U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 10-17-2009, 07:35 AM
 
9,807 posts, read 13,459,882 times
Reputation: 8158

Advertisements

Quote:
Originally Posted by paulpan View Post
This is an interesting and especially usuful thread for everyone planing to retire early.

I have a question for those who did retire in their fifties or early sixties:
How did you handle (are you handling) your health coverage?
Medicare kicks off at 66, and a private insurance is awfully expensive (for people in 50s-60s), even if you don't have pre-existing condition. So, what did you early retirees do?
Medicare starts at age 65 !
Reply With Quote Quick reply to this message

 
Old 10-17-2009, 08:00 AM
 
9,807 posts, read 13,459,882 times
Reputation: 8158
Quote:
Originally Posted by paulpan View Post
This is an interesting and especially usuful thread for everyone planing to retire early.

I have a question for those who did retire in their fifties or early sixties:
How did you handle (are you handling) your health coverage?
Medicare kicks off at 66, and a private insurance is awfully expensive (for people in 50s-60s), even if you don't have pre-existing condition. So, what did you early retirees do?
My cousin worked for a huge corporation ( management) and took early retirement after 35 years working for them.

They offered a good retirement and paid health care.
His wife was going to continue working at her job.

A couple years into retirement, his wife lost her job and he got a letter saying his former employer could not continue paying the full costs of retiree's health ins.
He has to co-pay $500 a month.

I posted this to show what you sign when you take early retirement and expect to recieve doesn't mean a thing .

( the corporation was kind enough to add the word "sorry" in their letter they mailed renegging on the signed agreement )
Reply With Quote Quick reply to this message
 
Old 10-17-2009, 11:10 AM
 
11,252 posts, read 11,267,699 times
Reputation: 3450
Quote:
anyone ever notice typically the un-reimbursed interest alone on a 30 year mortgage can be 2 to 3x what you borrowed .
This is EXACTLY why the one thing the article left out is the most desirable option for someone facing a liquidity crunch in their senior years: if your house is paid for, depending on the amount of equity in it, sell and CARRY THE PAPER. Amortized over the actuarial lifespan you have left, you can generate a handsome monthly income for yourself to live on. Hypothetical, if you clear $150,000 after costs and figure you have 15 years left, the monthly payment on your 150k would add up to $228,000 at the end of 15 years or 78k more than the principle you started with. Try getting that kind of return from a money-grubbing bank investing in CD's!! Your monthly payment would be $1265. Combine it with your SS for a total of roughly $2300-2500 a month. Move to a low-cost area of the US and what you don't spend you bank so the money stretches even further than 15 years. Use your bank or a mortgage-service co. to service the mortgage for a small fee. If the banks know the secret of getting rich (amortization) why shouldn't you?
Reply With Quote Quick reply to this message
 
Old 10-17-2009, 02:49 PM
 
71,626 posts, read 71,751,865 times
Reputation: 49225
see my feelings on this in the thread about reverse mortgages. could be distasterious holding the paper on a property where if they defaulted and you had to foreclose you may not have the funds to carry the property and your current living expenses .. property may be run down, ill maintained or things broken. could be a long time finding another buyer and carrying taxes and expenses.

getting a property back and being a landlord is not something i would want to do in retirement. anything i invest in or generate income with must be on auto-pilot and passive. im a landlord now until we liquidate our real estate business and i can tell you i would never want to be a landlord again ever.


its a good idea but not for folks who dont have suitable resources behind them or who dont want to take an active part if things go wrong..

i can tell you, when it comes to rental real estate and dealing properties even murphy was an optomist

Last edited by mathjak107; 10-17-2009 at 04:17 PM..
Reply With Quote Quick reply to this message
 
Old 10-18-2009, 11:04 AM
 
11,252 posts, read 11,267,699 times
Reputation: 3450
The key is that you have no mortgage yourself to service. The house has to be paid for. If you have sufficient funds set aside as all retirees should, then this becomes an excellent way to get maximum return on your money, which is why banks have been doing this for centuries, notwithstanding the headaches that can come if and when a foreclosure looms. But that why you hire a debt-servicing co.---to shoulder the bulk of the trouble in the event.
Reply With Quote Quick reply to this message
 
