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This is tough to answer because I still don't know what I want to do or where I want to live...I need simplicity.
There's nothing wrong with simplicity, making the best decisions you can with what you know, and moving forward. Most of us aren't able to make every single decision about our futures. We have to rely somewhat on instinct (if our instincts have served us well during our lives). You are doing an excellent job, lenora.
I'd say, for myself, that I'm working toward simplicity combined with mindfulness. A healthy dose of instinct is always part of it -- which way feels right? I haven't read the whole thread so far (only up to this post), but you raise good questions, NEG.
Quote:
Originally Posted by newenglandgirl
I'd like to have this new thread be a concentration of discussions that are spread among a number of Retirement threads including retiring on a shoestring.
For the average retiree, one who is not wealthy, what are the considerations you're looking at in terms of aging, where you live, how you live, cost considerations for now and the future, healthcare options, etc? Please include your age and state of health in your comments. (Please let us not try to define "wealth"—those who are wealthy and those who are not know their status ).
I'll be 61 in a few weeks, and I'm retiring next Friday, on January 31st. I am so happy...but that's another story. I'm an "average" retiree and about to embark on a move from the NY area, where I've lived my whole life, to New England. My husband works there and has lived there for many years, so while it will be a new home for me, I have checked out some of those aging-consideration things.
Where I'll live: My next move should work pretty well for the next 10, 15, 20+ years, I hope. For a period of time, we'll rent in NH. I like this, because I can withdraw from my 403(b) without paying State taxes. When it comes time to buy, my husband is strongly leaning towards VT, but we'll have to weigh the tax situation. There are differences between the states, too much to go into here.
How I'll live: Condo or small house with minimal maintenance, or others doing the maintenance. Definitely be near a town with services and cultural offerings.
Healthcare options and state of health: Because I've worked for NYS, I'll get to keep my healthcare plan and combine it with Medicare when the time comes. Most of it is paid for. On the other hand, I have a chronic condition that has been very expensive at times to treat as well as debilitating. I really don't know what it means as far as life expectancy or future treatment, but I am moving close to a top-notch medical facility. For years I wanted to move to another area where I'd spent summers for decades and have many friends, but the medical resources are practically nonexistent, and I'd never consider that now.
Climate: Looking forward to the New England adventure. I will go out and explore whenever I can and stay in when I can't go out!
Activities: Wherever I live, I'll always be a library user and take classes. This next move is to a college town, so, yay.
Money: Using a combo of money saved and freelance writing/editing to pay for extras.
Transportation: No idea how to handle this in the future. Now, of course, we drive, so a mile is nothing, 50 miles are nothing. My husband has a 4-wheel drive and can take me in bad weather.
Now to get back to reading the rest of the thread. Thanks for posing the questions, NEG.
The consideration to what we've ended up doing was mostly one of my husbands deteriorating health.
We had a rental property that was supposed to be a substantial part of our retirement funds and sold it when prices were at their lowest but took that lesser amount because there was no way to tell when or even if, prices would go back up and being landlords (and multi-property owners)was a hassle we no longer wanted to deal with.
We did the same with our "nice house" because it would fund two lesser homes in two states, allowing us to be snow-birds plus contribute a (for us) substantial amount to the retirement fund.
While we ended up with less than we had planned on having, because of those health issues, we aren't spending very much on the traveling and other things we had intended to do.
At this point we still live a 'plan for the worst and hope for the best' life.
It's a bit ironic that the 'worst' now refers to living a long time
Oh, you asked for ages....these things were done after the usual pre-retirement planning stage since he worked until 68 and had intended to stay longer.
He was 71 and I was 66 when we sold the house and it was 3 years later when the apt house finally sold.
I don't need a lesson on everything is relativeordifferent sets of circumstances. I know that. I'm not stupid.
I am not the only one throughout this thread who thought his net income is higher than what others are sharing here...but YAY for him.
You, in your opening post, used the word averagewhich I evidently misunderstood the meaning of. If, for the point of this particular thread, $54,000 a year AFTER taxes, health insurance, etc. is the average retirement income then I stand corrected. And another YAY for all you average retirees. And bummer me!
Just curious why you picked my post, instead of the one I responded to, for your quote. Not a big deal, I can handle it. I just think it's funny and odd!!
I don't know how JOhn's $4500/month came to be thought of, in this thread, as "average."
When I said "average" in my original post, I didn't have a quantitative $ figure on income in my mind. I simply meant "your average retiree," as in not wealthy, not poor, but definitely on the side of having to be careful with funds, frugal perhaps, not running around the world on cruises and eating at 5-star restaurants. Perhaps I should have qualified the amount of income, but we've been that route before and all it does it confuse matters and get us into arguments as to what exactly describes wealthy, average, or poor.
In my experience, those who are well off know they are, and those who are average know they are, and those who are poor know they are. Yes, it's a loose range of income, and with many factors mixed in.
