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Old 03-02-2015, 08:34 PM
 
Location: Silicon Valley
18,083 posts, read 22,934,448 times
Reputation: 35202

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I wanted to ask what people think will happen to people who don't have enough money to retire?

Seriously.

What do you think will happen to them?

Is there a posse that rounds them up in the dead of night and throws them in a river?

Do they get mysteriously sent to the "Place Where People Don't Have Enough To Retire" go? Where is that place? Do they feed them?

There is all this fear spread around, and I can't help but wonder if it isn't financial planners and insurance salesmen who perpetuate this fear. And of course, the answer is to buy what they are selling!

But, really, maybe I should start a thread - what is it you think will happen to you if you don't have "enough" money to retire on?

Seriously. Please list what happens. In detail. Specifically.

----------------------

Okay, point number 2:

I wanted to tell you about how my mother feared her older years to the point that she did not enjoy the good years she had left before she was debilitated by Altzheimers. She expected this to happen, but rather than enjoy the good years left, she spent her time in utter fear of how she would be cared for when it happened. Wonder who sold her that fear?

Here are the numbers. I got out a statement sent to me by her conservator:

Cost of care at assisted living facility per month: $5,500.
Long term care insurance pays: $2914.

Her share of cost: $2586.
Her monthly income: $1256 in Social Security

Her monthly expenses total approximately $3347, which includes cost of care less long term insurance, ATT, credit line payments, utilities, health insurance and personal needs.

They are beginning to cash out her assets now.

This is a woman with assets that total a million dollars.

Obviously, she has good long term care insurance, but it doesn't cover the total cost. I don't know how long it will last. But, she's just been admitted to this facility for maybe 6 months or so, and her assets are being used up, regardless of this insurance.

What I don't know is how much she is spending on this insurance, or for how long she's been paying into it. I do know that she was not enjoying her assets. My mother was a ziplock bag washer, as someone else mentioned. She spent her life worrying about getting old, and saving and worrying the entire time, and never enjoyed any of it while she could.

Now, if I've done the math correctly, if they can liquidate her assets and actually get a million dollars net, and her expenses never get any higher, then her money will last maybe 25 years. Will the long term health insurance pay for 25 years? I highly doubt it. Which is why I guessed it might last 15 years.

My mother is now 77 years old. If the money lasts 25 years, there will be enough to take care of her until she dies at the assisted living facility, if the cost never goes up. Although, there are relatives on her side of the family who have lived to be over 100 years old.

So, did she win? Is this what all the retirement planners had in mind for everyone? Would she be the poster child for why you should buy long term health insurance?

And guess what? The facility she's in? Would let her stay after her personal funds run out, and accept her government health insurance.

So, what happens to people who don't have enough? They are probably in the room next to my mother.
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Old 03-02-2015, 08:39 PM
 
8,940 posts, read 5,081,575 times
Reputation: 9260
they're the people you see at walmart, "Hi welcome to walmart"
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Old 03-02-2015, 08:47 PM
 
Location: Verde Valley AZ
8,612 posts, read 9,676,241 times
Reputation: 10950
Quote:
Originally Posted by brownbagg View Post
they're the people you see at walmart, "Hi welcome to walmart"
Don't laugh, really. We have three ol' geezer greeters at our store who have been there long enough they make $15 hour for saying just that. lol Plus they are Viet vets and get social security. They even like what they do!
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Old 03-02-2015, 08:49 PM
 
Location: Silicon Valley
18,083 posts, read 22,934,448 times
Reputation: 35202
Quote:
Originally Posted by brownbagg View Post
they're the people you see at walmart, "Hi welcome to walmart"
Who says the Walmart people aren't happy? There is an elderly Walmart greeter at our local Walmart and she's great! She knows everyone and I chat with her all the time. For all you know, your Walmart greeter considers she is actually getting paid to get out and socialize.

There's a great retired guy in town who works part-time at the local Starbucks in the morning, and he also works part-time at Wal-mart. He says his wife can't stand for him to be in the house all day and he's really hyper, so he works to get out and socialize. He's a breath of fresh air with his happy attitude.

Don't be so quick to think the Walmart greeters aren't there because they think it's fun to get out of the house and chat with people.
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Old 03-02-2015, 09:05 PM
JRR
 
Location: Middle Tennessee
3,677 posts, read 2,224,193 times
Reputation: 5218
[quote=NoMoreSnowForMe;38663223]I wanted to ask what people think will happen to people who don't have enough money to retire?

