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Old 01-09-2017, 02:46 PM
 
Location: SoCal
13,232 posts, read 6,335,450 times
Reputation: 9854

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Quote:
Originally Posted by Serious Conversation View Post
Did she inherit this money?

How did someone who "didn't earn enough to rent an apartment" end up with multiple houses and three quarters of a million in a 401k?

That doesn't make any sense.
No. She invested 100% in the stocks market. 401k money cannot be inherited. She never sells any stocks that through employees stock purchase plan and they have since quadrupled. I only know her business when I had to help her rearrange her ratio to get a loan approval. They didn't let her borrow too much.
In the beginning of her career she couldn't afford to rent an apartment. She rented a room from somebody else. When she decided to buy a house finally, she rented out all the other rooms to make ends meet. Till today she still buys clothes from Salvation Army. Same frugal habit.
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Old 01-09-2017, 02:48 PM
 
Location: Living on the Coast in Oxnard CA
15,735 posts, read 26,776,109 times
Reputation: 20372
Quote:
Originally Posted by Serious Conversation View Post
Did she inherit this money?

How did someone who "didn't earn enough to rent an apartment" end up with multiple houses and three quarters of a million in a 401k?

That doesn't make any sense.
Someone that does not close the account could do that. Someone that does not borrow on the 401K could do that. Someone that lets the money grow could do that.
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Old 01-09-2017, 02:53 PM
 
Location: SoCal
13,232 posts, read 6,335,450 times
Reputation: 9854
Quote:
Originally Posted by SOON2BNSURPRISE View Post
Someone that does not close the account could do that. Someone that does not borrow on the 401K could do that. Someone that lets the money grow could do that.
Yeah. Even when she couldn't afford health insurance premium, she went without, even with pre existing condition, she wouldn't touch her retirement money. I know it's crazy but that's what she did. She said she's single and was not sure she could count on anybody, all she could count on is herself.
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Old 01-09-2017, 03:03 PM
 
Location: A safe distance from San Francisco
8,561 posts, read 6,148,322 times
Reputation: 8523
Quote:
Originally Posted by NewbieHere View Post
Unless you mean the homeless, which I don't really know them. I don't think it's a bubble at all. These are people I know who never earned enough to rent an apartment, like my sister, but she end up with a huge 401k, almost 3/4 million. And a few houses. She got laid off often too. Sometimes she didn't earn enough she couldn't only contribute 4% max. She went without health insurance some years. And she also single, no help from a second income. She has meager pension, like $200 a month from one company.
I consider her my poorest relative, I always pay for her when we eat out.
Do you know how many people there are between the homeless and this, the poorest person you know....?

Quote:
she has a house paid off, she has pension that she could net $30-$40k per year, she has something from her teacher's day, I don't know exactly how much. She also has about $125k.
Millions upon millions....aka most people. It's a bubble, alright.
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Old 01-09-2017, 03:10 PM
 
3,346 posts, read 3,049,864 times
Reputation: 4875
Quote:
Originally Posted by Blondy View Post
That really depends imo on how bad they want a house.

For myself, I worked 3 jobs for a couple of years, delayed buying the house, and bought less house than I wanted or could qualify for. I also lived cheap in a house with 5 roommates, which was not always the most pleasant thing.
I hear you. I bought my first house on my own with no help at age 54 and lived with a roommate for years in San Francisco.
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Old 01-09-2017, 03:19 PM
 
Location: SoCal
13,232 posts, read 6,335,450 times
Reputation: 9854
Quote:
Originally Posted by CrownVic95 View Post
Do you know how many people there are between the homeless and this, the poorest person you know....?

Millions upon millions....aka most people. It's a bubble, alright.
The homeless because I handed him a $20 bill every year and he still asked for more.
But what do you mean by know? I don't know the bank accounts of my acquaintances. But I can guess roughly how much they make and some told me how much they have. I don't hire anybody so I don't even know anyone else. My next door neighbors are both doctors, these are the people I actually talk to and know roughly what they pay for things, so I assume they have money. I have no housekeeper, no gardener. You can call it bubble. I don't see it as bubble. If you can't take it then tough luck.
And you know those millions people as in their bank accounts? Give me a break.
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Old 01-09-2017, 04:36 PM
 
Location: Metropolis IL
1,602 posts, read 1,892,707 times
Reputation: 2348
Quote:
Originally Posted by Colorado Rambler View Post
People/Government doesn't care about low income retirees today. Why would anyone think that suddenly there will be all this concern over poverty stricken Millennial retirees in the future? Go read Paul Ryan's plans for the future of Medicare/Social Security/Medicaid if you don't believe me. The Baby Boom cohort may be better off then some, but if OP thinks we're all rolling in thousand dollar bills, he needs to think again. I'm a Boomer who became disabled prior to retirement 15 years ago and watched my savings and everything else go down the toilet as I tried to pay medical bills, prescription costs, and put a little food on the table. By time I finally got the right diagnosis - it only took my doctors 5 years of wasted time and money - my SSDI disability award was only $760.00/month. Next year when I turn 66. my SSDI will roll over into Social Security with the same monthly payment of $760/month. I am forced to use Medicaid and foodstamps to get by. Well, we all know that so-called president trump is getting rid of the ACA, including medicaid, his first day in office. I believe food stamps are slated to vanish on his third day, and before his first week is up, affordable housing will also be defunded.

Does anyone care other than those of us who are being impacted by the disappearance of the social safety net? Not that I can see. People in my position are going to be dying soon. That's what happens when you deprive a person no longer able to work of food, shelter and medical care. I feel like taking every last pill I have before I go to sleep tonight. I'm too old and my health is going downhill too rapidly for me to continue on with nothing. I have no close family members still alive and no one to turn to. At least OP seems to be younger and may yet have the time to figure something out. My time is out.
Even if the government succeeds in eliminating the safety net for seniors, I don't see society allowing the elderly to go without the basics of food, shelter, and medical care. On the other hand, this isn't pre-New Deal America where large, often agricultural based families took care of their own. Perhaps GoFundMe pages on Facebook are the shape of the future for senior survival. Seems these are successfully being used for much less worthy causes.
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Old 01-09-2017, 04:59 PM
 
29,782 posts, read 34,871,258 times
Reputation: 11705
Quote:
Originally Posted by NewbieHere View Post
No. She invested 100% in the stocks market. 401k money cannot be inherited. She never sells any stocks that through employees stock purchase plan and they have since quadrupled. I only know her business when I had to help her rearrange her ratio to get a loan approval. They didn't let her borrow too much.
In the beginning of her career she couldn't afford to rent an apartment. She rented a room from somebody else. When she decided to buy a house finally, she rented out all the other rooms to make ends meet. Till today she still buys clothes from Salvation Army. Same frugal habit.
Not that it matters in this case but you can inherit a 401k within the guidelines

How to Inherit a 401(k) -- The Motley Fool
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Old 01-09-2017, 05:25 PM
 
Location: SoCal
13,232 posts, read 6,335,450 times
Reputation: 9854
Quote:
Originally Posted by TuborgP View Post
Not that it matters in this case but you can inherit a 401k within the guidelines

How to Inherit a 401(k) -- The Motley Fool
Thank you for your link. It reminds me why it's a good idea to transfer money from 401k to IRA. IRA can be stretchable.
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Old 01-09-2017, 05:26 PM
 
Location: Copenhagen, Denmark
10,522 posts, read 8,765,146 times
Reputation: 12215
You just haven't been listening.
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