Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Running out of money vs. Too much money but couldn't enjoy it
Old 12-07-2015, 09:10 PM   #1
Recycles dryer sheets
 
Join Date: Aug 2013
Posts: 402
Running out of money vs. Too much money but couldn't enjoy it

Just curious if you care to share stories about other people you heard who run out of money in retirement and also people who retired then died and left a big amount of money/asset to other people .. they never enjoyed it because they passed away too soon.

On one hand, you have people who retire early with not that much money, then enjoyed living life in their 50s and 60s, and then run out of money in their 70s or 80s. Or they retired with much money, but spent it way too fast and run out of money.

On the other hand, you have people who worked hard and retired in their late 50s or mid-60s with millions of dollars and then lived only a few years and passed away and still had too much money in their retirement account. And then, the government or other people took their money. Or they retired and then got sick or had a stroke, and could not really enjoy retirement.

I don't know why I'm interested in these stories, but I guess I'm interested about not just the fairy tale retirement but the other retirement realities that life can take. For some, life could be long, and for some, life could be short. For most of us here, we just want to live till 90 or 100 and have $1 before we pass away peacefully in our sleep. But the reality is a little different for most ...

----------------------------
RUNNING OUT OF MONEY

To share my story, I had an uncle and aunt who we considered rich and they had 4 kids. They sold their business and huge McMansion, and their first 20+ years of retirement was good. They bought a smaller house and traveled the world and kept on spending whatever they liked. But their 4 children (my cousins) kept on asking money from them. These children grew up with a golden spoon in their mouth, and they never achieved any discipline, no savings, and kept on depending on their parents. My aunt and uncle also took their 4 children with them on vacations abroad. After 20-25 years in retirement (never working), their savings dwindled and they lived on SS and moved to a small condo that another aunt own. They rented it for cheap. Three years ago, my uncle died and none of his children even visited him on his deathbed. I felt really bad about it. Last year, I visited my widowed aunt, she told me that her son (my 53 year old cousin) was undergoing kidney dialysis and she was helping him with the cost. I gave her some $$$ to help. She has no more savings at 76 years old and just depend on a small social security fix income. She's luck that her sister (my aunt who owns the condo) is helping her out with expenses.

TOO MUCH MONEY/ASSET and DIED TOO EARLY

Ok, I heard this story from my realtor. A well-to-do retired couple bought two tracks of land in a nice upscale resort loghome community to build a huge loghome on the lake. Suddenly, these two couples died. And apparently, they did not have family or did not have a will, because nobody followed up on the land they bought from the developer that this realtor worked for. So, the developer started to inquire about this couple and the developer found out that they did not leave that land to anyone. So, the developer initiated a claim to get the land back. Because the realtor said that if nobody will contest the claim, the developer will surely get the land back. Incidentally, I also saw a TV show about a loghome builder who were building a mansion log home for a couple and when it was 80% finished, the owner (husband) died and never moved in to their dream log home mansion.

I have also a colleague (Bob) who retired 2 years ago, and I'm sure he was financially ok. And I just heard from another colleague yesterday that Bob had two strokes. I hope he recovers. I just hear some stories that retirement also shortens the lives of people because they don't find meaning in their lives .. oh well .. I hope I'm wrong.


__________________

__________________
cyber888 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 12-07-2015, 09:26 PM   #2
Recycles dryer sheets
 
Join Date: May 2013
Posts: 213
My parents will likely pass with millions, but it's a very conscious decision. They have everything they want and they like the "game" of building net worth.


Sent from my iPhone using Early Retirement Forum
__________________

__________________
RenoJay is offline   Reply With Quote
Old 12-07-2015, 09:42 PM   #3
Thinks s/he gets paid by the post
Keim's Avatar
 
Join Date: Feb 2007
Location: Moscow
Posts: 1,128
My inlaws. They worked for years to build a very healthy savings account. Early onset dementia hit one, and they can't get out and enjoy it much at all.
__________________
You can't enlighten the unconscious.
But you can hit'em upside the head a few times to make sure they are really out...
Keim is offline   Reply With Quote
Old 12-07-2015, 11:30 PM   #4
Thinks s/he gets paid by the post
 
Join Date: Apr 2005
Location: Midwest
Posts: 1,566
I knew a guy in the Air Force. Did 23 years I believe. I was at his retirement party. Three, maybe four years later I see his name listed as deceased. Probably just past the age of 45. Didn't list cause of death
__________________
razztazz is offline   Reply With Quote
Old 12-07-2015, 11:55 PM   #5
Thinks s/he gets paid by the post
Sunset's Avatar
 
