Retired and broke.

[Patman]

My wife and I are 4 years away from early retirement (we'll be 52) and the way I figure it, we'll have more money when we retire, mainly because we'll sell our home here in Oakville and downsize and move much further away from Toronto where homes are a 1/4 of the price or less. So we'll have that nest egg, along with my wife's teacher's pension and we'll also get rid of one of our cars (the Civic) We won't even need to touch our retirement funds at first, we'll let them keep growing. We also get the Canada Pension Plan when we turn 65, it's only a few hundred per month each but that'll be nice when it kicks in too.

Also, this is something that's smart to do before you retire, but look at how much money you spend each month and try to cut out things you don't absolutely need so you can save more money. Are you spending $400 a month eating out at restaurants for instance? Try cutting that in half, or even cutting it out completely for a month or two. You'd be amazed at how much money you waste in a month on things...

 

[dparm]

Originally Posted By: 02SE
live within your means.


Live BELOW your means, if you can. This is a good life-long attitude, not just one as you get older.

 

[Triple_Se7en]

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?


One avenue you want to avoid for as long as possible, is obtaining a reversible mortgage.

 

[Blaze]

Talked to a 74 yr old guy at Lowe's that recently had cancer surgery. He didn't have any additional Medicare coverage and was stuck with a $40,000.00 hospital bill. He is going back to work.

 

[Andrew1972]

Originally Posted By: Blaze
Talked to a 74 yr old guy at Lowe's that recently had cancer surgery. He didn't have any additional Medicare coverage and was stuck with a $40,000.00 hospital bill. He is going back to work.


Hopefully he is not paying that quickly, you can pay a hospital something and they won't bother you too bad. And something is what you can afford which is better then nothing they get from many hence the silly $40k bill in first place to cover those lost costs.

 

[JohnnyJohnson]

Originally Posted By: clinebarger
I have about 15-18 years 'til retirement. I try to live debt free now! House paid off, All vehicles paid off, Just enough credit accounts to keep a decent credit score.
SAVE, SAVE, SAVE!!!!!

It's good to have some small time thing you can do to make money after you retire.


This is the best answer trust me I did it and it works. I haven't had a debt since 1992.

 

[JeffKeryk]

As a requirement for HS graduation, basic finance must be taught.
People need to be prepared with knowledge, especially in today's world.
Credit is great and credit is evil.
Going forward, it will get worse for many, as Social Security and Medicare are cut back.

I believe in education; it saved my butt.
Community colleges need to be free; we need nurses, firefighters, electricians etc.
They will have a better life and so will I.

 

[rshaw125]

Originally Posted By: Blaze
Talked to a 74 yr old guy at Lowe's that recently had cancer surgery. He didn't have any additional Medicare coverage and was stuck with a $40,000.00 hospital bill. He is going back to work.


That eats up a good chunk that could go towards retirement and that is the US healthcare system. The most expensive on earth.

 

[Toy4x4]

Originally Posted By: JeffKeryk
As a requirement for HS graduation, basic finance must be taught.
People need to be prepared with knowledge, especially in today's world.
Credit is great and credit is evil.
Going forward, it will get worse for many, as Social Security and Medicare are cut back.

I believe in education; it saved my butt.
Community colleges need to be free; we need nurses, firefighters, electricians etc.
They will have a better life and so will I.


I was just going to post this. And it should have an itinerary that scares the **** out of them if they don't heed the course! I agree, too, that we need more skilled trade education instead of shoving "You need a degree!" down kids throats. I still remember teachers badgering me in 8th grade saying "You need to decide your career in order to choose your high school classes!"
When I turned 49 last June, I paid off my house and am getting things fixed NOW so I won't have to worry about it during retirement (all plumbing and electric is new, insulation done yesterday, windows - about eight years ago)...no debt.

 

[Astro14]

Originally Posted By: Vikas
Originally Posted By: skyactiv
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.

I am shocked that nobody from BITOG has made any dirty comment on this one. What is happening?


What dirty comment are you expecting?

I think he makes two great points:

1. Planning yields results
2. Family is more important than money

 

[donnyj08]

Live a written 0 based budget every month.

1. Get out of debt. No car debt, no CC debt etc. Pay cash for cars and toys and everything but your first home.
2. Save up 6 months in rainy day fund.
3.start investing 15-20% in 401k/IRA/Roths
4. If you have kids invest a percentage for their eductaions.
5. Pay off your house as fast as possible.
6. Invest any additional money and be charitable.

Only invest in things you understand. Study and know what you are investing in.

This is a path to wealth that should be taught in high schools everywhere

Personal finance needs taught in the USA. If taught this early everyone in America could retire with plenty.

 

[donnyj08]

Originally Posted By: Astro14
Originally Posted By: Vikas
Originally Posted By: skyactiv
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.

I am shocked that nobody from BITOG has made any dirty comment on this one. What is happening?


What dirty comment are you expecting?

I think he makes two great points:

1. Planning yields results
2. Family is more important than money


I agree. Hes a hero in my book. I love studying America's millionaires and how they think. I too will join the club in the future!

I believe in this country and the opportunities it provides

 

[MRtv]

My Ex didn't believe in investing. I figured out what interest could do when I was in my early 30s. I wasn't brave enough to do investing anyway. I mistakenly put her in charge of the household money. My mom was so I thought that was how it was done. Anyway I figured out a way to be able to retire early but it didn't happen. I ran up debt instead. Then we divorced.

