Retirees keep the economy moving (pension, long-term, depression, 2014)

[engineman]

[quote=lieqiang;45594082]What I don't get is countries that make it difficult for foreigners who can show proof of financial means to acquire long term visas. I'm looking at you Thailand.

We had some British neighbors some years ago who owned their condo. They could not get a green card so that they could live here full time. They would come over for 6 months and then they had to leave. They were frustrated with the situation and were considering buying a place in Spain.

[mlb]

Originally Posted by jrkliny

This is one dumb idea. Now that we are now longer working and making peak career salaries, we live on less income. How does that boost the economy?

Just because you make peak salaries does not mean you spend it all. We saved 30% of that salary for retirement.

So we're not dropping the ball.

[JIMANDTHOM]

Right now we feel like we are our own little stimulus plan for the eastern end of the Upper Peninsula of Michigan. The money has flown outta here.


We sold most everything we had--if it didn't fit in a 15 ft Uhaul it didn't come north with us. Many things were nearing the end of their useful life cycle but we were able to purchase what was needed rather than try to make something that fit for one house fit into this house.


To add to it we have started to gut the 2nd floor of a 116 year old house.

[Pat Answers]

Originally Posted by dothetwist

Health care workers are a significant part of the US economy and retirees certainly contribute to that industry.

Well, if those are Medicare dollars, that might be a drag on the economic system. However, recently DH had 2 appointments at a dermatologist for something Medicare could care less about and doesn't cover. The bill total is $888+ so far and there is 1 more appointment to go before he's done.

[oldsoldier1976]

Originally Posted by JIMANDTHOM

Right now we feel like we are our own little stimulus plan for the eastern end of the Upper Peninsula of Michigan. The money has flown outta here.


We sold most everything we had--if it didn't fit in a 15 ft Uhaul it didn't come north with us. Many things were nearing the end of their useful life cycle but we were able to purchase what was needed rather than try to make something that fit for one house fit into this house.


To add to it we have started to gut the 2nd floor of a 116 year old house.

JIMANDTHOM you are ambitious. A 116 year old house is going to have remnants of stuff like post and knob wiring for electrical. It is going to have horse hair plaster over laths and very little insulation. None of the corners are going to be square. Altogether a house that old is something I might take on at 30 to 40 but 60 to 70 is going to be a bit much. I hope you will research the code for plumbing and electrical in Michigan. I am pretty sure that new electrical code in MI requires conduit for wiring. Yikes that in itself would make me flip.

[pvande55]

One problem is that most workers don't have access to a retirement plan. Of course, a smaller number do but don't bother to participate, but thats their fault. These facts show how important Social Security is. The average SS check is actually about equal to the real dollar average income in 1926.

[MadManofBethesda]

Originally Posted by mlb

Just because you make peak salaries does not mean you spend it all. We saved 30% of that salary for retirement.

So we're not dropping the ball.

Exactly! There's no need to save money for retirement any longer; now is the time to spend the money that was accumulated during all of our working years. We are spending quite a bit more in retirement than we ever spent during our working years. "Vacation" trips are now months-long rather than weeks; we have two residences rather than one; we have two cars rather than one; and the list goes on and on. Other examples include going out more often for dining and entertainment.

[JIMANDTHOM]

Originally Posted by golfingduo

JIMANDTHOM you are ambitious. A 116 year old house is going to have remnants of stuff like post and knob wiring for electrical. It is going to have horse hair plaster over laths and very little insulation. None of the corners are going to be square. Altogether a house that old is something I might take on at 30 to 40 but 60 to 70 is going to be a bit much. I hope you will research the code for plumbing and electrical in Michigan. I am pretty sure that new electrical code in MI requires conduit for wiring. Yikes that in itself would make me flip.

Yep--what in the bloody hello did we do!


Actually a large amount of the mechanicals and structure was been properly worked on beginning in the 70s into the 2000s. Have found 2 runs of the old nob and tube. Roof and chimney are 15 years old. Boiler is 20 and has some newer piping. Almost all water lines are copper and almost all remaining sewer lines are PVC--so we have good bones.


Came down to where we wanted to live----downtown Sault Sainte Marie, MI walkable to everything we need. Health food, grocery, hardware and good eateries/cafes etc within a 1/2 mile max. Just a tad further of a walk is a state university. In fact we are going there today to view the most recent Star Trek movie. College has the only theatre for movies in town. $6 per ticket---cheap.


