A sure way to find out who is a "well to do" retiree? (anniversary, respect)
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.
That's very sweet, but if one of the kids or grandkids is sick and needs $150,000 for an operation, and the retired couple can't pay it, they're not well off.
Really? That's your yardstick? I guess I don't know many well-off retirees then, by your definition. I think most retirees would have to sell their house or cash in a hefty percentage of their investments to be able to come up with $150,000 cash.
But the OP's definition is way too far on the opposite end of the spectrum.
What if this loving couple lives in squalor because they have no money?
if they can exude
Quote:
authenticity and warmth of their smiles, by the fragrant, yet subtle smell of contentment when they walk by together, and by the spicy, cherry-orange bite, taste of the air as they gaze at each other. Their well-being becomes my own.
I got an early lesson in life about the concept of Old Wealth. I was intimately involved with one, worth millions, literally! Lived in a small one bedroom apartment, where he could afforded to buy the entire apartment building, and I later learned, he owned the apartment building!
Go to the grocery store in his older Buick, clothes from a thrift store, and it took forever to get to the cashier's line.
A briefcase full of coupons, endless comparing of prices, arrive home, and out came the calculator, to re-calculate every item that came out of those bags.
One time, he was over-charged for a couple items, and back to the store he went for a $4 refund!
Old wealth, and misers, are not going to, in any way, broadcast to anyone their worth! They love to keep things secret! You might even find them knocking on your door, in the morning, looking for used coffee grounds, to re-use in their coffee machines.
I don't believe in squandering money but your retirement is a time to enjoy life and reap the benefits that you've worked so hard to get. I realize there are those that are less fortunate, but you have to enjoy life (and your money) while you can. You can't take it with you.
Well, the coffee grounds thing is exceptional. But the part about old wealth often preferring discreetness over boasting is real. I knew at least two people like that. I would never have guessed, except that they were young enough to normally be sweating over things like car costs, rent, etc, yet they did not have high-paying jobs and seemed pretty carefree despite it.
I finally tied one person's last name with the rural town they had grown up in and asked directly. Yes, it was THAT family.
Really? That's your yardstick? I guess I don't know many well-off retirees then, by your definition. I think most retirees would have to sell their house or cash in a hefty percentage of their investments to be able to come up with $150,000 cash.
But the OP's definition is way too far on the opposite end of the spectrum.
Actually 18% of all households have a net worth in excess of $500,000. Since wealth skews older, it makes sense that a much higher percentage of retirees has $500K or more in assets.
As far as selling investments, that's how most retirees living on their investments raise cash, whether for emergencies or ordinary expenses.
I got an early lesson in life about the concept of Old Wealth. I was intimately involved with one, worth millions, literally! Lived in a small one bedroom apartment, where he could afforded to buy the entire apartment building, and I later learned, he owned the apartment building!
Go to the grocery store in his older Buick, clothes from a thrift store, and it took forever to get to the cashier's line.
A briefcase full of coupons, endless comparing of prices, arrive home, and out came the calculator, to re-calculate every item that came out of those bags.
One time, he was over-charged for a couple items, and back to the store he went for a $4 refund!
Old wealth, and misers, are not going to, in any way, broadcast to anyone their worth! They love to keep things secret! You might even find them knocking on your door, in the morning, looking for used coffee grounds, to re-use in their coffee machines.
And, yes, I knew someone who actually did that!
It may well be that he obtained his wealth over the years in part at least, by practicing all that sometimes overblown frugality and saving his money. And as old habits die hard, he kept up those practices well after he didn't need to anymore.
Actually 18% of all households have a net worth in excess of $500,000. Since wealth skews older, it makes sense that a much higher percentage of retirees has $500K or more in assets.
As far as selling investments, that's how most retirees living on their investments raise cash, whether for emergencies or ordinary expenses.
This is why I said in another thread that the differences in this country and among retirees is probably the asset class v the non asset class. As COLA for SS and pensions are not growing those in the asset class are able to deploy them to increase wealth. This assumes they know what they are doing!
Actually 18% of all households have a net worth in excess of $500,000. Since wealth skews older, it makes sense that a much higher percentage of retirees has $500K or more in assets.
As far as selling investments, that's how most retirees living on their investments raise cash, whether for emergencies or ordinary expenses.
Yes I know that selling investments is how they live. (Duh) I said cashing in a hefty percentage of their investments. As in your example of a couple with $500k in investments. Can they afford to pay $150K for their grandkids operation, per your example? I don't know, dropping something like a third of their assets might upend their boat. Maybe it depends if their house is paid off, or if they have a LTC policy for themselves, and what their own health is like. I don't think that means that they are or are not "well off". They might be able to, but not be willing.
Everyone has a different definition, and I guess that's what this thread is about. I have a retired friend in his upper 70's whom I consider well off. He bought a brand new 2015 Corvette two years ago for $75K. He kept bugging my husband about when he was going to get one. I said "Not in this lifetime!" He just traded it in 2 weeks ago for $43k, spent another $37k and bought a new 2017 Corvette (total cost $80k). Why? Because he could. He paid something like an extra grand to pick it up at the factory and see his name up in lights on a big sign as you enter the plant. To me, that sort of thing is a huge waste of money, but when you're truly "well off" you can throw away $32k on depreciation like that. So to me, a person who eats out weekly and travels in retirement is not well off (the OP's definition). That's just normal.
eta: Our newest car is a 14 year old Honda, but we eat out about 3 times a week, and travel when we want.
Yes I know that selling investments is how they live. (Duh) I said cashing in a hefty percentage of their investments. As in your example of a couple with $500k in investments. Can they afford to pay $150K for their grandkids operation, per your example?
Not really, but they would probably do it in a heartbeat. Someone who does not have the money would watch their grandchild suffer or die; this is a fictional example so you can fill in what the consequences would be.
Quote:
I have a retired friend in his upper 70's whom I consider well off. He bought a brand new 2015 Corvette two years ago for $75K. He kept bugging my husband about when he was going to get one. I said "Not in this lifetime!" He just traded it in 2 weeks ago for $43k, spent another $37k and bought a new 2017 Corvette (total cost $80k). Why? Because he could. He paid something like an extra grand to pick it up at the factory and see his name up in lights on a big sign as you enter the plant. To me, that sort of thing is a huge waste of money, but when you're truly "well off" you can throw away $32k on depreciation like that.
That isn't being well off, it's being an idiot.
Quote:
So to me, a person who eats out weekly and travels in retirement is not well off (the OP's definition). That's just normal.
Agree.
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.
