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Old 01-08-2015, 09:53 AM
 
Location: Tennessee
23,587 posts, read 17,574,904 times
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Quote:
Originally Posted by Hemlock140 View Post
That's the key, move to an area you can afford. My mother-in-law also passed last year at age 95, and her social security was only $700/month.
There's also a wrinkle in this logic. Let's say you move from NYC/SF/Seattle or some other major hub to flyover country. Because your income was higher in the city, you probably have more in savings overall than someone who worked in flyover country. With a higher income comes more SS benefits later in life. People in the big metros are also going to have more equity than those in flyover country.

If you are a poor in a poor area, there's nowhere that's cheaper to go.
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Old 01-08-2015, 12:34 PM
 
Location: East of Seattle since 1992, originally from SF Bay Area
29,806 posts, read 54,470,896 times
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Quote:
Originally Posted by Nausikaa View Post
At that low income she would have been eligible for foodstamps and Medicaid (if she didn't have a lot of savings), so with no income taxes, it certainly would be doable for a mostly housebound person, with no car, etc.
Yes, we found her a rental apartment in a less expensive area that we helped her with until she got into subsidized senior housing (2 year waiting list) and later she went to an adult family home with medicaid helping pay for it.
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Old 01-08-2015, 01:45 PM
 
48,516 posts, read 83,943,432 times
Reputation: 18050
Quote:
Originally Posted by Emigrations View Post
There's also a wrinkle in this logic. Let's say you move from NYC/SF/Seattle or some other major hub to flyover country. Because your income was higher in the city, you probably have more in savings overall than someone who worked in flyover country. With a higher income comes more SS benefits later in life. People in the big metros are also going to have more equity than those in flyover country.

If you are a poor in a poor area, there's nowhere that's cheaper to go.
The poor in urban areas are unlike to benefit from higher wages because seldom does it make up for the higher cost of living. That is why lower middle income in those areas is not likely to own a house. Retired moving here are almost always previous home owners and especially those from higher urban cost areas. Lower middle class seldom become homeowners here unlike lower middle class who lived here their entire lifes. The poor anywhere are likely stuck where they retire.
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Old 01-09-2015, 10:01 AM
 
Location: Tennessee
23,587 posts, read 17,574,904 times
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Quote:
Originally Posted by texdav View Post
The poor in urban areas are unlike to benefit from higher wages because seldom does it make up for the higher cost of living. That is why lower middle income in those areas is not likely to own a house. Retired moving here are almost always previous home owners and especially those from higher urban cost areas. Lower middle class seldom become homeowners here unlike lower middle class who lived here their entire lifes. The poor anywhere are likely stuck where they retire.
Back home in TN, HHI is around $10/hr. How can you afford a house on that either? It's not like there are many cheaper places to run to.
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Old 01-09-2015, 10:16 AM
 
Location: Forests of Maine
30,684 posts, read 49,455,573 times
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Quote:
Originally Posted by Hemlock140 View Post
That's the key, move to an area you can afford. My mother-in-law also passed last year at age 95, and her social security was only $700/month.
We know a few of our neighbors, who are on SS earning about that much.

Low COL areas is a big key to making it work.
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Old 01-09-2015, 10:19 AM
 
Location: Forests of Maine
30,684 posts, read 49,455,573 times
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Quote:
Originally Posted by Emigrations View Post
Back home in TN, HHI is around $10/hr. How can you afford a house on that either? It's not like there are many cheaper places to run to.
If two adults both worked f/t and were earning that much, their combined household would be in the top 20% here.
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Old 01-09-2015, 08:13 PM
 
Location: annandale, va & slidell, la
7,358 posts, read 3,042,841 times
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Quote:
Originally Posted by s1alker View Post
I'm talking about someone who has made less than 20 bucks an hour their entire life for whatever reason. Places that pay that low generally do not have a 401k or pension plan. A low wage worker will have very little (if any) money to save after living expenses are paid.
Is this someone you? If such a person made that amount for 45-years and has a spouse that made a few bucks as well,
you are talking a decent living.
If they saved 10% per year static, that would be a $quarter million. If they invested that same amount from day one that could be a $million-plus.
It's life choices.
Otherwise one could do it your way and work until the week they die. That would suck
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Old 01-11-2015, 07:48 AM
mlb
 
Location: North Monterey County
3,181 posts, read 2,856,933 times
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Quote:
Originally Posted by Emigrations View Post
There's also a wrinkle in this logic. Let's say you move from NYC/SF/Seattle or some other major hub to flyover country. Because your income was higher in the city, you probably have more in savings overall than someone who worked in flyover country. With a higher income comes more SS benefits later in life. People in the big metros are also going to have more equity than those in flyover country.

