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Millions of people face this predicament. According to the Social Security Administration, Social Security benefits account for 90% of income for four of every 10 unmarried retirees and two of every 10 married couples.
Another report on the Social Security Web site tells us that the average Social Security benefit for a retired worker is now $1,082.30 a month.
That $12,000 sounds nice, but is not practical in most cases. For example we're retired, wife and I, and it costs us @$40,000 a year to live comfortably. We have over $2000 per month in medical expenses alone. Add up insurance, fuel costs, utilities, household needs, food, medicine, and maybe a little vacation, things add up quickly. And our house and car are paid for.
Many retired people have medical problems and expenses that are not covered by medicare.
My dw works part time at a grocery store [because she wants to].
We have two children living at home.
We are building a house, and beginning a farm.
Slowly and surely our house is moving toward being finished and our farm is increasing it's production each year. I am a vendor at a local Organic Farmer's Market one day each week.
Our farm is on riverfrontage. This spring our river flooded; our house flooded, and we lost the majority of our livestock. No insurance claim was filed. FEMA was here, though we filed no claim [we have neighbors who did file huge padded claims].
Our actual building progress appears to have slowed this year.
From where I stand; retirement is more certainly possible.
My dw works part time at a grocery store [because she wants to].
We have two children living at home.
We are building a house, and beginning a farm.
Slowly and surely our house is moving toward being finished and our farm is increasing it's production each year. I am a vendor at a local Organic Farmer's Market one day each week.
Our farm is on riverfrontage. This spring our river flooded; our house flooded, and we lost the majority of our livestock. No insurance claim was filed. FEMA was here, though we filed no claim [we have neighbors who did file huge padded claims].
Our actual building progress appears to have slowed this year.
From where I stand; retirement is more certainly possible.
I have a hard time believing this can be done on $12,000 which I assume is net, without the taxpayers subsidizing it in some way or without you having another source of income like the part time job. Do your kids need clothes, shoes, pens, pencils writing paper, etc., for school or are they adults? Does the farm equipment require gasoline/oil? Do you have property taxes? Does it cost money to irrigate your property? What happens if a major appliance, vehicle or equipment breaks and needs to be replaced? What happens if one of you dies or becomes unable to physically work on the farm? I don't know how old you are now but can you live on $12,000 when you are, say 75 - 80 years old?
My bf lives on $18,000 a year (he doesn't have to) and believe me he's about as cheap as they get.
The house is paid off as is the new car, he rarely buys clothes and spends practically nothing on eating out or entertainment or other shopping, nor does he have to drive anywhere. He does eat well and have satellite tv and computer internet but barely heats the house. Real estate taxes are somewhat high but the newish house was cheap. Has no insurance on the house and no medical expenses out of the ordinary. However, any home maintenance or major purchases do not come out of this account.
I have a hard time believing this can be done on $12,000 which I assume is net, without the taxpayers subsidizing it in some way or without you having another source of income like the part time job. Do your kids need clothes, shoes, pens, pencils writing paper, etc., for school or are they adults? Does the farm equipment require gasoline/oil? Do you have property taxes? Does it cost money to irrigate your property? What happens if a major appliance, vehicle or equipment breaks and needs to be replaced? What happens if one of you dies or becomes unable to physically work on the farm? 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 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].
Hey Forest, I've read many of your posts, and I have to say, you give me a lot of hope. Thanks for that.
I recall you've stated previously that you had a bunch of income properties that you built up over the years, then sold off the bulk of this portfolio - to fund the farm and farmland purchase, is that correct?
Hey Forest, I've read many of your posts, and I have to say, you give me a lot of hope. Thanks for that.
I recall you've stated previously that you had a bunch of income properties that you built up over the years, then sold off the bulk of this portfolio - to fund the farm and farmland purchase, is that correct?
So was it some sort of 1031 exchange?
Being a poor enlistedman, I bought an apartment building at each duty station, then on the third year when being transfered elsewhere shifted each to a manager.
Everyone says that you need money to make money. I am sure that if I had any money somewhere along the process, than certianly I could have built it into a large sum. Alas, instead I only used other folk's money.
I will explain in more detail how it was done via DM.
Then after my retirement I bought forest land, and I have been building a house and farm here.
We all have different needs, wants, and expectations.
I think too often we judge another person's ability to do one thing or another based solely on our own experiences and expectations. Case in point is Forest Beekeeper. He chooses to live a simple, but full rich life on a small income. I would imagine he and his family want for nothing.
We think because we have money to go out to eat every week, buy new shoes several times a year, keep the lauder full of processed foods and replace our car every 4 yrs. that everyone wishes or needs to live that way, also. Not so.
My father until he died last spring lived on $12,000 and less for many years. He denied himself nothing, ate like a king, went anywhere he wanted - just not weekly. He was careful with his money, but certainly not miserly or stingy.
He was able to afford the internet, cable TV and bird food for his beloved backyard friends. He used the public library rather than spend money on books and magazines, but he did have a weakness for Louis L'Amour books, which he treated himself to at the Book outlet in town.
He was driving a 5 year old car up until he passed away, built his house in 1954 and had it long ago paid for, and had yearly real estate taxes around $2000.00.
Until just a couple of years ago, 2002 I think, he maintained an in-ground pool with a heater which he used everyday that he could, but finally had it bulldozed in when he could no longer care for it himself.
He was quite self-sufficient and could take care of almost all home repairs himself, but was occasionally forced to hire someone. He, also, quietly and discreetly paid for my aunt's heating oil every winter and her electric to continue running her air conditioner in the summer. I did not know this until his death when my aunt told me about it. He was more than generous. He was a quiet, secret giver.
He never felt like he had to live on $10 - 12,000.00, but he chose to because he loved knowing that he had some money to leave his family one day. Unfortunately, the last year of his life he was in a nursing home and he watched his savings disappear to pay the $6,000.00/month nursing home bill. But, he never lost his house that he wisely put in his 3 children's name 6 years previously.
I hope that I can be content to live a simple but full life as he did enjoying every minute with family and friends, sharing a joke and a chuckle with anyone who would listen, and giving of everything he had to those in need.
(As gemkeeper, I must ask, does any one call you "gym sneaker" or "gamekeeper" as I am, forest beekeeper?)
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We all have different needs, wants, and expectations.
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