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May 24, 2011


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He knew what he wanted in life and went after it. As long as no major hurdles pop up it is doable. A lot to be learned by young people in this post!

He sounds a lot like my dad - except my father is a pretty terrible swimmer. I'm pretty jealous of that generation's pensions and benefits, but I'm doing pretty well making my own.

Pensions are going by wayside. Some grand corporations don't offer post-retirement health insurance. My friend's teacher worked for a private school for 30yrs which offered no post-retirement benefits and she deeply regretted it.
In fact, I only know of teachers who retired in the 50s and not anyone else.

I wouldn't be so jealous of an employer-based pension system. Relying on a pension ties you to your employer for most of your life. Teachers often have to stay in the same job their whole lives--nearly impossible to move to a different state and rarely can you job hop. Sometimes job conditions are not ideal and you want to change employers (see some of FMF's posts about his career progression), but it is not possible if you are dependent on an employer for retirement. I prefer the flexibility.

Good common sense. If I were to rate each of these in terms of level of importance, I think being debt free is the most significant.

Great information to know, I still have more than a few years to retire, but if I implement some of his tips now, I can retire without debt, and be more financially secure.

There were some excellent articles about the state of pensions (public and private) in the US and other countries in a recent Economist issue. One of the problems with pensions now is that people have access to them too early. Folks are retiring earlier than ever and living longs so the pension funds are not sustainable. An obvious fix is to raise the age at which pensions are accessible.

Great words of wisdom from someone who has actually been there. Retiring debt free is a key. That is number 1 on my priority list before I can retire. Didn't really think all that much about health care but I bet I would have once I really started getting serious. Gotta pay off some debt first.

I think one of the tips that is missing is: Don't have any dependents that still rely on you to support them. Even if you're debt free, it's hard to retire and live off of very little if you are still supporting a child or grandchild.

He had a great plan and pulled it off.
Pension and health care are huge.

I don't really agree with no debt. I have some mortgage debt for my rentals and those are OK. You definitely shouldn't have any consumer debt before you retire.

when you retire you must be debt free and have some cash saved up. Pension plans work great as they give you money in installment so you would not be inclined to spend all at a same time.
Also it is important that the cash flow should be more inwards than outwards at retirement so try to increase the source of income via pension funds, fixed deposit maturity, dividends, etc. In such scenario you have planned your retirement properly and can live your rest of life without much financial tensions :)

That advice to "have a pension" is nice but it is never going to happen for today's young people. Per my post on April 26, pensions are going to be reduced or frozen for current government employees in the public sector. New employees can forget about pensions. As KP mentioned, pensions do have their drawbacks. A lot of people count on their pensions too heavily and don't save anything on their own.

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