Jump to content
Sign in to follow this  
Stir

McDonalds is targeting older workers

Recommended Posts

wbw6cos

Plus the fact that older workers may be less inclined to spend their on-the-clock hours looking at videos on smartphones, which leads to better productivity.

  • Like 1

Share this post


Link to post
Share on other sites
Paul De

And when making change at the cash register an older worker can actually realize if the transaction makes sense.

 

I don't know how many time the young person behind the counter like a robot simply asked for or returned the incorrect amount of money because that is what the cash register display said...it must be gospel.  Heaven help them if they need to make change in their head!

  • Like 1
  • Thanks 1

Share this post


Link to post
Share on other sites
Antimatter
On 4/25/2019 at 9:37 AM, Stir said:

https://www.cnbc.com/2019/04/24/mcdonalds-is-teaming-up-with-aarp-to-hire-older-workers.html

 

I’m not really surprised given the work ethic of older workers.  My wife is in HR and has noticed that young workers are entitled and yet have poor performance records.  

 

The younger workers came of an age where their heroes are the hedge fund and venture capital warriors of today's economy.  If you work as hard as the CEO yet get paid 1,000x less, why not keep moving until you can land an equivalent gig?  As I saw in one great meme going around,  "My boss just bought a Lamborghini.  He says I should work hard and apply myself, so he can buy another one next year."

  • Like 2

Share this post


Link to post
Share on other sites
elkroeger

You should work hard and apply yourself so you don't have to flip burgers in your old age.  God, what a nightmare.

Share this post


Link to post
Share on other sites
ltljohn
46 minutes ago, elkroeger said:

You should work hard and apply yourself so you don't have to flip burgers in your old age.  God, what a nightmare.

They may not need the job, my father retired at 65 and did not last 6 months.  He went back to work part time to keep busy and interact with people.  He worked until his late 70's.

  • Like 1

Share this post


Link to post
Share on other sites
Joe Frickin' Friday
45 minutes ago, ltljohn said:

They may not need the job, my father retired at 65 and did not last 6 months.  He went back to work part time to keep busy and interact with people.  He worked until his late 70's.

 

No doubt some retired folks take a part-time job as a way of staying active.  But I suspect a great many more are looking for work because they need the money.  There are a lot of elderly folks who were never able to earn much in the first place, which makes it all but impossible to accumulate a meaningful nest egg - but there are plenty more who drew a good salary and just never planned for the future.  According to Investopedia, the median retirement savings for people in their 60's - right about the time most people hope to be able to retire - is just $172,000.  Yikes.

 

Most of the entry-level jobs at McDonald's don't require a lot of brain power, so it would seem they are targeting seniors primarily for their reliability.  But older employees have plenty more than that to offer, and not just to McDonald's.  The EPA for example has a program that specifically recruits retired folks for full- or part-time jobs that include everything from secretaries to machinists to lab technicians - positions where a lifetime of experience may mean you are considerably more valuable than someone fresh out of school.

Share this post


Link to post
Share on other sites
realshelby

A lot of people work really hard. Apply themselves. The company grows and profits. They don't. Just like machinery, they become obsolete. Hopes of retirement pensions for blue collar workers are pretty much gone. 

 

What you must do it look out for yourself. 

Share this post


Link to post
Share on other sites
Paul De

Well, after decades working in a large global company routinely making decisions of consequence and saving plenty for retirement, I still expected to take a non-stressful job to keep busy and meet new people.  I would tell coworkers after I retire I was going to be a greeter at Wallyword, they thought I was teasing, I wasn't. Recently, Wallyworld eliminated that Job and I'm sad about that! Maybe a hardware store?

Share this post


Link to post
Share on other sites
Joe Frickin' Friday
8 hours ago, Paul De said:

Well, after decades working in large global company routinely making decision of consequence and saving plenty for retirement, I still expected to take a non-stressful job to keep busy and meet new people.  I would tell coworkers after I retire I was going to be a greeter at Wallyword, they thought I was teasing, I wasn't. Recently, Wallyworld eliminated that Job and I'm sad about that! Maybe a harware store?

 

Hardware store does seem pretty low-stress.  Light traffic, and customers generally aren't in a massive hurry.  

