News, How to retire on $12,000 a year. (retirees, cousins, years)

[LauraC]

Originally Posted by forest beekeeper

I went on pension at 41.

That amount is my Gross from my pension. As I stated my Dw works part-time in a grocery store, and we have <$1,000 per year gross income from the Farmer's Market.

We receive no further 'subsidy'.

I have my pension, my Dw her job, and our farm income. We do own an apartment building though we have not taken any profits from that building since we bought the farm land. That was my investment portfolio that we built up with the purpose of buying a farm.



"Do your kids need clothes, shoes, pens, pencils writing paper, etc., for school or are they adults?"

One 23 year old vet, who was on his own, but recently lost his job. So he moved back home last week. We plan on him being here with us, as we can feed him much cheaper than he can feed himself, until he can get into a different job training program, or something with the VA.

One 18 year old, he just graduated highschool last Friday. He has a seat in Job Corp program next month.



"Does the farm equipment require gasoline/oil?"

No.



"Do you have property taxes?"

Yes, our annual property tax bill is $47



"Does it cost money to irrigate your property?"

About $10/month.



"What happens if a major appliance, vehicle or equipment breaks and needs to be replaced?"

Then we get it fixed or replaced.

My Dw just bought a new car February, 2008 Chevy Aveo.



"What happens if one of you dies or becomes unable to physically work on the farm?"

My career field was considered fairly high risk. I worked 20+ years as a submariner, living underwater seven months each year on average. So part of the reasoning why we optioned to invest into apartment buildings, was that should I die, my Dw would have a home to live in, with a rental income. She would be 'set' for life.

We sold most of our buildings when I retired, but we still have one that we are holding for that reason. It pays for itself, and it is building equity, and it provides a back-up home.



"I don't know how old you are now but can you live on $12,000 when you are, say 75 - 80 years old?"

I am 48.

I fail to see the problem.

Before I retired, we tried our best to analyse where the best location would be for us to live. We WANTED low taxes. We WANTED a depressed economy where my pension would feel larger. We WANTED to live rurally. We WANTED to be Organic Farming.

Currently we grow about 80% of our own food, and we sell the excess [or give it away to the needy].

I only asked the age question because I was wrongly assuming that you were much older and you might not be able to physically farm much longer, if that was the primary way you were going to get your food to eat and make money for things you might need. I also was also erroneously thinking you would be providing for someone younger than 23. I was obviously way off the mark but besides all that ---- $10 for water and $47 annual property tax! EGADS, do such places exist?

[HappyTexan]

Originally Posted by LauraC

I only asked the age question because I was wrongly assuming that you were much older and you might not be able to physically farm much longer, if that was the primary way you were going to get your food to eat and make money for things you might need. I also was also erroneously thinking you would be providing for someone younger than 23. I was obviously way off the mark but besides all that ---- $10 for water and $47 annual property tax! EGADS, do such places exist?

I'm here in Texas and live outside the city limits and pay about $17/month for water. I pay the water company direct..I do not have any city fees added to my water bill. Same goes for trash pickup.

[forest beekeeper]

Originally Posted by LauraC

I only asked the age question because I was wrongly assuming that you were much older and you might not be able to physically farm much longer, if that was the primary way you were going to get your food to eat and make money for things you might need. I also was also erroneously thinking you would be providing for someone younger than 23. I was obviously way off the mark but besides all that ---- $10 for water and $47 annual property tax! EGADS, do such places exist?

No sweat

Our youngest is 18.

Our water comes from a well, which has one electric pump on it, and one hand pump. We primarily use the electric, though the hand pump serves when the electric goes down.

We also have two creeks that flow across our land, so water is plentiful. Ooops I almost forgot the river, our land is riverfrontage too. 1/4 mile of riverfrontage. So we have access to a fair amount of water.

Property taxes are what they are. But yes land around here does mostly run about that much. In this state, our county has the highest mil rate, so we pay about $1.05 per acre, per year. All other counties the mil rate is lower, so they would pay less.

[texdav]

So you are not living on 12000 a year afterall. I mean at that rate the home your building would take years. 12000 is below what social security provides most and that is without the medicare supplement and drug coverage.Do you also get unearned income credit and SS disability ?

[forest beekeeper]

Originally Posted by texdav

So you are not living on 12000 a year afterall. I mean at that rate the home your building would take years. 12000 is below what social security provides most and that is without the medicare supplement and drug coverage.Do you also get unearned income credit and SS disability ?

Oh yes, my pension is right about $1,100/month;
Last year our Farmers market income was about $800 for the season;
And my wife works part time.

I get no disability income, and no medicare.

[LindaIHN]

I'm on SSD and have been since 1995. I live on quite a bit less than $12,000 a year and it is very possible. There are so many ways to cut expenses and I'm a pro at this. lol One thing to consider for people with low incomes is subsidized housing. There is a lot of nice places to live in subsidized housing, believe it or not. I'm not in subsidized housing right now but I have been and you pay, if eligible, only one-third of your total income.
Linda

[brightdoglover]

My father lives on Soc. Sec. only, about $1300/month. I think the Medicare is taken after the $1300. He lives in the trailer my mother left him, pays lot rent/utilities, doesn't have a car, can walk to most of what he needs. Fuel/utilities have gone up a great deal, or course. I always ask him if he needs anything or if the cat needs anything.
I think it's unusual to have a mobile home park so close to suburban amenities and walkable. It's owner-occupy only, but not 55+, and the next-door people are druggies, but otherwise it's pretty civilized.

[valleys_of_hills]

I live on about 8k a year, comfortably. How is it done? Being frugal. Not wasting money on garbage that isn't needed.

[cousinsal]

Originally Posted by valleys_of_hills

I live on about 8k a year, comfortably. How is it done? Being frugal. Not wasting money on garbage that isn't needed.

I wanna know how! Does it depend on where you live, if you own your house free and clear, or rents are low in the area? What about food costs that are going up, gasoline, medical and dental bills, insurance, utilities? Do you live with other people to help with bills?

Believe me, on $8K, you could not possibly "waste" any money - there's none to waste. Does the $8K go up every year - do you get a raise, that is?

I think housing takes most of my money, and probably alot of others'. If you add mortgage, taxes, condo fee (if applicable), utilities, etc., you could be almost broke. Where I live, it's cheaper to own if you've been in your house awhile - your mortgage is going to be less than the rents today. So, it does no good to sell (if you could!) and get an apartment.

So - do tell your secrets!

[brightdoglover]

Most frugal people/living low on the food chain don't buy "stuff." It's services that cost- eyeglasses, medical, utilities. Then, of course, housing. If owning a modest place outright, there's still maintenance (systems, furnace, stuff likely you don't do yourself), taxes.
For me, add the pleasure of pets. I like to adopt older mutts. Oddly, their medical needs due to age/abuse have been minimal, but I've had big bills for the two dogs I got as puppies, and neither was age-related.
I think most people who want to or have to cut down on spending lose "stuff" first or never spent on it in the first place.
Certainly it's possible to live more modestly rather than more profligate (is that the word?) but some things are just plain unavoidable, and I don't mean flat-screen TVs.