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.
I have to question whether the stats like "half of Americans have zero savings" is really true. They're based on surveys... basically polls and we all know the problems with those. If so many people really had NO money, I feel like the U.S. would be more of a 3rd world country than the mostly prosperous country that it is.
I posted this back in 2015. 'Dave' is still here and doing great and what I wrote about him is still true. Retiring rich is best but 2nd best is retiring poor. //www.city-data.com/forum/retir...do-better.html
We all know it's best to retire rich. But second best may well be poor! I now have serious doubts the folks who are sacrificing a middle class lifestyle to save for retirement are really doing themselves a favor. Especially since they will be able to do little but exist. No fun, no trips/vacations, etc. No spending, just basic living.
A few months ago I posted about my SO's cousin, 'Dave'. Dave moved from NYC to Vegas because the COL is so much lower. He is 65 and low income. He worked all his life as a server/restaurant manager. But he never made much money. Because he lived in NYC, he never owned property. This is one of the keys. Own no property. He also can't have a big bank account. Learning about Dave has taught me a lot. I have been educated since last February when he moved here.
Dave's income from SS and a small pension is 1K per month. He qualifies for every aid program out there. And he has a great life now. No worries! He came out better than I would have ever imagined. Here's how it breaks down.
1) Housing. He got a 1br brand new apartment in a nice safe area of town. About 800SF. It's senior subsidized housing and his rent should not go up. He pays $495 per month and that includes utilities! He can keep that apartment at 70 degrees all summer long. He pays $35 per month for cable. His landline is free because he has some hearing loss. His cell phone is free because he gets SNAP(foodstamps). The apartment complex provides transportation to shopping every week. Every day they provide coffee/drinks and snacks for anyone who wants them. Dave was on a waiting list for the apartment for about 3 months.
2) Transportation. He can get a reduced fare bus pass for $30 per month. He prefers to get the $2 24 hour unlimited ride passes because he doesn't go out every day. He figures it is less expensive to buy the day pass. If he needs to go to medical appointments, his healthcare provider sends a car to pick him up for free.
3) Medical. His healthcare plan is Senior Dimensions and he pays no co-pays or premiums. His prescriptions are free too. Medicaid is his secondary, part D, and again no premiums. Everything is covered and it's all free. He has better medical than most seniors. No deductibles either.
4) Food. He gets $159.00 per month in SNAP(foodstamps). He has a local food pantry he can go to for free twice a month. 3 Squares brings him food once a month to his apartment complex. He can go to the USDA foodbank once a month. He has to spend very little of his own money for food. He probably spends $20 per month on incidentals. Shampoo, soap, deodorant, paper towels, toilet paper, etc.
After all his needs are met and his bills are paid, he has almost $600 per month to spend as he pleases. He can afford a modest vacation once or twice a year. He came out better than I thought was possible. Being poor and old doesn't have to be a nightmare!
For 20 years my wages and earnings were flat lined.
NOW I'm ( we're....my OH and i) are in WAGE REGRESSION.
That is to say where once say $5/hour over minimum wage, with no raise as minimum increases, the gap shortens and we end up with wage regression, so we, instead of earning above minimum, suddenly become minimum wage workers.
My OH works as an adjunct to health care, but now is nearly simply a minimum wage worker for a job that should command more than minimum.
It's a tale of the times.
Not only do our wages regress, our COL has drastically increased, leaving us further in regression.
Doesn't leave as much to save for retirement, as that gap was important as if COL could be kept at minimum wage status, allowing to save all the "extra" for retirement.
As that gap disappears, it leaves far far less to sock away for retirement.
I hope I have adequately explained what i mean.
This esonates with me. Been there.
A year ago, I was making $1 over min wage
Prior it remained $3 to 3.25 per hr more than min wage. state didn't fund us for a very long time.
Mortgage is $1271 per mo for my husband & I
Might keep 30 yr mortgage longer just in case we need food stamps down the line.
if plan doesn't unfold as expected
Food Stamps calculate housing costs into the allotment
remain semi-retired forever... working p/t until I drop
Small cushion- 30K cash saved at home
Own a plot of land easily valued at 70K.
Looking to remodel for under $20K to add a bedroom
Home currently has a separate entrance, sep bath & shared laundry rm.
Add a bedroom and rent out the three for $400 a mo.
Profit would be over $300 each mo.