 

I recall a thread here a few years ago discussing retirement.  Someone mentioned how easily and rapidly your social connections to your former coworkers fade away, and that does go a long way toward explaining why some retired folks get jobs.  One of our machinists was a guy who had previously retired; his wife kept working, and every day when she got home he would be hounding her for social interaction.  Before long she told him he needed to go out and get another job.  And so he came back to us half-time: three days a week, about 6.5 hours each day.  No rush to get up in the morning, go home before everyone else, and he gets a four-day weekend.  Not a bad gig.

  • Like 1

Share this post


Link to post
Share on other sites
John Ranalletta

A retired friend works at a local hardware store.  Mostly, it's easy work stocking shelves and serving customers; but there are days of unloading trucks and handling heavy stuff.  He's a healthy guy and the activity is good for him, but someone who's compromised physically could have a problem with some of the work.  

 

If you work for Lowes, you have to master becoming invisible because I know there must be someone around to help but can never find one.

Share this post


Link to post
Share on other sites
Paul De

One person I worked with who retired well under 60 told me to do what he did and go into consulting and contract gig projects in our industry (adhesives).  He says he can be pretty picky about the work he takes as our skills are specialized and in demand.  Another coworker who retired pre-65 took work as a grocery store bagger/stocker.  When the food store chain realized he had managed a few hundred million dollar global supply chain they wanted to pull him into purchasing.  He said no because it would mess with his standing tee time. I too want nothing to do with glue anymore and thankfully if my game plan holds up my only worry is what to do about the eliminated Wallyworld gig...maybe facing off an endcap with the deal of the week cans of Green Giant green beans!  Paid to get your exercise, what's not to like about that!

 

Share this post


Link to post
Share on other sites
Paul De
54 minutes ago, John Ranalletta said:

If you work for Lowes, you have to master becoming invisible because I know there must be someone around to help but can never find one. 

haha.  Lowes was on my list.  The motive was to get the employee discount as I am fixing up the house in the city to put on the market.  I'm sure I am not the only genius with that plan!

Share this post


Link to post
Share on other sites
elkroeger

Working at McDonalds (and a variety of other things) does not sound - to me - like a pleasant way to spend your retirement, stay active, etc.  It sounds like a miserable chore with an angry manager hassling you endlessly to "pick it up!".  No offense, but the greeter at Walmart sounds even worse.  A complete lack of imagination.

 

If you don't need the money, why not go do something that is actually rewarding?  There are ENDLESS volunteer opportunities where you can keep your mind and/or body active.  Volunteer overseas.  Walk down the street and meet/help your neighbors with something.  Be a Big Brother/Sister.  Offer your professional skills / advice for free.  Think outside the box.

 

Personally, the first thing on my list (and I plan to be retired this time next year) is to thru-hike the Appalachian Trail.  After that, I'll likely do some volunteer work overseas.  It's a big world out there.  Get out and see it.

  • Like 1

Share this post


Link to post
Share on other sites
John Ranalletta

When I retired the first time on Dec 31, 2014, I took a few weeks off to see family in Florida.  On returning, I registered for a welding class (subsequently took 3, stick, MIG & TIG).  I bought some welding gear on the cheap and started to build stuff for the grand kids including a 50 mph yard kart, powered drift cart, etc.  I also built "AirLuft", a motorcycle trailer I use today.  I found that time in the shop just evaporated and Ruth would have to remind me to come in for lunch and dinner.

 

image.png.e08e14e42b40fe0241ea8a14e552956c.png

image.png.c620e72166b8aaa8d45fc765db1f9837.png

 

I've since returned to the consulting work I was doing when I retired, but on a much limited basis, able to schedule when and where I want to work.

 

In retrospect, after building everything I could in the shop without turning it into a business and returning to work, I realized I had to be building something or helping someone else build something - in my case, helping clients build their businesses and develop young leaders.   

 

I found it helpful to retire "to" something rather than retire "from" something.  I'm tempted to buy a fixer/upper but not sure I'm up to a project of that scale.

 

Good luck.

  • Like 2

Share this post


Link to post
Share on other sites
Paul De
1 hour ago, elkroeger said:

Volunteer overseas. 

