Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Scott Burns: The Critical 50s
Old 05-28-2006, 02:26 PM   #1
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,117
Scott Burns: The Critical 50s

As if those reading this forum needed added motivation to reach FIRE sooner...

In his column today in my local paper (not online), Scott Burns talks about two critical questions those approaching retirement must answer:

1. Do I have the resources to retire now?
2. Do I have the option of working longer?

Burns discusses the relative merits of the four possible responses, from the most favorable (yes, yes), to the least favorable (no, no). However, the meatiest part of his column is devoted to the third, and likely the most common response to the two questions: No, I dont have the resources to retire now, and yes, I have the option of working longer. He cautions those in this category to do a reality check, citing the very high likelihood of someone in their 50s experiencing a shock that could dramatically reduce their retirement security.

According to the Center for Retirement Research at Boston College, there is a 69% chance of someone between the ages of 51 and 61 experiencing at least one of these events:

A major medical condition - 41.3%
A health-related work limitation - 33.7%
Severe disability - 6.9%
Enter a nursing home - 3.4%
Job layoff - 18.7%
Divorce - 2.3%
Widowed - 7.3%

(The column notes the percentages add up to more than 69% because some individuals experience more than one event.)

Only three people in 10 get through their 50s unscathed, says Burns. This is why so many people in their 50s and early 60s respond to the two questions above with a no, no answer.

Yikes!


NOTE: This column is not currently available on Burns website. I will post a link as soon as it is available.

__________________

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo 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!

Re: Scott Burns: The Critical 50s
Old 05-28-2006, 03:09 PM   #2
Moderator Emeritus
laurence's Avatar
 
Join Date: Feb 2005
Location: San Diego
Posts: 5,234
Re: Scott Burns: The Critical 50s

How does he define "major medical condition"? Heart attack, cancer or stroke?
__________________

__________________
laurence is offline   Reply With Quote
Re: Scott Burns: The Critical 50s
Old 05-28-2006, 03:21 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,625
Re: Scott Burns: The Critical 50s

Diabetes? Knee replacement? Macular degeneration?
__________________
LOL! is offline   Reply With Quote
Re: Scott Burns: The Critical 50s
Old 05-28-2006, 03:50 PM   #4
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,117
Re: Scott Burns: The Critical 50s

Quote:
Originally Posted by Laurence
How does he define "major medical condition"?
Burns doesn't define it, but you'll recognize it when you see it...or don't see it. :

Quote:
Originally Posted by HFWR
Sure, it's all fun and games until the nanner falls off... :P
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Re: Scott Burns: The Critical 50s
Old 05-28-2006, 03:51 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2005
Posts: 5,414
Re: Scott Burns: The Critical 50s

does one of those new penile replacements count?
__________________
mathjak107 is offline   Reply With Quote
Re: Scott Burns: The Critical 50s
Old 05-28-2006, 04:06 PM   #6
Full time employment: Posting here.
 
Join Date: Feb 2006
Posts: 987
Re: Scott Burns: The Critical 50s

Quote:
Originally Posted by Laurence
How does he define "major medical condition"?*
Laurence,

For me (and the article) it's something that would inhibit me from performing at my current job functions.

I'm diabetic - however it does not keep me from performing my "job".* In fact, since I was diagnosed as such at age 54 (I'm 58), I've become "healthier" (due to changes in diet, exercise, medical care).* In addition, I've already had cataract replacement (1 down, 1 to go!) but the result is that I can drive without glasses (for the first time in the last 20+ years).

I'd go with the comment by REWahoo, "You'll recognize it when you see it...or don't see it."

That being said, I'm glad that I can say "Yes, Yes"

- Ron

PS:* Don't let my DW learn about the comment "does one of those new penile replacements count? or she may suggest some "more improvements"...* 8)
__________________
rs0460a is offline   Reply With Quote
Re: Scott Burns: The Critical 50s
Old 05-28-2006, 04:30 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Scott Burns: The Critical 50s

Since about half (or more) of people get divorced, and he includes divorce in his list, its hardly surprising the number is high.