So today I don't have any investment. I live on SS and it isn't much. I have half a pension from a job way back when. It's even less. I retired at 65. Tried to go on to 66 or later but it just didn't happen. Heart problems said I had to retire.

I still work part time in my old field of work so I have some cash coming in to help. If it wasn't for that I am not sure I could live as well as I do now. I am not living lavishly but I am doing OK and like my life. I just wish I had been brave enough to take the finances away from ex and do the investing for the future. Her idea didn't work for us. Spend spend spend and run up several cards. I got those paid off and right now the only debt I have is the house. I was hoping to not have that now but well the bubble burst on several rentals I used to own and I had to sell at a loss. Sure didn't see that coming.

I am doing well with second wife. We pay our utilities and mortgage ok, but we sure don't have a lot of extra disposable income. We wanted to travel more but that isn't happening like we dreamed. We do have other dreams were living out though. We have lots of grandchildren and we have a nice home they come to with thier friends to hang out with. That is nice. They come over to hang out in a theater room I had built years ago. Sure glad I built it. It is sure getting used now by myself and my wife. It also is a safe place for young kids to come to and hang out in rather than being out roaming the streets and having trouble find them.

 

[double vanos]

Begin by building a solid portfolio of companys considered to be “dividend aristocrats”. Roll the divvies back into purchase of more. I’ve managed to get up to 9000 shares of AT&T and now take the quarterly dividend checks to finish fixing up my retirement home. As soon as that’s done I’ll continue to roll the divvies right back into purchases.
Also, move somewhere the climate is temperate. This affects your heating and cooling bill$.

 

[AZjeff]

Originally Posted By: Vikas
Originally Posted By: skyactiv
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.

I am shocked that nobody from BITOG has made any dirty comment on this one. What is happening?


One of the reasons he has $$$$ is he doesn't have kids. Just reality. And obviously good spending habits. My sister is the same and would say the same thing.

 

[Mr Nice]

Originally Posted By: Vikas
Originally Posted By: skyactiv
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.

I am shocked that nobody from BITOG has made any dirty comment on this one. What is happening?


I have 2 pensions, my wife also has 2 pensions plus a military pension.

Why work and not take advantage of a good retirement plan(s) ?

 

[pandus13]

Originally Posted By: Astro14
Originally Posted By: Vikas
Originally Posted By: skyactiv
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.

I am shocked that nobody from BITOG has made any dirty comment on this one. What is happening?


What dirty comment are you expecting?

I think he makes two great points:

1. Planning yields results
2. Family is more important than money

1.A. Really hard work.
He didn't get there by looking at the walls...

 

[02SE]

Originally Posted By: dparm
Originally Posted By: 02SE
live within your means.


Live BELOW your means, if you can. This is a good life-long attitude, not just one as you get older.


That's what "within" means in my comment.

Anyway, I'm always amazed at how many people I know that have no clue what living their lives overextended means to their long term outlook. Eventually they'll default, and the easy credit they've abused to live high on the hog, will cease. My uncles wife has a brother who apparently lives from one payday loan to the next. Usury interest rates mean nothing to him apparently. No concept of the hole he's digging for himself..

 

[02SE]

Originally Posted By: rshaw125
Originally Posted By: Blaze
Talked to a 74 yr old guy at Lowe's that recently had cancer surgery. He didn't have any additional Medicare coverage and was stuck with a $40,000.00 hospital bill. He is going back to work.


That eats up a good chunk that could go towards retirement and that is the US healthcare system. The most expensive on earth.


It may be, but it also has it's advantages. Not too long ago, the Uncle of my brother in law needed heart surgery. He's lived in Norway all his life, and eventually they would've gotten around to performing the surgery there, if he lived long enough. He instead came here, and had the operation right away. He'll continue to live in Norway, but he was grateful to have the option of coming here to get his condition taken care of in a timely manner.

 

[BJD78]

Probably they will have to downsize and look to live in a smaller cheaper house/ apartment or they may have to move to another area of the country. Big cities can be very expensive unless one has a big salary. I have been retired since 2013 with military retirement. last kid graduates this month and will be off to college in fall. We paid 60K for our small built in 1942 home back in 98, now it would list at about 150K. Our payment is really cheap about 550 per month with house insurance included. Back when we were looking for a home the realtor wanted us to get into a 150K to 200K home and we said "no thanks" We could have done it but likely would have been "house poor" I know more than a few people living in 200K and up homes and end up foreclosing because house is more than they can afford and they also buy too many expensive toys on credit New boat, motorcycle, jet ski, new cars to put in those 3-4 car garages. I was not the smartest kid in class, but I did take heed of my Dad's advise when he used to tell us how the "keeping up with the Jone's" mentality will keep one broke. I find that we can live fairly well here in Nebraska on my Army retirement.. in a few more years will have SS kicking in. We will soon be down to 1 vehicle as well as we are selling the Tuscon and daughter will get the Forester for a college car. We may sell the house and downsize some more or even move to a more rural area a city of 25K so anyway or less. People either have to keep working sell everything that they do not really need and maybe have roomates and move to a less expensive area or state. Midwest states are still fairly affordable especially if you get away from the larger cities. IMO alot of people are finacially stressed because they are trying to live to large and keep up with others.