Not a chance, been there and done that.  After 30 years of traveling the world often to under developed regions to help private companies establish the best jobs that region will ever see, I've had my fill.  I've seen the big world and now will be content to improve the US should I volunteer for some project.  My sister does the volunteer overseas and IMO that does not hold any virtue for me when many of those projects could be helpful here in the US.

2 hours ago, elkroeger said:

There are ENDLESS volunteer opportunities where you can keep your mind and/or body active.

I have done a lot of STEM tutoring to low income and troubled youth over the years and may want to do that again in the future,  just need a break from that as the investment level to actually make an impact is significant.  The helping the neighbor thing is table stakes for me...its is in my definition of neighbor, right?

 

What is so terrible about helping someone have a positive shopping experience? You could see it as a job lacking imagination if you see the job limited to job description and not a customer focused ambassador to help them get their shopping done with the least hassle.  Sure it isn't as sexy to talk about at the cocktail parties as some other things you might do but it is still helping people if the job is approached with the right scope and frame of mind. Creativity is where you want to find it.

  • Like 1

Share this post


Link to post
Share on other sites
Bud

I retired in 2002 at the age of 56. Have never once thought "I should get a job". Nancy and I have spent the morning looking at our calendar. She is getting a cochlear implant June 19th which then requires semi/weekly and then weekly checkups. When younger, we did a lot of work trips with our church. Nancy has been to Haiti several times as we support a school there. Had also supported a orphanage but that has closed.

 

I'm going riding with my son in a couple of weeks. Then off to Maine with our long time (55+ years) friends with whom we travel together. In June my ridding partner and I are headed to Blowing Rock for a week of riding.  The UN is coming up. FART is on the calendar. Will make it back down to Eureka Springs this year. Ride for Kids in September on the Dragon. Couple of sidecar campouts are also on the calendar as well.

 

We will be headed back to Colorado soon to visit our son and his family. 

 

I've a CNC woodworking machine in the basement along with the other woodworking tools. Spring is here so I've been doing some fishing. Deer hunting in the fall.

 

Hopefully get to CA to visit Nancy's BIL who is having some health problems. 

 

McDonald's flexible hours aren't flexible enough. Besides, I don't want to serve coffee to the Liars Club that meets there daily as I'm a charter member.

 

We are some of the lucky ones. Have a good retirement income and healthcare.  I'm a lucky SOB and am grateful.

 

BTW Anyone looking for a good, low mileage, fully farkled  2003 RT(lite)? as Nancy says 3 Beemers in the garage are a little excessive. :whistle:

 

 

  • Like 1

Share this post


Link to post
Share on other sites
Bud

John,

 

I admire your welding skills. That trailer is fantastic. :thumbsup:

Share this post


Link to post
Share on other sites
John Ranalletta

Thanks, Bud.  The welding was a cinch.  Bending 2" x .120 DOM tubing was the hard part.

Share this post


Link to post
Share on other sites
MyR1100RT

John, 

 

You have two very good points in this post.  

 

1.  I work at Lowes (FT), one of my co-workers is in his early 70's (lumber/building materials) he works his rear off every day.  Concrete?  2X12X16?  No problem.  And! He's got a great attitude.  There are also three people who work there that are in their 20's.  Try and have a conversation with them is impossible, unless you are talking about online gaming and or movies.  Seriously, I've tried, they have no interest, and don't care to even try and fake interest.  Combine this with the current issue in the US and here in NH;  drugs.  I can't tell you how many contractors come into the store and complain about not being able to find anyone to hire; there are so many contractors that I've spoken to that've said they have guys walking off the job when they're making $40/hr.

 

2.  As for being invisible, I believe all Lowe's stores are extremely understaffed (I know mine is for sure).  Example of this?  Yesterday, 8/31, holiday weekend, we had four departments that didn't have anyone scheduled.  My department we had two people, pretty hard to help everyone all the time with those numbers.

 

 

Share this post


Link to post
Share on other sites
Antimatter
1 hour ago, MyR1100RT said:

John, 

 

You have two very good points in this post.  

