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Old 06-30-2019, 05:52 AM
 
Location: Colorado Springs
4,829 posts, read 4,940,887 times
Reputation: 17284

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OP: Just move to a lower COL place and you'll be fine.

https://www.usatoday.com/story/money...come/36848957/

"The average household led by a retiree makes $48,000 annually before taxes and spends roughly $46,000 a year.

That’s according to the Bureau of Labor Statistics’ (BLS) measure of the income and outflow of “older households,” meaning ones headed by someone 65 or older. Meanwhile, the annual average pretax income for all U.S. households is about $74,000 and expenditures are $57,000."
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Old 06-30-2019, 05:52 AM
 
71,457 posts, read 71,629,249 times
Reputation: 49006
Quote:
Originally Posted by Sharpydove View Post
Although I have learned a lot of valuable information from you, it’s with all due respect that here is where we part ways. The wisest man I knew, 20 years older than me, said the way to be secure in retirement is to have it funded and debt-free.

Debt is bondage PERIOD

To me, if you don’t have a comfortable cash cushion, or if you foresee needing to borrow more after 60, you have no business with a mortgage in retirement.
If that is what he said as a blanket statement then I have to move him from wisest to kind of financially ignorant in my list... there is no one size fits all statements when it comes to this stuff .... a sure sign of financial ignorance is trying to lay that claim on every situation.

I bet he makes the same financially ignorant claims as to when to take ss too. Sorry , but just sayin ,,,,calling it as I see it..

The problem is when others parrot misinformation and then believe it to be true.

Loads of retirees took mortgages with rates historically this low and made lots of money ..they can pay those mortgages off at anytime if they choose while reaping juicy rewards ..

They may be far more financially secure with access to loads of liquidity then seeing that money needlessly trapped in that house.

You likely have far more retirees ending up cash poor in retirement because they locked up far to much liquidity then they had to and now either can’t afford to pay heloc loans , can’t qualify for a heloc or have to give away the equity in their home to the fees and reverse compounding interest of a reverse mortgage...

Tell that to your wise friend, or you may want to just think about what he said in a new financially enlightened light.. there is nothing that is best advice for everyone, except to the mis informed

Last edited by mathjak107; 06-30-2019 at 06:18 AM..
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Old 06-30-2019, 05:54 AM
 
58 posts, read 9,857 times
Reputation: 157
$3,300 after housing?


-$270 per month for Medicare Part B.
-$200 per month utilities.
-$200 per month for cell phones and cable.
-$200 per month for supplemental dental and health insurance.
-$50 per month for car insurance.
-$50 per month for renter's insurance.
-$50 per month for eyecare needs.
-$600 per month for food.
-$75 per month for gas.


Leaves you $1,605 per month. Clothing, car maintenance, holiday gifts, magazine subscriptions, medical copayments and deductibles, federal and state taxes, etc.
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Old 06-30-2019, 06:02 AM
 
Location: SoCal
13,189 posts, read 6,301,958 times
Reputation: 9808
Quote:
Originally Posted by Sharpydove View Post
Although I have learned a lot of valuable information from you, it’s with all due respect that here is where we part ways. The wisest man I knew, 20 years older than me, said the way to be secure in retirement is to have it funded and debt-free.

Debt is bondage PERIOD

To me, if you don’t have a comfortable cash cushion, or if you foresee needing to borrow more after 60, you have no business with a mortgage in retirement.
I’m not Mathjak but I keep reading this nonsense everywhere, nothing wrong with debt, bondage or non bondage. But I agree with Mathjak 100%. In 2008, even if you are 100% mortgage free but if you couldn’t pay your HOA, they would foreclose your house.
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Old 06-30-2019, 06:05 AM
 
Location: SoCal
13,189 posts, read 6,301,958 times
Reputation: 9808
Quote:
Originally Posted by AlexTheCat View Post
$3,300 after housing?


-$270 per month for Medicare Part B.
-$200 per month utilities.
-$200 per month for cell phones and cable.
-$200 per month for supplemental dental and health insurance.
-$50 per month for car insurance.
-$50 per month for renter's insurance.
-$50 per month for eyecare needs.
-$600 per month for food.
-$75 per month for gas.


