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Old 06-30-2019, 11:35 PM
 
2,036 posts, read 1,945,197 times
Reputation: 3446

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Quote:
Originally Posted by RationalExpectations View Post
Very, very true. At the end of the day,
  • for every person lamenting they can't make it on $60,000 per year, there is someone making it on $55K.
  • for every person lamenting they can't make it on $55,000 per year, there is someone making it on $50K.
  • for every person lamenting they can't make it on $50,000 per year, there is someone making it on $45K.
  • for every person lamenting they can't make it on $45,000 per year, there is someone making it on $40K.
  • for every person lamenting they can't make it on $40,000 per year, there is someone making it on $35K.
  • for every person lamenting they can't make it on $35,000 per year, there is someone making it on $30K.
  • for every person lamenting they can't make it on $30,000 per year, there is someone making it on $25K.
  • for every person lamenting they can't make it on $25,000 per year, there is someone making it on $20K.
That is exactly how I justified maxing out my 401k all my life. When I started out making 30K I said there are people living on 25k and that's what I took home.

Last edited by fumbling; 07-01-2019 at 12:21 AM..
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Old 06-30-2019, 11:51 PM
 
6,742 posts, read 3,851,875 times
Reputation: 15441
Quote:
Originally Posted by germaine2626 View Post
I hate to mention this, but not only should you look at your expenses when you have two incomes/two SS checks and two people but please think about what you would do with one SS check and one person. In my widow/widowers grief support group about 1/3 of the widows, and a few of the widowers, needed to move out of their house/apartment shortly after their spouse died as they couldn't afford the rent/mortgage, utilities and other expenses anymore (several had to move in with adult children). Not that you should unduly worry about it but at least consider what would happen in the worse case scenario (death or serious illness of one of you). IMHO, try to secure extra income for emergencies though side gigs.


Good luck

I agree totally. When we moved to our 55+ community we tried to be sure either one of us would be able to handle the costs without the other.
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Old 07-01-2019, 12:00 AM
 
Location: Silicon Valley
18,081 posts, read 22,914,959 times
Reputation: 35192
I live on $716/month in Silicon Valley, SSA retirement income. I also get food stamps and Section 8.

Look into any subsidies you qualify for. And don't be shy or embarrassed.
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Old 07-01-2019, 04:48 AM
 
13,872 posts, read 7,381,208 times
Reputation: 25351
Quote:
Originally Posted by gypsychic View Post
I am sorry, but I am really struggling to understand this scenario - you've been making six-figures, but rent, have no assets, no retirement accounts and no savings???? None at all? If that is truly the case, I think you need to do as many have suggested - start right NOW and sock away the money while it is still coming in. Also, are you sure hubby will be getting $4000 SS? Even if he does, yours will be calculated on what his check would be at full retirement age - you will probably get 37% of his (not 50%) because you took yours early. If you can save money in the interim, you can get by, but I think one or both of you will need to supplement the income somehow especially if you stay in such a high COL area.

My hubby and I were also not very good at saving, but thankfully he has worked for the government (state of Florida) for a number of years and has quite a healthy retirement account along with a pension payment when he retires in 1.5 years. We are very, very grateful.

Good luck to you!
This, pretty much. The OP is renting. With a husband planning to work 7 years and then retire at age 70, move to the cheapest housing available near work. Slash expenses to the bone. Create as much of a nest egg as possible. The OP needs to work, too.

Vermont is a crazed place to consider retiring. You are wildly car dependent. Energy is a big cost for heating and transportation. Food is expensive. Health care is sketchy unless youíre near Dartmouth-Hitchcock or UVM Medical and those are higher housing cost places.

If the OP wants to stay in New England, there are lower cost places where you arenít so car dependent. Nightingale suggested Bristol RI. The Mass South Coast has similar costs. My Social Security math is the same as the OPs husband. $45k if I delay to age 70. I bought a small house at age 51, zeroed out the mortgage in a hurry, remodeled to my taste, and I have a low cost of ownership place to live for the rest of my life. I have other wealth but I structured things so I will be very comfortable using my Social Security check for my cash flow.

The big risk for the OP is if life happens and her husband canít work until age 70. Then her husband dies and the OP lives on his survivor benefit giving up her check.
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Old 07-01-2019, 07:10 AM
 
30 posts, read 14,945 times
Reputation: 77
Quote:
Originally Posted by Fran66 View Post
Thank most of you for reminding me once again exactly what is wrong with our country; and, secondly, why I left C-D Retirement the first time.
Please stay, Fran. Your voice needs to be heard! I'm a bleeding heart liberal, too.
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Old 07-01-2019, 07:31 AM
 
Location: Tennessee
23,541 posts, read 17,525,434 times
Reputation: 27573
Quote:
Originally Posted by bluestocking12 View Post
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.
But here's the rub - he's working now. As long as the income keeps coming in, stay. You bail out when it stops coming in.

