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I won't go into what we live on, because I've done that in previous posts, but I do want to discuss what my in-laws lived on because they carved out a nice retirement for themselves on less than $100K invested, SS, and my MIL's $1200 month teacher's pension. Their total monthly income was about $3600, a little more when their investments did well. They lived in a nice little 55+ retirement golf community in Palm Desert (renting at about $1200/month), they had one car (paid off), and no debts. MIL had a retirement medical plan through the school district, so that was a big help.
If that's $3600/month in net income, that's like having a $50k/year job. While they're far from rolling in it, they're also far from poor, unless they're in a high cost area. A lot of people don't make $3600/month while working.
I never said they were poor. I just was stating that they certainly didn't have anywhere near the $1million invested that so many people use as their magic retirement number. They lived quite well for people with less than 1/10 of what the retirement planners tell you that you need, with just a relatively small pension and SS.
The $3600 was gross and included FIL's SS, MIL's SS, and MIL's $1200/monthly teacher's pension. Then when FIL passed away she started receiving half of his SS instead of her own + his, so her total income was reduced to $2400/ monthly. This was okay as she moved out of Palm Desert and was living in and caretaking the home of her deceased brother and paying $1000 total for rent and utilities. Then she entered IL, but they kept raising the rent until she couldn't afford it and she moved in with us. Once we moved to TN we found that IL and AL facilities were much cheaper here and she was able to afford to live on her own (in IL) again. Then AL became a necessity and we were able to get her approved for the Vet Aide and Attendance as the surviving widow of a WW2 vet.
One problem we kept encountering in CA when trying to find her an IL senior apartment was that they were all either extremely high rent, or subsidized for low income. Her $2400/month income was too much for the subsidized places (she was over the limit by about $200/ month) and the unsubsidized were over $3000/month for IL! She now pays less than that for AL here in TN with no subsidy necessary.
Last edited by TheShadow; 07-06-2015 at 07:59 AM..
I never said they were poor. I just was stating that they certainly didn't have anywhere near the $1million invested that so many people use as their magic retirement number. They lived quite well for people with less than 1/10 of what the retirement planners tell you that you need, with just a relatively small pension and SS.
The $3600 was gross and included FIL's SS, MIL's SS, and MIL's $1200/monthly teacher's pension. Then when FIL passed away she started receiving half of his SS instead of her own + his, so her total income was reduced to $2400/ monthly. This was okay as she moved out of Palm Desert and was living in and caretaking the home of her deceased brother and paying $1000 total for rent and utilities. Then she entered IL, but they kept raising the rent until she couldn't afford it and she moved in with us. Once we moved to TN we found that IL and AL facilities were much cheaper here and she was able to afford to live on her own (in IL) again. Then AL became a necessity and we were able to get her approved for the Vet Aide and Attendance as the surviving widow of a WW2 vet.
One problem we kept encountering in CA when trying to find her an IL senior apartment was that they were all either extremely high rent, or subsidized for low income. Her $2400/month income was too much for the subsidized places (she was over the limit by about $200/ month) and the unsubsidized were over $3000/month for IL! She now pays less than that for AL here in TN with no subsidy necessary.
I would wager that any sort of eldercare would likely be cheaper in TN, as the cost of living is generally considerably less in TN than CA. I'm amazed that a $2200 monthly income would necessitate a subsidy in CA, or that the government supplies it. It's pretty amusing that a better than average income in TN would necessitate a subsidy in CA for a retiree.
Exactly. I have been reading and listening to a couple of the "Cheapskate" books by Jeff Yeager, one of which is the retirement guide. A lot is just common sense, but his big thing is getting into the mode of not being a spender. The interviews with people who are doing well at it are pretty consistent. They don't want more; they are happy with what they have. He talks about how people look at "time is money" differently. His take is that is you can get by on less money then you will have more time and he would rather have time than money.
That's not unexpected.....50K a year in one state is barely subsistence in another.
The COL is different in each region. While I am from California, long before I retired I knew that my pension was not going to be enough to support a family should we return to California. Which was why we searched for some other region to retire to.
Thankfully we found Northern New England where we have been able to settle, and where my pension is enough
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I would wager that any sort of eldercare would likely be cheaper in TN, as the cost of living is generally considerably less in TN than CA. I'm amazed that a $2200 monthly income would necessitate a subsidy in CA, or that the government supplies it. It's pretty amusing that a better than average income in TN would necessitate a subsidy in CA for a retiree.
In CA, unless it is subsidized for low income, IL facilities are over $3000/month. Usually that pays for utilities and at least 2 meals a day, and a small bus for transport to the store or doctor appts. In CA $2200/month is considered low income.
I think for those who believe they need millions to retire, they have lived a lifestyle that depends on that kind of money. They do not want to reduce their lifestyles. And some of them think we all feel that way.
You have to make up your own mind about what is important to you. I unfortunately have a large debt I need to pay. My retirement money would be decent but with all the money I send to pay the bills..... I have to live cheap. At least for now.
My former dh died and left me a few hundred thousand, which was gone in about 5 years. My social security check is $1200 a month. I took out a reverse mortgage and used it to fix up the house. I met a retired 100% disabled vet who I subsequently married. He gets 2 government pensions (military plus 30 years as a federal government worker) plus social security. Neither of us has much in savings, but our combined retirement income is close to $90,000 now. Because he is a 100 % disabled vet we are exempt from paying property taxes. Since I have a reverse mortgage on my home there are no mortgage payments. My home is located in an upper middle class area. We use his VA benefits for healthcare, to shop at the commissary and PX where we get discounts, and we often eat lunch on the Base. We are doing okay financially. My dh also maintains a 3 bedroom apt in a high cost area, and owns 2 luxury cars.
Dh has health issues, but they are covered by the VA. He is on dialysis 3 days a week, and has lost part of his foot. He is a victim of Agent Orange. He is energetic and does not appear to be ill to outsiders.
I'd like to point out, if your retirement income is high enough through pensions and social security, you don't need a lot of savings. I never hear this being discussed.
Last edited by terraaus; 07-08-2015 at 12:06 AM..
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