Seriously.

What do you think will happen to them?

Is there a posse that rounds them up in the dead of night and throws them in a river?

Do they get mysteriously sent to the "Place Where People Don't Have Enough To Retire" go? Where is that place? Do they feed them?

There is all this fear spread around, and I can't help but wonder if it isn't financial planners and insurance salesmen who perpetuate this fear. And of course, the answer is to buy what they are selling!

But, really, maybe I should start a thread - what is it you think will happen to you if you don't have "enough" money to retire on?

Seriously. Please list what happens. In detail. Specifically.

----------------------

My mother retired with a few thousand dollars in the bank and owned her little house. Social security was around $500 per month to begin. When she hit 80, she sold the house to my sister and held the mortgage to get a bit of income (house was old and only about 800 sq ft). Moved into a little subsidized apartment. When she hit 90 and had to stop driving, I paid for someone to come by twice a week to take her to the grocery or to dr appointments, etc. Also I paid for Lifeline in case she fell. When she got to 100 and could not stay by herself any more, we moved her to assisted living at $3200 per month. I picked up the bill when her savings ran out. After 19 months there, she fell and had to go to a long term care facility in September. $7000 per month was more that I could handle, so she went on Medicaid. She passed away last week.

She never had much during her life, but other than the last five months, she was reasonably happy with what she did have. Sometimes you make do with what you have and push on.
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Old 03-02-2015, 09:11 PM
 
2,421 posts, read 3,722,541 times
Reputation: 3455
Quote:
Originally Posted by NoMoreSnowForMe View Post
I wanted to ask what people think will happen to people who don't have enough money to retire?

Seriously.

What do you think will happen to them?

Is there a posse that rounds them up in the dead of night and throws them in a river?

Do they get mysteriously sent to the "Place Where People Don't Have Enough To Retire" go? Where is that place? Do they feed them?


There is all this fear spread around, and I can't help but wonder if it isn't financial planners and insurance salesmen who perpetuate this fear. And of course, the answer is to buy what they are selling!

But, really, maybe I should start a thread - what is it you think will happen to you if you don't have "enough" money to retire on?

Seriously. Please list what happens. In detail. Specifically.

----------------------

Okay, point number 2:

I wanted to tell you about how my mother feared her older years to the point that she did not enjoy the good years she had left before she was debilitated by Altzheimers. She expected this to happen, but rather than enjoy the good years left, she spent her time in utter fear of how she would be cared for when it happened. Wonder who sold her that fear?

Here are the numbers. I got out a statement sent to me by her conservator:

Cost of care at assisted living facility per month: $5,500.
Long term care insurance pays: $2914.

Her share of cost: $2586.
Her monthly income: $1256 in Social Security

Her monthly expenses total approximately $3347, which includes cost of care less long term insurance, ATT, credit line payments, utilities, health insurance and personal needs.

They are beginning to cash out her assets now.

This is a woman with assets that total a million dollars.

Obviously, she has good long term care insurance, but it doesn't cover the total cost. I don't know how long it will last. But, she's just been admitted to this facility for maybe 6 months or so, and her assets are being used up, regardless of this insurance.

What I don't know is how much she is spending on this insurance, or for how long she's been paying into it. I do know that she was not enjoying her assets. My mother was a ziplock bag washer, as someone else mentioned. She spent her life worrying about getting old, and saving and worrying the entire time, and never enjoyed any of it while she could.

Now, if I've done the math correctly, if they can liquidate her assets and actually get a million dollars net, and her expenses never get any higher, then her money will last maybe 25 years. Will the long term health insurance pay for 25 years? I highly doubt it. Which is why I guessed it might last 15 years.

My mother is now 77 years old. If the money lasts 25 years, there will be enough to take care of her until she dies at the assisted living facility, if the cost never goes up. Although, there are relatives on her side of the family who have lived to be over 100 years old.

So, did she win? Is this what all the retirement planners had in mind for everyone? Would she be the poster child for why you should buy long term health insurance?

And guess what? The facility she's in? Would let her stay after her personal funds run out, and accept her government health insurance.

So, what happens to people who don't have enough? They are probably in the room next to my mother.