 

1.  I work at Lowes (FT), one of my co-workers is in his early 70's (lumber/building materials) he works his rear off every day.  Concrete?  2X12X16?  No problem.  And! He's got a great attitude.  There are also three people who work there that are in their 20's.  Try and have a conversation with them is impossible, unless you are talking about online gaming and or movies.  Seriously, I've tried, they have no interest, and don't care to even try and fake interest.  Combine this with the current issue in the US and here in NH;  drugs.  I can't tell you how many contractors come into the store and complain about not being able to find anyone to hire; there are so many contractors that I've spoken to that've said they have guys walking off the job when they're making $40/hr.

 

2.  As for being invisible, I believe all Lowe's stores are extremely understaffed (I know mine is for sure).  Example of this?  Yesterday, 8/31, holiday weekend, we had four departments that didn't have anyone scheduled.  My department we had two people, pretty hard to help everyone all the time with those numbers.

 

 

That's deliberate.  There's a strategy in modern management that will understaff a store so that they can encourage unpaid overtime from the rest of the employees.  It maximizes profits by minimizing the main cost factor (employees & benefits).  Yet another reason I don't fault younger workers for being cynical when it comes to employment. 

Share this post


Link to post
Share on other sites
Tank
On 5/3/2019 at 3:50 AM, Joe Frickin' Friday said:

 

Hardware store does seem pretty low-stress.  Light traffic, and customers generally aren't in a massive hurry.  

 

I recall a thread here a few years ago discussing retirement.  Someone mentioned how easily and rapidly your social connections to your former coworkers fade away, and that does go a long way toward explaining why some retired folks get jobs.  One of our machinists was a guy who had previously retired; his wife kept working, and every day when she got home he would be hounding her for social interaction.  Before long she told him he needed to go out and get another job.  And so he came back to us half-time: three days a week, about 6.5 hours each day.  No rush to get up in the morning, go home before everyone else, and he gets a four-day weekend.  Not a bad gig.

That sounds good Mitch

Share this post


Link to post
Share on other sites
Skywagon

I retired April 01.  We were fortunate in our working lives and will be able to live exactly like we did when I was working.  We won't be under any financial pressure.  I was pretty nervous about retiring due to many of the things you point out..separation from work colleagues, not actively engaged in my profession, boredom, etc.  I thought I would seek something but now am convinced I will not. I had seriously considered fueling airplanes for free at the local airport to be around fellow pilots.  I don't miss the work, and as expected the relationships are fading which I really don't miss. 

What is happening is I have time now to do all the things we want to do without any time pressures.  Mostly they aren't big things; for example today I took a ceiling fan down, cleaned it, oiled it, and put it back in service.  I've done small things at the home that were either forgotten about or I paid someone to do it.

 

I'm blessed with lots of good hobbies I just couldn't do.  Now I have time to ride, use my boat, fly my plane, and fish...man do I like to fish coastal.  All of those toys need maintenance.  Now I can do it at my pace...or not.  I can start something and not finish it until I feel like it.  No more Sunday angst of having to catch a flight early Monday to go see a cranky client or explain to the board/analyst what the numbers are and answer stupid made up questions.

 

My only regret so far is why didn't I do this sooner. Really!  One not so good surprise ( and not trying to turn this into a political thread) is how expensive private insurance is until we are eligible for medicare.  We searched and searched from Obama care, Blue Cross, Cigna, and all others we could find in our area.  If you are considering retiring and not yet medicare eligible (age 65) I encourage you to check the market place financially before you do.  It could have an impact on your decision.  Just for my wife and I with no smoking, no drinking, no known health issue, not on any meds it is $3200 month with very high deductibles/exclusions and that is healthcare only.  Enough of that.

 

I've also spent a good bit of time trying to figure out how to make the best use of our money.  I don't have that figured out yet and my background is financial.  I've spent a lot of time looking for high yield dividend stocks more so than stocks that might grow. I don't care about the principle as much as I do want to have income coming in at the same or faster pace than we are spending. There are some, but hard to find.  Pretty soon I need to figure out Social Security...cant wait for that fiasco.

 

Anyway...if you can retire...do it.  Don't wait.  You will enjoy yourself.

Share this post


Link to post
Share on other sites
Marty Hill

David enjoyed reading the above.  I bailed at 55 and have never had any regrets.  Have a great and long retirement!

