Join Early Retirement Today
View Poll Results: How are you handling the Financial Crisis and its impact on you
Emotion [Very Worried] - [Impact] Standard of Living is going to drop in a big way 6 3.70%
Emotion [Very Worried] - [Impact] No Standard of Living drop 7 4.32%
Emotion [Worried] - [Impact] Standard of Living is going to drop Modestly 52 32.10%
Emotion [Worried] - [Impact] No Standard of Living is going to drop 33 20.37%
Emotion [Not Worried] - [Impact] Standard of Living is going to drop slightly 28 17.28%
Emotion [Not Worried] - [Impact] No Standard of Living is going to drop 36 22.22%
Voters: 162. You may not vote on this poll

Reply
 
Thread Tools Search this Thread Display Modes
Retiree Poll on The Financial Crisis
Old 12-01-2008, 04:13 AM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2007
Posts: 5,072
Retiree Poll on The Financial Crisis

This is a poll for those who have actually retired.

While we are going through this mess, how are you handling the whole emotionally regarding your financial situation and how this financial melt down has affected you.

Try to pick the one that best fits.
__________________

__________________
chinaco 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 12-01-2008, 05:49 AM   #2
Thinks s/he gets paid by the post
OAG's Avatar
 
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,598
Nothing changed, so far, for us. My concern is reflected in empathy for others. However, since I have not been exposed to any that seem to have "suffered" that is a difficult concept. I suspect it may get worse before it gets better; and the definition of better may have to be a bit compromised in the future.

I wonder how one can be "very worried" but not anticipate a decrease in their standard of living. If that is the case why worry?
__________________

__________________
Vietnam Veteran, CW4 USA, Retired 1979
OAG is offline   Reply With Quote
Old 12-01-2008, 07:59 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Moemg's Avatar
 
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 10,035
I was very worried when the market was in free fall but now I'm not as worried . I have a lot of padding in my retirement budget so my lifestyle will not really change I'll just take less expensive trips. Chinaco you seem to be trying to figure out every aspect of retirement unfortanetly you can't do that . Life has twists and turns that no one can plan for .
__________________
Moemg is offline   Reply With Quote
Old 12-01-2008, 08:17 AM   #4
Full time employment: Posting here.
tightasadrum's Avatar
 
Join Date: Aug 2006
Location: athens
Posts: 802
Holding enough cash positions that allow me to keep on without much concern, except... how long will it take for the market to recover some. Frankly though, my biggest concern is how the US is going to dig out from under the debt load which is rapidly getting worse every day. If they end up just printing more paper to get out of debt, that cash position I have will be worth nothing. I wish I had more confidence in the politicians' ability to reduce the deficit and the debt, but I don't. That's my worry. Markets go up and down, and we all live through it just fine.
__________________
Can't you see yourself in the nursing home saying, " Darn! Wish I'd spent more time at the office instead of wasting time with family and friends."
tightasadrum is offline   Reply With Quote
Old 12-01-2008, 08:35 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
freebird5825's Avatar
 
Join Date: Feb 2008
Location: East Nowhere, 43N Latitude, NY
Posts: 9,017
Income is stable, and am keeping a vigilant eye on inflation effects on budget.
Not happy with portfolio , but not drawing on it.
Hoping things improve for all of us.
__________________
"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
freebird5825 is offline   Reply With Quote
Old 12-01-2008, 09:42 AM   #6
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,617
Back during the market highs, spouse and I talked vaguely about what to do if when the party abruptly ended. We considered hunkering down, cutting back, and otherwise conserving cash.

But somewhat to our surprise, that's not what we've been doing.

No worries. No changes. When the markets got stupid high last fall, by last February we rebalanced a little of our Berkshire Hathaway-- from 36% of our ER portfolio to 23%. Even that cap gain was more than offset by subsequent tax-loss harvesting. So the biggest change of the last year is that we've rebalanced yet our tax bill has gone way down.

When our portfolio was hitting all-time highs in 2007, we didn't take anything off the table and buy a Tesla. Maybe we should have, but instead of basking in the warm glow of successful market timing I'd be concerned about insurance & theft. We could've taken a blowout vacation with our profits, but we were busy with other projects and our family college trip was more than enough stimulation. The size of our portfolio wasn't relevant to our lifestyle.

Instead we just kept living our lives. Our spending didn't have to change because we keep enough in cash to be independent of market performance for at least a couple years. At our portfolio's peak, it didn't feel like "real money". At the market's lows, we still have enough. I can recognize that stocks are on sale today but I don't feel compelled to tap our home equity, claw back the kid's college fund, go on margin, and buy options.

