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A. Keeping this house and plan on buying a small place to live part of the year on the beach once last kid is out of school (perferbly Cabo ). House will be paid for.
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I'm looking forward to your episode of "House Hunters International" !
One factor that I didn't see in the "retirement analysis" is healthcare. According to statistics if you were to retire today, the average 65 year old (assuming you will live into your 80's) will need $250K per person to cover average health care costs. A husband and wife together is $500K and that's assuming you have average medical problems and not catastrophic illness. Sure, we can't live forever and it's great to enjoy life while you can and enjoy the fruits of your labor. But one heart attack, transplant, cancer treatment and you house (featured on House Hunter's International) may need to be featured on "Designed to Sell." And that's assuming it can be sold. Isn't there a Civil War going on right now in Mexico (drug dealers vs. the rest.) Be advised, my friends "retired parents" just had their home seized by the government due to this situation. The just took it! Just say'in ....
Good point - plus there's the possibilty of needing long-term care, especially if you are a woman (longer-lived).
Back to Mom's point - yes I think everyone should plan for retiring at 50. As I just passed that point, I found I didn't really want to retire - just yet. The great recession had just hit but I was seeing stocks as a bargain and I went full-tilt into buying them (which has proved to be a great decision thus far). In fact over the last 15 years or so I have been saving and investing almost $75K per year. I used to be quite the traveler so I cut back on that and a few other things. I thought I wanted to go back to the traveling in retirement but I've found that I got a lot of that out of my system. In fact there are many things I used to want that now I find I really no longer crave.
Could I have spent that $75K on a new car, pool or granite countertops? Yes - maybe I could have - but it's quite nice to be work-optional with the "F"-you money. I doubt anyone around here would have been impressed if I had been blowing the dough instead. They would probably think me foolish.
Besides, I get probably more double-takes and thumbs up in my late Daddy's 1966 Mustang than I would in a Mercedes.
interesting article I read on-line yesteday about how many of today's older folks--early or older retired groups--are taking on debt via credit cards and other ways--maybe a new car--and just saying to heck with worrying about paying it off
that many of their children who are contemplating getting some financial help from their parents' estates are going to wake up to a bill for the estate vs money in their pockets--that they may have to sell mom's house to pay debts or that mom may have taken out a reverse mortgage to finance her new lifestyle and they will be left with little to nothing of an inheritance...
article implied there is a relatively heedless desire to enjoy the final stage of life and that people who failed to plan or could not afford to save while they were raising their families are now "throwing over the traces" to have a last fling sort of
not that I know anyone doing that--we are being good little worker bees...
and I think one factor that was not mentioned about how wealth within a family can decline is divorce--
there are plenty of people who might have a great wage earner but separate yourself from that wage earner and the money goes--
TX pays no alimony--just child support that usually stops at 18--and if there is a second family to support and other children to split the income then some people can get short shift...
agree that many members of old money families are not that impressed with money in/of itself and/or can't really impress their friends with money alone--
it is the "been-there/done-that" axiom---
but there are probably profligate children in old money families who are the "bad sheep" of the family
George Herbert Walker Bush did much more to increase his family's wealth and actually create wealth through his business efforts/accumen (and his CIA ties) (and married position/money) than his oldest son George W did--any company he started was a bust that was salvaged by the help of family/business friends of his father--he made money with the Rangers deal but all the others were just sleight-of-hand where someone put money he did not earn into his pocket...
and Neal is a walking disaster
so there are probably plenty of cases where "old money" does not last too long...
It's funny how history repeats itself. I'm the third generation of a once wealthy Dairy Farmer from upstate NY. My great-grandfather owned thousands of acres,cows and turkeys. I was 10 years old when he died. He died poor in pocket (once a multi-millionaire educated at Cornell Agriculture (class of 1920.) Years ago, as a child, I remember him saying, "save your dollars and buy your freedom." I didn't know what he meant really, nor did it seem important. I was only 9 years old. Now I do.