Old 10-19-2009, 02:24 AM
 
Location: Florida
19,810 posts, read 19,905,205 times
Reputation: 23215
Quote:
Originally Posted by mathjak107 View Post
i can tell you, when it comes to rental real estate and dealing properties even murphy was an optomist
This has been our big problem.
We rented to "MrMurphy" years ago and have never been successful in evicting him.
Reply With Quote Quick reply to this message
 
Old 10-19-2009, 03:03 AM
 
71,626 posts, read 71,751,865 times
Reputation: 49225
real estate is a profession, its no different then any other profession. its a job period... its only good until its not then it becomes hell.. unlike stocks and bonds where you push a button and sell the problem away real estate can become a tangled involved web of laws , court dates and losses well beyond your down payment money.

while anyone who made money flipping real estate the last few years walks away thinking they are a genius the truth is real estate can be one tough aggrevating way to make money long term... its nothing i want to do in retirement thats for sure.

we are liquidating a family owned business here in new york city. we owned a lot of rent stabilized co-ops over looking central park. our game plan was to either buyout the leases for 50,000 bucks a pop or wait until the tenants died or moved.

it sucked all those years collecting far below market rents from stabilized tenants but eventually over the last few years many tenants took our buy out. we are down to the last 2 apartments at this point from 9...

each one sold for between 1 and 2 million so it was worth the wait but nothing i would want to continue doing once they are gone.

i would never ever be a landlord again , to many other ways to get returns without the aggrevation and local laws telling me how i have to handle my properties and putting limits on what i can get as a return in a free market system.. ..

Last edited by mathjak107; 10-19-2009 at 03:20 AM..
Reply With Quote Quick reply to this message
 
Old 10-19-2009, 04:38 PM
 
Location: SoCal desert
8,093 posts, read 13,234,579 times
Reputation: 14870
Quote:
Originally Posted by TuborgP View Post
house-of-tomorrow.html: Personal Finance News from Yahoo! Finance

Great article on a topic not discussed much. What to do with the equity in your home while in retirement. Often becomes a part of thread discussion especially about leaving wealth to your children etc etc. Now a good article with good food for thought.
I have always planned to "Sell and downsize to a smaller home" plus move to a cheaper state - which is easy to do for me since I live in CA. Any place will be cheaper. The house will be free and clear before I retire so it's just common sense to me.

It depends on where interest rates are when I get ready to buy my final house. If they're really low, I may mortgage half the house. If they're really high, I'll probably pay cash for My Final Resting Place as we call it in my family
Reply With Quote Quick reply to this message
 
Old 10-19-2009, 05:06 PM
 
29,782 posts, read 34,871,258 times
Reputation: 11705
Quote:
Originally Posted by Gandalara View Post
I have always planned to "Sell and downsize to a smaller home" plus move to a cheaper state - which is easy to do for me since I live in CA. Any place will be cheaper. The house will be free and clear before I retire so it's just common sense to me.

It depends on where interest rates are when I get ready to buy my final house. If they're really low, I may mortgage half the house. If they're really high, I'll probably pay cash for My Final Resting Place as we call it in my family
Part of my thinking on that was that I wanted things cookie cutter safe for my wife if I passed first. We opted to have lower pensions so each of us would be guaranteed the others. We are doing the 62/70 social security collection to maximize the payout to the surviving spouse. No mortgage helps to make it as clutter free as possible for her.
Reply With Quote Quick reply to this message
 
Old 10-19-2009, 05:10 PM
 
71,626 posts, read 71,751,865 times
Reputation: 49225
the best thing anyone can do is educate their spouses as far as all this financial suff.. my wife was taken advantage of by a salesman at the local bank before she met me. he loaded her up with tech and dot com funds and she was devasted in the collapse.. she was a widow at the time and had no clue about any of this stuff

today she has a great understanding of most investment classes and we can actually bounce ideas and investments off each other and actually get good points back. never again will she be a victim even if im not around
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top