Retirement Planning

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Parent Q&A

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  • looking for targeted retirement advice

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    Jul 7, 2025

    Hello dear BPN members - 

    After a lifetime of living frugally and saving everything I could, I have a carefully-thought-out retirement plan that has me retiring early -- in two years. I feel very lucky! But I'm also completely burnt out and want to leave my current job immediately, if not sooner. The idea of suffering through two more years of my current job is becoming hard to bear. Can you recommend a person (or an online service) that can help me map out alternative scenarios and which might work best?

    For example, one idea is to quit now and go work overseas for a few years (which would involve a salary cut, but would allow me to avoid tapping into my pension early). I already have a good offer (at half my current salary) and I'm intrigued by the opportunity to have a new life adventure.

    Another idea is to build an ADU on my property, move into it, and rent out the main house. That would hopefully provide some steady income, allowing me to downsize and travel. But it's hard for me to calculate when or if I would break even on this proposition. In addition, I'm not sure that being a landlord is my cup of tea, and would want to explore having a property manager - more cost, less return on investment, but also less responsibility.

    I realize I'm in an incredibly fortunate position, and I don't want to mess it up by making a poor decision so close to the finish line. Thanks for any and all advice! 

    Jul 7, 2025

    I congratulate you on having a retirement financial plan and not just waving your hands around and assuming it all works out!

    Building an ADU in the scenario you describe doesn't make sense as presumably the same cash you'd use to fund the construction, is drawn from your retirement fund. Also don't discount the emotional toll of being a "tenant" on your own property where you also have the headache of being the landlord.

    Going overseas to work sounds fun if that's what you want to do and it fits into your life plan, not as a stepping stone to financial independence! Why... wouldn't you just get a new job here for a couple years? Are you looking?

    Finally, 2 years is extremely close to the finish line. Can you push that up by getting overtime, picking up contract work, drastically reducing expenses somehow for a few months? 

    Jul 9, 2025

    It sounds like it makes sense to look for a new job, that’s a bit different from your current one. It could relieve some pressure and perhaps inspire some new options. 

    Good luck!

    Jul 9, 2025

    Hi there, I can relate to many aspects of your post. Just a few comments on the ADU issue. I had similar questions (absent theone about the property manager; more later) when I started considering an ADU.  

    This was about a decade ago now; for context, construction prices have increased dramatically, and rents in Berkeley have also softened (although my personal belief or hope is that this is less true for a cottage than multi-unit apartment buildings). 

    One thing I did at the time was visit a financial advisor; I remember his conclusion being “you can’t afford not to do it”; that’s how good an idea he felt it was at the time. I did take the plunge, and have been renting out my ADU since. 

    Several thoughts: you will be sharing your property very closely with another (or others),which is both a plus and a minus re: being a housing provider. (I personally view it as a large plus.). Given this, in my view you absolutely do not want a property manager choosing your tenant(s), nor being a go-between if issues come up (repairs, concerns, etc).  You will be face to face with your tenant on a daily basis; this needs to be someone you connect pretty well with - & this isn’t something a property manager can assess for you. Now, if you’re planning on both being abroad and having the ADU that would of course be different. 

    Secondly, make sure you understand Berkeley’s rent control regulations (assuming you are in Berkeley). Being under rent control and/or eviction protection changes everything about being a housing provider, and not in a good way. Especially for the eviction protection issue, with someone living in your backyard and feet or yards away from you. That being said, I believe you would be exempt from those, but PLEASE verify this first (either with the Berkeley Property Owners Association, BPOA, the Rent Board, or both). If you do move forward, I would say joining BPOA is a must. 

    This piece of my retirement planning has worked out well for me, and I’m happy I made the choice. Not every minute is peaches and cream, of course, and there’s a steep learning curve, but you’ll learn things and grow in confidence rather quickly. I’ve had 7 renters (sometimes couples) in the time I’ve had the ADU, and only one I would describe as awful; the remainder have been a pleasure, and the income stream certainly helps. 