We have engaged in one form of dirty market timing. Now when we're contemplating a home-improvement purchase, we spend a few weeks watching Craigslist. Even more desperate consumers are selling their Home Depot/Lowes gift cards for at least 20% discounts, and then we're using those during store sales. We also found a couple nice office/desk chairs, a great EnergyStar dishwasher for a friend's kitchen, and some lovely old rosewood furniture. I can only imagine what's going on Wii Fit Craigslist sale when the post-holiday credit-card bills come rolling in.

We may change one type of investor behavior-- taking the ER portfolio's dividends in cash instead of automatically reinvesting them. I see the money piling up until an asset gets outside of our target allocation, then making a lump-sum purchase of the laggard. Spouse sees the money piling up until she decides to "take some off the table", maybe into a seven-year CD ladder, but I suspect that if I can show an asset is on sale then we'll decide to break a CD and put it back into the market. It isn't as if we needed the excess profits to support our immediate lifestyle needs.

No losers in this discussion. We have enough. Life is good!
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 12-01-2008, 10:15 AM   #7
Thinks s/he gets paid by the post
 
Join Date: Jun 2006
Posts: 1,666
No worries personally. Concern about what is happening to many others though
Dividend income is stable, and it is easier to increase the income stream as stock prices are low.
__________________
"We do not inherit the earth from our ancestors, we borrow it from our children.
(Ancient Indian Proverb)"
Zathras is offline   Reply With Quote
Old 12-01-2008, 10:19 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2003
Location: Kansas City
Posts: 7,409
Wing flapping happy - daydream of really really cheap bastardhood, putting in a Victory garden, shutting off the electricity, getting a real beater pickup, etc.

Actually - slightly worried I'm too old at 15th yr of ER to stop watching football, cut one or two trips(down to maybe four next year), and not eat out as much, avoid any 'big' remodeling/landscaping projects.

I might over compensate and go stock chasing with any money I've saved - it's a hormone thing.

Gotta watch it - not getting any younger.

heh heh heh - Dang Saint's. Wait til next year. Balanced index on full auto. Keep a grip. Stay the course and spend within the lines.
__________________
unclemick is offline   Reply With Quote
Old 12-01-2008, 10:42 AM   #9
Full time employment: Posting here.
tangomonster's Avatar
 
Join Date: Mar 2006
Posts: 756
But once again, isn't the major factor in this poll whether people are getting a pension/SS or financing ER entirely on their own? Yup, I know I am sounding like a broken record, but there really is both a financial and psychological difference between SIRE (secure income through government or corporate pensions) and FIRE. I guess Freud would have had a field day with me---I have quite the case of pension envy! Due to the size of my net worth, I actually can have a SWR that is much higher than any annual salary I ever had---but I had to save and invest to have this money and if it goes, it goes---not guaranteed for the rest of my life, unless I get an annuity and the insurance company is still around and able to honor their commitment.

I voted that this financial crisis will moderately affect me. I had enough in cash to live on---and when I'm being rational, feel I do have enough to live on for the rest of my life. But even if the market recoups in five or ten years, there's no getting around that my net worth is 25% less than what I retired with two years ago and won't grow to quite the level that we anticipated. But I always intended to keep LBYM anyway, so I don't think I will be forced into major adjustments. I'm fine about not traveling. I just want to keep living where I am currenly am and not have to go back to the cheapest condo in town (it wasn't the square footage that bothered me---it was the occupants who became bothersome, both renters and owners).
__________________
“It is not a sign of good health to be well adjusted to a sick society”.------Krishnamurti
tangomonster is offline   Reply With Quote
Old 12-01-2008, 11:44 AM   #10
Recycles dryer sheets
 
Join Date: Feb 2007
Posts: 310
I voted "Not worried Standard of living will drop slightly". We have a DB COLA'd pension that provides our financial needs as well as cash flows our last college kid's rent and board. DH's second career finances major home improvements, tuition for kid, and 403b.
We have cut down on what little eating out we did and skipped a trip to DisneyWorld but other than that there has been no change in lifestyle. Thank God.
__________________
shoe is offline   Reply With Quote
Old 12-01-2008, 12:45 PM   #11
Thinks s/he gets paid by the post
 
Join Date: Jun 2006
Posts: 1,666
Quote:
Originally Posted by tangomonster View Post
But once again, isn't the major factor in this poll whether people are getting a pension/SS or financing ER entirely on their own?
I would say 'no'. At least, not completely.
I am sure that there is a bias leaning towards being more comfortable/secure when someone has a pension. But it does not mean that someone who is on their own completely doesn't feel secure in this environment.
__________________
"We do not inherit the earth from our ancestors, we borrow it from our children.
(Ancient Indian Proverb)"
Zathras is offline   Reply With Quote
Old 12-01-2008, 02:00 PM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,431
As true LBYM'ers who rarely find things worthwhile to spend money on, the only impact we have is no foreign travel this year.

Well, there was a 2-week trip in Seattle/Victoria/Vancouver, but of course it was not the same as a European trip, since they speak my language and don't have accents like the Brits or Aussies , nor have exotic food. So, I called it a modest "living decline".

