Anyone else here forced to retire and scared to death?

[haha]

Quote:

Originally Posted by HFWR Rent a truck, preferably on Sunday, when the apartment's office is closed. Load up your stuff, drop off the key (Lee) in the late rent payment slot, and disappear. Done!

I did something like this years ago in Boston. THE funniest part is that 6 months later it turned out that the same large, local owners owned both the place I left, and the place I landed, 8 to 10 blocks away. I received a few registered letters which I ignored, and later found a nicer small triplex with a non-corporate owner to move into.

In central Boston burglaries tended to be my signal to move to another spot. But I traveled light, so it was not much trouble.

Ha

[Texas Proud]

Quote:

Originally Posted by Teacher Terry Basically the OP wants to complain but does not want to take any action to change his situation. I had a friend that did this very same thing and waited until he was broke and going to be homeless. Then he asked me and some of his other friends if he could couch surf between us-ugh-no! It is sad when grown adults can't make decisions in their own best interests but continue to do what is destroying them financially. I agree with the posters who said he will probably renew his lease. He wants someone to wave a magic wand and make things better. Good luck with that!

Yes, and it can happen to anybody that does not take action...

I did not know the guy, but one day when I was working at mega there was a bit of news that hit a number of coworkers... seemed that someone they had worked with (who made good money BTW) and had been let go had died... he was in his early 50s... seems that he could not get another job... but kept spending as if nothing happened... ran out of money... was evicted... was living in the street, literally... started to drink... someone found his body in a ditch along a road... never heard why he died, but it was not being killed or hit by a car, so natural causes...

OP probably will not get this low.... but I can see him burning through his savings and then living off his SS.... doing the things that he thinks is so sad such as library or shopping malls...

[Sasset]

There are places in Florida where you can get a condo in 55 community or even a house for less $60,000. I know, I have relatives that have bought them. Lots of things to do, too. Community, state, and national parks as well.

[2035]

Quote:

Originally Posted by Sunset I have to wonder how dumb was OP to rent such an expensive apt. .

Geez Sunset, you've made your point several times over. Stop berating OP. Yes, he's made a lot of mistakes and he has more power than he realizes or is willing to accept, but now you're just being rude and kicking sand in OP's face.


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[travelover]

Quote:

Originally Posted by 2035 Geez Sunset, you've made your point several times over. Stop berating OP. Yes, he's made a lot of mistakes and he has more power than he realizes or is willing to accept, but now you're just being rude and kicking sand OP's face.

+1

[NW-Bound]

I do not know about Alexandria, Virginia, but this sad story makes me think about the peril people in high-value RE area face. That is high rent or high mortgage is OK until you lose your job, or your high-tech employer stumbles. Then, it is hell to get out of the obligations that you carry.

If you get hired by a well-known high-tech firm like Google, it's hard to say no, even if the higher pay still does not make those million-dollar bitty homes affordable. I have told here the story of how my brother quit his job at Google, and gave up the higher pay and also option worth around $500K when they wanted him back. It's all because of the housing situation. One would have to be among the first few employees and with loads of shares to feel comfortable living there.

[Hermit]

Op will pay $20k for his apartment for 8 mos. He has stated that $800/mo in the Richmond area would suit his needs. If it is worth the extra $13,600 to keep his good credit and to honor his commitments, I not only don't see anything wrong with that but applaud his moral character. I also see nothing wrong with talking to a lawyer to find out what the law says his legal options might be. Either way, I don't think the $13,600 is going to put him in the financial peril that a lot of folks here are suggesting. As well as finding appropriate housing in a close but more affordable area, the Op has made an appointment with a lawyer. I think he is on a good course that will serve him well.

[NW-Bound]

Quote:

Originally Posted by Hermit Op will pay $20k for his apartment for 8 mos. He has stated that $800/mo in the Richmond area would suit his needs. If it is worth the extra $13,600 to keep his good credit and to honor his commitments, I not only don't see anything wrong with that but applaud his moral character. I also see nothing wrong with talking to a lawyer to find out what the law says his legal options might be. Either way, I don't think the $13,600 is going to put him in the financial peril that a lot of folks here are suggesting. As well as finding appropriate housing in a close but more affordable area, the Op has made an appointment with a lawyer. I think he is on a good course that will serve him well.

+1

The OP still has money. That extra $13,600 hurts some, but then it buys him some time to clear his mind and to research his options.

In the long run, he will need to relocate not just to save on housing costs, but to also get some work to help get some income. With SS and a downsized budget, he does not need much to be OK financially.

