# How do you retire from Trade jobs?



## MisterPerfect (Nov 20, 2015)

Trades unlike regular jobs you get certification or like apprenticeship and get paid for when you work. Depending on the job you can make some big bank. However I wondering how retirement works and I looked this up but there doesn't seem to be any information about it. How does that sort of thing work?


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## Santa Gloss (Feb 23, 2015)

You quit when you can afford to. Retirement is that simple. 

You might have to transfer any repeating clients over to your friends in the field, if you're self employed. If you worked for a company, you might have a retirement plan. You have to save up money for the future from day 1, pay off your expenses (house, cars, kids college, etc) and then one bright and sunny day, you just stop showing up to work. 

If you're self employed and in the US, you should look into a SEP IRA. You can put a huge part of your paycheck away through that towards retirement (20% I think). You should also look into a ROTH IRA regardless of whether you're self employed or employed by a company/govt/non-profit. The contribution level is much lower for that. Each form of IRA varies in its benefits and its limitations. Aside from that, there are probably a few more things you can do, but I won't get into all of them.


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## Carpentet810 (Nov 17, 2013)

Coffin, Ditch, 55 gallon drum, Gutter, Recliner, Car, Prison.


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## MisterPerfect (Nov 20, 2015)

gritglossandrainbows said:


> You quit when you can afford to. Retirement is that simple.
> 
> You might have to transfer any repeating clients over to your friends in the field, if you're self employed. If you worked for a company, you might have a retirement plan. You have to save up money for the future from day 1, pay off your expenses (house, cars, kids college, etc) and then one bright and sunny day, you just stop showing up to work.
> 
> If you're self employed and in the US, you should look into a SEP IRA. You can put a huge part of your paycheck away through that towards retirement (20% I think). You should also look into a ROTH IRA regardless of whether you're self employed or employed by a company/govt/non-profit. The contribution level is much lower for that. Each form of IRA varies in its benefits and its limitations. Aside from that, there are probably a few more things you can do, but I won't get into all of them.


You cant just quit one day, you will no longer have an income.


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## Santa Gloss (Feb 23, 2015)

MisterPerfect said:


> You cant just quit one day, you will no longer have an income.


I said you quit _ when you can afford to_. You have to save up and invest with the longterm future in mind. The growth + dividends from your investments is your retirement income. It works that way, no matter who you are or what field you're in. 

The money you invest continues to provide an income even after you quit working. If you're financially savvy, you can quit working before you're 65 because you found a way to replace your _income from work_ with _income from investments._ 

What exactly did you think funds people's retirement?


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## lizw47 (Jan 12, 2015)

People retire when they want to retire -- when they feel like they are old enough, want to move on from the industry, want to go into a different industry, want to take some time off from working, etc. 

The trade industry is not very different from white collar jobs when it comes to retirement. 

I work part time at a spa and they offer lots of benefits including 401K. There are many benefits to those involved in trades, like unions, health insurance, life insurance, paid time off, child care, etc. So as far as not making any income after you retire, that's not necessarily true. After retirement, I know many people who will have a nice retirement package to look forward to. 

Is there a particular trade that you are interested in?


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## Razare (Apr 21, 2009)

You must be in a different country?

In the US, you pay social security, and can do a 401k with an employer, or an IRA if you don't have that.


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## MisterPerfect (Nov 20, 2015)

gritglossandrainbows said:


> I said you quit _ when you can afford to_. You have to save up and invest with the longterm future in mind. The growth + dividends from your investments is your retirement income. It works that way, no matter who you are or what field you're in.
> 
> The money you invest continues to provide an income even after you quit working. If you're financially savvy, you can quit working before you're 65 because you found a way to replace your _income from work_ with _income from investments._
> 
> What exactly did you think funds people's retirement?


That you work for a company for so many years than they pay you retirement.


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## MisterPerfect (Nov 20, 2015)

lizw47 said:


> People retire when they want to retire -- when they feel like they are old enough, want to move on from the industry, want to go into a different industry, want to take some time off from working, etc.
> 
> The trade industry is not very different from white collar jobs when it comes to retirement.
> 
> ...


Hvac, but I ultimately want to be a police officer.


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## Santa Gloss (Feb 23, 2015)

MisterPerfect said:


> That you work for a company for so many years than they pay you retirement.


Ahh  I think that's a _misconception_ some people have, depending on how they were raised to think about money or how their parents grew up. Here's what happens: if you have a job, you probably put money into a pension fund or a retirement fund.

In the US (where I _think_ you live) - When you put the money in your employer sponsored retirement fund like 401k, you typically have very limited control over it (the money is controlled via an investment fund usually) What does this control mean to you? Depends on whether they're better at managing the money or you are. 


Your total retirement fund payout = [The money you put in + plus the money the employer puts in (they will put in some of their own)] x growth of the investment over the years. 

Does that make sense?

Your ultimate objective is to increase the total amount in both 1) such a retirement fund and 2) outside such a fund (your own bank balance and investments). Google retirement calculators to figure out how much you might need to save totally for your retirement. They're somewhat inaccurate, but they'll give _some_ idea about what numbers you should be shooting for (which is better than none). 

It's a good thing you're researching this when you're young! Not many people do that. They often end up making mistakes that they dont discover until they're in their 50s... when it's too late. So you'll have a head start on many on them  

Now here's the good news: when you quit one job and go to another, your 401k can be rolled over into your IRA account if you want. That way, if you're better at managing the money than an investment fund (you'd be surprised at how easy it is to manage money), then you can make it grow faster. 

If you're self-employed, you can put your money into a SEP IRA or another type of IRA (like I mentioned in my first post on this thread). You can reread that in context of this post. 

Do you have any questions?


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## Epherion (Aug 23, 2011)

MisterPerfect said:


> Trades unlike regular jobs you get certification or like apprenticeship and get paid for when you work. Depending on the job you can make some big bank. However I wondering how retirement works and I looked this up but there doesn't seem to be any information about it. How does that sort of thing work?


You become a grand master and teach apprentices part time after amassing loads of doosh.


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## MisterPerfect (Nov 20, 2015)

Epherion said:


> You become a grand master and teach apprentices part time after amassing loads of doosh.


But dont you have to pay the apprentices?


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## Epherion (Aug 23, 2011)

MisterPerfect said:


> But dont you have to pay the apprentices?


I think if you can work with a trade school be on their pay while the apprentice intern for you.


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