There's only one thing that money can really buy that gives you the ultimate return on your investment ... freedom of choice. When the Great Depression hit, he became the bank for all of his neighbors. He gave them so called "loans" with no expectation of return. He gave them money for feed and oil to run their machinery. He had the money and he had that choice. Throughout his life, he saved and saved never investing in any of the latest machinery that would have made life as a farmer much easier. When the banks called in the loans on his neighbors' farms, they turned to him for help desperate and in debt. He had a choice. Debt free, he chose to support his neighbors so they could hold on to the farm and feed their families. He could have bought them out, but he didn't ... he kept them going instead.
Now mind you, that was a long time ago. I remember going to the farmhouse as a child and always smelling ammonia. My Great Aunt cleaned his home with ammonia never indulging in the latest sweet smelling solvents. They sacrificed even the little things so they had choices. He chose to do an honorable thing in helping his neighbors. At least 10 farms would have gone under had it not been for his generosity and his savings. My question is ... will you be there for your own children when their world bottoms out? I say when, because I believe its coming. We're on a trajectory of financial failure.
Today, I don't reap the rewards of his financial success ... but I will forever carry the memory of his honorable good deeds. I don't think too many future generations will be able to tell such a story about their Baby Boomer parents who left them holding the bill for their credit card debt.
I carry with me his wisdom ... "Money buys one thing child ... freedom." Why then I ask are most Americans willing to spend themselves penniless leaving themselves potentially broke without choice? Doesn't seem like America's the "Land of the Free and the Home of the Brave" anymore. Seems like we're more interested in bravado (materialism) than bravery (living within your means). The price of instant gratification is our future freedom of choice. Don't know about you ... but the growing cost of healthcare and the unprecedented debt our leaders are laying in the laps of my generation and generations to come make us more like the land of the freedom-less. Seems like it's time to wake up and be brave enough to say, enough's, enough. I don't need a porche ... I need to prepare for the future and ensure the well being of my kids.
Seems like the truly brave are those who say, don't judge me by what I have but what I have done. I'm brave enough to face the world without a fancy car, designer clothes or a big house. Are you? And yes ... I have it to spend ... but protecting my future is a far a far better investment than anything material I could ever purchase. Let's get doing and stop spending the future away with instant gratification. I'm not telling you "how to spend your money." I'm asking you to save it. The price we're going to pay is our future as a country. And I know I'd sure like to see a future of prosperity where my great grandchildren are proud of what I did rather than what I spent.
Besides, I get probably more double-takes and thumbs up in my late Daddy's 1966 Mustang than I would in a Mercedes.
PM me next time you go riding if you don't mind me tagging along, I used to own a 1965. I love the original Mustangs. Mine was a 289-4V (225hp), it was not a hypo, but was still a great car. I miss being able to actually wrench on a vehicle like that - used to literally stand in the engine compartment, with my feet on the ground. New vehicles have ZERO room in their engine compartments.
I'm looking forward to your episode of "House Hunters International" !
LOL!!!
It will not be impressive. I'm only going to need a little shack or hut. I'm not looking to house an army of family and friends to come and visit. Just me, hubby and the two four legged fur babies. We can do without a WHOLE LOT! Unless of course I win the mega lottery and then I'd buy something a bit bigger so that my kids and their familes could come down and visit and us not all be on top of each other. Still going to be spartan.
I'm underlining that above to stress a point based on previous posts and ones below. Too many people have come accustom to thinking they need EVERYTHING! Sure, I've fallen into that trap on certain things and easily admit it. Thing is I also admit I can do without just about everything I have at my disposable right now. Like Jimmy Buffett says,
"Reading departure signs in some big airport
Reminds me of the places I've been
Visions of good times that brought so much pleasure
Makes me want to go back again If it suddenly ended tomorrow
I could somehow adjust to the fall
Good times and riches and son of a *******
I've seen more than I can recall"
And I could. No problem. I've seen my parents adjust to hard times and hubby saw worse falls in his own parents than I did with his dad having major health problems (4 heart attacks, cancer, etc) and mutliple stupid moves. We all just dug in more. Gave up a vacation, new house, car, etc. And did it all without any handouts.
