VOICES ON RETIREMENT

Your road to and through retirement is likely to be as unique as your career path. And the size of your investment accounts will be only one factor among many in determining how successful your retirement will be.

That, at least, is the consensus among the dozens of Times readers who responded to our requests for retirement advice. You’ll find their thoughts and observations throughout this section, and their insights helped shape the stories you’ll read.

Readers told us that retirement is often not as simple as crossing the employment finish line at age 65. Some choose to work longer or cut back earlier; some left the workplace only to return later or start new careers. Sometimes money, or a lack or it, shaped their choices; the desire to stay busy, to contribute or to chase lifelong dreams was also important.

In fact, some readers complained that there has been too much emphasis on money in stories about retirement.

Even those who rated money as the most important factor for a happy retirement often said good health, engrossing activities and sound relationships were crucial. Over and over, readers said that developing a plan for living in retirement is as necessary as developing an investment plan to get there.

A selection of what readers told us follows.

On Money

What did I do to prepare for retirement? Financially, I contributed 9% to 10% of my salary the last 15 years into 401(k) plans with three different employers. I also accepted an “early retirement program” that provided me a small pension from my second-to-last employer. I was lucky enough to get into the bull stock market in May 1995 and watch my taxable investment moneys nearly triple. It has also helped financially that I bought my Mission Viejo home in 1985.

Money may be the most important thing. I believe it’s even more important if you retire early (under age 65).

Get help from a tax expert, because once you’re retired, you’ll need to pay estimated income tax for the first time, and most likely will need help with the paperwork going to the IRS and the state Franchise Tax Board.

So far, it’s good to be out of the rat race after being in it for 37-plus years.

--Jerry Wilson, 63,

Mission Viejo,

retired insurance executive

*

Time is much more valuable than money. Retire sooner rather than later if your financial situation permits. Don’t get caught up in making more now so you can have more later. There may not be a later, and how much do you need, anyhow?

I successfully survived a bout with cancer in mid-1997 that resulted in part, I think, from stress induced by my running a small business in the mid-1990s in an attempt to make money. I retired at the end of 1998.

--Norm Zareski, 60,

Redondo Beach, retired salesman

*

I am maxing out on my 401(k) contribution while my wife contributes some but not as much to her 401(k). In addition, we own a condo and plan to use a house as future retirement assets. I learned from my parents, who did not save a thing and are looking at working for a long time in their old age.

Most folks at my work who seem to have it together have their own retirement plan going, and a lot of folks see the stock market as a way to plan for the future--especially those who are my age. I pity those who do not participate in our 401(k), because I am literally tens of thousands of dollars ahead.

--P.E. Bishirjian, 31,

Long Beach, broadcast operator

*

Our advice to young people is to focus on the long term by first paying themselves when they get their paycheck. They should start by placing 10% of their weekly earnings in a savings account and never, ever spend it! These funds are to be used for investment only!

. . . Our retirement life is a dream come true, but it didn’t just happen. We now live on the beach, enjoy a vacation home, live off our investments and participate in the management of our properties to the extent we desire, and could afford impulse purchases but seldom do so.

--Marvin Patrick, 67,

Redondo Beach

*

I am a baby boomer, and I have been doing well socking away money for retirement. The big unknown is medical costs. I would have enough money to retire at 60, but I will not have enough medical protection--I’m not sure I could even buy enough. It is almost better to be poor and get free medical support. Social Security checks would be nice, but I am personally more concerned about being able to get the best medical coverage without breaking the bank.

--William “Bud” Betts, 53,

Redondo Beach, software sales representative

*

My wife of 45 years (a retired, honored teacher) and I lived modestly and saved modestly. We each contributed to pension programs, which now form the heart of our retirement income. After retirement, we met with, and later engaged the services of, a fee-only financial planner whom friends had praised. The plan he created for us should, with periodic review and modification, carry us through the rest of our days.

--Gordon Cohn, 66,

Long Beach, retired fund-raiser and public relations specialist

*

Since I had a general idea of what I would receive for retirement, I started planning about 10 years ahead. I wanted to maximize my discretionary income, keep my housing expenses to about 25% to 30% of my after-tax income, continue to have a comfortable lifestyle and be able to buy a new car.

By paying down the mortgage on my condo and determining what was actually important to me, I was able to cut my day-to-day expenses. I go to the library more and send more cards and fewer flowers! My avocations are not expensive: playing bridge, going to movies, reading, book discussion groups and church activities. I give modest gifts for special occasions but fewer Christmas presents.