 

 

  • Like 1

Share this post


Link to post
Share on other sites
Patallaire

My practice revolves around the Retirement issue.  The first question we ask clients is "What do you think you are going to do?" when they answer, play golf, we try to discourage it until they have a better answer, {We live in Buffalo NY}, Golf is out of the question in January, Feb, and March, sometimes even in April.

The finances are always a discussion, most people will survive on what they have, it just works out that way.  We apply the withdrawal formula's, sometimes shockingly, sometimes with a smile as it is no problem.  The biggest issue is to have a sense of purpose, life can get very long if there is no real purpose to it.  We have discovered that there is a transition for all the above mentioned reasons, but once past that most people tell me there are not enough hours in the day to get done what they want to get done!

The industry has categorized retirement as , "The Go-Go years, the Slow-Go years and the No-Go years.  They are different for everyone, especially Marty, but try to do all you can when you can.

  • Like 1

Share this post


Link to post
Share on other sites
Paul De
9 hours ago, Patallaire said:

The first question we ask clients is "What do you think you are going to do?" when they answer, play golf, we try to discourage it until they have a better answer, {We live in Buffalo NY}, Golf is out of the question in January, Feb, and March, sometimes even in April.

 

Haha.  When my father retired I feared what would he do to keep himself busy because he really didn't have a hobby or want to focus on anything.  He became a profesion putzer in retirement.  After he hung up his suite and tie he grew a beard and wore bib overall most days.  He became the country kid that he left behind so many decades ago.  His wife finally barred him from going to the dump as he would come home with about as much as he took to the dump.  Being a young man in the great depression he never understood  how folks would toss perfectly good stuff that only needed this or that to be fully functional again.  He was happy and enjoyed his retirement years fulfilled with just putzing around....Sounds like a plan to me!

Share this post


Link to post
Share on other sites
Patallaire

Sounds like he found a sense of purpose.

 

Share this post


Link to post
Share on other sites
Mike

I jumped ship a couple years ago, and my wife is doing the same soon. She and I will be starting a VERY small business, but mostly I want to continue goofing off.  I had long wanted to attend culinary school, and I started classes this spring. It’s a lot of fun, and good to engage with people across a wide range of ages and experience. My vision of a lot more riding time has not yet materialized, but that remains a goal. 

 

I think the key key to it all is renting to something, not just viewing it as an end point. My daughter-in-law recently noted that I’m the busiest retiree she’s ever known. I take that as a good thing.

Share this post


Link to post
Share on other sites
John

Pity they don't do it in Australia. They do their best to make you leave once you turn 18 because they don't wish to pay the going (adult) rate. My daughter worked there to help get herself through university. Once she hit 18, they started cutting her shifts and giving them to juniors. She found that she was mostly getting back-of-the-clock shifts because very few juniors were allowed by their parents to work these shifts.

 

Me? almost 30 years in the airlines. I've recently cut back to 75% of a normal roster, and I love it! Can't wait to retire, as I now realise work is getting in the way of too many other things, like spending time with the family and doing NORMAL things, like having some weekends off for a change.

 

Work will be the last thing on my mind once I finish up. I have too much to do with my life. The only work I can see myself doing is perhaps volunteering, and maybe getting involved in mentoring up and coming pilots.

Share this post


Link to post
Share on other sites
Skywagon

Let's see today ...woke up at 330 am...so just got up.  Can't seem to break that habit post working.  Had some coffee in the piece and quite.  Took trash to the curb.  Decided to take a walk...2.5 miles.  Wife got up...had some more coffee with her.  Read the local shenanigans our city council want to do to raise property tax 8.5% before the Texas law goes into effect that says it cant go up more than 3.5% without voter approval starting Oct 1...The politicians are nervous.  House taxes are already $24k a year...don't need an increase.

 

Vines hanging on fence came loose.  Retied those.  Took a shower...went to coffee shop and had some more coffee with a fishing buddy.  Took wife to charity function and dropped off.  Came home and responded no to a couple of requests to join board of directors...no thanks...done.  Took wife to lunch.  Dropped wife off...Went to Harbor Freight and bought crap I have no idea what I will do with it but it was there and seemed like such a bargain...and I got another free light with purchase making about 50 of those in my garage.  Went by Cycle gear bought some new gloves to go with the other 5 pair.