Still a bit worried about where we are heading. It seems we are at the bottom already, but the recovery may not be swift. I want to see the light at the end of the tunnel to plan my next European trip. I found out that after the ordeal of such long flights from AZ, it took me 6 months of recovery before I could think of a long-range travel again . Call me masochistic, but I am due for a long suffering flight to Europe.

PS. By the way, no pension here, and living off savings.
__________________
NW-Bound is offline   Reply With Quote
Old 12-01-2008, 04:29 PM   #13
Moderator Emeritus
Khan's Avatar
 
Join Date: Aug 2006
Location: Pine Island, Florida
Posts: 6,868
Send a message via AIM to Khan
Standard of living might go up.

I am spending less than my pension (~$30,000) and later this month I start 'harvesting' my CD ladder (~$5,000). Unless there is some serious inflation, I should have no problems.
__________________
"Knowin' no one nowhere's gonna miss us when we're gone..."
Khan is offline   Reply With Quote
Old 12-01-2008, 05:02 PM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,431
As LBYM, surely you have a lot of margin for safety.

You, da woman...
__________________
NW-Bound is offline   Reply With Quote
Old 12-01-2008, 05:47 PM   #15
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Location: Los Angeles area
Posts: 1,432
Quote:
Originally Posted by tangomonster View Post
But once again, isn't the major factor in this poll whether people are getting a pension/SS or financing ER entirely on their own? Yup, I know I am sounding like a broken record, but there really is both a financial and psychological difference between SIRE (secure income through government or corporate pensions) and FIRE.
Not at all here. I am entirely self-financed, living off individual stock dividends (accessed mostly thru 72t), and they keep getting raised at a regular clip. I am sure the raises will slow down until the economy recovers, but I have no concerns about the future of PG / JNJ / EMR / KO / SYY etc, and am not worrying about or anticipating spending changes.
__________________
learn, work, save, invest, fire
CyclingInvestor is offline   Reply With Quote
Old 12-01-2008, 05:55 PM   #16
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 11,977
Quote:
Originally Posted by tangomonster View Post
But once again, isn't the major factor in this poll whether people are getting a pension/SS or financing ER entirely on their own? Yup, I know I am sounding like a broken record, but there really is both a financial and psychological difference between SIRE (secure income through government or corporate pensions) and FIRE.
I did NOT vote since I am not retired, but the SIRE vs FIRE question would seem to make your poll results bimodal at the very least. I am not sure what to make of many forum responses anymore due to SIRE vs FIRE...
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Old 12-01-2008, 06:42 PM   #17
Full time employment: Posting here.
toofrugalformycat's Avatar
 
Join Date: Mar 2007
Location: Anchorage
Posts: 731
Quote:
Originally Posted by tangomonster View Post
But once again, isn't the major factor in this poll whether people are getting a pension/SS or financing ER entirely on their own?
Then there are those of us getting a sub-COLAed gubmint partial pension, financing ER partly or mostly on our own.
I think the major factor on how much anxiety this downtown is or is not causing me is based on how much cash reserves I have, which is designated by my chosen asset allocation.
Although my asset allocation is more than slightly out of whack at present. For some reason, I'm way low on equities!
__________________
toofrugalformycat is offline   Reply With Quote
Old 12-01-2008, 06:50 PM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,386
Quote:
Originally Posted by Midpack View Post
I did NOT vote since I am not retired, but the SIRE vs FIRE question would seem to make your poll results bimodal at the very least. I am not sure what to make of many forum responses anymore due to SIRE vs FIRE...
Is this the first time you thought about this?

Most of our threads that begin "How do you feel about..." are a little hard to interpret.

On this site I have learend that men are much fonder than women of gassing about unknowable and meaningless topics.

Keep some rock salt near your computer station; you may want a grain now and then.

Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Old 12-01-2008, 06:58 PM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 11,977
Quote:
Originally Posted by haha View Post
Is this the first time you thought about this?

Ha
Of course not, but until I went to quantify SIRE vs FIRE, I had mistakenly imagined the latter would be the majority. Judging by other comments on that thread, I got the impression some others were a little surprised too. And that does change the POV that I thought I was hearing from...
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Old 12-01-2008, 07:03 PM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dawg52's Avatar
 
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 7,438
I voted 'very worried, but no standard of living change'. Hell, I'm already living like a cheap old bastard, with the exception of my golf addition. I didn't even go to a single college football game this year. Of course my school sucked.
__________________

__________________
Retired 3/31/2007@52
Full time wuss.......
Dawg52 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
The Financial Crisis -- The Aftermath chinaco FIRE and Money 30 10-29-2008 09:31 AM
Financial crisis effect on muni bonds mark500 FIRE and Money 4 09-23-2008 09:31 PM

 

 
All times are GMT -6. The time now is 09:37 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.