How not to retire. A well-written but frightening tale

[clifp]

One of the more interesting neighbors I had at one time was a working psychologist, and we had a lot of interesting conversations over the backyard fence. Being ever-curious at the weird things I saw people do at work I had a seemingly endless supply of stories and questions to go with them.

At one point she asked "Has it ever occurred to you to just take off to the other side of the country to live there, no plans, except to just see what turns up?"

I said "No, of course not. That would be like putting my life in a bottle and throwing it in the ocean."

She said "Yes, and you might land on a nice warm beach."

"And I might also get smashed on the rocks. I will not leave that to chance."

She went on to say that huge numbers of people will do just that - head out, not knowing exactly, precisely, where they're going or what they're going to do when they get there, but convinced that "there" is better than "here".

To most on this board I would think that would be, to put it mildly, a strange thing to do. But apparently large numbers of people do exactly that.

That's a very interesting insight. Yet the forum is fillled with people who aren't afraid of risks. A number of members have flown high performance military aircraft and helicopters, or spent months under the sea living next
nuclear reactors and enough nuclear weapons to devastate a country. Plenty of folks, have lived overseas, or worked for companies with risky prospects.

The vast majority of us have invested in risky financial assets and held them during turbulent times. A fair number of us have invested in individual companies, startup and perhaps riskiest of all starting our business.

So are we just the lucky ones or did we plan better?

 

[daylatedollarshort]

That's a very interesting insight. Yet the forum is fillled with people who aren't afraid of risks. A number of members have flown high performance military aircraft and helicopters, or spent months under the sea living next
nuclear reactors and enough nuclear weapons to devastate a country. Plenty of folks, have lived overseas, or worked for companies with risky prospects.

The vast majority of us have invested in risky financial assets and held them during turbulent times. A fair number of us have invested in individual companies, startup and perhaps riskiest of all starting our business.

So are we just the lucky ones or did we plan better?

I think General Patton had good advice on that front: "Take calculated risks. That is quite different than being rash." What Walt34 described was more on the rash side, unless one was financially independent.

 

[Totoro]

What Walt34 described was more on the rash side, unless one was financially independent.

Hits home with me. Only now, being semi-FIRE, I am starting to give in to feelings of "let's explore that unknown and see what happens".

It has probably to do with fear thresholds vs. other drivers? I can relate to that.

For example, I am still financially speaking not 100% garantueed home free by any means, but I have a pretty decent buffer and some credentials and reasonably youthful age (34) to recover if things go awry.

People with more confidence, less control issues or shorter planning horizons don't wait until they have a 25 year or more buffer in living expenses to go off on a dream with low success rates. Some here (certainly over at Bogleheads) wait until 50+ years and still struggle with OMY in a profession they don't really like.

Or put differently: Careful planners didn't (I suppose) start the american independency war, risking everything (for those that had something to lose). They also don't go on doomed Antarctic expeditions.

So I don't judge the guy for leading a risky life (financially speaking). Although he shouldn't complain either and he did make some silly moves turning over his money management to others and trading on margin.

Anyway, random rambling ..

 

[urn2bfree]

I don't think people are judging the guy for taking risks (like going to Eastern Europe after the wall fell). But for taking UNNECESSARY AND STUPID RISKS, he does cloud the experience of others whose poverty may have been less their own damn fault. He was not just the architect of his own financial disaster, he was the general contractor and the work crew.

*also after reading through some of his blog posts please add me to those who are not impressed with his writing style. That is ok if some like it and some of us do not. As a wise man once said, "We can't all like the same things or we'd all be chasing after grandma."


Sent from my iPad using Early Retirement Forum

 

[clifp]

I think General Patton had good advice on that front: "Take calculated risks. That is quite different than being rash." What Walt34 described was more on the rash side, unless one was financially independent.

Several years ago I had the privilege of meeting Lt Col Richard Cole, who is now a young 99 years. Col. Cole was the co pilot for Gen. Jimmy Doolittle when back in 1942, the Doolittle Raider made the daring first attack on Japan.

Accompany Richard Cole, on both his trips to the Pacific Aviation Museum was Jimmy Doolittle's granddaughter. Joanne Doollite wrote a biographer of her famous granddad. The title of the bio was called simply CALCULATED RISK.

In listening to Col Cole and Joanne talk about Jimmy and the raid and reading her book, what struck me was that although raid was considered a virtual suicide mission by most people it wasn't at all. Jimmy had PHd in Aeronautical engineering from MIT and was either an INTJ or ENTJ. The amount of planning that went into the raid was immense,and the fact that only 3 of 80 raiders were killed during the raid and 4 later died in captivity at the hands of Japanese, I think speaks volumes about the quality of the planning.