Join Date: Jul 2014
Location: Chicago
Posts: 4,726
I know this one lady, she is worth millions and lived a good life spending freely on trips and such in her later 30 years.
Now she sits in a retirement home with millions in the bank.
Didn't spend it fast enough.. a good problem to have.
__________________
Sunset is offline   Reply With Quote
Old 12-08-2015, 12:09 AM   #6
Recycles dryer sheets
 
Join Date: Nov 2013
Posts: 178
Quote:
Originally Posted by Sunset View Post
I know this one lady, she is worth millions and lived a good life spending freely on trips and such in her later 30 years.
Now she sits in a retirement home with millions in the bank.
Didn't spend it fast enough.. a good problem to have.
Is she single?
__________________
34rlsa is offline   Reply With Quote
Old 12-08-2015, 01:05 AM   #7
Thinks s/he gets paid by the post
 
Join Date: Sep 2006
Posts: 1,689
My mother contracted lung cancer when she turned 66 and my father was 70, my father had taken a buyout of the pension and within the 5 years of being retired they went through all the money. After my mother passed my father lived on only social security and was $15,000 in debt from medical and burial bills.

He never complained about his lot in life and never would take any money. He kept his car in good shape and lived with my brother for a few years before renting an apartment near a very nice county park. Rent was low and he lived on the equivalent today of $1,600 a month. He spent his time walking 5 miles each day, talking with people in the park, always keeping a pack of dog treats with him to give to people walking their dogs and working to keep the walking paths clear for everyone else. He always walked with a foldable pruning saw and shears to trim any wayward vegetation.

He taught me having little money is nothing to fear, it is always possible to make do and enjoy life with what you have, but life is easier with more money that is for sure. Even a few hundred dollars a month would have made a huge difference to him. He died at age 87 with $4,000 in the bank and debt free. In my entire life I never once heard him complain about being poor nor about it being unfair that someone else had more money than he. Because I think he had little money he had much time for walking the 5 miles daily and enjoying the county park, this in turn kept him healthy and active throughout his retirement.

I hope I am able to experience the good parts of his retirement with at least a little more cushion to make it through the years.
__________________
Running_Man is offline   Reply With Quote
Old 12-08-2015, 06:28 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,404
RUNNING OUT OF MONEY

I have some acquaintances who I do not think have much more than SS. We never talk about money, so I think they just cope with it, the same way Running_Man's father does.

Here in this forum, we had some posters lamenting of shortfall during the Great Recession of 2008-2009, then they disappeared altogether. I think they have gone back to work.

TOO MUCH MONEY/ASSET and DIED TOO EARLY

I do not know of any in real life, but I could easily be one of those stories. I am OK now, but it could easily go the other way and I could be pushing daisies instead of making this post.

Many posters here have had some scary moments with heart trouble, and some have fought off cancer. Quite a few talked of losing their loved one. And many posters have been absent after talking about their own medical problem. It could happen to any of us, really.
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is offline   Reply With Quote
Old 12-08-2015, 06:31 AM   #9
Recycles dryer sheets
 
Join Date: Nov 2013
Posts: 355
Running_man. I love your father story. Simple life and contentment.


Sent from my iPad using Tapatalk
__________________
jabbahop is online now   Reply With Quote
Old 12-08-2015, 06:34 AM   #10
Thinks s/he gets paid by the post
Senator's Avatar
 
Join Date: Feb 2014
Location: Eagan, MN
Posts: 3,048
I sometimes worry about having too much money in the end, but it was not something that I worried about until recently.

In the end, is is easier to spend money, than try to earn it.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
Senator is online now   Reply With Quote
Old 12-08-2015, 07:20 AM   #11
Full time employment: Posting here.
jjquantz's Avatar
 
Join Date: Jan 2014
Location: Northern Virginia
Posts: 848
Perhaps what you want to is to just hear some collection of "real-life" retirement stories.

My father retired in 1996 at 58 (mom was 56) after working 38 years in the same factory. He had a small pension that paid for their rundown shack very modest home in a not so nice part of town. They would take one trip each year to Laughlin to play poker. Other than that they would sit in their house, smoke cigarettes and talk about how the world was going to hell in a handbasket. At 63 he was diagnosed with stage 4 lung cancer. He refused treatment for fear that it would deplete their meager savings and leave mom without anything. He died a few months later leaving mom with no pension. Mom died 4 years later, also from lung cancer. When mom passed, the total value of the estate, IRAs, house equity, everything was $25,000. She couldn't have been living on more than $800/month.

