Scott Burns: The Critical 50’s

**REWahoo** · 05-28-2006, 02:26 PM

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 don’t 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 50’s 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 50’s unscathed”, says Burns. This is why so many people in their 50’s and early 60’s respond to the two questions above with a “no, no” answer.

Yikes!

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

laurence · 05-28-2006, 03:09 PM

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

LOL! · 05-28-2006, 03:21 PM

Diabetes? Knee replacement? Macular degeneration?

**REWahoo** · 05-28-2006, 03:50 PM

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

mathjak107 · 05-28-2006, 03:51 PM

does one of those new penile replacements count?

rs0460a · 05-28-2006, 04:06 PM

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)

cute fuzzy bunny · 05-28-2006, 04:30 PM

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.

frayne · 05-28-2006, 04:33 PM

Quote:

Originally Posted by mathjak107

does one of those new penile replacements count?

Don't you mean enhancements ?

mathjak107 · 05-28-2006, 04:37 PM

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!

mickeyd · 05-28-2006, 04:48 PM

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 $.

**Martha** · 05-28-2006, 05:02 PM

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.

mathjak107 · 05-28-2006, 05:09 PM

divorce may be lower between 50-60 but i bet murder is higher

cute fuzzy bunny · 05-28-2006, 05:22 PM

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.

**Martha** · 05-28-2006, 08:41 PM

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.

frayne · 05-29-2006, 07:07 AM

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.*

2B · 05-29-2006, 07:10 AM

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.*

dory36 · 05-29-2006, 07:40 AM

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!

cute fuzzy bunny · 05-29-2006, 02:41 PM

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.

**REWahoo** · 05-29-2006, 02:47 PM

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.

05-28-2006, 02:26 PM	#1
REWahoo Administrator Join Date: Jun 2002 Location: Texas Hill Country Posts: 11,647	Scott Burns: The Critical 50’s 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 don’t 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 50’s 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 50’s unscathed”, says Burns. This is why so many people in their 50’s and early 60’s respond to the two questions above with a “no, no” answer. Yikes! NOTE: This column is not currently available on Burn’s website. I will post a link as soon as it is available. __________________ [Closed for renovation]

05-28-2006, 03:09 PM	#2
laurence Moderator Emeritus Join Date: Feb 2005 Location: San Diego Posts: 4,790	Re: Scott Burns: The Critical 50’s How does he define "major medical condition"? Heart attack, cancer or stroke?

05-28-2006, 03:21 PM	#3
LOL! Thinks s/he gets paid by the post Join Date: Jun 2005 Posts: 2,299	Re: Scott Burns: The Critical 50’s Diabetes? Knee replacement? Macular degeneration?

05-28-2006, 03:51 PM	#5
mathjak107 Thinks s/he gets paid by the post Join Date: Jul 2005 Posts: 2,430	Re: Scott Burns: The Critical 50’s does one of those new penile replacements count?

05-28-2006, 04:30 PM	#7
cute fuzzy bunny Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Dec 2003 Location: Losing my whump Posts: 22,527	Re: Scott Burns: The Critical 50’s 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. __________________ Many an optimist has become rich by buying out a pessimist

05-28-2006, 04:48 PM	#10
mickeyd Thinks s/he gets paid by the post Join Date: Apr 2004 Location: South Texas~29N/98W Posts: 2,293	Re: Scott Burns: The Critical 50’s 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 $. __________________ 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.

05-28-2006, 05:02 PM	#11
Martha Administrator Join Date: Feb 2004 Location: minnesota Posts: 9,866	Re: Scott Burns: The Critical 50’s 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. __________________ . Do not rely on the information provided--my posts are not to be taken as legal advice. Needless to say you must consult with your legal representative. I am not responsible for errors. If I offended you with cya I apologize. If I did not, I tried.

05-28-2006, 05:09 PM	#12
mathjak107 Thinks s/he gets paid by the post Join Date: Jul 2005 Posts: 2,430	Re: Scott Burns: The Critical 50’s divorce may be lower between 50-60 but i bet murder is higher

05-28-2006, 05:22 PM	#13
cute fuzzy bunny Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Dec 2003 Location: Losing my whump Posts: 22,527	Re: Scott Burns: The Critical 50’s 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. __________________ Many an optimist has become rich by buying out a pessimist

05-29-2006, 07:07 AM	#15
frayne Recycles dryer sheets Join Date: Oct 2002 Posts: 428	Re: Scott Burns: The Critical 50’s 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.*

05-29-2006, 07:10 AM	#16
2B Thinks s/he gets paid by the post Join Date: Mar 2006 Location: Houston Posts: 2,274	Re: Scott Burns: The Critical 50’s 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

05-29-2006, 02:58 PM	#20
Eagle43 Thinks s/he gets paid by the post