If you are a poor in a poor area, there's nowhere that's cheaper to go.
24 years ago we moved FROM Los Angeles because we couldn't afford it and knew that we would be living paycheck to paycheck...and that we would never be able to save. And, if one of us or both of us lost a job - it would be clearly impossible to live on one income.

A good majority of my friends in LA and other expensive parts of California - never owned a home.

Living in "flyover" country - we were able to buy a home - AND save for retirement. We have much more savings now than if we had stayed.

And we are working our way back to live in California - because we are debt-free and doing so much better than our counterparts there.
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Old 01-11-2015, 01:30 PM
 
Location: Grove City, Ohio
10,134 posts, read 12,387,762 times
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For some the answer might be working to age 70.

Sure, for many it would suck but sometimes a man has to do what a man has to do.

Forget the $20/hour because John here, born January 15, 1945, never made more than the equivalent of $18.00 per hour his entire life. From 1962 to 1965 he didn't even make the equivalent of $18.00 it was more like $9.00.

From 1966 on the annual income amounts are equivalent to $18.00/hour adjusted for inflation.

Putting the figures into the calculator http://www.ssa.gov/retire2/AnypiaApplet.html

Annual Income $36,000.00
Equivalent
1962 $2,000.00
1963 $2,000.00
1964 $2,000.00
1965 $3,000.00
1966 $4,932.00
1967 $5,076.00
1968 $5,292.00
1969 $5,580.00
1970 $5,904.00
1971 $6,192.00
1972 $6,372.00
1973 $6,768.00
1974 $7,524.00
1975 $8,208.00
1976 $8,676.00
1977 $9,252.00
1978 $9,936.00
1979 $11,052.00
1980 $12,564.00
1981 $13,860.00
1982 $14,724.00
1983 $15,192.00
1984 $15,840.00
1985 $16,416.00
1986 $16,704.00
1987 $17,316.00
1988 $18,036.00
1989 $18,900.00
1990 $19,908.00
1991 $20,772.00
1992 $21,384.00
1993 $22,104.00
1994 $22,608.00
1995 $23,220.00
1996 $23,940.00
1997 $24,480.00
1998 $24,840.00
1999 $25,380.00
2000 $26,244.00
2001 $27,000.00
2002 $27,468.00
2003 $28,044.00
2004 $28,800.00
2005 $29,772.00
2006 $30,744.00
2007 $31,608.00
2008 $32,904.00
2009 $32,688.00
2010 $33,228.00
2011 $34,308.00
2012 $34,992.00
2013 $35,496.00
2014 $36,000.00

John is finally able to retire this month at age 70.

John's SS benefit will be $2,084 but if he had retired at FRA John's benefit would have been $1,579 so working the extra four years really paid off for John at an extra tax free $505 which can go a considerable distance in raising his monthly standard of living.

If John is married his wife will receive her full SS benefit or 50% of John's FRA benefit whatever is more. The lowest benefit she can receive would be $789 so together they will have a monthly tax free benefit of $2,783. This is equivalent to a job that provides a weekly take home pay of $663.

At $18.00/hour John earned only $720 weekly and of that he had to pay taxes... he paid at least $60/week in taxes (social security being the biggest tax by far) so by working to age 70 John will receive about what he was receiving from working full time in terms of "take home money".

Now if John had been a lazy ass and quit work at age 62 he and his wife would be eating cat food only if they were lucky. John's benefit would have been reduced to $1,184 and if his wife had taken hers early they'd be living on $1,600/month which is cheap cat food city.

For me an extra eight years for an extra $1,000/month for the rest of your life is pretty much a no brainer.
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Old 01-12-2015, 03:29 AM
 
Location: Pac. NW
2,021 posts, read 1,523,112 times
Reputation: 3601
Quote:
Originally Posted by s1alker View Post
I'm talking about someone who has made less than 20 bucks an hour their entire life for whatever reason. Places that pay that low generally do not have a 401k or pension plan. A low wage worker will have very little (if any) money to save after living expenses are paid.
buy used cars for cash and learn to work on 'em yourself.

eat lot's of ramen.

buy a modest house and live in it forever.

no expensive cable tv or phone bills.

invest in a low cost index fund forever, don't panic when the market tanks.

forget about student loans, learn a trade that someone will actually PAY you to DO.

FWIW: i retired at 48 and never made more than 50k in a single year during my workin' days.
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