They are sent to "Not Enough Funds To Retire Purgatory"
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Old 03-02-2015, 09:23 PM
 
Location: Silicon Valley
18,083 posts, read 22,934,448 times
Reputation: 35202
Quote:
Originally Posted by modhatter View Post
They are sent to "Not Enough Funds To Retire Purgatory"
LOL, otherwise known as the retirement thread on CD.
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Old 03-02-2015, 09:28 PM
 
Location: NYC
2,901 posts, read 1,582,286 times
Reputation: 7918
Quote:
Originally Posted by JRR View Post
After 19 months there, she fell and had to go to a long term care facility in September. $7000 per month was more that I could handle, so she went on Medicaid. She passed away last week.

She never had much during her life, but other than the last five months, she was reasonably happy with what she did have. Sometimes you make do with what you have and push on.
Sorry for the recent loss of your mother, but it sounds like she had a good attitude going through life.
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Old 03-02-2015, 11:41 PM
 
Location: Los Angeles area
14,018 posts, read 17,729,443 times
Reputation: 32304
Quote:
Originally Posted by brownbagg View Post
they're the people you see at walmart, "Hi welcome to walmart"
Quote:
Originally Posted by AZDesertBrat View Post
Don't laugh, really. We have three ol' geezer greeters at our store who have been there long enough they make $15 hour for saying just that. lol Plus they are Viet vets and get social security. They even like what they do!
Quote:
Originally Posted by NoMoreSnowForMe View Post
Who says the Walmart people aren't happy? There is an elderly Walmart greeter at our local Walmart and she's great! She knows everyone and I chat with her all the time. For all you know, your Walmart greeter considers she is actually getting paid to get out and socialize.

There's a great retired guy in town who works part-time at the local Starbucks in the morning, and he also works part-time at Wal-mart. He says his wife can't stand for him to be in the house all day and he's really hyper, so he works to get out and socialize. He's a breath of fresh air with his happy attitude.

Don't be so quick to think the Walmart greeters aren't there because they think it's fun to get out of the house and chat with people.
An uncle of mine, now deceased, worked as a greeter at Walmart and actually liked it also. I didn't understand then how that job could be enjoyable and I still don't, but hey, all of us can't like the same thing. I was happy for him.

Part of it was probably that life at home with his wife was not very interesting and part of it was probably that feeling useful in some way is important to all of us and part of it was probably that even the rather superficial contact with other human beings beats no contact at all (since we all need some human contact).
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Old 03-03-2015, 12:08 AM
 
Location: Los Angeles area
14,018 posts, read 17,729,443 times
Reputation: 32304
Quote:
Originally Posted by JRR View Post
My mother retired with a few thousand dollars in the bank and owned her little house. Social security was around $500 per month to begin. When she hit 80, she sold the house to my sister and held the mortgage to get a bit of income (house was old and only about 800 sq ft). Moved into a little subsidized apartment. When she hit 90 and had to stop driving, I paid for someone to come by twice a week to take her to the grocery or to dr appointments, etc. Also I paid for Lifeline in case she fell. When she got to 100 and could not stay by herself any more, we moved her to assisted living at $3200 per month. I picked up the bill when her savings ran out. After 19 months there, she fell and had to go to a long term care facility in September. $7000 per month was more that I could handle, so she went on Medicaid. She passed away last week.

She never had much during her life, but other than the last five months, she was reasonably happy with what she did have. Sometimes you make do with what you have and push on.
Quote:
Originally Posted by Hefe View Post
Sorry for the recent loss of your mother, but it sounds like she had a good attitude going through life.
What I bolded seems to be the answer to NoMoreSnowForMe's question about what happens to people without enough money to retire. And JRR, one thing your mother had was YOU. Your financial resources, and no doubt your personal contact with her, contributed to her well-being. The issue becomes more problematic for people who have no children, or whose children are either unable or unwilling to step up to the plate for a variety of reasons.

I have a male cousin, now about 68 or 69 (and no children), who has been working under the table for the past 20 or more years. He will probably get some Social Security from his younger years when he did work some "regular" jobs, or maybe he's already drawing it, I don't know. But he appears to live from hand to mouth at the present time. What will happen to him if or when he can no longer work? He does have two younger siblings who are reasonably successful but less than well-to-do and perhaps will help. It will be interesting to watch. Perhaps heart-breaking to watch?
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