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Old 01-15-2018, 08:24 AM
 
6,633 posts, read 4,592,221 times
Reputation: 13344

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Quote:
Originally Posted by freemkt View Post
I have a co-worker who is 72 and he still has a RENT payment!
You are aware that in high COL areas, people who purchased properties 30 years ago and have paid off the mortgage are now paying MORE than they did in the early years of said mortgage? The increases in taxes and insurance not to mention repairs on an aging home require them to fork over more than they did back in the day. Thatís why so many sell and flee to lower COL areas. They canít afford to continue to live where they are despite the mortgage being paid off. Unless they also saved well for retirement. And no, buying isnít always or even frequently cheaper than renting given that people buy more house than they rent.

Being prepared for retirement isnít about buying vs renting. Itís about earning/saving adequately for the 4 decades prior to retirement.
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Old 01-15-2018, 09:36 AM
 
Location: Denver CO
21,155 posts, read 11,754,604 times
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Quote:
Originally Posted by UNC4Me View Post
You are aware that in high COL areas, people who purchased properties 30 years ago and have paid off the mortgage are now paying MORE than they did in the early years of said mortgage? The increases in taxes and insurance not to mention repairs on an aging home require them to fork over more than they did back in the day. Thatís why so many sell and flee to lower COL areas. They canít afford to continue to live where they are despite the mortgage being paid off. Unless they also saved well for retirement. And no, buying isnít always or even frequently cheaper than renting given that people buy more house than they rent.

Being prepared for retirement isnít about buying vs renting. Itís about earning/saving adequately for the 4 decades prior to retirement.
And those taxes and insurance are still less than rent - certainly for anything comparable. Less for a small apartment vs a large single family home but then again, they can always sell that paid off SFH and buy a small condo if that's what they want, including paying cash in a lower COL area with the equity they have in that house.

Of course people can retire without owning a home, but it's disingenuous to pretend that owning a paid off home doesn't impact your financial situation in retirement in a positive way vs. paying rent forever.
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Old 01-15-2018, 09:39 AM
 
6,633 posts, read 4,592,221 times
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Quote:
Originally Posted by emm74 View Post
And those taxes and insurance are still less than rent - certainly for anything comparable. Less for a small apartment vs a large single family home but then again, they can always sell that paid off SFH and buy a small condo if that's what they want, including paying cash in a lower COL area with the equity they have in that house.

Of course people can retire without owning a home, but it's disingenuous to pretend that owning a paid off home doesn't impact your financial situation in retirement in a positive way vs. paying rent forever.
Of course it can impact in a positive way, but homeownership in and of itself is not a panacea for lack of income in retirement.
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Old 01-15-2018, 10:26 AM
 
5,392 posts, read 6,527,506 times
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rent vs buy?

My pool has a 10 inch water level leak. The carpenter ants had to be killed and facia repaired after the squirrels and ants had their chew. The screen enclosure has lost the squirrel encounter and I must rescreen AGAIN. And that is just now.

This is after updating the interior and fixing everything in my house replacing everything including the plumbing.

When I moved in I was strong enough to take care of the landscaping and tree trimming but now must hire out every single blinking thing.

taxes and homeowners insurance are still creeping up.


I can see why renting has an appeal to some. it may be better than the downside of home owners ship where maintenance never stops, taxes don't go down, and trees and squirrels continue to cause damage.

Sometimes I do think about renting and putting my resources into something besides an aging house (which I am not sure will appreciate that much more in the short medium term). But for here and now, it is what it is. And I do love my home and neighborhood. Can see both sides.

As to the question OP asked: I say the same to someone else's retirement planning as I do to parents raising their children. Nothing, unless they ask for specific tactful response.
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Old 01-15-2018, 10:32 AM
 
Location: Northern California
436 posts, read 195,196 times
Reputation: 552
Depending upon where you are in life, you may be penalizing yourself unable to live if you save for retirement. So the timing of your Social Security with Medicare Savings Programs/Medicaid may be very important for a select group who come late to the party.

I did our budget over and over. FINALLY I can save for retirement without being penalized. Otherwise in every scenario I produced, we'd loose money by saving. You need to take into account the cost of healthcare with regards to medicare savings programs and medicaid. He'll be on a Medicare Savings Program, possibly, for 3 years. I'll make $1664 (or it's equivilant) so he can sign up for Medicaid IF he needs to along with that medicare savings program.

We will both sign up for SS at age 69. I'll be working until I drop.

The only thing that might change the plan is if I can get a job that provides what medigap or a medicare supplement would. Then I can make more $$ those 3 years and never plan on limiting myself.


Gist of it is, it may be prudent to remain under $1664 for a couple or $1848 (not sure the single rate) so you can remain within the scope of discounted healthcare to some degree.
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Old 01-15-2018, 10:40 AM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,537 posts, read 39,914,033 times
Reputation: 23634
Kinda sad there are NOT more ‘solutions / remedy / success stories’ here.

Stuff happens in life, and many are not able to save, or lose their wealth, or their pension obligations are not honored. This is no crime.

Plenty of people have to pull up their boot straps and ‘get-r-done’.

The more famous.... Roy Kroc and Harland Sanders found @ retirement age, the necessity of accumulating a little more wealth to fullfill their retirement savings. My in-laws and parents both had to start over late in life.(after age 65) My neighbor (75) used 100% of their retirement to bail adult kids out of poor financial decisions. Can’t just condemn or voice ‘SOL’ to them.
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