 

Went to the bank and got a bigger safe deposit box.  They don't understand why I don't want to take out a mortgage on my house that I paid off....youth.  

 

Decided to dump my cable company.  Bill went from $255mo to $310/mo and they dropped HBO and Showtime...so more money less service.  Researching the alternatives.  

 

Having more coffee now.  Can't do much outside here this time of year as 101 degrees and humidity high enough the windows self wash..  Ahh....but fall is coming and will ride, fish, fly, and of course...have coffee.

 

So...that is a typical day.  Do what I want....if I want....or not.  By the way have lost 45lbs since retiring in April.  No more client dinners, no more eating crap at lunch just cause, no more eating everything in sight.  Loosing the weight has been incredibly easy.  Five more lbs and will be at ideal weight.

 

I hope to be Marty like soon...

 

May retirement be in your near future.  You will like it.  Scuze….me coffee pot just binged :)

  • Haha 1

Share this post


Link to post
Share on other sites
Marty Hill

Marty is 83, you can do without that for a long time.  Enjoy retirement youngster!

Share this post


Link to post
Share on other sites
Red

For some work is a 4 letter word.  For others it is a calling, vocation, a joy.  'Retirement' from each of these two mind sets is a totally different thing.

Share this post


Link to post
Share on other sites
John

David, you drink too much coffee :rofl:

Share this post


Link to post
Share on other sites
Paul De

I had commented earlier about taking a low stress part time job at a big box store, but I have to tell you so far I have been too darn busy with projects, appointments, and social commitments to consider giving my valuable time to anybody else but me...well my wife still holds significant sway on my time.  My calendar in these early days of retirement has as many conflicts, or more, than when I was working, but it is great as 100% of my time is given to my/our interests.  For sure in retirement life has become more about the journey than the destination like it was when working.

 

My most challenging question to solve is to take SS next year at 63 or wait until full retirement age.  I've been on both sides of the calculus but now leaning toward taking it now...like Pat said these are the go-go retirement years, so the cash now would be put to go-go fun while we can.

Share this post


Link to post
Share on other sites
Patallaire

We always recommend waiting until FRA{ Full Retirement Age}.  It accomplishes several important goals, more money in retirement at a time when you are really not earning anymore, it allows you, by waiting, to earn whatever you can with no offsets, and most importantly, if you were the larger of the earners in the family, it allows your spouse at your death, to get a higher income stream.  Lastly the compounding, by waiting is between 6 and 8%, depending on if you wait until age 70, plus inflation on a higher number forever,   there are no investments we could ever recommend that have a built in guarantee like that, especially in a down year.  It is an irreversible decision so choose wisely.  Everyone has an opinion on this, however, when you pass age 81, we are always right mathematically. 

Share this post


Link to post
Share on other sites
Paul De

Hi Pat,

 

Points well taken and that is where I was in the decision process until a few months ago.  A number of friends of ours are all in the early transition to post career life and have tussled this question recently. A few counter with a quality of life argument that later in retirement you are likely no longer physically able to do many of the things you can in early retirement.  Travel/vacation expenses really drop off then so you end up sitting on money you could have used for enjoying during the go-go years as you call them.  Maybe one of the things that got me to seriously consider the take it now argument is that with increasing frequency we have had friends and acquaintances who have had their well planned life changed radically by debilitating chronic illness, or cut short by untimely death.  I fully appreciate the reasons for waiting and the irreversibility of the decision so I will surely ruminate on this for a while before deciding.

