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... My husband is a retired from the Military and had a 401k. We had to use the 401k to pay off all the bills except our mortgage. He has his retirement from the military, that doesn't cover the mortgage and SS. So, far we are still staying afloat. The little we had left over from the 401k is dwindling. ...
Welcome.
I am also a military retiree. I retired as an E6. You did not share what rank your DW is, so I do not know how my pension compares to his.
After I retired, we sold our home in the high COL area and moved to a rural low cost area. Bought a farm with cash, so we now have no mortgage.
I have no 401k. My only income is my E6 pension and a small bit maybe $50/month from selling eggs and produce. My DW works in the commissary here p/t.
We are still building and adding onto our house [which consumes cash]. Though if we stopped adding on, my Dw could stop working her p/t job and my pension would be plenty for us to live in this area.
With your DH's pension and his 401k, and your two jobs; I must assume that how much you are spending is likely much higher than our income.
I humbly suggest that the reason you find yourself struggling may be because you live in a high COL area.
Please do not feel insulted, I mean no insult. I am a military retiree as your DH is, I have been retired for 10 years so far, and I see what other military retirees have been going through.
We know other military retirees in this area, and they are mostly doing fine. A military pension is all they need to support their families.
Friends of mine that I served with long ago, and who settled in high COL areas, mostly have extremely dire times now.
Yes, it all boils down to COL and where and how we live. But balancing cost effectiveness is very difficult these days. Say, for instance, that someone in a high COL area moves to a LowCOL area, with very low housing cost and very low property taxes. But say, for example, that the state they move to taxes military or other retirement pensions. Also consider the cost of car gas in a place that you move to in order to lower property taxes. Then, add on to that any annual cost for traveling to see kids and grandkids.
Some states tax clothing in food; my state does not, but my state has high property taxes. I probably save in food tax $100/week x .07 sales tax = $350 per year. Same with clothing, if I bought it.
Some states charge more in excise tax. Sometimes you move to another state and your health insurance changes and you have to pay more. If you move from a moderate climate to a cold winter climate or a hot summer climate, your heating/a.c. costs kick up.
I think it would take a rocket scientist to figure it all out, comparing the various costs of living in different places according to an individual's situation.
There just doesn't seem to be any place in America where one can live, if one chooses, to live cheaply.
Yes, it all boils down to COL and where and how we live. But balancing cost effectiveness is very difficult these days. Say, for instance, that someone in a high COL area moves to a LowCOL area, with very low housing cost and very low property taxes. But say, for example, that the state they move to taxes military or other retirement pensions. Also consider the cost of car gas in a place that you move to in order to lower property taxes. Then, add on to that any annual cost for traveling to see kids and grandkids.
Some states tax clothing in food; my state does not, but my state has high property taxes. I probably save in food tax $100/week x .07 sales tax = $350 per year. Same with clothing, if I bought it.
Some states charge more in excise tax. Sometimes you move to another state and your health insurance changes and you have to pay more. If you move from a moderate climate to a cold winter climate or a hot summer climate, your heating/a.c. costs kick up.
I think it would take a rocket scientist to figure it all out, comparing the various costs of living in different places according to an individual's situation.
There just doesn't seem to be any place in America where one can live, if one chooses, to live cheaply.
All good points.
I am very fortunate for being retired military. I have good health insurance with a low co-pay. [Just like Mickie5209] However I have seen other people whose health care bills are HUGE, that could easily have a big effect of lifestyle. In my state health insurance is very expensive. So it becomes a big factor for non-military.
If I had to pay income taxes on my pension that would also have a big effect on things. Again I am very fortunate and don't have to pay those taxes.
Low housing costs and low property taxes should be taken advantage of wherever you find them
Just wanted to chime in and say I have appreciated this thread. Makes me wish there was a forum just for retirees living on a a low income.
I am a early retiree due to health issues.
I also love this thread.
It is fascinating to hear how resourceful and creative people are, and I admire folks who are "survivors" ...
You are all heroes and I tip my hat to all of you struggling older people who have learned not only to survive but thrive on limited financial resources - something that takes real fortitude and character!
Low housing costs and low property taxes should be taken advantage of wherever you find them
Agreed! We have our state government pensions as well as excellent medical and dental coverage at very little cost. Still, much like you, we moved from an extremely high COL we'd ceased to like anyway to a low COL place where we pay virtually no state income taxes and ridiculously low property taxes. It affords us a comfortable life for our not munificent income on the shore of a large and beautiful lake in rural surroundings rich with nature. Life is good and was handily achievable.
I never could see the sense of literally throwing your money down the drain unless you have far more than you really need in which case there are likely more beneficial things to do with it.
Yes, it all boils down to COL and where and how we live. But balancing cost effectiveness is very difficult these days. Say, for instance, that someone in a high COL area moves to a LowCOL area, with very low housing cost and very low property taxes. But say, for example, that the state they move to taxes military or other retirement pensions. Also consider the cost of car gas in a place that you move to in order to lower property taxes. Then, add on to that any annual cost for traveling to see kids and grandkids.
Some states tax clothing in food; my state does not, but my state has high property taxes. I probably save in food tax $100/week x .07 sales tax = $350 per year. Same with clothing, if I bought it.
Some states charge more in excise tax. Sometimes you move to another state and your health insurance changes and you have to pay more. If you move from a moderate climate to a cold winter climate or a hot summer climate, your heating/a.c. costs kick up.
I think it would take a rocket scientist to figure it all out, comparing the various costs of living in different places according to an individual's situation.
There just doesn't seem to be any place in America where one can live, if one chooses, to live cheaply.
Sure there is! I'd say, where I live, is pretty reasonable although the taxes we pay at the store aren't...IMO. We pay 3% on food and 10% on everything else! It wasn't that long ago our sales tax was around 8% and I don't think we paid taxes on food. Things do change.
My mom doesn't pay much in property tax. Partly because her house has depreciated so much but also because she gets it "on the cheap" because of her age. A couple hundred dollars a year.
I don't know how it is in the rest of the state but I think people do pretty well where I live. I managed pretty well when I was bringing home barely over $12,000 a year for a long time. Now I bring home over $20,000, which isn't very much to a lot of people, but to ME it's a lot. Basically it means I can put much more into savings, I was finally able to buy a newer car and feel secure in my life. It also lets me help my mom out more.
I'm realizing more and more how much COL makes a difference. The problem is, where you might want to be and COL don't always add up . In addition, it's really hard to figure out which COL items are most important... no income tax but a 9% sales tax? low property taxes but high sales taxes? It's really hard to weed through all that stuff, and THEN match it to climate and jobs, etc. This stuff is difficult!
I was recently faced with a potential job move to DC area. I could not believe how much that would have set me back financially (moving from the midwest) vs. the pay increase.. which couldn't possibly be enough. One must be careful when thinking through these "opportunities".
COL and Health Care will break the average retiree in the USA. That is why I left retirement in Florida and relocated to Asia. Many I know retired to South America, and other countries. It's not for everyone. If your medical insurance does not cover you outside of USA or if you have a large family you want to visit often then you may not be able to live abroad. However, If you are single or wife and husband with few ties living abroad is the cheapest way to go. I am military retired (E-7) with Social Security. I retired to Thailand and live here with my Thai wife. I bank more than half of all of my retirement each month and I still live an up-scale life style. In Florida I was very poor. I also have Tri-Care for Life, a real blessing. I have many friends who retired to Philippines and here in Thailand who make less than $1000 a month on Social Security and they do well. Most of them must travel back to USA for major medical problems since SS does not cover outside USA. It works - it just takes a little fore thought and planing.
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