Plus you have a bit of leeway with 'work limiting health problem' and 'major medical condition'.

Ask any 10 people and you'll get 10 different answers to what those mean.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: Scott Burns: The Critical 50s
Old 05-28-2006, 04:33 PM   #8
Thinks s/he gets paid by the post
frayne's Avatar
 
Join Date: Oct 2002
Location: 19th Hole
Posts: 2,534
Re: Scott Burns: The Critical 50s

Quote:
Originally Posted by mathjak107
does one of those new penile replacements count?
Don't you mean enhancements ?
__________________
A totally unblemished life is only for saints.
frayne is offline   Reply With Quote
Re: Scott Burns: The Critical 50s
Old 05-28-2006, 04:37 PM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2005
Posts: 5,414
Re: Scott Burns: The Critical 50s

Quote:
Originally Posted by Cute Fuzzy Bunny
Since about half (or more) of people get divorced, and he includes divorce in his list, its hardly surprising the number is high.quote

after getting divorced 4 years ago i have a tip..heres what you do to stay true blue...
i* *keep a copy of my wifes picture in my wallet,,when ever temptation strikes i pull out my *wifes picture and look at it...now after a while you may find that no longer works so heres what i did...i took a picture of all my stuff..i then cut the pictures in half and keep a half of one of them in my wallet as a remider thats thats what my stuff will look like again........it works!
__________________
mathjak107 is offline   Reply With Quote
Re: Scott Burns: The Critical 50s
Old 05-28-2006, 04:48 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,884
Re: Scott Burns: The Critical 50s

I read Scott's article in our paper yesterday and I think that it was one of his better articles. A simple concept: yes/no that just about anyone can answer. If you don't know if the answer is "yes", it is automatically a "no".

You either have to have $, or be able to make $.
__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Re: Scott Burns: The Critical 50s
Old 05-28-2006, 05:02 PM   #11
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Re: Scott Burns: The Critical 50s

But the percentage divorced between the ages 51 and 61 is fairly low.

Disabilities interfering with the ability to work is a big problem. *
http://www.cbo.gov/showdoc.cfm?index=6018&sequence=0


CBO found that those men and women who had left the labor force even though they were not yet old enough to receive Social Security retired-worker benefits did so for a small number of reasons: The most frequent reason they offered for not working was that they were disabled--accounting for almost two-thirds of the men who were not in the labor force and two-fifths of the women. Most of the other men said that they were retired. Most of the other women said that they were retired, caring for others, or not interested in working.



People talk a lot about baby boomers working long past 65. After all, people are living longer. Well they are not necessarily healthier and living longer isn't that much longer.



__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Re: Scott Burns: The Critical 50s
Old 05-28-2006, 05:09 PM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2005
Posts: 5,414
Re: Scott Burns: The Critical 50s

divorce may be lower between 50-60 but i bet murder is higher
__________________
mathjak107 is offline   Reply With Quote
Re: Scott Burns: The Critical 50s
Old 05-28-2006, 05:22 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Scott Burns: The Critical 50s

Guess ya better quit working before 51 so that insidious work related disability wont happen, since you're not working. It'd then become an annoying disability during ER, which isnt well tracked by statistics. Hence, nothing to worry about.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: Scott Burns: The Critical 50s
Old 05-28-2006, 08:41 PM   #14
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Re: Scott Burns: The Critical 50s

Quote:
Originally Posted by Cute Fuzzy Bunny
Guess ya better quit working before 51 so that insidious work related disability wont happen, since you're not working.* It'd then become an annoying disability during ER, which isnt well tracked by statistics.* Hence, nothing to worry about.
No, you better quit working at 41 so you have at least 10 good years.
__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Re: Scott Burns: The Critical 50s
Old 05-29-2006, 07:07 AM   #15
Thinks s/he gets paid by the post
frayne's Avatar
 
Join Date: Oct 2002
Location: 19th Hole
Posts: 2,534
Re: Scott Burns: The Critical 50s