To me, retirees contemplating a move out of a high COL area for lower housing taxes or a lower rent, or making and freezing soups and casseroles to save on the food bill, going from several vehicles to one, nursing an older car, putting spare money in a jar for an annual trip, is "average." Not wealthy, not poor, just in between. Possibly the majority of us, but who knows these days.
The problem with 'average' in a case like this is that generally people associate with others in a similar financial status so average to them is not what is average to others.
And, in your original post you used the word 'wealthy'. I doubt many think of $4500 a month as wealthy .
The problem with 'average' in a case like this is that generally people associate with others in a similar financial status so average to them is not what is average to others.
And, in your original post you used the word 'wealthy'. I doubt many think of $4500 a month as wealthy .
Bada Bing x 2. CNBC did a piece on and the results would startle folks on how people self classified.
Retirement is one of those things where you can spend as much or as little as you want to. We sometimes spend almost nothing and reward our children and sometimes we choose to travel. I like to travel more than my husband.
We belong to an aquatic center and exercise there hopefully at least three times a week. Sometimes we get bored with that and visit parks and towns and walk them. My husband helps with bingo once a week. That's my free time at home.
So far our pensions and SS cover all necessary expenses so our retirement accounts are the gravy. With inflation I expect that to change in a few years. I already see groceries going up. I am also feeling the need to redecorate some in our house. We are thinking about adding a sun room with a regular roof to enjoy should we become shut-ins. Another expense in the future would be landscaping on our more than one acre. Right now it provides exercise and fun riding on the lawn mower. I get to prune a lot in the winter months. I may do some of that today.
To me, retirees contemplating a move out of a high COL area for lower housing taxes or a lower rent, or making and freezing soups and casseroles to save on the food bill, going from several vehicles to one, nursing an older car, putting spare money in a jar for an annual trip, is "average." Not wealthy, not poor, just in between. Possibly the majority of us, but who knows these days.
Yes, and I'd add, average would be where the outgo can be maintained at just less than or equal to the income. Saving may be possible, in some cases. In others, careful spending would allow a similar quality of life to the one that existed before retirement/illness/loss of income. It's more than getting by -- it's enjoying life while holding the reins on spending.
The problem with 'average' in a case like this is that generally people associate with others in a similar financial status so average to them is not what is average to others.
And, in your original post you used the word 'wealthy'. I doubt many think of $4500 a month as wealthy .
Just what I was thinking. Most people seem to think "normal" people make just a little more than they do, regardless of the amount they make. In the Economics Forum, there have been a number of threads where people argue about what constitutes "middle class" or some other such financial concept. Believe me, there is no general agreement. Those people who earn $150,000 per year and claim they are just middle class make me want to puke. I disagree with the OP that it is obvious common sense where we stand.
Forgot to mention: we will both be 63 in March,I've been on SSDI for 9 years, DH is healthy enough to work full time as an aircraft mechanic but has had cardio/respiratory health issues, the males in his family tend to not live long, so he's getting out of the rat race. We will be near several hospitals, one daughter in CT has room for us if we need to consult at a place up there. We enjoy going to the chicken dinners, etc hosted by churches, the Elks , etc. Good, inexpensive food, friendly talkative people. The libraries are active and retired college professors teach (free) classes.Community college nearby. Four, count em four,senior centers nearby with free activities and lunches.Getting a bargain at a thrift or consignment shop is our "high", and we love the hunt. We do eat at expensive and fine restaurants, but not as a weekly thing.
We will have my SSDI, his SS, and he was fortunate to work for a place with a pension. We have a 401K (less than $300,000) and will have the profit from the sale of our house. We plan on using the interest from his company held 401K to pay medical premiums, and leave the principal as long as we can. A BIG dream is to travel cross country and see the USA. We have a travel trailer and the truck to tow it, all will be paid off.
The hardest part was leaving family, but, we bought the place last February, and DD#1 has already visited twice with her family. DGD#1 is planning on coming down for April college break with some girlfriends, and DD#2 is talking about flying down in May with her family. That's already more 1 on 1 time than we've spent in monthes. We're also hoping to take the other 2 grandkids and their Dad to WDW, the children are too young to travel alone. Either that or a trip to our new home, which is 45 miles north of Myrtle beach. I also made sure there was a pool in the community---we've always had one, but are done with having to maintain one. And of course we can drive up, with or without the camper.
We should even be able to save some, although I'm not going to be obsessive about that.
Monthly income will be about $5,000 pre-tax, about 60% of what we make now, butwith much reduced expenses.
$250 property tax versus $6,500 etc. I hope I haven't driven you all to distraction.
Flying to Florida tomorrow with DD#2 her DH and DGS to visit and celebrate my Mom's 88th birthday (1/2 paid for with points) Yes, she lives in her own home, still drives and does her own bills and grocery shopping! She's also on Facebook and just got an I-pad. Yay Mom!
NewEnglandGirl at #113, I received $1300 for 2012 as a property tax refund, and $1100 for 2011.
I rent. And I really appreciate these property tax refunds. It is actual money and not a tax credit.
May I ask what state you live in?
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