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Old 11-07-2018, 03:58 AM
 
Location: Coastal Georgia
37,116 posts, read 45,631,484 times
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Quote:
Originally Posted by old fed View Post
i'm retired, i have a mortgage. in fact, i took out the mortgage after i retired. not sure where you get your info
We did too. It’s $600. a month, and we couldn’t rent a decent apartment for that amount. We hope the house will appreciate by the time we sell, so not only will we have enough to buy a condo, but also add a bit more money to the investment pile.

 
Old 11-07-2018, 04:16 AM
 
12,299 posts, read 15,196,725 times
Reputation: 8108
Quote:
Originally Posted by jrkliny View Post
The percentage of seniors living in poverty is actually quite low....9%.


Before looking up the stats, I had expected a much higher number. Many people put little work or ambition into their careers and often just drift through life. Alcohol and drug abuse are rampant and take a heavy toll. In addition college education was less common in the past and many poorly educated people did not have great career opportunities. In past generations fewer women worked which also meant smaller incomes. We believe in freedom of choice and a great many people just do stupid things and make poor choices. Another big factor is the abysmal lack of education in personal finance. Most Americans know or at least behave as though they know absolutely nothing about finances including use of credit, saving, investing and managing money on a daily basis.


Altogether, I am surprised the poverty rate for senior is only 9%.
The highest poverty rate is for children. Seniors do much better since they have Social Security, Medicare, and, if lucky, even some savings. Of course many have the ability to move somewhere with low COL that may have no jobs and rotten schools, but bein retired, don't care.
 
Old 11-07-2018, 04:18 AM
 
Location: Ypsilanti, MI
2,439 posts, read 3,664,651 times
Reputation: 4805
Quote:
Originally Posted by LHS79 View Post
You can never retire if you have a mortgage.
Yes you can. Our investments earn a significantly greater percentage return than the cost of interest on the mortgage. We could pay our mortgage off at any time but are making money by keeping the pay-off dollars invested.

Back to the OP's original question, in addition to the one-off financial catastrophes such as major medical bills or a 'gray divorce', I suspect a lot of people simply didn't adequately plan for, or attempt to discover, the true cost of their retirement. I know our families are filled with people in this category. Late 50's with no savings, no pension, no home ownership, no self discipline when it comes to spending.
 
Old 11-07-2018, 04:19 AM
 
Location: R.I.
978 posts, read 605,665 times
Reputation: 4242
Quote:
Originally Posted by NoMoreSnowForMe View Post
Yes. And women have to stay married to their husbands for 10 years in order to collect any of their husbands' SSA retirement money, and then just a portion of it. That's how we value women who stay home to take care of the home and kids.

So, what if he divorces her after 9 years for a younger model? Yep, she's SOL.
Pleeeze, do not paint all SAHMs with the same poor victim broad brush stroke because all are not.

My SO's Ex wife was a SAHM and when the last of their two kids was ready to enter school my SO offered his Ex the opportunity to go to college, hair dressing school, or whatever if she wanted to do to obtain a profession for herself as a way to grow as a person outside of her role as wife an mother. She wanted no part of that because she was too busy making hay with the next door neighbor's husband. They eventually divorced, but she made sure that did not happen a minute before they hit the 10 year marriage mark. The ink was not even dry on their divorce papers when she moved a new boyfriend and his paycheck into the mortgage free home my SO gave her in the divorce settlement because he wanted his kids to grow up in a nice home and neighborhood. Within a few months my SO's Ex sold that nice home and bought a dump in not the best neighborhood so she could use the profit from the sale to supplement her low income job which she took only to get health insurance as hers would end when the youngest child turned 18. That seedy neighborhood along with her new boyfriend's lifestyle of alcohol and drugs was what introduced my SO's son to that same lifestyle. And when my SO tried to intervene that only caused estrangement from his son. Today my SO's son is a 46 year old raging alcoholic and drug addict, and it was so bad even his wife who had her own share of substance abuse issues divorced him as a result. Sadly we don't expect my SO's son to be around much longer because his organs are now failing from so many years of substance abuse, and the two great boys he managed to have through his on again off again marriage are now both teenagers and so messed up emotionally having grown up in that awful parental substance abuse environment.

It matters not to my SO that his Ex wife collects 1/2 is Social Security check, what matters to him is his Ex did a very poor job as wife and SAHM mother by choosing the lifestyle she did, and her poor choices had a devastatingly negative impact on his son which contributed to him not likely living to see his 50th birthday.
 
Old 11-07-2018, 04:33 AM
 
71,584 posts, read 71,730,589 times
Reputation: 49179
Quote:
Originally Posted by jrkliny View Post
The percentage of seniors living in poverty is actually quite low....9%.