I guess good planning is hard for most people which is why they don't do a good job like the author.

 

[ls99]

There is nothing wrong with taking risks. Calculated or foolish.

The risk taker should take his or her glory or lumps. Just don't whine when things go wrong. If still alive figure out how to get re-organized to live well or live with the consequnces and don't suck on the public teat.

 

[donheff]

I like being surrounded by a lot of devil may care risk takers. My grandmother hopped on a boat from Ireland with almost no money at 18 years old. America was built by whacky risk takers. It makes us vibrant. In the meantime I will take my prudent SWR and count on others like me and not a few risk takers to keep the enterprise going.

 

[Walt34]

That's a very interesting insight. Yet the forum is fillled with people who aren't afraid of risks. A number of members have flown high performance military aircraft and helicopters, or spent months under the sea living next
nuclear reactors and enough nuclear weapons to devastate a country. Plenty of folks, have lived overseas, or worked for companies with risky prospects.

As others have noted there is risk, and then there is calculated risk. When I think of that I think of Lindberg's flight over the Atlantic. The risks were many but he calculated them and figured it would work. A major engineering feat at the time and later compared to landing on the moon was simply keeping an airplane engine running for 33 1/2 hours without breakdown.

Another example given was Doolittle's raid on Japan.

My career was in police work which has its own (exaggerated by TV) risks. But there were days....

But all of these were calculated and well thought-out risks. When I approached a scene that was a crime in progress I had a plan A, plan B, plan C, and plan D if possible. I never just strolled up with no thought of what to do if all hell broke loose, and I saw some guys do that.

And so it goes with the finances - same thing - multiple plans for what to do if the stuff hits the fan.

 

[athena53]

I like being surrounded by a lot of devil may care risk takers. My grandmother hopped on a boat from Ireland with almost no money at 18 years old. America was built by whacky risk takers. It makes us vibrant. In the meantime I will take my prudent SWR and count on others like me and not a few risk takers to keep the enterprise going.

Years ago I heard the life story of a cabbie in Vegas while he drove me to the hotel from the airport. (Risk related observation: never gambled a dime in Vegas and not interested; I was there for a meeting.) For years he'd led the life of a high roller: comped rooms and all the fine wine, women and booze he wanted. He'd eventually lost it all. He was quite cheerful; apparently he was OK with a humdrum life now preceded by a lot of good memories. I later heard an old Spanish proverb, "Nadie te quita lo bailado" (Nobody can take away what you've danced) and wove it all into a Toastmasters speech.

It's a wonderful life philosophy but I always made sure I didn't spend 100% of what I earned on dancing.

 

[Bestwifeever]

As others have noted there is risk, and then there is calculated risk. When I think of that I think of Lindberg's flight over the Atlantic. The risks were many but he calculated them and figured it would work....
.....

And then there was Amelia Earhart. Sometimes the ball doesn't bounce the right way.

This is how I see McPherson. Born rich and smart (and in the Depression!)), back when that combination pretty much guaranteed success. If the ball had kept bouncing his way he would have been writing his memoirs of his life from a most comfortable retirement. He controlled that ball much of the time (my first question reading about him on Wikipedia was how did he go to three colleges yet apparently not earn a bachelor's degree?) but otoh a couple of random bounces in his favor would have saved him (had the Post's profit sharing been put in place a few months earlier he would have had a nest egg that might have been locked away for him; had he used a different FA; etc.).

Too much information is missing from his article (for which he was paid I reckon and hope) for me to feel sorry for him, but I can see how others could end up in his situation.

 

[imoldernu]

Last night was a life event for me. PBS on Roku... "Hawking".

Hawking (2013) - IMDb

In last minute of the movie. "I am not afraid of dying, but I am in no hurry to die." ~Stephen Hawking

 

[Totoro]

Will watch, thanks for the tip

 

[daylatedollarshort]

And then there was Amelia Earhart. Sometimes the ball doesn't bounce the right way.

And the infamous Dole Air Race of 1927:

" Of the 15-18 airplanes entered, eleven were certified to compete but three crashed before the race, resulting in three deaths. Eight eventually participated in the race, with two crashing on takeoff and two going missing during the race. A third, forced to return for repairs, took off again to search for the missing and was itself never seen again. In all, before, during, and after the race, ten lives were lost and six airplanes were total losses. Two of the eight planes successfully landed in Hawaii."