I've experienced a lot and I remember most of it like it was yesterday. I've wanted for years to take my husband and kids to some of the places I've been (Moscow, St Petersburg, Prague, Warsaw, et) and after the bombing in the major airport in Moscow yesterday and other bombings there I realize I may never get to go back much less my children see the beautiful architecture and the culture there. I cherish even the hard times as it has made me the person I am today. My parents did not hide the hard times from us, well from me (my little sister is another story ). Then the things that hubby and I had to do to even get started out on our own and then starting a business and the sacrifices there and the struggles. Every thing we do now and have been doing in the last 16 years was to make us a comfortable living and support our family.
Quote:
Originally Posted by JLO
One factor that I didn't see in the "retirement analysis" is healthcare.
And that's assuming it can be sold. Isn't there a Civil War going on right now in Mexico (drug dealers vs. the rest.) Be advised, my friends "retired parents" just had their home seized by the government due to this situation. The just took it! Just say'in ....
One reason why we have healthcare coverage and good coverage at that. My health is not the greatest right now. I look like I'm in perfect health and by all accounts am but a year ago I hit a downward slide. Right now I've got 5 specialists that I'm seeing constantly. So far everything has been somewhat treatable by meds. Till about 2 months ago when now they are not all working to their fullest. Soooooo..... more tests going on right now. Thankfully, so far no cancer, heart issues or such or anything really life threatening.
No, not really. In the border towns is where I'd avoid in Mexico. Cabo is so far removed from the border towns and even cental Mexico it's almost more American. And they can't really "just take" it. There is probably more to it than they really know.
Quote:
Originally Posted by Lakewooder
Back to Mom's point - yes I think everyone should plan for retiring at 50. As I just passed that point, I found I didn't really want to retire - just yet.
Besides, I get probably more double-takes and thumbs up in my late Daddy's 1966 Mustang than I would in a Mercedes.
Hubby will NOT just retire and do nothing You would see divorce in the future if that were the case, LOL!!!!
He has other interests that he wants to pursue if he had more time and that is what he plans on doing. We just plan on making sure the business is situated to be a marketable situation for someone to buy. Been doing that for a few years now as you have to prepare in so many different areas to sell a business. Neither girl wants anything to do w/ the business as it is not even close to their interests at all. No siblings to take it over. We can't run it till we are too old. We don't want to be in the situation so many other business owners have been in that we have seen. They keep running the business till they can no longer do it due to age, health or both keep them from doing so. Then they just up and close it and don't have any income coming in at all. A good business that could have made another family a good living gone. They never would sell. Don't want to be there and then too old to do anything fun in life as you just can't due to health and can't afford it as you have no income. Building up a business to run and then sell it when the time comes gives one the income they need to live on for the rest of their lives IF they plan accordingly. One reason why we have been making sure that large purchases are going to be free and clear well before that time comes. That way we can live on the interest and only dip into the pool when needed.
LOL!!! Same here whenever I take the 68 Camaro out w/ the top down. No one gives a rats arse what I'm driving the rest of the time. I'm in that 68 w/ the top down........
Quote:
Originally Posted by loves2read
interesting article I read on-line yesteday about how many of today's older folks--early or older retired groups--are taking on debt via credit cards and other ways--maybe a new car--and just saying to heck with worrying about paying it off
that many of their children who are contemplating getting some financial help from their parents' estates are going to wake up to a bill for the estate vs money in their pockets--that they may have to sell mom's house to pay debts or that mom may have taken out a reverse mortgage to finance her new lifestyle and they will be left with little to nothing of an inheritance...
...
Even worse.................. most people do not realize that if the family home/property is in the parents name and the elderly parent goes into a nursing home the state can take their property and bank accounts and savings/insurance upon their death to pay for their care.