Before looking up the stats, I had expected a much higher number. Many people put little work or ambition into their careers and often just drift through life. Alcohol and drug abuse are rampant and take a heavy toll. In addition college education was less common in the past and many poorly educated people did not have great career opportunities. In past generations fewer women worked which also meant smaller incomes. We believe in freedom of choice and a great many people just do stupid things and make poor choices. Another big factor is the abysmal lack of education in personal finance. Most Americans know or at least behave as though they know absolutely nothing about finances including use of credit, saving, investing and managing money on a daily basis. The census bureau has different ways of calculating this stuff and the standard measure falls short. The census bureau says using the spm method shows almost 2x the basic number living in poverty .


Altogether, I am surprised the poverty rate for senior is only 9%.
It depends how it is measured and what is included. Kaiser foundation looked in to some of the issues as to how they attempt to measure it. The census bureau has multiple ways of calculating . The spm method shows almost 2x the basic number as far as seniors in poverty

https://www.kff.org/report-section/h...016-data-note/
 
Old 11-07-2018, 04:38 AM
 
2,443 posts, read 2,071,602 times
Reputation: 5690
Quote:
Originally Posted by AlaskaErik View Post
That is simply not true. We have a mortgage on one of our houses and money is still coming in faster than we can spend it.
We know we know and we are proud of you.
 
Old 11-07-2018, 04:47 AM
 
13,912 posts, read 7,405,593 times
Reputation: 25396
Quote:
Originally Posted by NoMoreSnowForMe View Post
Imagine you never made much money to begin with. Your parents were poor and couldn't afford to pay for your college education. You couldn't afford to just go to college without student loans - and - work at the same time.

Then, you get divorced and you get custody of the kid. Yay! But, then your ex never pays child support, and you're working full time and trying to afford a house payment and student loan payments and your child care costs more than your house payment. And, your kid needs braces, and has allergies, on and on.

Then, you are severely injured and end up on disability.

You're really good at budgeting the money that you have. But, you definitely qualify as within the definitions of the poverty levels for assistance, etc.

Stuff happens. Why assume the people who are struggling in retirement are somehow losers, gamblers, drug addicts or whatever? Yeesh.

This is the same kind of narrow thinking of people who assume all immigrants are terrorists (even though all of our ancestors were immigrants). Really, try imagining a different scenario based on an open mind and kindness. You might surprise yourself.
Yep. If you have the bad luck of being born to the wrong parents, or with limited intellect, or with health issues, or a major “life happens” occurs, it’s tough to overcome it. If you’re programmed when you’re young to make poor decisions, it’s almost impossible to unwind it.
 
Old 11-07-2018, 05:04 AM
 
13,912 posts, read 7,405,593 times
Reputation: 25396
Quote:
Originally Posted by mathjak107 View Post
It depends how it is measured and what is included. Kaiser foundation looked in to some of the issues as to how they attempt to measure it. The census bureau has multiple ways of calculating . The spm method shows almost 2x the basic number as far as seniors in poverty

https://www.kff.org/report-section/h...016-data-note/
And relative to 21st century US standard of living, 2 x spm is far leaner than what most would consider middle class.

With the death of the defined benefit pension, the number of elderly poor with nothing but a modest Social Security check is going to spike.
 
Old 11-07-2018, 05:40 AM
 
1,137 posts, read 570,166 times
Reputation: 4370
One thing that doesn't help women is that many that weren't in charge of finances when married, don't take charge when they are not. We have a friend that divorced three years ago, and we have been keeping in touch. She is having financial problems, is on disability, and apparently has not taken the reins of her own horse.

She and her husband saved 50% of their salaries for 20 years during their marriage. We asked her about her situation- how much her funds were. She doesn't know. We asked can she look them up to find out? She doesn't know. She says her husband divided them. We asked her if they are in bank accounts for her. She doesn't know. They built a house together from scratch. Apparently it is in a trust fund. We asked her if she knows who manages the fund. She doesn't know. Is it an irrevocable trust? She doesn't know. We asked her is she knew anything about spousal benefits for ex-wives. She doesn't know.

It might be easy for some people that don't care about others to just drop it and go out and "buy a new car or something" and forget about the friends. But that is not us. Oh, man, just how deep are we supposed to get involved? Don't know. We really like her, and don't want her to fail, so I see some advocacy coming up in the horizon. We always do this, take in strays to keep them from physical and financial death. We're not well off, but we're OK financially, and it makes us feel good to know we helped others in need.

I guess that is slowly defining our 'volunteering' after retirement....
 
Old 11-07-2018, 07:35 AM
 
8,853 posts, read 5,132,953 times
Reputation: 10123
Quote:
Originally Posted by Nightengale212 View Post
It matters not to my SO that his Ex wife collects 1/2 is Social Security check, what matters to him is his Ex did a very poor job as wife and SAHM mother by choosing the lifestyle she did, and her poor choices had a devastatingly negative impact on his son which contributed to him not likely living to see his 50th birthday.
She isn't collecting half of his check; she is collecting her own check based on his earning record. There is a huge difference between these two statements. The taxpayers fund her check; your SO does not.
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