Dole Air Race - Wikipedia, the free encyclopedia

I would put this in the "rash", not a good calculated risk category. We read about this race next to an Amelia Earhart exhibit at an aviation museum.

 

[ls99]

So how do we save Hawking's software ?. Ahem, knowledge and ability form valid theorems.

What would be the risks in doing so?

 

[Huston55]

But I don't think he is that poor.

I interpret that as having >11,670 in income plus social security above that or more $23K a year, with subsidized housing, I think we have retired forum members in expensive places living on not much more than that. They don't complain about being poor.

My dear Mother lived the last 40yrs of her life as a divorcee on less income than this, and lived a full and satifying life. She would not have described herself as poor.

Old habits die hard:

"I feel guilty that I am shopping at this upscale market when I am wondering which medical bill I can postpone this month and, which, if any, I can pay."

He seems to have developed a sort of learned helplessness towards earning and managing money. He could add significantly to his income just from little ideas on the the Reddit beer money thread, let alone freelance writing or blogging. And shopping at Costco and ethnic markets.

He's either intellectually lazy about finances or in denial...or both.

The article annoyed me....and I'm a bleeding heart liberal. Mr. Mcpherson takes care to say that he isn't as poor as a lot of people and that he's made some very dumb decisions so it's hard for me to feel a lot of compassion for him when there are lots of hardworking people trying to raise families working multiple low wage jobs. Statements like

"In my opinion, I didn’t squander the money, either; I just spent it a little too enthusiastically—not on Caribbean cruises but on exploring the aftermath of the fall of Communism in eastern Europe. I don’t regret it."

Of course he regrets it....that's the whole premise of his article.

See above about others who get by with less without as much self pity. I think it's difficult for Mr. McPherson (and likely anyone) to have "had money" and lost it.

I don't think people are judging the guy for taking risks (like going to Eastern Europe after the wall fell). But for taking UNNECESSARY AND STUPID RISKS, he does cloud the experience of others whose poverty may have been less their own damn fault. He was not just the architect of his own financial disaster, he was the general contractor and the work crew.

Because his woes are essentially self-inflicted, I think most of us have little sympathy. Although, if we're honest with ourselves - as Gumby said, we all probably do have a little voice in our head saying, "I sure hope this fate doesn't befall me!"

In the end, my view is that his Mother was right.

 

[ls99]

........................



Because his woes are essentially self-inflicted, I think most of us have little sympathy. Although, if we're honest with ourselves - as Gumby said, we all probably do have a little voice in our head saying, "I sure hope this fate doesn't befall me!"

In the end, my view is that his Mother was right.

From my previous posts it may be obvious I have zero sympathy for the guy.

As for his "I sure hope this fate doesn't befall me!" If that is the worst that will ever happen to me, I'll be happy as pig in poop.

 

[unclemick]

Hmmm - pssst Wellesley or 'Be a Boglehead' buy index funds and 'stay the course.'

That said we helped put on an 80th Birthday party for a 'dead broke old newspaper photographer' complete with friends, relatives, and old news photogs (4) from around the country he worked with over the decades.

In his words he thoroughly enjoyed all three ex-wives(2 attended) all the money he spent and booze he drank/drinks.

heh heh heh - on the other hand people seem head the other direction when I start to expound on how to be aggressively cheap and enjoy it. I think it's all in the attitude. :

 

[Katsmeow]

I read the article and enjoyed it very much. I think he is a very good writer.

I see him more sympathetically than others here perhaps.

Don't misunderstand me. I think his "poverty" (official or not) was his fault. He says it was his fault and I believe him.

But, I can see his circumstances as being his fault and yet still have empathetic feelings.

I guess it is that I see that people sometimes make mistakes and they can end up in bad circumstances as a result. And, it is their fault, without question. But, I can still feel for them for having ended up there.

Perhaps it is because I am a mother of children with ADHD, but sometimes people *do* make mistakes. And, yes, it is their fault but I can still feel bad for them, for having made the mistake.

Yes, yes, I agree he is not the "deserving poor" and his situation is not as dire as that of many. And, yet, I can still feel bad for him at this time even if it was all his fault.

 

[CoolChange]

Reaction Driven by Peronality Type? J vs. P

....
But, I can see his circumstances as being his fault and yet still have empathetic feelings.

I guess it is that I see that people sometimes make mistakes and they can end up in bad circumstances as a result. And, it is their fault, without question. But, I can still feel for them for having ended up there....