Leaves you $1,605 per month. Clothing, car maintenance, holiday gifts, magazine subscriptions, medical copayments and deductibles, federal and state taxes, etc.
Cut cable and cellphone. I would be able to reduce that to $45 cellphone for two and use a good antenna to get all the free channels.
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Old 06-30-2019, 06:05 AM
 
634 posts, read 172,009 times
Reputation: 1548
Quote:
Originally Posted by jrkliny View Post
If I understand you numbers, DH will get $4000 when he retires at age 70. If so, you will get half; i.e., $2000 for a total of $6000.
The wife won’t get $2000.
My understanding is that the wife is not entitled to an additional accumulated benefit of husband working to 70.
Maximum she can get is a half of his FRA amount~ $1500.( max SS in 2019 is $2861)
However, she is considering retiring at 62- which permanently reduce her share by about 30%~ max she could get is < than $1000?
His higher SS is helpful to her when he is dead.
If she could bear it- my advise is to try working to FRA and attempt to start investing/ putting money aside


Average household income in 2017 was ~$61000.
2018 poverty guideline is $25100 for a family of 4!

Average income of age 65+ is ~ $41000.

I think the OP could somehow manage.. on her $60000 in retirement- a lot of people do much worse.
50% of people in the US earn less then $30000 while working.
So OP even has an option to stay in MA, but move to a less expensive area- where average household incomes are less than $40000 per year - there are many towns like Pittsfield, Springfield, Fall River, etc

Last edited by Nik4me; 06-30-2019 at 06:20 AM..
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Old 06-30-2019, 06:08 AM
 
71,457 posts, read 71,629,249 times
Reputation: 49006
You are correct , delayed credits are not calculated for spousal , only for survivor
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Old 06-30-2019, 06:34 AM
 
Location: I live in reality.
1,045 posts, read 957,327 times
Reputation: 1835
[quote=bluestocking12;55546434]I'm brand new here and trying to come to terms with what it's going to be like to be poor in retirement, especially since we are accustomed to a 6-figure income now. I'm 62 and dh is 63. We are among the millions who, with the exception of a couple of houses we bought and sold a long time ago, did not save or invest for retirement. I need to say that I'm very aware of the mistakes we made, our irresponsibility, as well as extenuating circumstances that made saving difficult (special needs child). No scolding necessary. We've been through the miserable beating ourselves up stage. I'm trying to problem-solve.

We rent in a very affluent New England town. By our SS calculations, allowing for me taking retirement now (500.) and dh taking his at 70 ($4000.), we will be receiving between 4500 - 5000/month. (That upper number assuming that my amount will go up to a percentage of his benefit.)

It will be possible to move further into the country, say, Vermont, and rent a cottage for about $1200. That would also be about the cost to stay here and live in elderly, public housing. A thought which (unnecessarily) shames me. It also kind of intrigues me: such a wealthy town doesn't really have a public housing waiting list.

Your post certainly cracks me up! I live on HALF what you will and still pay ALL my bills, rent, utilities, insurance and have 2 vehicles (because a girl needs a truck when she is single). I have not had a credit card in 25 yrs, just so my son would learn he didn't NEED one. My skills learned as a Girl Scout x ten years in my youth got me ready for any given situation and MAN! have they saved us on many occasions. I taught my son the same skills for his 'Life Skills Toolbox' and he just graduated from College with a Business Degree.
I did plan for my retirement, but some bad accidents happened to me in my early 50s which happened suddenly and made me have to cash-in my three retirement 401Ks or live in our car (son was 13 then). I did what I HAD to do and right after that the Recession happened. We did fine and kept moving forward. It showed my son just HOW to survive anything bad that can happen and how it happens to good people, randomly.
I highly doubt with your retirement income PLUS hubby's you would qualify for any subsidy in a public housing institution! I sure hope your parents or someone taught your some survival skills or you won't survive retirement. You will be just fine...as long as hubby keeps healthy and working.
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Old 06-30-2019, 06:40 AM
 
30 posts, read 14,945 times
Reputation: 77
Quote:
Originally Posted by Serious Conversation View Post
Yep.

It smacks of northeastern privilege.
It's not Northeastern privilege, it's the reality of living here. My husband needs to be in metro-Boston for work, so moving now is not an option. While we live only about 15 miles from his office the commute is *two hours.* It's the I-95/128 corridor for those who are familiar. Ditto everyplace else, even in outlying towns, rents are 3000/month for a 2 BR and housing prices carry about the same house payment. So that would leave 2000/month. For gas (don't get me started), food, insurance, utilities, medical copays, dental, etc.
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Old 06-30-2019, 06:43 AM
 
30 posts, read 14,945 times
Reputation: 77
Mooksmom wrote:

"Your post certainly cracks me up! I live on HALF what you will and still pay ALL my bills, rent, utilities, insurance and have 2 vehicles"

Where do you live?
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