Work another year and buy a Kirkham or Retire?

[olddog]

Well I continue to work, mainly due to Medical Insurance costs. More specifically the rapid increase the last 3 years and not knowing what it will do in the near future. I do not want to get into politics or why this has happened. So please do not take the thread that direction. The facts are for me and my wife, our insurance, if retired, was $535/mth in 2016, $965/mth in 2017, and $1650/mth in 2018, until we go on medicare. Those are facts and why doesn't matter. Working longer saves a ton of money on insurance. It also lets my 401K grow longer, SS and pension also go up.

So I have been looking at where I am financially. I am now at age 60 and plan to retire at 62. Analysis shows I can maintain my standard of living and not run out of money, if I live to be 100 yrs old and still leave it to my children.

Now I have long said if I won the lottery, I would buy a Kirkham. I always thought I could never afford one. Well all my life I saved and bought very little for myself. All the sudden, I am looking at where I am standing, financially, and maybe I can afford a Kirkham after all. If I worked one more year, past when I plan to retire, I could swing it.

I'm not sure I will do it, but I'm thinking about it. Should I purchase new and build what I want? Or a used one?

I can remember when a base model was a little over $50K and now they are $100K. Not many complete older Kirkhams for sale at $60K, so for those who say these cars are not an investment, although I agree, a Kirkham holds value pretty good, more like a house than a car.

Anyway thoughts on the pros and cons are welcome. Again I may or may not do it, but I'm going to think about it real hard.

[Ron61]

I can't tell you what to do but the way things are going there is no way to really know what the next years or even the next months are going to be like. Myself, I retired early and have never regretted it. And as you said, every year the cost of these cars goes up. As for buying new and building it that would depend on your skill and the tools that you have. Or you could buy a turnkey from Kirkham. Buying used is OK if you can see and have the car completely checked out. Whatever you decide I wish you the best of luck and hope that you can do the things you want to.

Ron

[twobjshelbys]

If you retire at 62 you still have three years on Obamacare before you get Medicare. And your costs are only about 1/2 what we paid in Vegas for it (for the two of us). Work until 65 if you can. Consult or work part time. I did a part-time gig and the pay was essentially to be on their medical policy.

Roll your 401K plans into an IRA. Company 401K investment choices are quite limited and really don't allow for good balancing for someone in or approraching retirement age. In an IRA you can choose your investments. All of my 401K were at Fidelity and Fidelity has rollever accounts but first find a money manager and park the 401K where they have accounts. I was already at Schwab for and our money manager is a Schwab associate. Some of the houses have in-house managers but they are more "advisors", ie, it's up to you to make the trades and watch things. Our advisor is an active manager and they recommend what to do and we have veto power but so far they've never been wrong (except for telling me I should have sold my Shelby stock, which right now is worth less than it will cost me to sell it.)

Then you have to decide when to take Social Security. If you take it before your Full Retirement Age (which may be 66-1/2 now, I don't know for sure, for me it is 66 and I will start in November.) Each year you wait after FRA gets you more money, but similarly, each year before 66 costs you. I know that the later years add 8% and I think the earlier years subtract the same.

Think about where you live. Dollars go a lot further in NV (and other states without income tax) than say New England. Cost of housing here is 1/2 what it was in CO for similar square feet including the new pool. (And with the increases in value in both places, still track to that.)

In your circumstances I don't think you should buy a Kirkham. Why spend close to 200K when you can get a decent Cobra for under 100K from Superformance. Buy used. Kirkham order lead times last I heard were over a year. The alloy car won't drive any different and costs twice as much. Leave the balance earning in your retirement accounts earning more money.

I stopped buying toys when I retired. Trying to sell the FGT is enough for me let alone trying to think about how my wife would deal with it.

Also, think seriously about your driving as your age increases. In order to reduce insurance rates we took the AAPR senior driving class. I was freaked out how much of the stuff they describe was happening. Especially eyes.

[dallas_]

I'd vote for "buy it now".

I know too many people who waited on their dream and it never happened.

It should hold it's value, so you can always sell it if you need the money later.

Besides, driving a cobra is a lot more fun than looking at a 401k statement.

[Tommy]

I made my decision to retire early based in part on a documentary that helped me see the retirement years a little differently. The numbers that follow are only representative and are likely different for each individual, but they are about right for a lot of people.

The retirement years can be looked at as having three phases. The first phase (60-70) is the time when you do the things you always wanted to do but didn't have the time for. For example, build that car, take a six month RV trip to Alaska, spend winter in the Bahamas on a sail boat, etc. These are things you do while you are still physically healthy enough to enjoy. ... The second phase (70-80) is spent doing things you can still enjoy closer to home. Health issues and physical capability will likely prevent you from doing many things you might have done earlier (e.g., water skiing, hiking the Apalachian Trail, etc.). ... The third phase (80-on) is the quieter, less vigorous transition to the end of life.

