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Finally Paid Off The Auto Loan

April 3rd, 2017 at 12:29 am

Hello Everyone,

I have not posted in a really long time, but I have been keeping my pages up to date. The good news is that I paid off the car loan almost a year early. I had been making double payments each month for the past few months. Saturday, I decided to just pay it off with the overtime I have been working lately. I am now debt free except for the mortgage.

A huge life event will possibly be coming up this Fall. The decision is whether to retire. I turn 65 in October and will be eligible for Medicare. I am sick of my job, and am ready NOW to retire, but with a medical issue here and there, I will just have to wait. So I am just padding the ole 401k until I make the leap.

I have been using a few financial websites and their calculators to see if a comfortable retirement will be viable. I am borderline to okay. One of the biggest determinants is the unknown, which is how long will I live. And the corresponding biggest fear is outliving my savings. If only I had the sense to invest for retirement at an earlier age!

Posted in Debt, Retirement | 8 Comments »

8 Responses to “Finally Paid Off The Auto Loan”

  1. snafu Says:
    April 3rd, 2017 at 02:26 am 1491186378
    1491186378

    Congratulations on paying off your car loan. You are part of a tiny percentage of Americans driving fully paid for vehicles. Good on you!

  2. Dido Says:
    April 3rd, 2017 at 03:05 am 1491188726
    1491188726

    Congrats on paying off the loan and on the impending retirement. Right before and after retirement is the the time when working with a financial advisor can add the most value. Research indicates that advisors add 1.5 to 3% in returns, not so much thru asset allocation but rather through decisions about asset location, withdrawal sequencing, tax efficient investing and planning, and decreasing the likelihood of poor decisions. A good advisor can potentially add six to ten years to how long your portfolio will last even with the fees. If you look, look for an RIA, not a broker-dealer, as RIAs (registered investment advisors) are fiduciaries. If you aren't inclined to turn your money over to be managed, there are some advisors who work on an hourly rather than a percentage of assets basis, and you'll get the biggest bang for your by k early on because withdrawal sequencing problems have a much bigger impact on portfolio longevity in the first few years of retirement than they do later on.

  3. Petunia 100 Says:
    April 3rd, 2017 at 03:06 am 1491188770
    1491188770

    You are on the verge of a VERY exciting change! That's so great. Best of luck to you.

  4. Dido Says:
    April 3rd, 2017 at 03:07 am 1491188878
    1491188878

    And if you're totally a DIY type, do some reading on sequence effects.

  5. CB in the City Says:
    April 3rd, 2017 at 05:23 pm 1491240195
    1491240195

    I would recommend waiting until full retirement age (for me it was 66) because it will make a big difference in your Social Security. Even better if you can wait to draw from SS until you're 70. I realize that may be tough, but one more year might be worth it.

  6. rob62521 Says:
    April 3rd, 2017 at 08:56 pm 1491252995
    1491252995

    Awesome of paying off your car loan! Good job. Are you putting that extra money away? Or using it on the mortgage?

    Hope you can retire this fall. I'm fortunate I could retire last May. It is indeed a blessing!

  7. Dental Floss Tycoon Says:
    April 4th, 2017 at 01:15 am 1491268513
    1491268513


    @rob62521: As far as the extra money from the monthly car payment, I think I will just put it into one of the Online Savings accounts to increase my cash.

    @CB in the City: Waiting until age 66 to retire would increase the monthly benefit about $140/month, and waiting until age 70 would add about another $700. But I am so sick of this job, I would like to just throw in the towel. I am ready for a change, even if it means living on less.

    Thanks everyone for the encouragement!

  8. snafu Says:
    April 5th, 2017 at 03:12 pm 1491405173
    1491405173

    I not only ceased working but made huge changes to our lifestyle. I hope you've been following CB's blogs as they accurately depict the planning and discipline that goes hand in hand with protocols that will increase future SS benefits when needed the most.

    I suggest creating a list of events that covers your initial 6 months as a retiree. What is the plan when the current school term ends? Do you have a wish list for mid June thru September? I started with partly done task that needed time to complete. Oh my it felt so good to finally see Done! Summer here is lovely and it was grand to not work to a schedule. I filled in one activity a day until September.

    It helps to begin experimenting with a new cash flow program immediately, working out the cut back in income as a retiree...possibly 85% of current net. Do you know your 'FICO' . How do you see your lifestyle/activities segmented in 5 year periods? For example many retirees see themselves fulfilling plans put off for lack of time... Initial 3 months fixing/organizing/updating current home. Three different travel plans stretched over 18 months. Plans for entertainment, time with family and attention to all the significant holidays and personal remembrances.

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