I will give them credit for never complaining about their situation or asking for help. They were able to pay their bills, eat regular meals and watch cable television. Were they happy? I don't know, but I don't want to find myself in their situation.

Too little money AND died to soon?
__________________
jjquantz is offline   Reply With Quote
Old 12-08-2015, 07:23 AM   #12
Recycles dryer sheets
 
Join Date: Jan 2014
Location: Austin
Posts: 496
Quote:
Originally Posted by Running_Man View Post
My mother contracted lung cancer when she turned 66 and my father was 70, my father had taken a buyout of the pension and within the 5 years of being retired they went through all the money. After my mother passed my father lived on only social security and was $15,000 in debt from medical and burial bills.

He never complained about his lot in life and never would take any money. He kept his car in good shape and lived with my brother for a few years before renting an apartment near a very nice county park. Rent was low and he lived on the equivalent today of $1,600 a month. He spent his time walking 5 miles each day, talking with people in the park, always keeping a pack of dog treats with him to give to people walking their dogs and working to keep the walking paths clear for everyone else. He always walked with a foldable pruning saw and shears to trim any wayward vegetation.

He taught me having little money is nothing to fear, it is always possible to make do and enjoy life with what you have, but life is easier with more money that is for sure. Even a few hundred dollars a month would have made a huge difference to him. He died at age 87 with $4,000 in the bank and debt free. In my entire life I never once heard him complain about being poor nor about it being unfair that someone else had more money than he. Because I think he had little money he had much time for walking the 5 miles daily and enjoying the county park, this in turn kept him healthy and active throughout his retirement.

I hope I am able to experience the good parts of his retirement with at least a little more cushion to make it through the years.
+1

Thanks for a great read to start my day.
__________________
ER'd 6/1/2014 @ age 53. AA=70/30, WR=3%
Looking4Ward is offline   Reply With Quote
Old 12-08-2015, 07:52 AM   #13
Moderator
rodi's Avatar
 
Join Date: Apr 2012
Location: San Diego
Posts: 8,809
Too little money: My bff's parents. For political reasons they quit their overseas posted government jobs. To make it worse, they cashed in their federal pensions. She went back to work and he had various "businesses" he pursued and they blew threw the pension lump sum. My bff was about 19, living on her own, and having to lend her parents $1k at a time so they could pay their rent. (Which put her in a position of not being able to pay her own rent.) She ended up moving back in with them for a while to help them financially. We became roommates/bff's when she moved out of that situation. FFW several years and her dad is supplementing the tiny bit of income her mom was bringing in by doing telemarketing. FFW even more years and she's now forced to supplement their income by about $1500/month. They lived in our casita for a while for super cheap rent (compared to market rate), and then lived in BFF's second home for free for almost a year. She still supplements their income. They have a small SS coming in from her mom's jobs she's had post "retiring" from the government.

These are smart people who for years lived beyond their means and now live on a shoestring and depend on their daughter's money to make the bills.

My mom retired at age 62, dx'd with cancer at 67, died at 67 after 3 years of chemo. She did manage to get some living in before dying - 2 round the world trips done between chemo rounds, meeting her first grandchild (my older son.)
__________________
Retired June 2014. No longer an enginerd - now I'm just a nerd.
micro pensions 7%, rental income 18%
rodi is offline   Reply With Quote
Old 12-08-2015, 07:56 AM   #14
Thinks s/he gets paid by the post
Car-Guy's Avatar
 
Join Date: Aug 2013
Location: Citizen of Texas
Posts: 2,476
How about the couple that have some money but won't spend it. I know a couple that are in their early 90's. I know them well enough to estimate their net worth is probably close to a million dollars (mostly tax paid cash) and no debt. Both are collecting SS and I know one of them has a pension and the other is collecting from an annuity. I'm not sure how much that adds up to monthly but I'm sure it covers all their living expenses since they live like paupers in house that's falling apart from lack of any maintenance. (BTW, no kids or remaining family) I've known them for a long time and they never did much of anything except watch TV and watch the grass grow. (not the smoking kind of grass) Even when they were 30+ years younger they didn't do much. (no hobbies, no travel, no computer, no Internet, no cell phone, etc.) They do have one used car (and one of them is still driving) and cable TV. Their health was good enough (until recently) that they could have done "something".