Life is uncertain, always will be.* Do your homework and go with your gut.* Many people procrastinate wondering how much money is enough to retire.* Although money is needed to enjoy a decent retirement, time is the common enemy we all face.* Don't get analysis paralysis, just do it.*
__________________
A totally unblemished life is only for saints.
frayne is offline   Reply With Quote
Re: Scott Burns: The Critical 50s
Old 05-29-2006, 07:10 AM   #16
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
Re: Scott Burns: The Critical 50s

I've had two jobs shot out from under me since age 51. *Does that count twice? *

Since then, I've discovered this forum and I'm convinced that I can RE whenever I'm ready. *It's a question of the lifestyle DW and I are willing to be comfortable with. *I have decided to upgrade the travel and time off to enjoy life more even though I'm "working." *I do have to say my current job is almost stress free for two reasons *-- *(1) I believe I'd be OK financially if let go and (2) I'm a "worker bee" with no aspirations instead of the "high powered" manager I was before.

One "benefit" I supposedly get in my current job is unpaid time off without risking continued employment.* Family issues are currently limiting my travel time but I hope to start using this option in the near future.*
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Re: Scott Burns: The Critical 50s
Old 05-29-2006, 07:40 AM   #17
Early-Retirement.org Founder
Developer of FIRECalc
dory36's Avatar
 
Join Date: Jun 2002
Posts: 1,826
Re: Scott Burns: The Critical 50s

Quote:
Originally Posted by frayne
Life is uncertain, always will be.* Do your homework and go with your gut.* Many people procrastinate wondering how much money is enough to retire.* Although money is need to enjoy a decent retirement, time is the common enemy we all face.* Don't get analysis paralysis, just do it.*
Well said!
__________________
Often uninformed, seldom undecided.

Twenty years from now you will be more disappointed by the things you didn't do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover. Mark Twain
dory36 is offline   Reply With Quote
Re: Scott Burns: The Critical 50s
Old 05-29-2006, 02:41 PM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Scott Burns: The Critical 50s

Quote:
Originally Posted by Martha
No, you better quit working at 41 so you have at least 10 good years.
Since I quit younger than that, should I presume that THESE are the GOOD years?

Good god.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: Scott Burns: The Critical 50s
Old 05-29-2006, 02:47 PM   #19
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,117
Re: Scott Burns: The Critical 50s

Quote:
Originally Posted by Cute Fuzzy Bunny
Since I quit younger than that, should I presume that THESE are the GOOD years?

Good god.
Not to worry CFB. In your case I think it's a safe bet to presume the good years are already behind you.

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Re: Scott Burns: The Critical 50s
Old 05-29-2006, 02:58 PM   #20
Thinks s/he gets paid by the post
Eagle43's Avatar
 
Join Date: Jan 2005
Location: DFW
Posts: 1,883
Re: Scott Burns: The Critical 50s

I was in the yes, yes column.

I think I have told you that I never intended to retire. I had a friend at work tell me about her parents. She said they had ten good years of retirement, then her mom got Alzheimers, and a good retirement turned sour. She convinced me that sooner or later one partner of a married couple will come down with some malady; afterwards everything revolves around doctor's appts, and medicine, and hospitals, etc. We made it thru the 50s, knock on wood, and so far the early 60s.
__________________

__________________
Resist much. Obey Little. . . . Ed Abbey

Disclaimer: My Posts are for my amusement only.
Eagle43 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
Scott Burns burns Home Depot REWahoo Other topics 17 03-06-2007 10:09 PM
Scott Burns answers financial advisor's Vanguard questions Nords FIRE and Money 19 12-04-2005 12:11 AM
Scott Burns' own story sparkee Other topics 3 10-09-2005 03:01 PM
Scott Burn's Swan Song? Telly FIRE and Money 26 10-05-2005 01:58 PM
Scott Burns doesn't want us to retire! Telly FIRE and Money 27 11-06-2003 01:53 PM

 

 
All times are GMT -6. The time now is 05:39 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.