My investments are all over the map. I keep enough in a savings account to feel secure, enough in conservative funds for my future, and take enough out to speculate a little for fun and, so far, profit. My IRA is managed by my broker and so far is doing well.

--Jean Bannigan, 69,

Burbank, retired assistant principal

*

Of course, money isn’t the most important factor, but an adequate supply sure makes the more important things easier to enjoy.

--Robert Leith, 71,

Newport Beach,

retired aerospace manager

*

We are semiretired and live primarily on our investments. During the 1960s, 1970s and 1980s, we bought rental real estate and beat inflation. After the 1986 tax reform, we began selling real estate and buying momentum stocks.

It isn’t that hard to figure out what to do for your retirement. Inflation drives up real estate, which makes it a better investment when the overall price level is rising. Without inflation, stocks are easier to manage, quick to sell, and the roof never leaks on IBM.

The hard part is to not take that trip to the Greek islands but to put that money into investments. We did that and vacationed in our little motor home or at our condo on Mission Bay for years while the kids were growing up.

Now we make up for those deferred desires by taking great cruises (but we still use the motor home in Yosemite). So maybe you need to have simpler tastes to really save money. You can have it all, just not all at the same time!

--Carter Comaford, 65,

Rancho Palos Verdes,

executive search consultant

On How to Spend Time

I retired from a rather demanding and busy corporate position with a Fortune 200 company a little over three years ago. Money has not been an issue, since we had planned for this event many years ago. However, the sudden stop of my daily busy routine was tough. It took me about six months to fully adjust to being retired.

The solution was threefold: I replaced some of my work-related time with time spent volunteering with various community and civic organizations; I expanded my discretionary time to enjoy more reading and hobby activities; and, last, I was able to mentally transition myself to my new lifestyle and still retain a positive self-image.

I believe it is probably equally important for people to plan for the social adjustment of retiring as well as the financial element. Not enough is said about this, since our primary focus is financially driven. Some companies have programs allowing employees to gradually phase down their schedules to prepare for retirement. This helps prepare the near-retiree and also permits the company to plan in advance for the knowledge transfer necessary to retain business-necessary knowledge and skills. From my experience, I would certainly encourage social-adjustment pre-retirement planning.

--Alan Silcock, 63,

Newport Beach, retired human resources director

*

Retire? Not me!!! I am 76 and active in recycling equipment, system analysis and design areas. I love the business, and I could also use the money. It keeps me and my mind active.

--Duane C. Maybay, 76,

Yorba Linda, business owner

*

Several of my friends are wrestling with the specter of retirement: They are fearful that they won’t know how to fill their time. What troubles me is that they may not have known how to fill their time in all the years leading up to now.

In 1992, I retired at 59 1/2 after more than 30 years on the staff of the University of Southern California. Since then, the interests accumulated over a lifetime--exercise, reading, writing, travel, films and theater, photography, friends, dining out, and children and grandchildren--have managed beautifully to make for a succession of ever-too-short days and a great deal of fulfillment. I don’t know how I managed nine or 10 hours a day of work, for decades!

Living each day as fully as we can--not money--has always been the most important thing. I am concerned that so many people go through their lives with so little outside their work. What I see missing in their lives most often are activities that test their minds; they seem to content themselves with only that which is old and familiar, the habits of a lifetime rather than anything new: another language, a difficult book, lifting weights, exposure to all the beauty of the world for which they never had time when working all day.

--Gordon Cohn, 66,

Long Beach, retired fund-raiser and public relations specialist

*

My goal is to “retire” at 55. At least, that’s the age I hope to stop working for a paycheck and start working for myself--

volunteering for favorite causes, some consulting and definitely travel (if God allows good health). At 35, my present job has days that make me wonder: “What is this career crap all about?!” Challenging and fulfilling, yes. But it is often a headache from sunrise to sundown.

I’ve recently watched several friends and one of my parents retire. The ones who are happiest were busy, well-rounded persons prior to retirement. After retirement, they were still busy, well-rounded persons. Volunteering and staying active, often utilizing skills learned when in the working world, lead to the happiest retirees.

--David Eder, 35,

Los Angeles, management analyst

*

One of my concerns about retirement was that I would become irrelevant and lonely. I live alone.

I found my new relevance in volunteer work, reaching out to others and benefiting myself in the process. I volunteer for about three or four organizations. With all of this, I still have plenty of time for doing other things I enjoy.

