Our financial situation is not a worry for us. Sue is a financial advisor and CPA and I have been investing in (and a student of) the market for at least 30 years. Part of what remains for us to decide is to say "how much is enough?" We don't have a good answer yet - and might not ever have one.

There are two elements of financial risk for us. The first is the fact that my CG retirement will cease on my death. The second is the high probability that one or both of us will eventually need long term care. She has her own retirement provisions (401k.) That and investment income will be enough to keep her going in the event of my death. We researched and then purchased a good insurance policy for long term care so that should it be needed, the survivor will not be left destitute.

The other major risk (aside from financial) is health. Other than nagging problems, we both are in good health. We work out regularly (together.) We eat healthy (but not obssessively.) We don't smoke and we are moderate drinkers. As far as I can determine, we are doing what can be done with respect to the risks of ill health.

Our BIG UNKNOWN is that we have no idea where we want to live. We love the area where we live now but it is metropolitan and too expensive for retirement living. Also, our house is far too large for a retired couple now that the children are really, really gone. I would love to listen to what others have to say about good areas to live in retirement. We have looked in the Raleigh Durham area of NC and liked it ok. We have poked around the Outer Banks quite a bit and love it, but doubt it is a good area for retirement.

Part of the problem is conflicting desires. I love rural places with dark, starry nights. We both love the shore and listening to the surf. Sue is a city girl at heart and loves the energy of big cities. I love the mountains and the plains (Texas, New Mexico, Colorado) and she breaks out in hives at the thought of moving back to Texas.

Fred & Donna V.

My thoughts on retirement....worth exactly what they cost ya. ;<)

However much money you have in retirement is .....enough. When Donna and I were both working we managed to spend most of what we made. We retired almost 9 years ago (!!) and we're still spending most of what comes in...and yet we manage to have everything we really need, and a few of the things we really WANT on just my USCG pension. It isn't a lot, but we manage to maintain 2 homes, 3 boats, 2 cars, 5 motorcycles, and enjoy frequent trips to visit our kids and the grandchildren. Good health helps a lot. Knowing how to live well on the cheap is a BIG plus. I could write a book on that subject !!

Being happily retired means eating well AND sleeping well. Not too many people in the world can say they do that.

Paul Allen (#2 at Microsoft) lives in a modern-day castle down the street from us here on Mercer Island. My annual income would be lost in his pocket change. Is he any happier than me ? I doubt it. Donna loves the Seattle area, and I have a deep attachment to my childhood lakeside cottage in Michigan. We enjoy the seasonal changes at both residences. We spend a few months at each place. We both enjoy winter cruising on our sloop in the Caribbean. Would either of us consider going back to work ? Not for a microsecond. Retirement to us means never having to apologise for doing absolutely nothing !

The intent is to spend our last dime on the last day. Neither of us is contemplating much time alone after the other is gone.

Long term care isn't an issue with us...when the time comes, we'll simply take a "walk off the bow".

OTOH, our estate is adequate if we should get cold feet. We'd just start selling off assets.

My personal goal is to collect retirement pay at least as long as I collected an active duty paycheck. Beyond that...."we have no plans, and we're stickin' to 'em."

One bit of advice: When you retire, don't move during the first year. If you want to try out a new locale &/or lifestyle, rent it Whether it's a boat, motorhome, apartment, or overseas villa. RENT it for a year....and don't burn all your bridges. We've seen too many cruisers who, in the pursuit of a dream, sold their house, furniture, cars, etc. Then they bought a big expensive boat and found out (after a few months) that the dream wasn't what they expected. Follow the dream....but give it a trial period before jumping in with both feet. End of advice.

We'll fly from Seattle to Florida Nov 19th, spend a few weeks with the grandchildren, then we're off to Trinidad for the winter, cruising slowly from island to island. The good times do, indeed, roll.

How long will it last ? Who knows....but one thing I do know; I never heard of anyone's last words being: "Gee, I wish I'd spent more time at the office."

Howzat for a retirement philosophy ? :<))

best regards,
Fred and Donna V.

Sandy K.

As to retirement, have you thought about Cape Cod? You can be near the shore and in a semi-rural setting, but only 60-90 minutes from Boston and its cultural and educational institutions and events. The weather is great except for a few weeks in the winter when you could travel to visit classmates in warmer climates.

Bruce A.

With regard to your comments on retirement, this bear market has certainly changed my view of "how much is enough"?

Don't know if you have followed the change (made last year) of the amount that you can put into retirement plans for 2002. I must caution you that I am a lay person when it comes to knowledge of tax matters, but according to Fidelity Investments, the limits on such things as self-employed retirement plans, such as 401-K's and SEP-IRA's, increases dramatically in 2002 from around $12,500 to almost $40,000 (up to 25% of income) per person. Thus, there's some real incentive to figure out a second career as a self-employed person if you decide that its time to do something different in life.

NOTE: Bruce has a good point. I am not sure of the exact details but there have been some changes that benefit self employed. My advisor says to get good financial advice from an expert befitting your specific situation. Apparently there are quite a few complications if you have any employess - so get the facts.

Thanks to Bruce for bringing this up. Very good point.

Chad D.

Two years before I retired from the CG, I figured my retired pay and started living on that. Put the difference in savings and it was enough to get two kids through college. Plan on doing a similar thing before Joan retires from teaching. The numbers look good but there is nothing like trying it. Worst case you have just padded your savings account.

As far as location the Oregon coast has always appealed. A big draw back though is getting to a cheap hub airport. We are only 30min from BWI now and of course my boat slip rent is $325 a YEAR.