Threats and Solutions to retirement

[eric]

The sudden spike in the price of gas/natural gas has gotten me thinking about what threats exist to ER (aside from stock market tumbles) and what can be done to mitigate those risks.  I'm talking about price increases that are well beyond regular inflation.

I'd be curious in what others think. 

Some threats/impact/solutions that come to mind

Threat: Large increase in cost of natural gas
Impact: Dramatic increase in cost to heat home
Solutions:
1) Heat primarily with wood, geothermal heat pump.
2) Move some place warm.
3) Buy R2000 house with active or passive solar.
4) Buy a smaller house
5) Be invested in natural gas to hedge.

Threat: Large increase in cost of gas
Impact: Dramatic increase in cost of driving
Solutions:
1) Reduce driving
2) Buy vehicle that gets high mpg.
3) Move closer to frequent destinations
4) Be invested in oil to hedge.

Threat: Large increase in electricity costs.
Impact: Increase in cost of Heating/Lighting
Solutions:
1) Heat primarily with wood.
2) Move someplace warm
3) Invest in solar electric panels/wind turbines to reduce dependency on grid.
4) Go fully “off the grid” with solar/wind.
5) Change all lighting to high efficiency fluorescent.
6) Buy a smaller house
7) Be invested in power companies to hedge.

 

[dex]

"It's always something!" Rosanne Roseannadana

Where is you signature quote from?

 

[Mountain_Mike]

Threat:  Greatly increased cost of medical insurance

Solutions:  
1.  Obtain high deductible catestrophic coverage at a lower cost
2.  Live a healthy lifestyle and stay in shape
3.  Seek less expensive medical care out of the US
4.  Shield your assets to avoid loss due to medical bills
5. 


Threat:  A close family member has "problems" and you feel obligated to help when they ask.

Solutions:
1.  Tell them to buzz off.
2.  Help them in a limited way that does not interfere with ER.
3.  Live with the illusion of a very modest lifestyle so they don't ask for help in the first place.
4.  Live somewhere far away and leave no forwarding address.
5.  Keep your assets in a trust or some other vehicle so you can honestly say "I'd like to help but I don't have the money."

 

[eric]

Its part of a song called "Little Bones" by a Canadian band called The Tragically Hip. Being self-employed and billing by the hour, it seemed appropriate.

There's another verse in one of their other songs which I love:

"You gotta get to know your cage; stress points, corrosive age.
The keeper's hours throughout the day; his habits, weaknesses and ways"

"It's always something!"  Rosanne Roseannadana

Where is you signature quote from?

 

[HFWR]

"New Orleans is sinkin' man, and I don't wanna swim..."