Retired and broke.

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If you are going to retire you make sure to have your home paid off and no debt including cars.

SS is $2200/month for in laws who skirted paying Unlce Sam for years. That is a livable amount and they are beach front.

I don't believe that SS is going away. That is political strife.
 
Originally Posted By: motor_oil_madman
So I got to thinking about this, although I'm not sure why. What happens when you retire and you run out of money? Not everyone has a stock pile of money saved up and we know social security wont necessarily always pay out enough, plus not everyone can work until they're 90.

So run up debt on a bunch of credit cards? You see it all the time, people struggle to make ends meet when they have a job, what about once they don't and retire?


You are young. What portion of your salary are setting aside. Discipline yourself now.
 
My sister is in the " I didn't plan on getting old". Well, that plan didn't work out. Her and her husband are approaching 60, and have made absolutely no effort in putting some form of cash away for retirement. A few years ago they lost their house, and were lucky enough to get another one but it's always one paycheck away from being repoed. Now shes not working and shes trying to get disability. I don't think she qualify s, but she thinks she does. Her husband just had a cancer operation, and will need chemo treatments, so he won't be working for a while.I don't understand why putting something away for a rainy day is soo hard for people to do. Decide what you need in life, not what you want. Do you really need a $600 phone if you don't work?, or a new car?, or have to live in a house you can't afford?. Make the cuts while you can still afford to.,,,
 
Originally Posted By: Mr Nice
Nothing wrong with working past 65 years old.

Let’s face it, every person is responsible for making retirement decisions when they are in their 30’s.... not when they are 60.


Yes there is.
 
A surprising percentage of people fail to adequately plan for retirement, so retired and broke is frighteningly likely for many people.

Avoid it by early planning and disciplined execution of that plan.

But if you still end up retired and broke?

You’ve got two options: work or downsize.
 
Unles there is a lawsuit or large medical bills this situation should not sneak up on you. My grandparents scraped by their entire lives and their kids were their social security. They never went without. That was an era passed before entitlement kicked in full gear. Some still do. I am my moms social security agent. She gets little bonuses avery now and them for special treats in addition to car maintenance and groceries. He ssa covers utilities etc.

Works out. She spent more that this raising me. It is my pleasure and honor to return the favor,
 
I'm already a millionaire in cash and still have years before I can receive my UPS pension. But I would give it up if my wife could have kids.
 
You need a plan to automatically save and invest money for retirement. If you're a I WANT IT NOW person, then you may be in trouble at retirement. I feel sorry, for those, through now fault of there own, don't have enough for retirement but, not for those who spent all there money having fun. Ed
 
They work
They live with the kids
They live in poverty
They run up huge debt

Unfortunately many more will be in this boat as Healthcare costs increase, people live longer and pensions are rare.
 
Originally Posted By: motor_oil_madman
So I got to thinking about this, although I'm not sure why. What happens when you retire and you run out of money? Not everyone has a stock pile of money saved up and we know social security wont necessarily always pay out enough, plus not everyone can work until they're 90.

So run up debt on a bunch of credit cards? You see it all the time, people struggle to make ends meet when they have a job, what about once they don't and retire?


Don't worry about this ... PLAN for it.
I am retired with no company pension. I put money away for decades for retirement.
Always spend less than you earn.
This takes commitment and resolution/discipline but it works.

You have to decide "Will the dog wag the tail or will the tail wag the dog"
 
Originally Posted By: 02SE
I had a long-winded replay typed out, but decided to succinctly sum it up: Save as much as you can, don't blow money on [censored], and live within your means.



Well said...
 
Originally Posted By: LoneRanger
Work part-time in retirement. It will help you live longer to keep some structure of the working life going, albeit lesser and more free time and flexibility.

SS may not be around forever. Your 401K might not either. There was scare talk some years ago that the gov't might try to pull what Argentina (?...) did and nationalize 401K's and IRA's, i.e. seize private savings to cover govt debt and hand you a promissory note that they'll pay you an extra govt stipend in retirement roughly equivalent to what you'd have drawn from the private retirement account. The scare talk was because at the time, the total of all US private retirement accounts was estimated to be close to the amount of the national debt.

https://www.forbes.com/sites/steveforbes...e/#1450cb825061


That 'scare talk' isn't as far fetched as you think...When a majority of millennials have proclaimed to prefer socialism over capitalism that's a step in that direction....I'm not saying I totally blame younger people for feeling that way as it has gotten harder for them with the staggering costs for housing, schooling etc...

I agree with those who say to save and live within your means as a plan....but if things get real bad you can always attempt a bank robbery...if it's successful your set...if it fails you get free food and lodging for life....J/K....
 
Isn't there municipally owned long term care homes in the US? I'm not sure exactly how it works here, but basically the cost of room and board is matched to the basic retirement income all seniors get from the government. This keeps the poor retirement planners off the street atleast once their health prevents them from working.
My wife and a few of her friends plan to live together if us husbands all kick the bucket before they do, not to save money, but just to have a good time in their last years. Most old men don't seem to have the temperament for group living again, but its not a bad idea if you can get along.
 
Originally Posted By: madRiver
If you are going to retire you make sure to have your home paid off and no debt including cars.

SS is $2200/month for in laws who skirted paying Unlce Sam for years. That is a livable amount and they are beach front.

I don't believe that SS is going away. That is political strife.


I don't think it'll go away either. Worst case, it has to pay out what goes in. 6.2% is skimmed off your pay, and your employer pays 6.2%, so technically 12.4% of all claimed income is going into the SS bucket. If SS goes broke then it still can pay out what goes in. Real question is, will they decide to tier it somehow. Those with nothing else saved will get a bigger share. That sort of thing.

It's calculated off your highest 35 years of employment. So if I'm reading it right, you could put in 35 years at high paying jobs, say age 25-60, then work 5-10 years at lower paying jobs--yet still get max SS benefits. BUT that means putting in those years. Or having alternate plans.
 
SS will last at least as long as most us getting near to retirement age will be alive, and we will continue to collect. Hopefully the benefits keep up with inflation, or our savings are sufficient to supplement it.

For those with a decade or three to go before you hit SS age, best to prepare for retirement since SS in its present form will be changed. I predict it will still exist, but it may not pay as much.
 
The thing I'm wondering is.....just how long will you live? So, you save and plan, you retire, all is good, you got all this money saved up and then you croak. But, what about the opposite, you saved and all that, but you don't croak. You'll eventually run out of cash, even though you did save. I've been adding up all the necessity expenses that you're going to have when you retire and I'm assuming that the house and car(s) are paid off...you'll still have home owners insurance, property taxes, car insurance and from what all my RN wife has been telling me...don't EVER count on medicare 100%, so you'll have medical insurance cost. Then you got utilities, you got to eat. After all that, that pretty much takes care of my monthly social security check.
 
No one knows how long they'll live. That's why it'd be nice to have enough saved so that the growth in that savings + SS pays for living. Keep your 401k/whatever invested, at whatever risk level feels good to you, but try to at least beat inflation. That'll keep you in the black & in good relations with your heirs.
 
Many have to retire early due to health or down sizing issues. Then age discrimination may play a part if you seek another job.

Saving is not easy. It takes discipline that many don't have. Also the more you make the easier it is to save and invest but still have a decent lifestyle.
 
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