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Old 08-09-2019, 01:23 PM
 
Location: Land of the Great Bears
3,615 posts, read 1,985,571 times
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Quote:
Originally Posted by ReachTheBeach View Post
.. Over a third of mortgages are near or below zero equity.
That's an eye opener. Reverse mortgages fairly common then?
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Old 08-09-2019, 01:44 PM
 
Location: NC Piedmont
4,018 posts, read 2,940,215 times
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Quote:
Originally Posted by Arktikos View Post
That's an eye opener. Reverse mortgages fairly common then?
One of the articles that quoted the figures was from a reverse mortgage site that said reverse mortgage was not an option for people in those circumstances, which makes sense.

https://reversemortgageguides.org/in...-on-mortgages/

I saw the same figures elsewhere. One thing I am not sure of is whether this includes seconds. Lots of lenders do "semi-secured" (my word, not theirs) seconds and loan you more than your estimated equity. I know a few people who don't have much, if any, equity because of a second.
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Old 08-09-2019, 01:45 PM
 
620 posts, read 176,031 times
Reputation: 1489
You can’t get a reverse mortgage if you don’t have equity. I have been poor and moved for better opportunities.
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Old 08-09-2019, 01:52 PM
 
5,525 posts, read 1,384,867 times
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Quote:
Originally Posted by Submariner View Post
I am a boomer [born 1959], I have been retired for 18 years. I have a pension and my investments were enough that I could have self-funded a retirement even without the pension.

That being said, it is very obvious to me that the other 99.95% of boomers have not planned for retiring. Most of them appear to lack investments or a plan.
I think your stat might be on the high side.
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Old 08-09-2019, 02:26 PM
 
Location: Tennessee
24,068 posts, read 17,905,479 times
Reputation: 28236
Quote:
Originally Posted by MI-Roger View Post
I have seen that too. All of our siblings with zero savings and zero retirement plan have serious health issues as well. None had any savings prior to the health issues arising, so none are in the situation where medical costs have impoverished them. Poor planning all around, some lousy luck, but the inability to plan and react made even simple issues devastatingly worse.
Low savings likely correlates with things like poor medical coverage/financial ability to take care of health issues, and might also serve as a proxy for the lifestyle problems that a lot of people face. It's not surprising.
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Old 08-09-2019, 02:30 PM
 
Location: Grove City, Ohio
10,170 posts, read 12,474,979 times
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Quote:
Originally Posted by BBMW View Post
I keep seeing articles how almost half of baby boomers have no retirement savings, and boomers are starting to retire en-mass. An example below:

https://www.investopedia.com/article...ent-crisis.asp

I assume the ones with no savings are trying to keep from retiring, but that may not be so easy. Anyone here in that boat, or know people who are, how and what are they doing?
We have some retirement savings but nowhere near the millions some tell us we must have.

I did what I had to do and that was work until 70 delaying social security until then so I could collect 32% more in benefits.

My social security is right at $3,000/month tax free. If I was single I could live comfortably on that alone.

My wife receives $1,300 in social security which includes a small state pension. Together we will do just fine without savings. In the midwest if you can not live on $1,000 per week in take home income you have a spending problem especially if you own your home.
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Old 08-09-2019, 02:33 PM
 
Location: Florida -
8,817 posts, read 10,957,694 times
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Quote:
Originally Posted by BBCjunkie View Post
Things are rarely so cut-and-dried as the linked article would have people believe. There are SOO many possible "no savings" scenarios, such as:

Boomer with no savings and no income except Social Security at the national average ($1400/mo) or below

Boomer with no savings and no income except Social Security above the national average for FRA ($1400 - $2900)

Boomer with no savings and no income except Social Security at max for delayed benefit to 70 (about $3700)

Boomer with no savings but has income from a 401K or pension or some other "numbered" retirement income vehicle, plus average or lower Social Security

Boomer with no savings but has income from a 401K or pension or some other "numbered" retirement income vehicle, plus above average Social Security

Boomer with no savings, just Social Security in whatever amount, and owns a mortgage-free house on which they would easily realize profit of several hundred thousand dollars if/when sold.

In fact one could add several possible categories simply based on whether the no-savings Boomer owns no real estate at all; or owns a house free and clear on which they would realize a profit ranging from small to several hundred thousand in current market; or owns a house with a mortgage that would reduce said profit; and so on and on.
These general "the sky is falling and retirees will be living under bridges and eating dog food" articles have been widely circulated for years. Like this one, they are generally sponsored by companies in the insurance and investment industries ... and are more like TV commercials pitching financial services, than actual, fact-supported research.

For one thing, baby boomers are generally identified as those between 56 and 73 (1946-1964), of which 10,000 retirees per day (out of an estimated 76 million boomers) only represents about 3.6-percent annually!

These articles also usually talk only about "savings" (bank savings accounts?) while ignoring other sources of wealth and income, such as highlighted by BBCJunkie above. Typically, they also carefully make meaningless blanket statements like, "many baby boomers have little saved towards retirement," rather than identifying what percentage of those actually retiring each year, veritably have absolutely no assets or income resources."
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Old 08-09-2019, 04:32 PM
 
2,684 posts, read 4,565,558 times
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Quote:
Originally Posted by nicet4 View Post
We have some retirement savings but nowhere near the millions some tell us we must have.

I did what I had to do and that was work until 70 delaying social security until then so I could collect 32% more in benefits.

My social security is right at $3,000/month tax free. If I was single I could live comfortably on that alone.

My wife receives $1,300 in social security which includes a small state pension. Together we will do just fine without savings. In the midwest if you can not live on $1,000 per week in take home income you have a spending problem especially if you own your home.
I believe that Social Security is subject to federal tax. It would take a lot of allowable deductions to get you to a zero federal tax rate, especially with your wifeís income and income from investments. Some states and localities exempt SS distributions from their taxes, but their rates are typically much lower than the fedís.
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Old 08-09-2019, 04:54 PM
 
Location: Forests of Maine
30,847 posts, read 49,739,391 times
Reputation: 19330
Quote:
Originally Posted by Grlzrl View Post
I think your stat might be on the high side.
From where I stand, I think not.

I am among the last of the baby boomers, and I have been retired for 18 years already. Most boomers are older than I am. Yet they have not figured out how to retire, yet.
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Old 08-09-2019, 04:57 PM
 
1,521 posts, read 1,373,260 times
Reputation: 1240
Default Be Real

[quote=BBMW;55885603]I keep seeing articles how almost half of baby boomers have no retirement savings, and boomers are starting to retire en-mass. An example below:

https://www.investopedia.com/article...ent-crisis.asp





Welfare recipients receive entitled benefits totaling about $40,000 each year according to estimates. So these folks can't be the boomers you are speaking of.



So I guess we are talking about the working poor at the end of their useful lives with no more than 20% of their years left if they all die at 80?


Everyone that was a wage slave involuntarily paid into social security. So there's that. Some folks have pensions from defined benefits programs and/or at retirement receive cash from IRA programs. So there's that. And with Medicare paying for most of their medical bills -there's that. Maintenance drugs are an expense but health plans and/or employer group plans pay a portion of those - so there's that.


So my question is, "What does savings have to do with it?" If you are not counting IRA programs savings?
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