    One other recommendation, tour a few ADU’s before you decide, and talk with at least a few contractors to get an idea of pricing, designs, timing, etc. Also read up on zoning requirements etc.  At the time I was considering building an ADU, there was an ADU Task Force that held workshops etc.; I’m not sure if that (or something similar) still exists. 

    If you have questions I’m happy to answer them, and I wish you good luck in your decision making. 

    Jul 9, 2025

    Congrats on your soon retirement.

    Building an ADU can  be expensive and it will take time, more if you do it with permits.. and then being a landlord is not that easy either. It is still a good option for the future.

    Working abroad can be a lot of fun, if it is what you want and depending where… what would the living expenses be? Also maybe a great opportunity to enjoy a new city with a good cultural scene cheaper than here, even if you get pay less. The Bay Area is so expensive that you may be surprise on how far your new salary takes you.

    Good luck!

    Jul 9, 2025

    In regards to the living overseas option please make sure you have good cross boarder tax advisors. It can be costly for the ill informed. 

    Jul 9, 2025
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  • retirement resources--planning for parents retirement

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    Feb 18, 2025

    Looking for recommendations to help my parents (mid-60s) plan for and adjust to retirement.  They are both very identified with their jobs and struggle to imagine what retired life could look like that is as fulfilling as their long careers have been.  They are likely to keep working until physical demands and/or industry changes force them to stop.  I don't think they have a ton of money saved, which likely factors into their situation.  Wondering if anyone has recommendations on books, podcasts, or even therapists or support groups that could help with the transition.  I've always thought of retirement as an exciting and freeing time but both my parents are approaching it with a lot of resistance and hesitation.  Thanks in advance for your kind suggestions.

    Feb 18, 2025

    As a retiree who is very busy with immensely satisfying activities, I cannot imagine relying on my adult offspring - be they ever so well-meaning - to help me "adjust to retirement".

    First of all, from what you have written, I don't see any compelling reason why your parents would need to retire, if they enjoy working.

    Depending on the circumstances - assuming that they are not, for example, federal park rangers being forcibly dumped by Elon Musk - many employers would be willing to orchestrate a ramp-down in hours worked per week..

    If your parents are "very identified with their jobs", perhaps they can continue to practice what they do in some way, if not as part-times, then as mentors or volunteers.

    If they "don't have a ton of money saved", perhaps they can parlay their skills into starting a business, or consulting.

    These are just some thoughts.  If what they are doing works well for them, don't try to fix it.

    Feb 19, 2025

    Hello, that's great that you are trying to help ease your parents' concerns. I don't have specific book/podcast/therapist recommendations. But I did want to offer than some employers are willing to do "phased retirement" -- basically reducing hours when physical demands of work make it impractical to work full time. Since they both identify strongly with their jobs, this could be a way to keep working even as it gets harder physically. Depending on the type of jobs they have, it could also be possible to do consulting/advisory work in their fields, which can offer a lot of flexibility in work location/hours/etc., while still being involved and making some money. Once they stop working fully, there could be ways to remain active in their career fields if they do white collar type work, such as LinkedIn posts, blogs, professional organizations, volunteering, mentoring. I think there may be ways to end "the grind" of work but not lose that part of yourself and identity. Another thought is that they must have some other interests besides their careers - can they foster these while they are still vibrant? It can help if retirement is not just a loss of something, but a gain of something else. Lastly, while I don't have specific book recommendations, the public library could be a great source of books on the transition to retirement, and the librarian may have recommendations or be able to help you find these. Best of luck to you and your parents!

    Feb 26, 2025

    Very good of you to want to help them. The libraries run programs around retirement, and there are also two senior centers in Berkeley, and one in Albany. They may be realistic about their financial situation, and want to keep working for as long as possible so as not to burden you. They are likely to have retired friends and co-workers they could turn to for advice. My one piece of advice is to sign up for Medicare Part A as soon as they turn 65 -- it is free. When they actually retire, they will need Medicare Part B, and either a supplement or an advantage plan. (Most of the advice is to avoid the Advantage Plans, because the coverage is more limited.) My thought would be to actively listen if they bring this up, but to assume they will figure it out on their own. (The same way one does with young adult children.)

