Contingency Planning Important

Hello again. I just wanted to remind anybody thinking of taking "early" retirement and living on a pension or Social Security that planning for the unexpected is a very important part of budgeting.



In my very first month of retirement, I ended up having to hire a contractor to repair my vigas (wooden beams which extend out of my adobe house, a common architectural feature of many southwestern homes). I was shocked by the pricetag of $6400.



I also needed new tires, a brake job and an alignment in the first weeks following my retirement.



I should probably have anticipated all of these expenses and perhaps taken care of them much sooner before I actually left my job. I did get a lot of medical tests under the "good" insurance plan I had at work, but I just didn't think about the roof or vehicle issues. The heat in NM this summer has been intense, and I also had to get a new airconditioner.



So I'm just saying, make a list of stuff that may go wrong and take care of as much as possible while you still have a paycheck coming in. That seems like a complete no-brainer, but perhaps someone can benefit from my story of lack of good planning for emergencies.



Don't let this discourage anyone out there from taking the plunge. Just think ahead, and you should be fine.