Bon Voyage

We are headed out to our 7 day Cuban Explorer with Holland America Cruise, on the Veendam.  We started in Fort Lauderdale, Florida then to Georgetown, Grand Cayman, to Cozumel, Quntana Roo Mexico, then Havana Cuba, back to Ft Lauderdale.   We choose this cruise specifically for the Cuba Experience and we are really are very excited to step foot in Cuba.   We did read in our paperwork, we had to book an excursion or we will not be allowed off the ship, and that is a recent change to the US requirements.   So we booked an 8hr – Best of Havana, and a night trip to the Tropicana Club.  While many might not ever even consider visiting Cuba, for us something about seeing what has been forbidden is a thrill.  This might be a short window of opportunity that we never get to experience again, but if we enjoy Cuba, and it is still possible a longer trip might be in our future as well.

This is our third cruise together as a couple, but Davids ~10th, I only started cruising when I met David, so my third cruise.   This is our second with Holland, where the population is significantly older, but then again our cruise with Celebrity was also an older group.  I guess most can afford to cruise when they are older and finally have the time, so the ships population is filled with motorized scooters, canes and stories of grand children.

When I checked online reviews of the Veendam, I see Excellent reviews, and that it is a small ship with a max capacity of 1350.  We will report back on what we experienced upon return.  I am sure I will drink a few Cuba Libras (Rum and Coke) during this trip, so I will try and report back daily on our adventure, or might forget a fact or two.

Retirement seminar

So David and I went to a Retirement pitch dinner, where they try and upsell you on a product.  Honestly we know so little about the variety of retirement programs out there.  What we do know:  A Traditional IRA is a tax-deferred retirement account. You save your $ today and are taxed later when you withdraw the money.  A Roth IRA, is like and IRA where you don’t get a tax deductions for the $ contribution today, but later can withdraw the assets when you retire without paying taxes.    A 401k or 403b is an employer sponsored retirement program. Taxes aren’t paid until the money is withdrawn from the account.  Sometimes employers match these on a smaller amount.  A SEP, is a Single Employer Pension Plan, which really is a small business owner traditional IRAs (SEP-IRAs) set up for employees.  Do not put all your eggs in one basket and diversify as much as possible, save and save in as many different methods for retirement as possible.

But If I am going to retire early, I figure I need to know Everything and make best choices, saving money is good, but saving it smart is better. So this seminar did teach me some things.  What I learned:

  • On a Roth or 401k/403b, you can withdraw your money as soon as your 59.5years old, (before will cost you 10%) and have to start spending these (or be penalized 3%) by age 70.5.
  • 403b’s are more restrictive, but also can allow higher contributions.
  • An annuity can go up, down, or stay the same.
  • A fixed annuity can go up or stay fixed – this is what they were selling – so going to learn more on this and report back later.  It sounds fabulous, but things always do at free dinner seminars.  I plan on researching this subject and getting back to everyone.

What do we have as far as retirement plans and income- well we currently we have a huge diversification – I have a 403b, with a small match plan.  David has a 401k.   We are not 401 millionaires.   We both have retirement accounts – David has stocks, and mutual funds, and MESP accounts for the kids college, which he is still adding to.   I have two SEP accounts – one for each business I own – an education website, and a physics consulting group.  These were added to at the advice of my tax accountant, who told me send a certain amount of money to these each year to avoid taxes in the current year.  I have a small Roth IRA, and an IRA.   I have three MESP accounts for the kids, that a funded.  We have three rentals, which I bought one at the peak of the market and two at the downfall.  We have an investment property, that too this point has not generated any money.  I have two pensions (one fairly small), and two pensions from my ex-husband (which can be collected upon 6 years after we retire).  David has a pension.  We cannot collect on our pensions until 3 years after we retire (at 55 years old) but that would be at a low rate, and waiting would be smart.

So we are need to bulk up and figure out how to live for those years in between when we retire and we can collect on our retirement funds.  Another post in the future will detail our plans, even though these are in flux and well honestly we are not 100% sure.  I guess we will learn and figure it out as we go.