    Mar 4, 2025

  • Budget retirement - housing options in Bay Area

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    Sep 27, 2024

    I currently have a part-time job but I might go into forced retirement.  I know I have to sell my townhome due to associated costs, and would like to stay in the Bay Area where my friends and doctors are, but are there any realistic fairly inexpensive options?  I am also wondering if it is better to just take my social security now (I am 62) or wait (but I would be living on withdrawals from my 401K).  I've gotten stuck trying to figure out what to do.  Thank you for any tips or information you have.  

    Sep 27, 2024

    Please approach this very thoughtfully and carefully - finding an expert would really be a good idea!

    For starters: the earlier you start to draw social security, the smaller the payment - and it doesn't catch up later! Looking at my own statement (I'm 64) it will go up by at least $100  a month until I'm 70. If I start drawing now, I would get $700 less per month than if I I wait until I'm 70. Maybe that would be worth it for you - I can't say - but finding a financial planner is a really good idea. Perhaps your 401K administrator has some services to offer you.

    Oct 2, 2024

    Sorry to hear about your forced retirement! While everyone's situation is different, it's generally recommended to wait until full retirement age of 67 before accessing Social Security. Initiating at 62 can result in the loss of thousands of dollars per year in benefits.

    You may want to consider consulting with a financial planner. My partner and I have worked  with Cheryl at Balance Financial Planning. She is super reasonably priced and an honest human. Hope this helps!

    Oct 2, 2024

    Are you contemplating "forced retirement" because of medical issues?

    If not, my advice would be to not start drawing Social Security for as long as you can possibly wait, or until age 67, whichever comes first.  

    There are "Now Hiring" signs up all over town.

    I am now 73; I retired at 65 and wish I could have stuck it out s bit longer in order to receive a higher retirement income. I have a friend who was in your position. She took Social Security at age 62 and does not benefit from cost-of-living increases as much as she would have if she had waited until age 85 or older. She's always complaining about how poor she is. 

    In terms of housing, the downside of owning a townhouse/condo is the unpredictable HOA dues and sudden assessments for things like roof repairs.  But unless you are lucky enough to be able to share a single family residence with a compatible housemate, all the "affordable units" in new, dense, highrise buildings have the same downside.

    Are you affiliated with UCB? Can you check the housing office?

    Would it be worth getting a housemate and keep your existing townhome?  Could you take in visiting faculty or postdocs who change from year to year?

    Wishing you all the best with a difficult situation.

    Oct 2, 2024

    This is a very complicated set of questions, and I really think you should be getting advice from professionals.  That said, I will chime in on one aspect of your post.  

    "I am also wondering if it is better to just take my social security now (I am 62) or wait (but I would be living on withdrawals from my 401K)."  I recommend that you look at what your annual benefits would be at each age from 62 to 70.  The benefits go up each year, but you have forgone the prior year[s].  How long would it take you to recoup the unclaimed benefits solely because of that increase?  That was the critical question for me, and the tipping point point turned out to be around age 68/69.  I ran it by my older brother [a long-time actuary for the state of New Jersey insurance department], and he agreed.  But every case is different.  

    Can you make do for a period of time on 401(k) withdrawals?  Would that exhaust your assets?  Would you later be able to live on the increased Social Security benefits alone?  How much could you expect to gain from selling your townhouse?  Is that really a necessary step versus, say, a reverse mortgage.  These are the questions you need to ask yourself -- and preferably ask an experienced financial advisor.  A good place to start might be the North Senior Berkeley Center.  https://berkeleyca.gov/community-recreation/seniors  They may or may not offer this service themselves, but I would be very surprised if they did not at least have places to refer you to.
      
    Best of luck

    Oct 2, 2024

    Hi, I have been contemplating similar issues for a while now. 
     As far as housing, you might try looking for an detached auxiliary dwelling unit (ADU) in a neighborhood that you feel safe. 

     as far as Social Security, the website has some good tools to see how your payments will increase over time, depending upon when you take it. 
     You should at least wait till 100% full retirement age if you; you can also figure that out online based on your birthdate, if you don’t know it already . 
    If you wait till full retirement age, you can work part time and also receive Social Security. 
     I went to the Social Security office and requested a phone call at a later date. A retirement specialist called yesterday and it was very useful. 
     particularly as I have ex-spousal benefits. 