[alaska55]

Quote:

Originally Posted by Forced to Retire Some of the people clarified the information I had given before. People asked if friends and family can help me out. Yes, I have some friends and family in the area but they are not close enough to really get much emotional support from. Were friendly but not close. So for all practical purposes I am alone in all of this. (I said earlier I have no family or friends who can help me out- this is basically true.) People asked about my $300K in savings. I burned through my 401k and IRA foolishly in a previous job loss and long term unemployment years ago. After that I did OK for a time and managed to save and invest the $300K, which all sits in a Fidelity Account. $280K is in mutual funds and $20K in money market. People asked if I am collecting jobless benefits. I was collecting-up to a few months ago, but they ended. Now I make no income at all. People asked why I don't just move to a cheaper spot. I have an apartment lease that goes another 8 months and they told me I would be sued and my credit will be destroyed if I break it. There is a special website apartment complexes and landlords use to check up on potential renters. If I am evicted or break my list, I will show up on that website as a dead beat. Having a good reputation and credit was always important to me. I am so proud of my 821 FICO score. People ask how I can be spending $2500 in rent. Because every time I signed a new lease the rent went up 10% or so and I was too lazy to move. Rent is very expensive in Alexandria VA. The prices you see online for apartments is for the first year only. If you sign a new lease, expect to pay 10% more each year. The rent just went up each year to the incredible $2500 a month rate. People ask why I don't just get a part time or temp job to get me some money. I have tried EVERYTHING but no one wants me, likely because of my odd personality, being old and having white hair and being 300 pounds. People asked what I did before I was fired. I was an Operations Manager for a large company in Crystal City VA and made really good money. I was fired after six years of employment- with no notice or warnings at all- because my boss of many years said-- "it was not a good fit."

No close family and friends that can really help? I think it time to pack up and start all over somewhere new. I would start looking in a warm weather climate. Some where like Port St Lucie/Jensen Beach Florida or north to Coco Beach area. Their are lots of retirees in that part of Florida and it cheap even compared to Richmond.

http://www.zillow.com/homes/for_rent..._zm/?3col=true

[eta2020]

Quote:

Originally Posted by NW-Bound I do not know about Alexandria, Virginia, but this sad story makes me think about the peril people in high-value RE area face. That is high rent or high mortgage is OK until you lose your job, or your high-tech employer stumbles. Then, it is hell to get out of the obligations that you carry. If you get hired by a well-known high-tech firm like Google, it's hard to say no, even if the higher pay still does not make those million-dollar bitty homes affordable. I have told here the story of how my brother quit his job at Google, and gave up the higher pay and also option worth around $500K when they wanted him back. It's all because of the housing situation. One would have to be among the first few employees and with loads of shares to feel comfortable living there.

San Francisco Home Values Have Increased 557% Since 1986

Not so if you make your priority to pay off your expensive house. 2 Software professionals can still pay off small house in Mountain View in less then 10 years and small Condo in less then 4-5. (And you don't need a car)

You can actually FI quickly in such location.

[ivinsfan]

Quote:

Originally Posted by Hermit Op will pay $20k for his apartment for 8 mos. He has stated that $800/mo in the Richmond area would suit his needs. If it is worth the extra $13,600 to keep his good credit and to honor his commitments, I not only don't see anything wrong with that but applaud his moral character. I also see nothing wrong with talking to a lawyer to find out what the law says his legal options might be. Either way, I don't think the $13,600 is going to put him in the financial peril that a lot of folks here are suggesting. As well as finding appropriate housing in a close but more affordable area, the Op has made an appointment with a lawyer. I think he is on a good course that will serve him well.

No one said he was going to end up sleeping under a tree He's the one who picked the named "forced to retire" and said he was worried about money....It's not the 13K. it's the fact if he stays in that apartment HE WILL EVENTUALLY GO BROKE. Posters are trying to give him alternatives and saying the sooner he moves on the more money he will retain. He has stuff he needs to do now to be ready to move on within a few months.

[Teacher Terry]

Wasting $ on an expensive apartment in his position is just stupid. One day the $ will run out. I have seen people procrastinate right up until they are broke.

[EastWest Gal]

Quote:

Originally Posted by eta2020 San Francisco Home Values Have Increased 557% Since 1986 Not so if you make your priority to pay off your expensive house. 2 Software professionals can still pay off small house in Mountain View in less then 10 years and small Condo in less then 4-5. (And you don't need a car) You can actually FI quickly in such location.

Seriously? Two software professionals? Average software engineer salary in Silicon Valley is $134K per indeed.com. I guess you are assuming a married couple, both of them high up in a major software company, not a startup which may go belly up. $1M+ for a 1300 square foot house is typical there. What if one of them loses their job? Paying off a home in 5-10 years in this low interest rate environment also makes no sense, if one is a high earner and needs the tax deduction. It's better to pay off slowly and invest your extra income.

A 30 year mortgage on $800000 is about $3500/mo, a 15 year mortgage is probably over $5500/mo. One is better off investing the difference, LBYM, then RE and going to a lower COL area.

What happens when there is another market downturn and real estate values drop, at the same time one or both become unemployed? Ouch.