I am now 71 and I know I cannot do some of the things I did well ten years ago. So the above description has fit me pretty well. If it fits you too, then you need to consider not only the financial implications of when you retire, but the quality of life too. It would be a shame to spend your life preparing for a future you can't physically enjoy when you get there. So my advice would be to consider retiring sooner rather than later, and lower your sights to a more affordable Cobra replica. They are all fun.

[desgros@vtlink.]

Tommy,

Your post has the best advice of all. What you said I am seeing in my retirement years.

Best,

John
ERA #3010 289 Slabside BRG (Turn key)

[mln385]

Originally Posted by Tommy

I made my decision to retire early based in part on a documentary that helped me see the retirement years a little differently. The numbers that follow are only representative and are likely different for each individual, but they are about right for a lot of people.

The retirement years can be looked at as having three phases. The first phase (60-70) is the time when you do the things you always wanted to do but didn't have the time for. For example, build that car, take a six month RV trip to Alaska, spend winter in the Bahamas on a sail boat, etc. These are things you do while you are still physically healthy enough to enjoy. ... The second phase (70-80) is spent doing things you can still enjoy closer to home. Health issues and physical capability will likely prevent you from doing many things you might have done earlier (e.g., water skiing, hiking the Apalachian Trail, etc.). ... The third phase (80-on) is the quieter, less vigorous transition to the end of life.

I am now 71 and I know I cannot do some of the things I did well ten years ago. So the above description has fit me pretty well. If it fits you too, then you need to consider not only the financial implications of when you retire, but the quality of life too. It would be a shame to spend your life preparing for a future you can't physically enjoy when you get there. So my advice would be to consider retiring sooner rather than later, and lower your sights to a more affordable Cobra replica. They are all fun.

This in my opinion is spot on, life is short. If you can take early retirement and enjoy. I know I am planning on retiring at 60 (eight more years) Our next journey in life begins at retirement and no one knows for how long....

[olddog]

I really appreciate the perspective, Tommy. My best friend, same age as me, had his children late in life, so we had not done as much together over the last 15 years. I thought we would spend a bunch more time together, when the nest was empty. He passed in January. Went to bed feeling grate and never woke up. I just went to his youngest boy's graduation. None of us can be sure we will wake up tomorrow.

My wife has arthritis bad. She had her knees replaced at 42 yrs old. Her back is full of arthritis, bone spurs are into disks and pinching nerves. They say inoperable and nothing they can do for her, as it is everywhere. After 7-8 back specialists and nothing has helped, I guess not. I have not been willing to leave her alone, so we sit around a wait to die. The sitting around has had a negative impact on my health.

I haven't driven my Cobra in two years. Mainly because she cannot ride in it (and she loved it as much as me). The seats are custom made into the car. The previous owner was very tall and this gave him the room he needed. I think if I put bucket seats in that would help. It would also help if the side pipes were not there. I could change that, but the 4 link straight axle is likely not as good a ride as an IRS. Thus the thinking about building a Cobra. Mostly to get what I want. Under car exhaust (I love the looks of the side pipes, but), comfortable seats, and a bit softer ride. And no worry about snake bite.

[xb-60]

Originally Posted by olddog

....I have long said if I won the lottery, I would buy a Kirkham.....

olddog, I have had a lot of sage advice and comments from you over the years, either in response to some of my posted questions, or to questions from others. I am indebted. Thank you.

So in response, here's my 2 cents worth to your question.

If you win a lottery, then buy a Kirkham as you will then be able to maintain it in the manner and condition that the initial investment demands.

If you don't win a lottery, buy an ERA. Drive it and enjoy it knowing that you can maintain it on a reasonable budget, not worry about having to fix dents in delicate aluminium alloy bodywork and if it gets wet, its painted 'glass body and painted chassis will only need a wipe-over to maintain in perfect condition.

Cheers,
Glen


**edit: olddog, I didn't see your post above mine until after I posted. I would have to agree with Tony's comments. Best of luck with your decision, my friend.

[twobjshelbys]

Originally Posted by olddog

I really appreciate the perspective, Tommy. My best friend, same age as me, had his children late in life, so we had not done as much together over the last 15 years. I thought we would spend a bunch more time together, when the nest was empty. He passed in January. Went to bed feeling grate and never woke up. I just went to his youngest boy's graduation. None of us can be sure we will wake up tomorrow.

My wife has arthritis bad. She had her knees replaced at 42 yrs old. Her back is full of arthritis, bone spurs are into disks and pinching nerves. They say inoperable and nothing they can do for her, as it is everywhere. After 7-8 back specialists and nothing has helped, I guess not. I have not been willing to leave her alone, so we sit around a wait to die. The sitting around has had a negative impact on my health.

I haven't driven my Cobra in two years. Mainly because she cannot ride in it (and she loved it as much as me). The seats are custom made into the car. The previous owner was very tall and this gave him the room he needed. I think if I put bucket seats in that would help. It would also help if the side pipes were not there. I could change that, but the 4 link straight axle is likely not as good a ride as an IRS. Thus the thinking about building a Cobra. Mostly to get what I want. Under car exhaust (I love the looks of the side pipes, but), comfortable seats, and a bit softer ride. And no worry about snake bite.