    Finally, I hired a financial planning specialist to discuss retirement Planning.  If you happen to have money in any of the big financial institutions like Fidelity, you may be able to get that service free.

    Good luck, it’s not easy out here in the desirable Bay Area! But I do believe solutions are to be found and hopefully there will be more and more….

    Sue



     

    Oct 2, 2024

    You got a lot of good advice related to social security and seeing a professional.  I will add that some research I've done about housing.  I think there are some interesting co-ops you might explore and housing advocates that could help.  https://phoenixcommons.com/ has shared spaces and expenses so it seems a bit less expensive than a traditional townhome.  It seems like other options like this might exist.  You might try calling united way at 211 to link you so some low cost or free advice on both housing and social security. 

    Oct 12, 2024
    Recommended:
    Housing for Seniors

    Original poster here.  Thank you so much for the advice, tips, and recommendations.  It points me to getting some handle on the numbers, and also possibly co-housing opportunities.  I appreciate the help!

    Oct 22, 2024

    I know you want to stay in the bay area but based on my mom's experience it's far easier finding less expensive options elsewhere. She found a nice and safe place in Seattle that she could afford on just her Social Security. https://www.humangood.org/northaven-west If things don't work here in the bay area you may want to consider widening your search to other cities.

    Nov 18, 2024
    Recommended:
    Housing for Seniors

  • looking for retirement advisor

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    Jun 30, 2024

    I have an investment advisor who also does retirement plans but I'd like to talk to someone who is tax centric and can guide me through the best ways to manage my withdrawals with medicare costs in mind, etc.  Right now, I feel that I can make mistakes in withdrawal amounts that can put me in a higher tax bracket and a higher medicare cost bracket.  I want someone who proactively plans withdrawals and spending to minimize taxes and costs  Does anyone have a recommendation for someone who knows this aspect of retirement?  Thanks in advance for any guidance you can provide.

    Jun 30, 2024

    Hello there -- we have just the kind of financial planner/retirement advisor you're seeking: https://elmwoodwealth.com/ Our family has been with Elmwood Wealth Management (510-858-2723) for over five years now, and our in-laws have also come on board. What stands out about the team at Elmwood Wealth is that 1) they operate as a team -- we work closely with Bob, Shannon and Julie, and don't feel "passed along" to junior staff. The principals have even answered my panicked emails late at night at tax and year-end deadlines, though we're always working to minimize fire drills. 2) Tax brackets and implications have been a deep part of all conversations, whether it's real estate, the markets, ROTH contributions or other asset situations like estate planning. And they're helpful at tax time, making sure our CPA has what they need etc. 3) I enjoy their low-key "bedside manner" too. They're the opposite of a type-A, pressured environment. Their fees are fair and clear, and well worth it for our portfolio health and peace of mind. And I always enjoy our meetings with them. 

    Jul 18, 2024
    Recommended:
    Elmwood Wealth Management, Inc.

  • Fixed Annuities -- Perspectives from people who have them

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    Oct 29, 2023

    Recently met with a financial advisor at Fidelity my 401k (from a previous employers) is.  She ran a couple simulations that showed if we kept our retirement money only in a 401k we would run out of $ when I was in my early 90's.  Whereas, if we put assets from my 401k into a fixed annuity, we would not run out of $ during retirement and there would be a small amount of assets (from 401k) that our heirs would inherit (these simulations assuming below market returns and both myself and my spouse would live to late 90's).  I've done research online into the pros and cons of fixed annuities but wondered if anyone who has a fixed annuity can chime in whether they are happy with their decision to obtain one and if they had to do it again would they make the same decision.  I'm still 10ish years from retirement.

