We are both excited and terrified at the same time, its retirement time! 6 years of planning, multiple planning meetings, eating at home, packing lunches, working overtime for years, driving used cars, we have no cottage, no RVs, no 4 wheelers, using coupons, garage sale shopping, reviews of income, savings, planning.. plan some more and January 1, 2021 or original plan is almost here. David will delay ~35days after January 1st and retire the first week of February. I have already stopped working at so many clients, and should be down 30% on work January 1, 2021, then moving on and less work with the end of a contract March 30, 2021. Our only income will be my part time job at Ascension hospitals, a few Nuclear medicine facilities and our Physics education website. Almost time to celebrate. Next post will be all the people/nay sayers that have told us how wrong we are to retire at 52years old and how we responded.
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 Taxes aren’t paid until the money is withdrawn from the account.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.
We decided to start rating the locations we visit on our travels. Scale of 1 to 10, with 10 as the best experience we could ever imagine. The Sandos Eco Resort, in Cancun Mexico is a great family all inclusive. We spent 7 days at this resort, and never ran out of things to do. We are giving the resort an 7.5.
Our favorite dining locations were the surf and turf, Los Lirios, with the best filet I can remember eating in a long time, and the potato soufflé was also very tasty. The Japanese Teppanyaki (table top cooking style) Steakhouse, El Templo, was a fun nite, but you will need a +5day ahead reservation, so do that when you book your trip. We also really loved the Brazilian Steakhouse, Fogo De Brazil. All of these are on site and included. The two buffets, International and Italian, both were OK, but there was a large choice of food, and almost always open for a quick snack. All of the dessert at the site we just above OK, mostly dry cakes and the lower end of flavors.
By far the best part of the resort, and the entire reason our daughter choose this specific location was – the animals on site. This trip was for our twin daughter we are graduating high school, they wanted the beach, the Caribbean and site with lots of animals. The Sandos.com website showed us quite a few animals and the location delivered. There were rabbits, donkeys, dear, peacocks, sheep, pigs, monkeys, tapirs, coati, dogs and lots of stray iguanas and cats. Animals were noted on signs as rescues and site animals are spayed or neutered and fed everyday, there areas were very clean and you could sign up to be an animal caretaker and feed them at lunch time. There are signs not to feed the animals, but my daughters did feed them – a lot, and even though they look skinny they looked happy and would stop eating when full.
There was plenty to do, and ALOT of walking. We were in the furthest location from the beach, our daily location of choice, so much walking I have the blisters to show it. There are bicycles to borrow, but we never used them. There are several pools, including an adult pool by our rooms, a mini water park with quite a few water slides and a big sized kids pool. We spent most of our time at the beach which honestly it was way too rough to actually swim safely. This for my husband was the biggest turn off of the resort – he loves the ocean and it was unsafe to swim. We did really enjoyed the man made cenotes for swimming, these were cool, and it was hot. There were fish and turtles and quite a bit of algae in these cenotes, so not for everyone, but we loved it.
The nite time shows were actually great. The Sunday Fire show at the onsite Mayan ruins were just incredible. We recommend you go to all of the variety of ancient Mayan culture shows. There was also a Freddy Jackson Tribute show, a Disney Princess show and a super hero show at the Theater – which were cute, but don’t worry if you miss them, save your show time for the culture shows in our opinion.
Our rooms were very clean, and huge, and the best part, there was really cold air conditioning, which is important, because the days were SUPER hot and it was so nice to sleep in the cool.
So, would we go back, yes. But we are the type of family who likes to see what is next, so maybe after many other visits to many other places. Next blog, pictures of the beauty of the resort.
Were on a Senior Trip for the girls in Cancun, Mexico! I forget my regular life – my Metro Detroit life, where I get up at 4:45 am to make sure my husband has his lunch, tea, and breakfast when he heads off to work, I then crawl back into bed and talk to him on the phone for 30 minutes as he drives into work. Back up at 6:15am to get ready for the day, make sure the kids are awake for school, I remind all three kids I love them and to kick the world’s butt as I drop them off. I either work from home, or off to kick the world’s butt. After the kids are home, I plan dinner, we eat and I continue to work until I get to sleep next to my husband. He tickles me until I laugh so hard I beg him to stop, and we cuddle like two lost puppies until the next morning… 4:45am.
My husband has a saying I love: “I do not think we are better than anyone else, but I also don’t think anyone is better than us”. So I know we are not the only ones who work hard and tirelessly, but what surprises me is how I forget how to relax.
But as soon as I walk in the huge Lobby of the Santos Carcacol Eco Resort, with its thatched roof and large hanging chandeliers the size of a car, the air is heavy with flowers and your handed an orange mango drink with tequila and I stand there with my mouth open looking around while we wait for check-in and I forget all about everything but the moment. I have a whole entire week with my daughters and husband to enjoy them….. fun relaxation times to be posted soon.