I'll be realistic having lived through a similar experience. The fact you haven't driven your existing car for two years does not bode well for any kind of replacement. Before you embark on a new car be sure that in two years your wife will be willing to get in and out of a Cobra, otherwise you'll have a near zero miles Kirkham for sale shortly after you get it. Trust me, going alone isn't all that much fun and going to the same car show week after wek gets old.

[patrickt]

Originally Posted by twobjshelbys

I'll be realistic having lived through a similar experience. The fact you haven't driven your existing car for two years does not bode well for any kind of replacement.

This is probably the best, albeit painful, advice. You need to let in to your mind the possibility that the time for the new Kirkham, or new ERA, has passed.

[legenmetals]

Hi Rick,
I'm in Newark this week. Maybe we can meet at Freddie's and talk cobras.
Mark

[Phx Mike]

Originally Posted by twobjshelbys

I'll be realistic having lived through a similar experience. The fact you haven't driven your existing car for two years does not bode well for any kind of replacement. Before you embark on a new car be sure that in two years your wife will be willing to get in and out of a Cobra, otherwise you'll have a near zero miles Kirkham for sale shortly after you get it. Trust me, going alone isn't all that much fun and going to the same car show week after wek gets old.

Agree here - the Kirkham is a great car but it is a Cobra - coarse, loud, smells like gas and requires constant respect. IRS notwithstanding it is not a Corvette. My wife does not like riding in it. So be careful before you buy. Make sure it is really going to work for you. And I sympathize with the decisions you are trying to make. Get what works for you and your wife even if it is not a Cobra....

[RodKnock]

Originally Posted by xb-60

Drive it and enjoy it knowing that you can maintain it on a reasonable budget, not worry about having to fix dents in delicate aluminium alloy bodywork and if it gets wet, its painted 'glass body and painted chassis will only need a wipe-over to maintain in perfect condition.

To the OP, this information is nonsense. Fixing fiberglass or aluminum is “six of one, half dozen of the other.” Maintaining paint and aluminum is similar. Both need to be wiped/cleaned, washed and polished.

[olddog]

Unfortunately that thought has already crossed my mind, but I have be trying to find a way to have a life after retirement and still share it with my wife. Otherwise I might as well continue to work.

I have worked all my life. I started cutting grass for a neighbor at the age of 10. Started bailing hay at 13. Worked at an apple orchard the summer and fall, I was 16. Finished the year pumping gas. Carried dry wall on the week ends and put in swimming pools when I wasn't carrying drywall, while working 48 hrs a week at the gas station my last two years of high school. I went to work for a chemical company shortly after. Most of those 41 years, I worked 300-400 hr of overtime a year.

So here I am looking at the end of working. It's all I have ever known, but I am tired of it. However it is very sobering and unnerving. There is much more I would like to finish before I retire, but I know there will always be more to do. I loved my job, most of the time and few people were ever that fortunate. It is tough to give it all up. I have attended too many funerals of people who never got to retire, so I do not want to work too long. Yes I am conflicted with many feelings.

I likely will never have grandchildren. I have plenty of money to live on. The only reason I am working is the medical insurance. Unfortunately, my wife's health leaves her unable to do much. I have already worked past the time that she could have enjoyed it. It is too late for her, and I feel quite guilty for that, even though I know it is not my fault. So yes maybe I am grasping at straws.

[olddog]

Originally Posted by RodKnock

To the OP, this information is nonsense. Fixing fiberglass or aluminum is “six of one, half dozen of the other.” Maintaining paint and aluminum is similar. Both need to be wiped/cleaned, washed and polished.

To be fair to XB, Kirkham owners have mentioned how easily the aluminum dents a lot of times, and I was starting to think to myself that maybe Fiberglass is a better choice if you want to drive a lot. I do pick back roads that have less traffic so we can ride slower to talk over the wind. They do have more stones laying around on them.

[xb-60]

Originally Posted by RodKnock

To the OP, this information is nonsense. Fixing fiberglass or aluminum is “six of one, half dozen of the other.” Maintaining paint and aluminum is similar. Both need to be wiped/cleaned, washed and polished.

Well, when it never leaves the nome garage, it would be easy to maintain the bodywork, I suppose

[olddog]

I never intended to whine on the net about my personal situation. I know people who had things much worse, so I do not want to complain at all.

I have to admit that talking about it has been helpful. I do appreciate all the comments. You guys have been more spot on than you may know.

[olddog]

Originally Posted by legenmetals

Hi Rick,
I'm in Newark this week. Maybe we can meet at Freddie's and talk cobras.
Mark

Yes Mark I would like that.

[RodKnock]

Originally Posted by xb-60

Well, when it never leaves the nome garage, it would be easy to maintain the bodywork, I suppose

And the same would apply to fiberglass. And I know, since I owned a ‘66 BB Corvette Roadster that never left the garage too.

And 911’s are well-known for having their metal front fenders and hood resprayed for the accumulation of rock chips. Maintenance and repair to a fiberglass or alloy body is similar. Just different idiosyncrasies.