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Hi
How is the insurance BU project to work? And if we do not like the project what is the process to change the project that we are looking domain for? I am from background of Banking and capital market domain Persistent Systems Limited Persistent Systems Limited Tata Consultancy Cognizant
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I’m 59 and about to retire. I’ve accumulated more net worth than I ever imagined and arguably am set for life
I do have some agita over the market tanking by 30-50%. I am insulated by having a diverse portfolio and a couple years in cash - but if we have a 2000/2008 crash that takes many years to come back, that’s a concern - but I feel good I have mitigated this as best I can
I do have anxiety over healthcare - gotta bridge the next 6 years until Medicare kicks in. Aside from expensive - and rising - premiums, I am anxious about encountering one or more serious medical situations that are not adequately covered by insurance. I’m also concerned that our entire medical complex is getting so much worse and so much more expensive. Without getting political, I am concerned that our current administration doesn’t appear to have any plan for affordable healthcare other than gutting ACA - and seem to favor corporations over the citizens. (BBB for example) It’s probably irrational, I will have access to cobra, will research the ACA markets and have an option to simply buy a policy - but “medical bankruptcy” is absolutely a thing in the US
Take your money and go to another country. I would certainly be considering it if I were that close to retirement.
Also without getting political, that’s a totally rational and reasonable thing to do. I liken it to the pack of Trump bros that are actively packing up and leaving Washington / California to move to Texas / Florida because they want to avoid the coming wealth tax. It’s a rational response to the policy decisions being made in those states. Same can be said of HNW US citizens that find they can get better quality of life and more for their money somewhere else.
Mentor
I'm retiring next year (retirement date set, training my replacement) in my late 50s and have no such concerns. None of my colleagues who retired in the last few years shared those concerns either.
I think if you do the modeling now, while you are still making a great living, it brings a level of comfort. You also need to be appropriately diversified and not just have your life tied to the stock market. We have had a great last 3 years, but you need to go back 40 years (which, coincidentally, is my work life) to have a better reflection of what the markets and other assets might do. I was a kid during the 70s inflation, but still remember my parents making ends meet in the 70s and 80s. I was working and investing during the 90s malaise, Y2K, the 2007 financial crisis, and covid. I'd like to think I learned a few things along the way.
With the proper modeling, you end up realizing that you have prepared for every reasonable contingency. If you have a psychological issue with worrying about running out of money, you either haven't done the modeling or the modeling says you haven't saved enough.
Subject Expert
It’s curious these people would know “so many people” who ran out of money when we’ve had one of the biggest bull markets ever last 15 years.
They must be comparing themselves against others who made huge mistakes in entirely different situations to themselves.
Do you think they truly have this irrational fear, or are just telling you a story because they don’t want to discuss the real reasons they haven’t retired yet?
Plenty of people run out of money , has nothing to do with market returns. Running out of money is a spending problem
Some people like to die very rich
Subject Expert
Crazy stuff. Billionaires are still incredibly rare.
Assume they must have sold an extremely profitable business.
Running out of money might just be the excuse. Retirement is a huge unknown for people. They worked really hard to get into this comfortable situation, and I’d probably be hesitant to change anything.
We always need to consider that people are living much longer than they used to. A lot of us probably have elderly relatives who have run out of money, or at least have run low, because they're living into their late 80s and 90s. Some people have a pile where that won't matter, but a lot of people do simply outlive their money.
I think people have gotten spoiled with the consistent growth of back accounts and can’t stomach that stopping .
That is so weird. I don’t know any people like the people you are describing.
Inflation, sequence of return risk, overspending, and health issues should all be concerns, but planning and discipline can mitigate some of them.
People hate seeing their account going down even if there’s plenty in the pot. For those who did it, I’m curious how big your pot was before you felt comfortable. Personally, I’d want to be a multimillionaire before I felt comfortable retiring.
Subject Expert
Sometimes people genuinely don't have as much saved as they should and that's why they are anxious.
Sometimes they have medical or LTC as a big nebulous spectre they haven't modeled and that's why it scares them.
And in some cases it really is just psychological.