closed the day after the election and today as stock futures fall and Powell goes yapping about interest rates and the markets move to reality, I moved that new chunk back into the G fund and got to keep it.

 

[1Evil55]

If BTC keeps moving like it has, I may too be able to join this thread. Until then, gotta keep working!

 

[raptor5244]

This thread confirms the Cadillac target market is still retired folks or those close to it.

 

[quikag]

I'm 47 with two younger boys so not retiring anytime soon unfortunately. So, I had a '24 Acura Integra Type S for many months to complement my 5BW, two Vettes, truck, and Acura. haha. So, that was the crux of the problem. I drive my truck during the week (work) and on the weekends, I had two Vettes and the 5BW six-speed to choose from, so after several months of juggling, the Type S was a touch too redundant. So, I sold it back to the dealer for a marginal loss after putting almost 5k miles on it.

That said, I LOVED it. Put a nice open element air intake on it and the turbo whoosh sounds were awesome, it handled great, was comfy, significant interior room (especially for size of car). You can get them below sticker now. Six-speed was like butter, K20C8 engine is rock solid (can add 100+hp easily), chassis, handling, tires, overall quality, etc. Just a badass car. Also, quality and reliability are good. Resale is good too.

You can get them below MSRP now brand new too if you look a little. If I only needed two cars and wanted them both to be comfy-ish sport sedans, I'd totally buy another one to complement my 5BW.

 

[bloominguez]

I figure that a lot of folks here are at or near retirement, and also many of us are enthusiasts.

I'm looking at retiring next year, not because I'm old or dying, but because I'm tired of working at the place I'm at and in my 60s, unlikely to get another job in this industry (I/T) as a manager. And I'm done with programming. I may still get another job, maybe in car sales, to keep me busy and social. My wife is afraid I'll become a hermit and never leave the house, and she's probably right. LOL. Any ideas/thoughts/suggestions on this? Financially I'll be OK if I retire in July and never work again, so it's not a money thing. Although money is nice and does allow a bit more freedom to buy stuff and travel in a higher standard.

So, also, I'm selling my C6 Corvette for numerous reasons, one of which is that I can't get in and out of it without grunting and honestly, the BW is just so much better in every respect that I never drive the Chevy. I realize that this will likely be true for anything else that replaces it.

But I like having two cars, and I would like to occasionally go to the track, but I'm not going to take the BW (too fast, too expensive). So my criteria is something fun to drive, manual transmission, track capable. I'm thinking either of another BMW M car (F82) or perhaps even a GTI (probably gen 7). I'm not a fan of FWD, but they are fun little cars and semi-practical as well.

Thoughts, on either or both topics?

Great thread, but I don't understand one part of the question. Why a "second" car? Why not a fourth, or fifth?

I love the perspectives on retirement, good to hear others are wrestling with the same issues. I could retire when I choose, but I like what I do.

Oh, and one vote for the GR Corolla as an additional (not necessarily "second"!) car! It's quick and has a raw feeling that pushed me in that direction (as opposed to a Civic Type R or Integra Type S).

 

[quikag]

Great thread, but I don't understand one part of the question. Why a "second" car? Why not a fourth, or fifth?

I love the perspectives on retirement, good to hear others are wrestling with the same issues. I could retire when I choose, but I like what I do.

Oh, and one vote for the GR Corolla as an additional (not necessarily "second"!) car! It's quick and has a raw feeling that pushed me in that direction (as opposed to a Civic Type R or Integra Type S).

So, I had a '24 GR Corolla that I traded in for the '24 Type S. IF, and I mean IF, you don't need much interior or cargo room (i.e. kids and crap in the back), seriously consider the GR. It was MORE fun to drive around town than my Type S. That turbo triple, six-speed, AWD traction, bulldog like feel, darty handling, it was a riot to blast around town in.

BUT, for me, the interior and cargo storage was just too small to road trip with the wife and kids, so I got the next best thing with more room, the Type S.

Drive them both and you'll know which one you want. Can't go wrong with either.

P.S. The GR warranty issues are isolated and I'm quite sure none of us are hearing the full stories. The engine is rock solid, so unless you zing a shift and money shift bad, tune it bad, etc. you are highly unlikely to have any issues at all with the GR

 

[rubberduck]

I like what I do for my work as well and the people are great. But I also like what I don’t do and want to do that instead. Time is a non-renewable resource. - Relativity aside.

 

[Roadhawk]

I like what I do for my work as well and the people are great. But I also like what I don’t do and want to do that instead. Time is a non-renewable resource. - Relativity aside.

This.

I too had a very interesting and rewarding job...that said I don't (much) miss it and I spurned all offers from contractors after i retired....told them "You don't get it - I'm retired"

Time is infinitely more valuable than money. My dad died just a few years after he finally stopped working and never got to do all the traveling and things he had hoped to do (and after I urged him to give it up years before he did). I already understood but it only confirmed it. Not saying they're aren't reasons for some folks to keep working - I get it....but for most....anyway its all about priorities and nobody lives forever...

 

[BimmerFan]

Time is infinitely more valuable than money.

True dat.

I had a '24 Acura Integra Type S for many months ... That said, I LOVED it. Put a nice open element air intake on it and the turbo whoosh sounds were awesome, it handled great, was comfy, significant interior room (especially for size of car). You can get them below sticker now.

I will look into it some more, although honestly as a track car, I was looking for something a bit less expensive.

Great thread, but I don't understand one part of the question. Why a "second" car? Why not a fourth, or fifth?

Primarily space. No place to park.

Finances come in a close second, as around here aside from the cost of buying the extra cars, I have to insure them and pay property tax and license fees.

 

[albertw]

In planning retirement I think it is important to avoid being too pessimistic financially. I retired at 56 and made very pessimistic assumptions about how much income I needed in retirement and how well my investments would do. My pensions have covered my daily living costs for 20 years, so this applies mainly to my hobbies. My assumptions caused me to deny myself the 200 - 300k airplane that would have kept me active in aerobatic competition once my Pitts Special became obsolete at the Unlimited level. Similarly, I drove a C5 Z06 for 14 years when I should have had a 911 for half that time. Now that I realize I could have afforded it and should have done it, it's too late to fix it.

One pessimistic assumption is probably prudent, but two is overkill.

 

[BimmerFan]

In planning retirement I think it is important to avoid being too pessimistic financially. I retired at 56 and made very pessimistic assumptions about how much income I needed in retirement and how well my investments would do. My pensions have covered my daily living costs for 20 years, so this applies mainly to my hobbies. My assumptions caused me to deny myself the 200 - 300k airplane that would have kept me active in aerobatic competition once my Pitts Special became obsolete at the Unlimited level. Similarly, I drove a C5 Z06 for 14 years when I should have had a 911 for half that time. Now that I realize I could have afforded it and should have done it, it's too late to fix it.

One pessimistic assumption is probably prudent, but two is overkill.

I like that perspective, thanks.

Financially I'm planning to live past 95 although realistically, that's unlikely. Also, I don't consider any inheritance in my planning, although it's very likely that I will outlive my mother, and she's probably not going to spend all of her money before then.

So, instead of buying that used GTI, you're saying I should just go ahead and get that Aston Martin that I've had my eye on?

 

[rubberduck]

I like that perspective, thanks.

Financially I'm planning to live past 95 although realistically, that's unlikely.

Possible but the deck is stacked against that. Besides at 95 you won’t even know if you have any money or not and won’t care.

Yes, get the Aston Martin, I wanna see the pics.