The OPs reality is that he is beginning to panic over his choices this past year. People make mistakes. It's disturbing that some of us on this forum are being very critical of someone who is taking a good hard look at his reality and trying to deal with it. He also seems to be getting bad advice. Break his lease? Then where will he live? Who would rent to someone who broke his lease? Apartment owners can and do check backgrounds and credit information nowadays.

It seems weird that people here are expecting this guy to make a move 6 days after his first post. Give the man a break. You've probably scared him away by now.

He's still better off than many people I know.


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[eta2020]

I am not critical of OP. I am only commenting on NWBound's post.

Yes it is my experience that you can be FI much faster in Silicon Valley or Boston if you have a right skills and live LBYM.

And yea if I was an OP I would break a lease

[Teacher Terry]

He would rent a cheaper apartment first and then break his lease. People do it all the time when circumstances change.

[NW-Bound]

Quote:

Originally Posted by eta2020 ... Yes it is my experience that you can be FI much faster in Silicon Valley or Boston if you have a right skills and live LBYM...

I am sure that quite a few manage to pull this off. But again, that's when everything works out as you plan. Some people may not be so fortunate. I am a pessimistic guy (wonder how I did leave my cushy job at megacorp to join a startup), so always think about the doomsday scenario.

About LBYM, my brother and his wife are not known for that, and there's no way in Mountain View they could afford the same 4,000-sq.ft. home they live in now. Their walk-in closet is about 1/2 the master bedroom of my modest 2,700-sq.ft. home. He did not share with me his calculations, only that the salary increase, the forfeited option, plus the prestige were not enough for the "hardship" caused by the reduction in standard of housing.

PS. They recently upgraded from 3,500-sq.ft. to that bigger home. This, when they start to be empty nesters in a few years, is beyond me. Good thing that they are not in Northern CA, because they would be so deep in debt.

Quote:

Originally Posted by EastWest Gal ... The OPs reality is that he is beginning to panic over his choices this past year. People make mistakes. It's disturbing that some of us on this forum are being very critical of someone who is taking a good hard look at his reality and trying to deal with it. ... It seems weird that people here are expecting this guy to make a move 6 days after his first post. Give the man a break. You've probably scared him away by now. He's still better off than many people I know.

+1

[W2R]

OK, I haven't rented in 14+ years, so my memory is a little hazy and things might have changed. In other words, I might be grasping at straws.

But don't most standard lease agreements these days still give the renter an "out" if he is in the military and gets orders to another station far away, or if he is a civilian and can prove that he involuntarily lost his job? It might be worth looking to see if such a clause is in the lease.

[Texas Proud]

Quote:

Originally Posted by W2R OK, I haven't rented in 14+ years, so my memory is a little hazy and things might have changed. In other words, I might be grasping at straws. But don't most standard lease agreements these days still give the renter an "out" if he is in the military and gets orders to another station far away, or if he is a civilian and can prove that he involuntarily lost his job? It might be worth looking to see if such a clause is in the lease.

I have not rented for 30+ years... so I have no idea about today in a normal apt....

But, my leases never had an out for military or loss of job...

Now, my son just signed a lease for his university... and there are no out options at all...

There might be a law that allows military to get out, but I do not think it is spelled out in the lease...

[W2R]

Quote:

Originally Posted by Texas Proud I have not rented for 30+ years... so I have no idea about today in a normal apt.... But, my leases never had an out for military or loss of job...

Wow, my ex was in the Navy and every lease we had, all over the country, had an out like that in it. Of course it was not spelled out on the front page of the standard lease forms, but it was in there if you looked. We never stayed to the end of a lease.

Quote:

Originally Posted by Texas Proud Now, my son just signed a lease for his university... and there are no out options at all... There might be a law that allows military to get out, but I do not think it is spelled out in the lease...

Fooey. Sorry to waste everybody's time. I thought that might still be spelled out on the back page of the standard lease form somewhere.

[FI by 2024]

Quote:

Originally Posted by Texas Proud I have not rented for 30+ years... so I have no idea about today in a normal apt.... But, my leases never had an out for military or loss of job... Now, my son just signed a lease for his university... and there are no out options at all... There might be a law that allows military to get out, but I do not think it is spelled out in the lease...

A military clause is commonly spelled out in the lease in areas where military renters are common. Sometimes you get a landlord who hasn't heard of the military clause but in that case I've never had a problem getting them to add an addendum to the lease. I think everybody understands that active duty military don't get too much choice in their location. A typical military lease says if the member is ordered to a new location more than 50 miles away, they can break the lease with 30 days notice. The Servicemembers Civil Relief Act also affords some protection if there is no military clause in the lease.

But OP isn't military, so he'd be concerned with whether the lease said anything about losing a job involuntarily. I've signed 5 leases in the last 14 years and I don't think any of them had a job loss clause.