[Avista]

We live below our means. Did not buy the most house we could afford. Redo our budget each Dec for the following year. We love living in The Villages. So many things to do that do not cost anything. We love to eat out, but are very careful regarding prices. We usually chose lunch instead of dinner. We are having a wonderful time.

[LI SNOWBIRD]

Originally Posted by superbat

I was afraid I would die before I got here.

I was with ya on this. Both of us are retired now and finally snow birds. It was worth the wait for paradise. Hang in there your time will come

[Vinny]

My worst fear is lowered Medicare and SS benefits in the future.

[eyegirl]

To anyone who lives in TV.... do most people feel that the expenses listed on their website are accurate? (they say they are for a $250k home)

[Pturner]

Originally Posted by Avista

We live below our means. Did not buy the most house we could afford. Redo our budget each Dec for the following year. We love living in The Villages. So many things to do that do not cost anything. We love to eat out, but are very careful regarding prices. We usually chose lunch instead of dinner. We are having a wonderful time.

Hi Avista,

I think you're a Nook and I'm a Kindle , but I'm with you on this. We've always lived below our means. Bought less house than we could afford. No debts. Saved. Saved. Saved. You encourage me that we can do this. Become frogs, I mean.

ribbit

[brostholder]

The last time I was down in TV, I was fortunate enough to get to sit around with a couple of old Bocci players. Most of the guys were Italians from the NY and NJ area and a bunch of them had pensions they were living on from the construction industry. But there were a few guys that didn't have pensions and had pretty modest savings. They told me they were having the time of their lives living in the villages. One guy in particular said they he and his wife were quite fortunate because they loved to cook and warned me that eating out on a regular basis gets expensive in a hurry. After listening to them for awhile, I decided that with all the free activities in TV plus all the things I am already paying for (like golf), that if I modify my present lifestyle (expensive restaurants, good wine, premium beers) just a little bit and eat at home more often, then I wouldn't have to wait another 3 years to retire, but to do it now. I guess they reminded me that good times are more about sitting around with friends then spending lots of money.

[Avista]

Originally Posted by Pturner

Hi Avista,

I think you're a Nook and I'm a Kindle , but I'm with you on this. We've always lived below our means. Bought less house than we could afford. No debts. Saved. Saved. Saved. You encourage me that we can do this. Become frogs, I mean.

ribbit

Don't we both love our e-books! Sounds like we think alike regarding style of living too. I heard it said, "The Villages gives you a Champagne lifestyle on a Beer Budget."

[Boomer]

You probably already know this, but, just in case......

Staying out of tax deferred accounts such as a 401(k) or 403(b) or IRA's for as long as possible, of course, continues to avoid that tax hit. Who knows what taxes will be in the future, but for now…..

If your retirement philosophy is to stay out of tax-deferred investments by spending your taxable income first, you might find that you are sort of pleasantly surprised at tax time.

As you know, net worth and income can be two very different pieces of the retirement puzzle. If you can keep your income down in retirement, for a while anyway, you might be surprised at how the write-offs can kick in and give you more money in your pocket than you thought you might have.

Health care costs can take a significant chunk of retirement income for many. One thing that might be new though is that for the first time, you just might find that you can write off a part of your medical expenses, including dental, vision, and insurance premiums because your income is lower in retirement. And if you have tax-deferred money available, staying out of it might give you more of a return than you thought, at least for now.

I think the current number for medical deductions is the amount that exceeds 7.5% of AGI. I know that’s a lot, but with your income lower and your health insurance premiums possibly higher and maybe some LTC insurance premiums in there somewhere, and maybe needing glasses and/or contacts and some dental work, you might find that it can be worth adding up every scrap of paper associated with medical expenses – even if you have never been able to use the deduction before.

Now, please promise me that you will not take tax advice from some woman named Boomer on the internet who is not a CPA or a CFP and could even be an English major for all you know.

So anyway, if this post gets your attention, you might want to have a look at IRS Publication 502, and you should consult a tax accountant. Don’t take tax advice from me. I will not bail you out of jail. Of course, your CPA probably would not bail you out either, but at least he might go along to keep you company. Oh well....I digress.

Back to medical deductions. Here is an IRS pub on the subject. (I do not know if there will be any changes for 2010, but this publication can get you started if you are interested in learning more.)

http://www.irs.gov/publications/p502...link1000178947

I probably will show up in this thread again because I can’t stay out of discussions about retirement financial planning. But please be aware of my disclaimer, highlighted in red, above.

Boomernita Van Caspel

[Ohiogirl]

Please, Boomer, stay in these discussions - I've learned a lot from your financial posts!

[KayakerNC]

Originally Posted by Boomer

You probably already know this, but, just in case......
Staying out of tax deferred accounts such as a 401(k) or 403(b) or IRA's for as long as possible, of course, continues to avoid that tax hit. Who knows what taxes will be in the future, but for now…..
**snip**
Boomernita Van Caspel

Oh sure, you youngsters have that option...but sooner or later MRD is going to bite you on the backside.
Not complaining actually, I'm happy to have reached that point.

[2BNTV]

Originally Posted by rblammon

I am getting ready to retire in 2012. What was your biggest fear about retirement. Did it come to pass?

rblammon:
1. Selling my condo so I can move to TV. It hasn't sold in a year and the prospects don't look encouraging at the moment.
2. To get to TV while I am still healthy enough to party hardy!!!

All other concerns are something everyone has to deal with like having enough money to last and health concerns with the medical coverages that are available.

I do the best I can and then try to relieve these concerns with, "Man plans and GOD laughs".

[Boomer]

Originally Posted by KayakerNC

Oh sure, you youngsters have that option...but sooner or later MRD is going to bite you on the backside.
Not complaining actually, I'm happy to have reached that point.

Hi Kayaker,

Thank you for saying that I am a "youngster." But I gotta tellya, when you mentioned that MRD, it almost caused me to write another post in which I would have ended up parading my angst over conversion to Roth. But I knew that I would just fret around and come to no conclusion and continue to procrastinate on that one.

I see by your post that you are now a septuagenarian, and I bet your MRD's are going to find a much better tax environment than mine will when I reach that point. And besides, don't forget that 70 and 1/2 is the new 50 and 1/2 -- except where the IRS is concerned.

Boomer

[GeorgeT]

Forgive my ignorance but what is an MRD?

[gongoozler]

I retired at 56 and never looked back . . . the secret is to have friends and keeping busy. In TV there are so many things to do sometimes I have to schedule my week completely in advance but what you do depends on your health. I've thought about helping out with the AARP tax program but playing pickleball, tennis and golf each day and then shooting pool,working out at the gym or going biking leaves me with little to no time. My son said just keep doing what your doing dad until you're too old to do it then work part-time. Financial affairs are a personal matter depending on what it cost you to live but I just bought a courtyard villa cash as an investment (banks are paying nothing and the market is rocky) and just renting it 4 months a year buts me ahead.

[Pturner]

Originally Posted by GeorgeT

Forgive my ignorance but what is an MRD?

Minimum Required Distribution.