    Oct 29, 2023

    Short answer is yes I have one and I’m happy with my decision. 
    Long answer-there were so many things that weighed into my decision. What are my streamed of income for retirement (401k, ROTH IRA, SSA)? What if right when I fully retire, the market changes and I lose a fair amount from my 401k/ROTH IRA? (Like what happened to the folks in 2008 or 2020 after COVID hit?) Do I want a guaranteed income (mine has inflation adjustments every 2-3 years)? I did NOT use all of my 401k (from a rollover, when I left a previous employer), just a portion. And I also have a good understanding of my emotional capacity to tolerate market risk. If I didn’t have someone who walked me through this last point, I would not have fully understand where my anxiety about running out of money was coming from. 
    Basically, FIA work for some folks and aren’t necessary for others. 

    Nov 1, 2023

  • Fee-based financial advisor for retirement planning

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    Sep 27, 2021

    I need help figuring out if I am financially secure enough to retire soon. I will have income from a pension, social security and some savings. But I am not sure how to estimate how long this will last. In addition, I am getting a larger inheritance from my parents in Germany. I believe, there are no taxes due on this, but I would also like to discuss any potential tax effects and help with investing the money from the inheritance.

    I would like to work with a fee-based financial advisor. I am not sure if one professional would have the expertise for all these questions, or if I need to work with multiple advisors.

    Sep 27, 2021

    What good questions! Note that you are looking for three specialties: financial planning, tax advisor, financial advisor. I've been putting this together for myself over the past year or so in preparation for retirement. I have yet to find one person or entity that does all three in-house, certainly not fee-based. That said, I've found solid solutions for each.

    I recommend Sarah Behr at Simplify Financial (http://simplifyfinancial.com) for fee-based financial planning. She's in San Francisco and meets clients over Zoom during this time of pandemic. Sarah is straight-forward and thorough in her approach. Sarah helped me assess my overall financial picture in preparation for retirement and made recommendations for adjustments to my investment portfolio (self-managed, mostly in mutual funds). 

    Sarah is not a tax specialist, nor would I expect any financial planner to be, although she does know a lot about taxation issues related to investments. She can refer you to a tax specialist or coordinate with your tax preparer if you are already working with one. 

    As for help with investing the funds, I don't know of any financial advisors that offer fee-based service; all that I am aware of charge a percentage of assets managed. That said, you may not need to pay for this service if you are willing and able to self-manage with a little help. Consider looking into any of the major online investing platforms—Vanguard, Schwab, Fidelity, TM Ameritrade, etc. They all have automated programs where you can plug in your assets, goals, etc. and your assets will be invested accordingly. Schwab has free in-person support in their local branches.

    Search online to educate yourself before talking with professionals. Good places to start are https://www.wisebread.com and https://www.forbes.com/advisor/.

    Good luck in moving toward a stable retirement.

    Sep 29, 2021

    Mary Robinson is wonderful...she's an effective listener, is patient, and very thorough.  She's on the East Coast and we had several virtual meetings to get my finances in order.

    202.659.7432
    mrobinson32 [at] ml.com (mrobinson32[at]ml[dot]com)

    Mary Robinson - Merrill Lynch Wealth Management

    Sep 29, 2021

  • Flat fee financial advisor to plan retirement

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    Sep 11, 2021

    Hi!

    I am looking for a recommendation for a flat fee financial advisor. Someone who can easily walk us through some planning and help us figure out our retirement with our limited resources. We don’t have a lot to work with and are also interested in learning about low index funds. We are in our early 40’s ,  2 young children, a school teacher and an X-ray tech. We now live on the Peninsula but are willing to drive to the East Bay . Thanks in advance for your recommendation and or advice!

    Sep 11, 2021

    Highly highly recommend Sean Burgess for this: https://www.burgessfinancial.com/

    We've been working with him for a few years. He's flat-fee, fiduciary and very keen on index funds. We really like him, and though he's now based in Portland, all the visits are remote!

    Sep 15, 2021

    I highly recommend taking this short course at your own pace, especially if you're in need of simple retirement planning (401k, 403b, Roth IRA) and already understand that index funds are the way to go. I follow Jeremy on social media and his course is cheap and super helpful: https://www.personalfinanceclub.com There's also a ton of free resources too. This is the best $80 you can spend.

