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Old 03-07-2015, 01:42 PM
 
2,421 posts, read 3,723,073 times
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I think TuborgP hit the nail on the head with his statement and I agree with his observation. I may not agree with his sentiments, but his statement is true. The Affordable Care Act though doing a lot of good for many, has also caused some others to pay more, and conservatives who are not strong supporter's of redistribution, are further angered today and are lashing out more. This is a subject for a political forum indeed, but I do think the sentiments are eeking out in many forum discussions today.
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Old 03-07-2015, 02:24 PM
 
Location: Florida
19,788 posts, read 19,891,223 times
Reputation: 23207
Quote:
Originally Posted by mathjak107 View Post
throw in a longevity insurance policy which is dirt cheap and you plan only to 85 and get a policy to kick in for very little to keep you going if you live longer than you planned for or thought.
.
What's 'dirt cheap' MJ?
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Old 03-07-2015, 02:26 PM
 
Location: UP of Michigan
1,766 posts, read 2,083,193 times
Reputation: 5713
The answer to the original question is that they are working, or hopefully being cared for by family.
As to the point of bad planning, even tho many squandered the proceeds as soon as they got their hands on it (FIL) with a defined benefit pension there was a known amount of dollars at the time of retirement to plan on. Now the bankers, financial planners, insurance agents, and elder attorneys get their cut for sure and if things go south for the contributor, too bad.
I had an interesting exchange w/ a Probate judge when DW and I were appointed guardians of our neighbor due to dementia. She had a deadbeat son living in the home to be sold who had lied and scammed the judge before and he wanted all proceeds of the estate to go the the nursing home when it came to that stage. I argued that a small amount should go to the son (disabled, but a scammer) because the parents had demonstrated that that would be their wishes. He, the judge, started to lecture me about how terrible it was that the state would have to pick up part of the tab. I reminded him that those who are not financially savvy do most of the paying because those with the inclination and more money protect/hide their resources.
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Old 03-07-2015, 02:27 PM
 
71,517 posts, read 71,694,121 times
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Old cold , it Depends how old you are ,when you want it to kick in ,how much of a policy,is it passing to a spouse.

You need to shop around for a price but it will be way way less than an spia paying that amount.
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Old 03-07-2015, 02:52 PM
 
7,979 posts, read 11,657,672 times
Reputation: 10473
What is longevity insurance? Are you talking annuities? Every financial guru out there tells you to stay away from them.
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Old 03-07-2015, 03:07 PM
 
Location: Tennessee
23,580 posts, read 17,553,447 times
Reputation: 27640
Quote:
Originally Posted by old_cold View Post
I'm not even close to trying to be mean but let me use you as an example.
Even though several of the last batch of posts have stressed it again,that advice and example is too little too late for the people of the topic, here you come along with yet another example for those that didn't do it 'right' about all the things you did 'right" so that you aren't one of those that the op asked about.
Regardless of thin or thick skins, given the thread topic, it does come across as just rubbing it in,, especially since it's been pointed out.
The thing with the "if you just didn't have cable, cell phone, etc" argument is that it really does work for younger people if they properly invest, but if you were 55 when the market tanked and you cashed out in a panic, or if you had your income cut in half, etc, these little expenses are pennies to dimes on the dollar of what you actually need. If you have your income cut from $80k to $40k, and had based your lifestyle around the $80k, is cutting out the $70 cable and $30 of lattes a month going to move the needle. No. You're cutting out dollars and cents, but at that point, you need tens of thousands.

There is also a line of thinking to take on more roommates, get a second job, etc, but for a lot of people, that's still not very viable. Let's say you are in the $80k to $40k example. If you work a regular job, let's say you get a second job for $10/hr, 20 hours per week. You're now working sixty hours per week and making $50k, with about $10k coming from the second job. Let's say you and your spouse have a $1500 PITI + utilities bill, and take on a roommate to defray a third of your housing costs. You get $6k annually, so now you're at $56k between the second job and roommate. You're still much worse off than before.

These people need increases from their primary income, not a second McJob or to cut dollars and cents when the hole is tens or hundreds of thousands to fill.
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Old 03-07-2015, 03:14 PM
 
71,517 posts, read 71,694,121 times
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Quote:
Originally Posted by Giesela View Post
What is longevity insurance? Are you talking annuities? Every financial guru out there tells you to stay away from them.
There are some to stay away from for sure. But there are many different types and some are very beneficial and are bought like you buy a cd.

This is not the place to discuss them but there are many internet white papers on longevity insurance and spia products.
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Old 03-07-2015, 03:20 PM
 
71,517 posts, read 71,694,121 times
Reputation: 49088
Quote:
Originally Posted by wordsmith680 View Post
The answer to the original question is that they are working, or hopefully being cared for by family.
As to the point of bad planning, even tho many squandered the proceeds as soon as they got their hands on it (FIL) with a defined benefit pension there was a known amount of dollars at the time of retirement to plan on. Now the bankers, financial planners, insurance agents, and elder attorneys get their cut for sure and if things go south for the contributor, too bad.
I had an interesting exchange w/ a Probate judge when DW and I were appointed guardians of our neighbor due to dementia. She had a deadbeat son living in the home to be sold who had lied and scammed the judge before and he wanted all proceeds of the estate to go the the nursing home when it came to that stage. I argued that a small amount should go to the son (disabled, but a scammer) because the parents had demonstrated that that would be their wishes. He, the judge, started to lecture me about how terrible it was that the state would have to pick up part of the tab. I reminded him that those who are not financially savvy do most of the paying because those with the inclination and more money protect/hide their resources.
Once you reach a certain point in life there may not be much you can do . Time is your biggest resource when it comes to preparing to be able to retire. Few things late in life allow do overs.

As far as what can they do ? Don't know. Not versed in all those options.

Not something I had to research.
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Old 03-07-2015, 03:48 PM
 
Location: Florida
19,788 posts, read 19,891,223 times
Reputation: 23207
Quote:
Originally Posted by mathjak107 View Post
Old cold , it Depends how old you are ,when you want it to kick in ,how much of a policy,is it passing to a spouse.

You need to shop around for a price but it will be way way less than an spia paying that amount.

Oh wait a minute. Are you talking about deferred annuities?
If so, remember that this thread is supposed to be about people that we should assume don't have a big lump sum of cash to purchase any kind of annuity with.
I asked what you called dirt cheap specifically to see if what you think is 'dirt cheap' might be the op's target person's whole monthly budget rather than your monthly dinner allowance.
I am trying to stay on topic and to help keep the thread on topic.
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Old 03-07-2015, 03:53 PM
 
71,517 posts, read 71,694,121 times
Reputation: 49088
Longevity insurance is a form of a very very deferred annuity. It usually kicks in around average life expectancy and because of it pays a very high amount and in comparison charges very little for that coverage.
It is a good way for those with not enough money to plan out to their 90's when they do not have enough money to cover that far out.

Those with a shortfall in savings can plan a lot better out to only 85 Rather than 95.

I suggest before commenting about my dinner budget you learn about what it is you are commenting on. I am trying to offer solutions for those on a small retirement budget and your comments are not appreciated.
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