Need renter who works for a restaurant or catering company, not needing a kitchen
Unsure of where else to put 20K to get a 10%-$12% monthly return
An RV Spot in back yard w/hookups avail but HOA issue
Will try to rent it out seasonally, 3 months, despite the rule
Rentals here are sparce yet in demand. should be fine
Rich become richer wanting to buy vacation homes here. Need folks to service them.
I am 50 yrs old. Hubby is 58
Moving up in a career is slim due to invisible disabilities for me
Severe back & shoulder issues limit him to p/t work
uninterested in SSDI
At 62, I'll start paying off the mortgage with my SS
To be paid off by age 65
Could probably live off of my husbands $1250 SS when he files
plus the $300 rental while withdrawing a little from my 401k (which would be about 50K by then)
but I'd rather work.
401K is part of childs inheritance+ house.
Pensions becoming less dependable
SS may not be enough, or even around by then.
I went to a financial advisory just out of college. They did the calculations and told me I needed 45 million to retire. I said well F that, it will never happen so if I am going to work until I die, why save?
Later I discovered I can probably retire with about $1.5 million. I might get there, but I will have to work until I am 70. Less because I did not start earlier than because of 2008.
My brother has nothing for retirement, my sister has nothing but he husband has a pension. My other brother can live on 10 cents so he will not have any issues. My Dad retired in 1987 with $250,000 plus a pension. I though holy F you are rich and will live like a king! In 2009 or 10 the pension partly went away (GM went BK) and the remains of $250,000 does not go far. He retired at 57 and never expected to still be alive at 87. He still has a house that is paid off and probably worth 500 - 700K so he will not run out. He has very little expense. Basically healthy. Leases a car for about $195 a month. House paid for. Taxes and heat and a little bit for food - he does not eat much.
I posted this back in 2015. 'Dave' is still here and doing great and what I wrote about him is still true. Retiring rich is best but 2nd best is retiring poor. //www.city-data.com/forum/retir...do-better.html
We all know it's best to retire rich. But second best may well be poor! I now have serious doubts the folks who are sacrificing a middle class lifestyle to save for retirement are really doing themselves a favor. Especially since they will be able to do little but exist. No fun, no trips/vacations, etc. No spending, just basic living.
A few months ago I posted about my SO's cousin, 'Dave'. Dave moved from NYC to Vegas because the COL is so much lower. He is 65 and low income. He worked all his life as a server/restaurant manager. But he never made much money. Because he lived in NYC, he never owned property. This is one of the keys. Own no property. He also can't have a big bank account. Learning about Dave has taught me a lot. I have been educated since last February when he moved here.
Dave's income from SS and a small pension is 1K per month. He qualifies for every aid program out there. And he has a great life now. No worries! He came out better than I would have ever imagined. Here's how it breaks down.
1) Housing. He got a 1br brand new apartment in a nice safe area of town. About 800SF. It's senior subsidized housing and his rent should not go up. He pays $495 per month and that includes utilities! He can keep that apartment at 70 degrees all summer long. He pays $35 per month for cable. His landline is free because he has some hearing loss. His cell phone is free because he gets SNAP(foodstamps). The apartment complex provides transportation to shopping every week. Every day they provide coffee/drinks and snacks for anyone who wants them. Dave was on a waiting list for the apartment for about 3 months.
2) Transportation. He can get a reduced fare bus pass for $30 per month. He prefers to get the $2 24 hour unlimited ride passes because he doesn't go out every day. He figures it is less expensive to buy the day pass. If he needs to go to medical appointments, his healthcare provider sends a car to pick him up for free.
3) Medical. His healthcare plan is Senior Dimensions and he pays no co-pays or premiums. His prescriptions are free too. Medicaid is his secondary, part D, and again no premiums. Everything is covered and it's all free. He has better medical than most seniors. No deductibles either.
4) Food. He gets $159.00 per month in SNAP(foodstamps). He has a local food pantry he can go to for free twice a month. 3 Squares brings him food once a month to his apartment complex. He can go to the USDA foodbank once a month. He has to spend very little of his own money for food. He probably spends $20 per month on incidentals. Shampoo, soap, deodorant, paper towels, toilet paper, etc.
After all his needs are met and his bills are paid, he has almost $600 per month to spend as he pleases. He can afford a modest vacation once or twice a year. He came out better than I thought was possible. Being poor and old doesn't have to be a nightmare!
While "Dave" has his needs met, that sounds like a miserable existence. Frankly, it sounds like a minimum security prison.