I've never really said much to them since it is their life choice but that's not living IMO. It's existing.
__________________
Car-Guy is offline   Reply With Quote
Old 12-08-2015, 08:30 AM   #15
Recycles dryer sheets
 
Join Date: Jan 2013
Posts: 187
I think my parent's actually did a pretty good balance in this area. My dad had 2 pensions (federal government and reserves) and SS. When in they were in their 60s and 70s, they traveled and spent. But, after mom passed and dad was in his 80s, he couldn't travel. The money piled up.
__________________
InTheSticks is offline   Reply With Quote
Old 12-08-2015, 08:53 AM   #16
Recycles dryer sheets
 
Join Date: May 2011
Location: Twin Cities
Posts: 434
It would be a lot easier to plan if I knew the dates of our deaths.

My DW retired last month (52). Part of the impetus was the health issues that many of our peers are having. Very good friend with stage 4 lung cancer (53), best friend with stage 2 colon cancer that just came back (53) and another acquaintance who just had a stroke (55). Add to that the onset of Ataxia that my mom (75) got as a complication of cancer in the last year which will restrict her to a nursing home the rest of her life.

You just never know how to plan things out and whether spending more or saving more is the right answer.

Had a friend from work 5 years ago that got laid off about the time I did. She took her $150k severance and blew it all in 2 years. Soon after she got cancer and died. For her, spending it ended up being the right decision.
__________________
Fishingmn is online now   Reply With Quote
Old 12-08-2015, 09:07 AM   #17
Thinks s/he gets paid by the post
 
Join Date: Dec 2009
Location: Alberta/Ontario/ Arizona
Posts: 3,131
Interesting stories, but what can we learn from them? Here is a start.
1) Pensions/annuities are really good to have in retirement. They take out much of what can go wrong.
2) a healthy lifestyle both before and during retirement is most important. You can't defeat the grim reaper but you can certainly improve your quality of life and improve your odds of a longer life.
3) it's better to leave a little on the table when you go versus running short. So be conservative in your saving/spending. This does not mean being a cheapskate or a miser. Be flexible in your saving/spending to reflect actual events as they unfold.
4) Educate yourself on financial matters. There is no reason to claim ignorance or lack of understanding if things go wrong. Take ownership of your financial matters.
5) Because we can't know the future, live each day like it is your last. Never procrastinate. (This point added in edit and should be attributed to NW-Bound.)

Must be some more good ones?

As always easier said than done.
__________________
Danmar is offline   Reply With Quote
Old 12-08-2015, 09:15 AM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,404
Earlier, I said I did not know any who died early, but I was wrong.

My wife's long-time friend died of colon cancer at the age of 60. She was about to take early retirement, but the recession of 2009 dropped her 401k by 50%. So, she did part-time work for her employer megacorp to wait for it to come back, and that was when she was diagnosed with this terrible disease. Even if she did not do the part-time work, she could not have much time in retirement.

In cases like the above, there's not much one can learn other than to enjoy each day that we have. We just don't know what fate awaits us.
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is offline   Reply With Quote
Too little
Old 12-08-2015, 09:25 AM   #19
Thinks s/he gets paid by the post
Souschef's Avatar
 
Join Date: Dec 2015
Location: Santa Paula
Posts: 1,184
Too little

My father died in 2003 at the age of 92. He told my mother she would be taken care by their investments. However, she just passed last March at the age of 102.
They did not have long term care insurance.
Her stocks were supposedly to go to my sister's children. Toward the end, she had to have 24 hr care. She went through her savings, but I would not help until all the stock was sold, because I felt I would be subsidizing my nieces, who did not need the money.
Her condo was free and clear, and the sale proceeds went to my sister, who deserved it, as she handled mom's affairs.
__________________
Souschef is online now   Reply With Quote
Old 12-08-2015, 09:28 AM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
calmloki's Avatar
 
Join Date: Jan 2007
Location: Independence
Posts: 5,459
What?! No obligatory YOLO?
__________________

__________________
calmloki is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Running can be good, but not too much DFW_M5 Health and Early Retirement 84 04-12-2015 05:39 PM
Running from or running to? Unpaintedhuffhines Life after FIRE 25 04-23-2013 10:29 AM
Couldn't submit comments from home kyounge1956 Forum Admin 1 08-14-2010 03:54 PM
I couldn't say no jimnjana FIRE and Money 4 06-18-2009 01:45 PM
Too Much Money= Too Little Leisure? yakers FIRE and Money 11 02-07-2006 11:02 AM

 

 
All times are GMT -6. The time now is 11:00 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.