Bud plans to retire as soon as the nation recognizes the value of his collection of carburetors. His daughter has suggested a monthly budget. Bud has replied that budgets are what they want you to have. Nobody has been able to establish who ‘they’ are, although the power company has made a compelling opening argument.
He intends to fund the first year by selling things in the second shed. An inventory found four broken weed eaters, a box labeled GOOD EXTENSION CORDS and twenty-three containers of bolts that might fit something. Bud has valued the contents at ‘a fortune, to the right person.’ The right person has not been born.
Leaving work and claiming Social Security are separate decisions
Retirement benefits can generally begin at 62, with a reduction for claiming before full retirement age. Waiting after full retirement age can increase the monthly benefit up to 70. For people born in 1960 or later, full retirement age is 67, subject to the SSA’s birthday rules. The right choice depends on your own circumstances, including cash needs, health and household benefits.
Bud has interpreted ‘waiting can increase the monthly benefit’ as permission to make no decision whatsoever. We have clarified that deliberation and avoidance are separate retirement strategies. One involves reviewing estimates. The other involves going outside to check whether the lawn needs to be mowed for the fourth time this week.
The thermostat cannot absorb every financial problem
Build the budget from actual expenses and your actual benefit estimates. Include housing, food, transportation, insurance, debt and the irregular costs that never seem irregular when they arrive. Bud’s budget currently contains one category called BILLS and a second called NONE OF YOUR BUSINESS. Neither contains a number.
His proposal to cover every future shortfall by turning the thermostat down two degrees has been referred to the family’s Unfunded Expectations Committee. It is a small committee because nobody volunteers for a second term.
The emergency fund must contain money. Six unopened cans of penetrating oil are a maintenance strategy.
Use the official SSA estimates and the CFPB planning material linked below. Review the household picture before making a claiming decision. Then choose a plan you can explain without ending the explanation with ‘You’ll see.’ Bud has used that phrase since 1986. The family has seen considerably more than he intended.