Quote:
Originally Posted by eliza61nyc
so maybe they have the right idea and we (general term) should spend down our assets to get the free stuff?
Last Saturday, my church gave out 2700 thanksgiving dinners at various low income centers in southern NJ. I volunteered with the distribution and saw the face of misery.
I'll take getting the "shaft" any day because sorry that is not how I want to live.
THANK YOU!
Every time I read people posting about "how good the poor have it" or "how the poor have it better than the middle class" I shake my head. I'm sure there's an income/asset range where qualifying for fewer benefits places an inordinate burden on your assets, but generally speaking, I'm not buying it. Everyone I've seen that struggles, whether they're unemployed, unemployable, underemployed, a victim of their own choices, or a victim of circumstance, struggles and worries in ways that I don't want to.
I went to a financial advisory just out of college. They did the calculations and told me I needed 45 million to retire. I said well F that, it will never happen so if I am going to work until I die, why save?
Later I discovered I can probably retire with about $1.5 million. I might get there, but I will have to work until I am 70. Less because I did not start earlier than because of 2008.
My brother has nothing for retirement, my sister has nothing but he husband has a pension. My other brother can live on 10 cents so he will not have any issues. My Dad retired in 1987 with $250,000 plus a pension. I though holy F you are rich and will live like a king! In 2009 or 10 the pension partly went away (GM went BK) and the remains of $250,000 does not go far. He retired at 57 and never expected to still be alive at 87. He still has a house that is paid off and probably worth 500 - 700K so he will not run out. He has very little expense. Basically healthy. Leases a car for about $195 a month. House paid for. Taxes and heat and a little bit for food - he does not eat much.
Um.. what?
What retirement age/income did they use for that???
I posted this back in 2015. 'Dave' is still here and doing great and what I wrote about him is still true. Retiring rich is best but 2nd best is retiring poor. //www.city-data.com/forum/retir...do-better.html
We all know it's best to retire rich. But second best may well be poor! I now have serious doubts the folks who are sacrificing a middle class lifestyle to save for retirement are really doing themselves a favor. Especially since they will be able to do little but exist. No fun, no trips/vacations, etc. No spending, just basic living.
A few months ago I posted about my SO's cousin, 'Dave'. Dave moved from NYC to Vegas because the COL is so much lower. He is 65 and low income. He worked all his life as a server/restaurant manager. But he never made much money. Because he lived in NYC, he never owned property. This is one of the keys. Own no property. He also can't have a big bank account. Learning about Dave has taught me a lot. I have been educated since last February when he moved here.
Dave's income from SS and a small pension is 1K per month. He qualifies for every aid program out there. And he has a great life now. No worries! He came out better than I would have ever imagined. Here's how it breaks down.
1) Housing. He got a 1br brand new apartment in a nice safe area of town. About 800SF. It's senior subsidized housing and his rent should not go up. He pays $495 per month and that includes utilities! He can keep that apartment at 70 degrees all summer long. He pays $35 per month for cable. His landline is free because he has some hearing loss. His cell phone is free because he gets SNAP(foodstamps). The apartment complex provides transportation to shopping every week. Every day they provide coffee/drinks and snacks for anyone who wants them. Dave was on a waiting list for the apartment for about 3 months.
2) Transportation. He can get a reduced fare bus pass for $30 per month. He prefers to get the $2 24 hour unlimited ride passes because he doesn't go out every day. He figures it is less expensive to buy the day pass. If he needs to go to medical appointments, his healthcare provider sends a car to pick him up for free.
3) Medical. His healthcare plan is Senior Dimensions and he pays no co-pays or premiums. His prescriptions are free too. Medicaid is his secondary, part D, and again no premiums. Everything is covered and it's all free. He has better medical than most seniors. No deductibles either.
4) Food. He gets $159.00 per month in SNAP(foodstamps). He has a local food pantry he can go to for free twice a month. 3 Squares brings him food once a month to his apartment complex. He can go to the USDA foodbank once a month. He has to spend very little of his own money for food. He probably spends $20 per month on incidentals. Shampoo, soap, deodorant, paper towels, toilet paper, etc.
After all his needs are met and his bills are paid, he has almost $600 per month to spend as he pleases. He can afford a modest vacation once or twice a year. He came out better than I thought was possible. Being poor and old doesn't have to be a nightmare!
I'm 65 and retired 10 years ago, sounds like hell to me, poor guy, hope his life improves
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.
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.