    Sep 19, 2021

  • Roth IRA for a Teen

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    Feb 18, 2021

    My teenage daughter earns occasional money from dog sitting. I'm looking to deposit an equal amount into a Roth IRA for her. Looking for some advice on where I could do so without a minimum balance or high fees. My first choice would be Vanguard but they have a $1,000 minimum balance. Once we get to $1k, I plan to transfer the balance to a Vanguard account. Until then, what's a good option? So far we are only starting out with $75 and not sure when the next dog sitting/money earning opportunity would be, but will probably get a couple more sometime this year. Thanks for any advice!

    Feb 18, 2021

    Nerd Wallet has a list of Roth IRA providers that have $0 minimum balances. Usually you have to commit to a regular monthly ACH deposit to qualify, but take a look and see if any of these work for you. https://www.nerdwallet.com/best/investing/roth-ira-accounts

    Mar 10, 2021

    https://www.schwab.com/ira/custodial-ira

    Mar 17, 2021

    https://us.etrade.com/what-we-offer/our-accounts/ira-for-minors

    Mar 22, 2021

  • Need Investing/Retirement Help: Financial Advisor or Planner?

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    Jul 27, 2020

    I'm mid-40's, single, no kids, self employed.1) what's an "acceptable" fee to pay a company like Vanguard or Fidelity etc to help manage your retirement investments (SEP/ROTH)? I know this kind of service requires a % fee, but what's considered "average" or acceptable?2) I'd like to find a Financial Advisor or Planner this group highly recommends. I want to learn more about managing my retirement investments, but need some guidance and education initially. (I've been reading a lot online and in books, but having a human to guide and ask questions to would be helpful). I don't want to be sold into specific funds the advisor is affiliated with. I just want guidance so I can eventually mange them myself and reap better returns. My previous investments were lacking in any strategy and I have a lot of catch up I need to do. TIA

    Jul 27, 2020

    Hi,

    I'm also in my mid-40s and self employed and had many of the same questions as you a few months ago.  I found a very good financial planner named Chris Foley who works for Edward Jones.  I was very skeptical about working with a financial planner because I was worried about fees, but Chris will look at your existing portfolio in detail and make recommendations personalized to your situation and goals, including different options for investments and fees, so that you end up something that you're comfortable will and better prepared for the future.  Note: you don't have to do a % fee approach.... there are other options.  Message me if you're interested and I'll forward his contact information. 

    Jul 29, 2020

    We work with the financial planning firm Reynolds and Reynolds in Atlanta and have all our meetings remotely. We specifically work with Nick Wagner. He’s great, and it’s cheaper work with someone who lives in a more affordable area of the country. Highly recommend.

    Jul 30, 2020

    I feel very passionately about this topic because I think that many financial advisors do not have their client's best interest at stake. I used to have a financial advisor for my family's retirement accounts, to whom I paid an annual fee of about 1.25% of assets, which is fairly standard in the industry. He put us into various funds of his choosing. About seven years ago I was reviewing the periodic reports he would send us, and I was shocked and angry to see that our portfolio was not beating the major indices, and yet we were paying a 1.25% annual fee and the managed funds we were in had high annual expenses! I would have been better off putting my money in the S&P500! About this time I was reading an article about a new company called RebalanceIRA (now called Rebalance360) whose mission it was to help regular people retire with more money by offering an investment strategy at a low cost. They help you identify your risk tolerance and then allocate your money into ten asset classes. They use index funds and ETFs, which have minimal fees. Then they rebalance your portfolio every quarter, bringing it back to your target allocation. They charge 0.7%. That half a percentage savings in fees, plus not paying the costs of a managed fund, make a huge difference in your return over time. They have an account minimum of $100K (I think). If you are below that level or want to do things yourself, then I would recommend Vanguard, which offers low fee funds such as their Target Retirement funds. Needless to say, I fired my financial advisor and moved my accounts to Rebalance, and I have never looked back. Their website has lots of helpful info: rebalance360.com   Good luck!

    Jul 30, 2020