The Soo(short name) is trending to be very similar to the early years of the Traverse City, Petosky, and other northern Mi cities as a destination for retirees and 2nd homes.

[infocyde]

I live in an area with a lot of retirees. Here in Northern Arizona they claim they boost the economy in the following ways-

1) Spend money on housing (many of the retirees in Northern AZ are California / East Coast transplants downsizing and paying cash).

2) Eating out, spending on services.

3) Spending money on the medical system.

In reality I've noticed-

1) The up the housing cost and drive locals out. A few realtors love it, locals don't.

2) Though retiree communities do provide a few service type jobs (waiters, some more landscapers) I've noticed the local labor pool starting to tap into the retiree labor force so younger people are further driven out of work. At the near by Trader Joes, Costco, and other places I've began to notice less younger and middle aged people working at these places and more and more part time quasi retirees. I've also noticed that yes retirees spend money but it mostly goes to big box stores which suck most of the money out of the area anyway. The restaurants might become more numerous, but their quality declines.

3) Local medical systems are negatively impacted by the retirering grey hordes. Weight times increase to get into general practice doctors as well as specialist. Areas also have a hard time retaining doctors as the demographics in smaller towns that are "retirement communities" skew older and older. Young doctors can work in other areas where they don't have to babysit spoiled Californians.

4) They increase traffic times and "grey out" services. Good luck filling a prescription or going to the post office at certain times.

I'm not anti-retiree but I am strongly against the attitude that everyone should be grateful for the presence as that demographic bubble pops and produces hordes of older people looking for "their perfect place" to retire. The impacts on those places are often negative and most retirees are either oblivious or don't care.

[runswithscissors]

Originally Posted by don1945

Don't kid yourself, not all retirees are the ones waiting for their next SS check so they can eat again. A lot of retirees are well prepared for retirement and are enjoying it by buying the things they waited for all their working lives.

I deal with these people every day, and it is nothing for them to spend a ton of money on luxury items and other costly items. A lot of them will buy very expensive toys and write a check on the spot. I retired twice and blew a lot of money back then. I would get bored and had the time to shop, and I did !

Don

Exactly. People have these opinions without knowing any of the real people. There are all types of retirees. MY city in FL has the largest number of retired CEOS in the country.

You can't even BLINK without hearing and seeing their charity events it's ridiculous. Something all the time to donate money to other people's KIDS. Or homeless or whatever.

At the moment, I have two 90 year olds spending >$20,000 per year EACH for me to walk their dogs. Another one spending $10K. I have them all the time.

They live in a Continuing Care Community that employs TONS of people. One guy was spending $13,000 per month for part time CNAs helping him in Independent Living because he doesn't want to move to Assisted or Skilled. Even though he could move there and NOT spend any more because its part of the CCRC agreement. Meanwhile, his wife with Alz is in the Skilled Care building keeping even MORE people employed.

Just this month he went to DOUBLE that to get 24 hour care. He orders 2 meals per day because you only get one with your CCRC agreement. They all do, in fact. They have a formal dining room providing jobs for chefs, wait staff and bussers/kitchen. They're not eating cat food they're buying food just like NORMAL people, too if they are young enough to prep meals or just for snacks.

They renovate their housing. New floors, kitchens, furniture.

He has a new Cadillac he can't drive just to have it for when he wants to go somewhere he can go in his own car.

He has a $3000 Mobility Scooter he purchased to go zip around.

He went on a cruse last year for 2 weeks. Took a CNA with him.

He has two Million dollar homes in two different states that his kids can use and will inherit. Sometimes he'll go to them. They need roofing, AC, plumbing, etc. JUST Like anybody else's house.

I know a TON of these people.

I also know a leasing agent in a 62+ community that's rent only - and she told me they've seen a huge increase in the boomer generation coming in with assets. Boomers are buying up condos and rentals as snowbirds instead of the hassle of finding a place every winter.

Someone should report the BILLIONS being spent in FLORIDA on other people's kids. Like FREE MEALS ALL YEAR LONG.

WHO do you all think is paying for that?

Ridiculous.

Meanwhile all MY clients have concierge doctors and are not dependent in any way on MEDICAID. Which doesn't cover any of the 4 properties I work in - just in my own neighborhood. CASH and CARRY. At least $6000 per month. And they're building more and more to handle the Memory Care situation.

WHICH, BTW includes people YOUNGER than 60 with diseases like Lewy Body who need residential care.