--Art Kuhne, 68,

Fullerton, retired advertising

executive

On Planning

My answer to retirement is plan, plan and plan some more prior to setting your retirement date.

I retired from the California State University system almost three years ago, and I have been very happy.

About five years before I retired, I contacted [CSU’s benefits office in] Sacramento concerning available retirement benefits. I asked for information using three different years when I might retire, to give me more options and time for planning. . . .

My advice is: Don’t let co-workers convince you they know more about retirement than you. Research and planning will benefit you more than what a co-worker can tell you. Go to retirement workshops--they can be very valuable. . . .

Also: Pay off debts as much as possible. The more available funds you have, the more fun and enjoyment you will have.

--Jackie Roose, 67,

Woodland Hills, retired

college admissions officer

*

My husband and I each worked in overdrive for 40 years. We decided to be proactive about our retirement. We worked with a skilled financial planner, updated our wills and discussed them with our three children, took comprehensive care of our health, decided where and how we wanted to live, explored and experienced new activities during the five years prior to retirement to remain intellectually and physically active, expanded our horizons and took risks, discussed and planned what we wanted to do separately and together. The result: two people who have never been happier.

--Ellin Lieberman, 68,

South Pasadena, retired physician

*

Psychological planning is a critical area that is often ignored or underestimated. I have seen many “retirements” fail for various reasons.

First, be sure you are really ready to retire. Don’t say you will travel or play golf or work in your garden. That just will not work.

Don’t retire in a fit of anger--this is one area that I have seen all too often--or because of a perceived slight such as being passed over for promotion. Think it out; take your time.

I spent six months agonizing over my retirement. When I finally did retire, it was like the weight of the world had lifted off my shoulders.

--Louis J.A. Villar, 70,

Anza, Calif., retired

aerospace manager

*

You go from being a vital, essential person at work one day to a nonentity the next. Try to find a way to work part time or slow down gradually to lessen that shock. I helped train my replacement and then looked for volunteer work and activities in the community.

--Ted Doty, 79,

Torrance, retired meteorologist

*

As a doctor, I anticipated my retirement from family medicine and geriatrics with a five-year plan. First, I became trained as a nursing home medical director and became certified by the American Medical Directors Assn. Second, I reactivated my appointment as a clinical professor in family medicine at a local medical school. Third, I prepared to sell my practice to the most interested party.

I am now retired from my medical practice, but I continue as the medical director of a senior residential center and as an associate professor of family medicine. I am busy two days a week with my contractual agreements, and I am on call by phone for consultations. The rest of the week is spent with my wife, children and grandchildren, with golf, fishing and vacationing.

I believe I have planned well, and I recommend to all physicians who are anticipating retirement: Prepare well; be affiliated with a local med school so you can share all their wisdom; maintain medical skills by taking an administrative role; spend more time with family in between golf, fishing and lots of vacations.

Life is beautiful.

--Frank Amato, 65,

Yorba Linda, semiretired

physician

*

I am recently retired. My main advice to anyone, retired or not, is: If you’re able to do something that you want to do, do it now. Don’t wait, even though things may not seem optimum from a health or economic standpoint.

I had a friend who planned most of his fun things for his retirement at age 55. He didn’t make it.

We see a lot of articles on economic planning for retirement, but it’s not the most important thing. The most important thing is having fun and having a high quality life no matter what your age. The best plan is to have done most of the things that you want to do before you retire. Then retirement will be the icing on the cake.

--Dick Bratkovich, 60,

West Hills, retired

program manager

*

I started a year-by-year planning notebook containing a budget and projections of what I intended to save each month and year after taxes and living expenses. I always tried to leave enough to travel and do the things necessary to enjoy life to the fullest. Following this format, I was able to retire 10 years earlier than my normal retirement and have not had to work at a job again.

--Donald E. Olson, 75,

Newport Beach, retired attorney

On Moving

Don’t move right away when you retire. Visit locations, talk to people there, maybe rent awhile. Be sure both of you are happy with the decision. It’s really expensive to move back.

--Fred Merrill, 76,

Inglewood, retired bank

personnel officer

*

I consider myself semiretired because I don’t really have to work at this point but just enjoy staying in the thick of things. I am building a small home in Baja California in a gringo resort overlooking the water--it should be completed for less than $20,000, and I have a 60-year lease. My wife (who runs an in-home day-care business) has agreed to spend at least a couple months in Mexico a year when our last child graduates from high school in two years. Then we’ll also travel more via camper and possibly take “working vacations.”

