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Old 08-20-2019, 07:28 AM
 
7,996 posts, read 11,743,286 times
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I was thinking about the news and worry about an upcoming recession.
This thread is NOT ABOUT RECESSION COMING SPECULATION.

Theoretically, if you have done what experts recommend, own your home, car, found some sort of monthly means to cover monthly expenses (pension, investments, rentals whatever).

Then recessions don't affect those retirees? Well depending on investments I guess.

Was anyone retired during the last one?

Anyone curtailing plans or putting them off to see if this next one materializes? Coming up with a recession plan, if you think it will affect you? For example if you had been thinking of selling and moving south, are you going to do it sooner now vs waiting in case the real estate market cools?
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Old 08-20-2019, 07:37 AM
 
Location: Tennessee
24,110 posts, read 17,939,559 times
Reputation: 28277
You would be impacted to the extent you are exposed to whatever is declining and at what rates.

This person would be much more insulated than the average person.
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Old 08-20-2019, 07:38 AM
 
6,441 posts, read 4,844,839 times
Reputation: 13400
This post was just a jumble of ideas. You do have a lot of questions.

Of course, recessions affect retirees. Investments can drop. Housing equity can drop. Government services can be cut. All sorts of things can happen.

I retired soon after the last one. So?

I am currently not making any life or financial changes in anticipation of whenever the next recession occurs. I have no idea what I would change even if the next one had started.

I am not planning on moving but doubt I would make any changes in anticipation. If a recession hits that affects the home prices it could occur at both selling and buying at a new location.
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Old 08-20-2019, 07:41 AM
 
Location: East of Seattle since 1992, originally from SF Bay Area
30,237 posts, read 55,111,596 times
Reputation: 31742
Quote:
Originally Posted by Giesela View Post
I was thinking about the news and worry about an upcoming recession.
This thread is NOT ABOUT RECESSION COMING SPECULATION.

Theoretically, if you have done what experts recommend, own your home, car, found some sort of monthly means to cover monthly expenses (pension, investments, rentals whatever).

Then recessions don't affect those retirees? Well depending on investments I guess.

Was anyone retired during the last one?

Anyone curtailing plans or putting them off to see if this next one materializes? Coming up with a recession plan, if you think it will affect you? For example if you had been thinking of selling and moving south, are you going to do it sooner now vs waiting in case the real estate market cools?
Being 2-3 years away, and planning to sell and move (north) then we would have to delay that until houses were selling again. Our equity now is about $500k, if that were to drop so would the prices where we are moving to but the idea is to pay cash and not have a mortgage. We won't move it up and do it now for several reasons. My job is considered critical and I have great pay and benefits. I was actually hired here in 2009 while there were 30+ people laid off. Currently I'm in the middle of several interesting and challenging projects that I want to see through to the end. With schools starting in a week the peak home buying period is over.
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Old 08-20-2019, 07:53 AM
 
72,858 posts, read 72,697,003 times
Reputation: 50367
Quote:
Originally Posted by jrkliny View Post
This post was just a jumble of ideas. You do have a lot of questions.

Of course, recessions affect retirees. Investments can drop. Housing equity can drop. Government services can be cut. All sorts of things can happen.

I retired soon after the last one. So?

I am currently not making any life or financial changes in anticipation of whenever the next recession occurs. I have no idea what I would change even if the next one had started.

I am not planning on moving but doubt I would make any changes in anticipation. If a recession hits that affects the home prices it could occur at both selling and buying at a new location.
This is the most reasonable answer to the question
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Old 08-20-2019, 07:57 AM
 
1,850 posts, read 654,584 times
Reputation: 3461
I was retired during the last recession and it was brutal.

The market value of my house basically imploded. I'd bought it in 2002 and spent almost the same as my initial investment by making it into exactly what I wanted for my Forever Home (house was built in 1960 and hadn't been updated since.) Even so, the historical "bubble" should have allowed me to at least break even if I ever had to sell it, if not make a marginal profit. The recession killed that. Had to take a 40% loss on the house when I had to sell it in 2014. And that was before deducting the 5% realtor's commission.

(That said, being in an area that was directly affected by Sandy in 2012 didn't help the selling price either. But the market value had plummeted even before that. My house had no damage other than some water in the empty crawlspace.)

The first two years of the recession coincided with my getting cancer while uninsured, so I had to liquidate all of my investments at the worst possible time. If there'd been no recession, I might actually have had something left over in my brokerage account but at those stock prices I was basically selling at rock bottom.

And finally it just so happened that my IRA CD (at that time I had not yet laddered it) matured after interest rates had gone down the tubes. So there was that hit as well. [mod cut - no politics]

Sorry for the political tangent but this is a subject I get really steamed about. I do realize that my situation is not typical of most people on this forum who probably think that lower interest rates are a good thing. Not for retirees like me who are debt free and only have traditional savings to fall back on.


ETA: Looked up the paperwork, the commission was 5%, not 6%, so I corrected that.

Last edited by VTsnowbird; 08-20-2019 at 10:38 AM..
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Old 08-20-2019, 08:03 AM
 
Location: Tennessee
24,110 posts, read 17,939,559 times
Reputation: 28277
I live in a blue collar area. Manufacturing and mining took a major hit. You're not going to be able to retrain a 60 year old blue collar, skilled manufacturing worker to become a software engineer. Tons of guys here were in that position - many took jobs for $.30 on the dollar or something, or just retired altogether before they were ready.
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Old 08-20-2019, 08:07 AM
 
1,629 posts, read 315,858 times
Reputation: 1836
Quote:
Originally Posted by Serious Conversation View Post
I live in a blue collar area. Manufacturing and mining took a major hit. You're not going to be able to retrain a 60 year old blue collar, skilled manufacturing worker to become a software engineer. Tons of guys here were in that position - many took jobs for $.30 on the dollar or something, or just retired altogether before they were ready.
I don't think the OP is concerned about a job loss. That's a different aspect of recessions that really don't affect those already retired.
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Old 08-20-2019, 08:15 AM
 
1,629 posts, read 315,858 times
Reputation: 1836
Quote:
Originally Posted by Giesela View Post
I was thinking about the news and worry about an upcoming recession.
This thread is NOT ABOUT RECESSION COMING SPECULATION.

Theoretically, if you have done what experts recommend, own your home, car, found some sort of monthly means to cover monthly expenses (pension, investments, rentals whatever).

Then recessions don't affect those retirees? Well depending on investments I guess.

Was anyone retired during the last one?

Anyone curtailing plans or putting them off to see if this next one materializes? Coming up with a recession plan, if you think it will affect you? For example if you had been thinking of selling and moving south, are you going to do it sooner now vs waiting in case the real estate market cools?

Trying to time anything not in your control is like rolling the dice.
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Old 08-20-2019, 08:16 AM
 
3,328 posts, read 1,780,798 times
Reputation: 3629
Quote:
Originally Posted by TMSRetired View Post
I don't think the OP is concerned about a job loss. That's a different aspect of recessions that really don't affect those already retired.
Recession causes layoffs, joblessness, low demand for good and services, and it spirals down. Retirees can lose their pension in some cases.every aspect of the economy affects everyone.
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