They don't realize that most of the parents assets need to be out of their PERSONAL name several years before this need is there. If they want to inherit any of their parents assets then the parents need to have everything changed over into the name of a trust and it clearly stating who the trustees will be and who gets what. If the parents want to pass on the family home/farm/property they need to make sure that they have done EVERYTHING they need to in order to insure their kids get what they want them to have. Too many elderly (and people in general) think they lose control of everything if they put their home or bank accounts into the name of a trust or put things in their kids names. They don't realize if they don't do this they are not going to get passed down to their heirs.
Quote:
Originally Posted by JLO
It's funny how history repeats itself. I'm the third generation of a once wealthy Dairy Farmer from upstate NY. My great-grandfather owned thousands of acres,cows and turkeys.
I need to prepare for the future and ensure the well being of my kids.
Seems like the truly brave are those who say, don't judge me by what I have but what I have done. I'm brave enough to face the world without a fancy car, designer clothes or a big house. Are you? And yes ... I have it to spend ... but protecting my future is a far a far better investment than anything material I could ever purchase. Let's get doing and stop spending the future away with instant gratification. I'm not telling you "how to spend your money." I'm asking you to save it. The price we're going to pay is our future as a country. And I know I'd sure like to see a future of prosperity where my great grandchildren are proud of what I did rather than what I spent.
This is kind of funny and so true........ Having done my entire genealogy and my husbands it was fun to find out that we both had ancestors that were very VERY wealthy. They established many of the first communities in the founding of this country. One of mine was from the Mayflower. It was very interesting to know that the lines these once wealthy ancestors came from were actually some of the poorest families in our lines 2-3 generations ago. All that wealth, status, etc was gone. After several wars, families moving to settle a new territory, etc...... it's gone. Reading their wills was interesting and was able to see they had quite a bit of wealth and were pillars of the communities they were in.
We have been stressing to our kids for several years that one needs to be careful with what they have been given. Sure you can splurge every now and then but if you don't have the money to do it and doing so would jeopardize your financial well being........ it's best to not reach out and get that luxury. Save for that rainy day, save for that unexpected event that life is sure to throw at you. Take advantage of the education that is being given to you. Make the most of it. Use it. Not only for your own benefit but for others around you. Make it count.
It was very interesting to know that the lines these once wealthy ancestors came from were actually some of the poorest families in our lines 2-3 generations ago. All that wealth, status, etc was gone. After several wars, families moving to settle a new territory, etc...... it's gone.
That's a coincidence - I found the same thing with my father's family. Apparently they were landed gentry in Virginia and the Carolinas - then my GG-Grandfather moved to Georgia - apparently he still had some money and did not believe in slavery. His son, my Great-Grandfather, fought for the Alabama 22nd in The War Between the States. We have stories passed down that the Yankees took everything they had and all that they kept was what they had managed to bury before they arrived. Subsequently they came to Texas with no money.
So it's no accident my father was so stringent on teaching me how to make it and keep it...
Whoa now, some of us Yankees will question the historical accuracy of what you yourself Lakewooder refer to as "stories" passed down via Y'all's Southern storytell'in.
But nevertheless its was a good thing for those large Texas land grants (homesteads) for which today's Texans are still cashing in. Just think you may not be a Texan or live in Lakewood if it wasn't for us Yankees. Better yet, you Texans are still reaping the rewards of land ownership (and mineral rights in the shale) generations later compliments of (us) those "Damn Yankees" and their thievery. Who'd a thought Yankees did you a favor?
Last thought ... forgive me but us Yanks are vocal or vocalists depending on if we're performing ... Hopefully your father taught you how to "make it and keep it" AND off shore it ... cause the Yankees aren't com'in but Uncle Sam is.
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). House will be paid for. 
). Then the things that hubby and I had to do to even get started out on our own and then starting a business and the sacrifices there and the struggles. Every thing we do now and have been doing in the last 16 years was to make us a comfortable living and support our family. 