Our goal is to be totally debt-free in two years, and this is quite possible (no mortgages, no financed anything). In Mexico, which has dental and medical care at easily one-quarter of U.S. prices, we could certainly live on $500 a month.

You don’t have to be rich to retire young, just willing to make some geographic shifts, live close to the belt, and not feel threatened by all the financial planners who say you can only do it a certain way.

--William L. Seavey, 53,

Santa Maria, relocation consultant

*

Do not plan on moving to be near the children. They, too, may be relocating again and again, for a job improvement or advancement. This could leave you in a strange territory, among strangers and alone.

--Duane C. Maybay, 76,

Yorba Linda, business owner

*

People should not move too far away from family. Being near grandchildren and watching them grow is one of the most rewarding parts of life.

--Ceil Forman, 62,

Oceanside, retired teacher

*

After I retired from a middle management job in Hawaii, we decided to move to the mainland because we wanted to travel extensively and Hawaii is five hours from almost anywhere else. We therefore spent a good portion of my first retirement year looking around the United States seeking a place in which we both would be happy. We finally decided on Leisure World for the climate and because we felt that we would fit in better with people from the West Coast than we would with people in other areas that we explored. Also, Leisure World was set up for active retirees, with almost unlimited access to activities of one kind or another--a distinct plus, as was the security furnished by guarded gates and constant patrols.

My point is that not only should persons contemplating retirement concern themselves with financial arrangements, but also with assuring an enjoyable lifestyle. Not everyone wants the same things, and many probably can find what they want by staying in the home in which they have lived for years. Others, like us, prefer to enjoy the freedom from household cares that life in a retirement community affords.

--Stanley Baird, 75,

Laguna Woods, retired mortgage lender

*

When we had to make a decision about where we would like to retire, we chose California for the climate and the fact that three of our four children lived here. We did not want to live next door to our kids and grandkids, but chose rather to define the kind of lifestyle that suits us. We have always loved the water and water skiing, as well as golfing and an active social life. We found Canyon Lake, and it offered everything we needed. Our California kids and their families live between 70 miles and 300 miles from us; however, we have a resort kind of atmosphere that all love to come and enjoy.

--Bill Faulds, 72,

Canyon Lake, retired marketing executive

Also . . .

*

For the majority of our lives, my husband and I lived for today, and we spent every penny we ever earned . . . lots of travel, nice cars, nice things and a good school for our daughter, etc.

Then about five years ago, we began to really worry about the future. We knew we had to save some money or we would be out on the street in our old age.

We did save and decided to invest in an 11-unit apartment building. We really had to stretch (even borrowing on our credit card!), but it was a bank foreclosure, and we got a great deal. We fixed it up, rented the units--and it has been the best investment we have ever made. Better than our stocks and bonds, 401(k) plan and even our savings. We firmly believe our real estate investments will end up providing us not only income along the way to retirement, but will appreciate and be our most valuable assets for our retirement and heirs.

--Agnes Huff, 45,

Culver City,

public relations

*

During my working life, I never enjoyed more than a very modest income. While I did receive several small inheritances from aunts and parents, I have since given my own children and grandchildren much more than I inherited.

My wife was employed as a social worker for about 10 years of her life, but not for the last five or six years before her death in 1990. Somehow, in spite of enjoying the kind of vacations and cruises she liked, we accumulated over a million dollars by 1990, and the last time I checked, my net worth was over $2 million, not including a free-and-clear home.

Of course, money is not more important than health or a loving relationship, but it is an indispensable part of a comfortable and enjoyable retirement. Early recognition of the amazing power of compounding (the ninth wonder of the world) and an appreciation of the value of time in compounding is, in my view, the most helpful insight in growing a comfortable nest egg. Results achieved by even the most conservative buy-and-hold savers offer the best proof of this.

--Robert M. Schultz, 81,

Santa Barbara,

retired probation officer

*

All retirees, in addition to their retirement-financial plan, should have an “aging-preparedness kit” that includes: a durable power for health care; a durable power for financial matters; a will; possibly, depending on their circumstances and views about probate, a revocable living trust; a plan for their long-term care (including preferences on care settings and approaches, and a plan for how their care will be paid for); and a plan for their “final arrangements” (funeral, burial, etc.). And, like their retirement financial plan, they need to keep their aging-preparedness kit up to date.

--Ed Long, Long Beach, elder-law attorney