I used to work for a satellite office of a tech company based near the Burlington Mall on 128, and have spent many weeks in that area on business. I know the traffic and about the hellish commutes many of my colleagues had on 128 and Route 3. We had guys commuting 90 mins - 120 mins on a regular basis. I had lunch with some former colleagues a couple of weeks ago when I was on vacation. I like metro Boston in small doses, but I'd never want to live there unless I was making massive amounts of money.

At least for me, I would have only gotten a 30% COLA between where I was in Indianapolis and the Burlington HQ. That wouldn't be nearly enough to offset the cost of living, much less the hassle of the increase in traffic, etc.

I just ran the numbers between where I am in Tennessee vs. Burlington through a COL calculator, and I'd need to double my income to keep the same standard of living. My gut instinct tells me it would be even more. The apartment I'm in now would be close to three times the price in Burlington. State income taxes. Road tolls. Much higher power/heating bills, especially in the winter. I paid $2.25/gallon yesterday - it looks like it's pushing to $2.70 there. Everything is just much higher across the board.

Unless I was a top 5%-10% earner, it wouldn't make sense for me to live somewhere like that. The housing costs would eat me alive, and my income wouldn't scale sufficiently. If he's at the top of the pecking order, maybe it makes sense, but neither does it make sense to me how someone with a career in metro Boston tech ends up with no investible assets. At a minimum, matching a typical 6% or something in your 401K would have probably left you with at least a couple hundred thousand by now.
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Old 07-01-2019, 07:34 AM
 
29,764 posts, read 34,848,700 times
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Quote:
Originally Posted by bluestocking12 View Post
Please stay, Fran. Your voice needs to be heard! I'm a bleeding heart liberal, too.
I think the core and most important part of her post is not any political affiliation she may or may not have but the fact that she is Altruistic, a quality that many consider admirable regardless of any political affiliation or characterization.

Quote:
Altruistic | Definition of Altruistic at Dictionary.com
https://www.dictionary.com/browse/altruistic

Sep 09, 2014 ∑ Altruistic definition, unselfishly concerned for or devoted to the welfare of others (opposed to egoistic)
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Old 07-01-2019, 07:45 AM
 
Location: SoCal
13,188 posts, read 6,301,958 times
Reputation: 9808
Altruistic is fine as long as it’s your own money. It’s not fine when you think others have to pay for it. I gave $100 to one wife whose husband died suddenly in my office, she couldn’t afford money for grocery. I didn’t tell anybody until now.
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Old 07-01-2019, 07:45 AM
 
Location: South Africa
42 posts, read 9,856 times
Reputation: 80
Id like to advise you to go and watch a short documentary on YouTube by the Quartz channel called "The future of aging"

They explore the future of retirement and how its seems people will stop working much, much later as the years go by hence one reply recommended you consider getting a side job. That is the very future of retirement in todays world unfortunately with costs getting higher and higher seems many will have to work until they cant anymore (sad af but its true) Real retirement (sitting doing nothing is what I mean by REAL) will soon be a thing of the past.
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Old 07-01-2019, 07:49 AM
 
Location: Tennessee
23,541 posts, read 17,525,434 times
Reputation: 27573
Quote:
Originally Posted by ddeemo View Post
Boston and TN are worlds apart as far as COL - just because $60k is a lot in TN does not mean it is even basic income in an area such as Boston. Very high housing costs in certain areas can mean that $55-60K is very difficult or impossible amount to live on in some areas of country, since $60K might not cover much more than the average residence payments for mortgage, taxes and insurance, leaving next to nothing for other costs such as utilities, food and medical.

The median house in Boston is currently listed for $745,000 and is just over 1000 sq ft - payments would be about $4000/mo or $48000/yr. That means that housing would eat up almost the entire $55-60K. The average rent in Boston is $2800/mo or $33,600/yr - you are not covering that on $35-40K HHI that is average for TN.

Some places in CA where average house is well above $1M, 60K would not even come close to covering house payments and would leave nothing for other costs. The average San Francisco house is $1.35M and about 1200 Sq Ft (not large), that works out to about $7300/mo or $87,600/yr just for PITI. The median rent is $4580/mo or $54,980/yr - you are not covering this on $55-60K HHI.
I'm aware of this, but my point is that their retirement income is not going to leave them hand to mouth in much of the country. They simply need to go to where the housing is more affordable. If they won't or can't leave metro Boston after retirement, they're going to have to splice things together the best they can.

Another thing is that, in many parts of the country, you won't earn enough income with a similar type of job to max out your SS. Somewhere in the realm of $3,000 - $4,000 net monthly income is going to be well above average in a lot of small towns and rural areas. If OP/husband had worked for "regular wages in flyover country," their SS would be much smaller.
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