Share this post


Link to post
Share on other sites
Patallaire

Paul:

 

We hear this logic all the time.  Friends are not you, nor are they financial planners. That is really an emotional, "What-if" thought argument.  In the meantime, if you are retired, you might consider using IRA money so you reduce the amount you need to be taking as RMD's at 70 1/2 which will give you the money to enjoy a life style of travel and endless vacations. Taking RMD's can have quite an impact on a portfolio in a down market it is called Sequence of Return risk.  Using IRA's  might help you during the SS waiting game,  remember two things, very few, if any, investments can or will guarantee, like SS does,  between a 6 and 8% rate of return until age 70 and unfortunately death is an issue, which is, of course, out of our control.  As I stated, if you were the higher income earner, then it benefits your spouse to wait as it will give her more income.  The numbers by waiting, assuming you live, are staggeringly different.  Oftentimes in the hundreds of thousands of dollars over a lifetime.   The SS statement shows it, like a car payment, in dollars per month, so the spreads look different or less impactful by looking at waiting vs today.  We use the annual numbers, they are much more impressive as a differentiator. If we had a crystal ball, the decision would be easy.  Taking Social Security is a counter argument to owning Life Insurance, with Life Insurance you are anticipating you will die before the insurance company actuaries think you will, therefore when that occurs early your family gets the benefit of your early death, with Social Security, you, by waiting  are anticipating that you will live past the actuarial tables break even, (81) therefore you will enjoy more money over your lifetime, as well as your spouse enjoying a higher standard of living for as long as she lives. With Life insurance you are hedging death, with the Social Security delay strategy you are anticipating life, taking it early anticipates early death, which if that is the case, buy more life insurance!

Paul, we really never have a dog in this fight!  We know that for some our logic and math will prevail, for others emotion and friends experiences steer the decision. 

Ruminate! It is irreversible., once triggered.

Share this post


Link to post
Share on other sites
Skywagon

a different twist.  You will likely draw about 2800/mo at age 65 if you worked most of your life...waiting until 70 vs 65 you draw about $400/mo more.   If you invest that money at a modest 2% for the 60 months with 28% income tax you will have $180,000 by the time you reach 70.  Now the payback period is 37 years so you have to live to a 107 to get ahead....just saying it isn't as simple as monthly versus investing.  Of course this mean you deposit the 2800 every month until you are 70  There is no universal advice for Social Security.  Everyones situation is different.  If you need the money to live on then take it.  If you are in a high enough earning bracket at age 65 that it would all go to taxes anyway...maybe not.  If you can live off of other means at age 65 then maybe take it as  per my 2% example.  The key is to sit down and really be honest with what you have coming in and what you have going out.  Don't forget things like your medicare supplements, you will need a vehicle sometime along the journey, things that will break like air conditioning, heaters, appliances, house maintenance.  

 

My best advice to you as a 43 year CPA and prior COO of $55 billion company is your mileage will vary.....get help from a financial planner...its the best investment you will make when the time comes.  They know things about the system you don't.  Even with my background I sought professional advice and learned a few things that help me decide when to take SS...which isn't now.  For my best friend it made sense for him to take it early.  For me later.

  • Like 1

Share this post


Link to post
Share on other sites
Patallaire

Solid advise.  We also ask in depth questions to help you frame the what-ifs.  We believe, at least in my practice, that retirement is about cash flow, that takes expenses and in-flow into account, it is not about the pile of money anyone has, which is the first thing clients tell me when we start a discussion on retirement. We strongly advocate waiting, and yet, sometimes, after reviewing cash flow, waiting is not the option we hoped it would be for our clients.  Separate wants and needs in your life, spreadsheet fixed expenses and lifestyle wants in your expenditures as well as the what/when ifs on replacements for stuff that breaks or needs to be replaced instantly, that may help you frame it. You left the work world early so the challenge is to maximize cash flow without decreasing principal while waiting for government programs to kick in such as Medicare and maximum SS.  To Skywagon's point, if you want help, you need to be painfully honest with yourself as well as the planner you use.

Share this post


Link to post
Share on other sites
Paul De

David and Pat

 

Great input from you both, thanks.  While actively working I took full advantage of my company's defined contribution program in addition to the extra I was putting in retirement savings.  And, yes I am in the process making decisions on how to invest those saving to best serve me in retirement.  I had been seeking advise through Fidelity because that was a free service through the company's retirement benefit program, but I found the advise a little too generic and I was uncomfortable with some of the advise.  So I am in the process of of engaging a fiduciary financial advisor ( have his packet on my desk in the den).  To be sure I know that my expertise in this area at best makes me dangerous.  It is always good to know what you don't know and get help.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

×
×
  • Create New...