Frankly, I don't have strong feelings about this specific author, probably closest to this quote. But, I do find that I do have much more of this type of empathy as I age, possibly as my level of stress is reduced.

I have done the Myers–Briggs thing several times (HR/management mandates) and always tested strongly INTJ; but, I wonder if I would test INTP now.

 

[Running_Man]

I read the article and enjoyed it very much. I think he is a very good writer.

I see him more sympathetically than others here perhaps.

Don't misunderstand me. I think his "poverty" (official or not) was his fault. He says it was his fault and I believe him.

But, I can see his circumstances as being his fault and yet still have empathetic feelings.

I guess it is that I see that people sometimes make mistakes and they can end up in bad circumstances as a result. And, it is their fault, without question. But, I can still feel for them for having ended up there.

Perhaps it is because I am a mother of children with ADHD, but sometimes people *do* make mistakes. And, yes, it is their fault but I can still feel bad for them, for having made the mistake.

Yes, yes, I agree he is not the "deserving poor" and his situation is not as dire as that of many. And, yet, I can still feel bad for him at this time even if it was all his fault.

But he does not appear to have learned anything from his experience. How can one be sympathetic to a person who says they have no regrets, would do it again but still say I am poor and this life sucks I can't afford what I need?

He retired in mid eighties probably one of the best periods in history to have retired, he could not have gone wrong with almost any investment allocation with up to a 6 percent annual withdrawal but still he managed to fritter his finances aways on margin and overspend his way to zero. His writing here is infused with a faux mea culpa lament that permeates the presentation of poverty he must endure in the symbiotic placement of Leo Tolstoy's grandson, woeful musing of a paltry pension from the Washington Post and bewailing of the frittering of his precious time in exchange for government rent and medical assistance.

His confiscation of resources from our government and the treatment of his cardiac condition appear as an affront to him instead of the modern medical miracles they are, providing him the most valuable commodities of all - time - yet the clock slowly grinds to a melancholy ending for this doleful fellow. His position in society has arrived as a result of the destination he actively sought with his own deleterious conduct toward finances. Money for him is the kindling wood of experience and i believe any amount made available would soon be consumed. His family needs to care for him or he would fail mightily, how can he not see he is the architect of the station of poverty? No regrets for what he has wasted? Perhaps somehow the shade that has been drawn down over his eyes can yet be lifted and illuminate his mind to the possibilities yet to be explored, and be heartened that opportunity still yet abounds for him. But somehow I think he will always be burning the furniture in the fireplace.

 

[tryan]

Having rented out property to the working (and non-working) poor for 20+ years, the only sympathy I have is for the severely disabled and kids. Frankly, the adults have had ample opportunity to better their lives but have chosen not to.

And when the kids reach ~18 yo ... the sympathy fades quickly.

 

[daylatedollarshort]

His article made me think of the adult kid callers on Suze Orman who don't know what to do or how best to help aging parents who want to constantly borrow money from them yet can't seem to follow a LBYMs lifestyle.

 

[macav933]

Also having recently retired from The Washington Post with the same "small Pension" the OP failed to point out that it's pension is available at age 55 with health care in which the company picks up 75% of the cost. You add that the company had a very robust 401k matching plan since the late 1970's in addition to its pension ( paid 100% by the company ) it's hard to feel sorry for the position he finds himself in. I am sure many on this board would love to have been offered the benefits the OP had available!

 

[ESRwannabe]

He is a great writer, I'd trade some of my money to have his talent.

But I don't think he is that poor.



I interpret that as having >11,670 in income plus social security above that or more $23K a year, with subsidized housing, I think we have retired forum members in expensive places living on not much more than that. They don't complain about being poor.

I'm 38 and only spend around $24k per year (no kids, not married). I make roughly $60k from w-2 and actually about the same off of investments...

I find it extremely easy to live off around $2k per month. Granted I do live in the south east, which at times feels like a third world country. Not saying that in a snotty way. I do come from a long line of hillbillies after all.

When I was briefly in graduate school back in 2000 I lived off of about $10k per year. I didn't own a car, no health insurance, and few other things. Still it was a piece of cake.

 

[clifp]

My heart is in complete agreement with Katsmeow, my head is complete agreement with Running Man.

This is why I concluded that he is indeed a fine writer, I have little doubt he earned his Pulitzer. Plenty of artist are lousy at managing money or making wise choices.

It is also worth pointing out the thanks to Warren Buffett's wise counsel and brilliant choice of a pension managers, the WashPo pension is one of the best funded in the country. The folks who retired with pension that they thought were secure but weren't deserve more sympathy.