A delusional couple wants to retire

[Koolau]

Very true. One of the joys of being FI late in my career was that I could say what many people were thinking but were hesitant to say because some of the powers that be didn't want to hear it... but they still needed to hear it. I still needed to be diplomatic about it but I could be more bold than those who more desperately needed the paycheck. Partners and clients loved it.

I've occasionally wondered if my Financial Independence at age 51 was one of the reasons I stayed to 58. After FI, I actually felt able to say "no" or "you are wrong" or "I don't have to do that." Short of gross dishonesty or true insubordination, Megacorp would not have suddenly sent me packing. I'm sure I would have been on my way out had we come to true loggerheads over a lengthy period of time. But the few times I stood up to mgmt., they actually backed down! It was a true blessing to be in that position. When mgmt. finally decided they did not need my assistance in my specialty, they offered me another assignment (offered is a technical term which means "You will do this.") That was the weekend I decided to ER. YMMV

 

[G8tr]

I've occasionally wondered if my Financial Independence at age 51 was one of the reasons I stayed to 58. After FI, I actually felt able to say "no" or "you are wrong" or "I don't have to do that." Short of gross dishonesty or true insubordination, Megacorp would not have suddenly sent me packing. I'm sure I would have been on my way out had we come to true loggerheads over a lengthy period of time. But the few times I stood up to mgmt., they actually backed down! It was a true blessing to be in that position. When mgmt. finally decided they did not need my assistance in my specialty, they offered me another assignment (offered is a technical term which means "You will do this.") That was the weekend I decided to ER. YMMV

Interesting. There seem to be two ways people handle things in the workplace after reaching FI. Some follow your course, doing what they think is best for the organization, even if it conflicts with the course decided by their management. Others simply go along because they don't want the hassle "it's not that I'm lazy Bob, I just don't care.").

 

[ExFlyBoy5]

Auto loans have interest rates all over the board. A very low rate like 0% is not real because a cash buyer can walk in and negotiate a lower purchase price than a buyer with 0% interest can. There is a cost to that auto loan they have to make up for with the selling price. The 0% is offered because they are having trouble selling all the cars that come off the production line. It's an incentive to buy (and it works). But it should be looked at the same way a discount off the MSRP is looked at. Sometimes you get a discount off MSRP and a 0% rate. This means they really want to move the stock out.

This is very generalized and often not true. Dealers tend to not give a crap about a car being financed or not...yes, they may get bonuses from the lenders, but overall...they make money on the car sale. And the "cash" deal doesn't command nearly the good deal it did a few years ago. Some makes/models it doesn't matter one iota.

 

[bobandsherry]

Stories like this is what make people delusional.
https://www.cnbc.com/2021/01/07/i-l...tire-by-the-beach-on-just-1000-per-month.html

 

[teetee]

Stories like this is what make people delusional.
https://www.cnbc.com/2021/01/07/i-l...tire-by-the-beach-on-just-1000-per-month.html

LOL that reminded me of the recent SNL episode with Adele talking about singles moving to Africa.

 

[ExFlyBoy5]

Stories like this is what make people delusional.
https://www.cnbc.com/2021/01/07/i-l...tire-by-the-beach-on-just-1000-per-month.html

Yep. It should be noted that the person living on "$1,000" a month in MX also published a book. And I believe has a blog. So, I am not very convinced about the $1,000 month part.

 

[bobandsherry]

Yep. It should be noted that the person living on "$1,000" a month in MX also published a book. And I believe has a blog. So, I am not very convinced about the $1,000 month part.

Says she makes $100/mo on her book and she puts that into savings. But no mention of where or what her one bedroom looks like. Lots of items that people can put their own "view" on and make it better in the mind than what it is. Seems to ignore how she would cover other expenses such as when it comes time to replace her car. But power to her if she's happy.

 

[Gumby]

Says she makes $100/mo on her book and she puts that into savings. But no mention of where or what her one bedroom looks like. Lots of items that people can put their own "view" on and make it better in the mind than what it is. Seems to ignore how she would cover other expenses such as when it comes time to replace her car. But power to her if she's happy.

Being happy with her life, whatever it really looks like, is indeed fine, but leading others down the primrose path is a problem.

 

[ncbill]

Being happy with her life, whatever it really looks like, is indeed fine, but leading others down the primrose path is a problem.

Live like a native & it's not a problem...i.e. buy food in the tianguis, take the bus. etc.

If you need to live around/hang out with other gringos, however, you'll normally pay one heck of a premium.

 

[Music Lover]

Yep. It should be noted that the person living on "$1,000" a month in MX also published a book. And I believe has a blog. So, I am not very convinced about the $1,000 month part.

I know someone who lives on about $1,100 a month in Mexico. But, they rent a tiny 400 sq ft place from a local (probably under the table money) a few blocks off the tourist area. It's too small and too far off the desirable area for most. He walks everywhere and eats cheaply at home.

I'm sure it can be done if you're willing to make certain sacrifices, but it won't be an ideal retirement for most people.

 

[corn18]

I used to brag on my mom a lot because she lives off of her social security check, which is $1,000 a month. Turns out my brother has been subsidizing her to the tune of $700 / mo for food. Otherwise she doesn't eat right for an 80 year old.

So I agree that living on $1,000 a month in the US is gonna be really hard.

 

[Amethyst]

I assume that means takeout and pre-prepared meals? Because $700 a month would buy more groceries than the two of us can eat, even with someone else helping from time to time.

I used to brag on my mom a lot because she lives off of her social security check, which is $1,000 a month. Turns out my brother has been subsidizing her to the tune of $700 / mo for food. Otherwise she doesn't eat right for an 80 year old.

So I agree that living on $1,000 a month in the US is gonna be really hard.

 

[corn18]

I assume that means takeout and pre-prepared meals? Because $700 a month would buy more groceries than the two of us can eat, even with someone else helping from time to time.

Yup. We aren't close enough to take care of her in person, so we send her the prepared meals each day. Not sure what service they are using.

 

[kgtest]

I saw that and couldn’t help but think it had to be a joke.
... but also the comment in their annual salary line about $26k + employer match where later they acknowledge they only have $20k + employer match TOTAL in the 401(k) account.

I caught that as well. Reminds me of when my mom would come back from the casino and say "I won $500"...and I would have to ask...yeah but how much did you lose?

 

[G8tr]

I caught that as well. Reminds me of when my mom would come back from the casino and say "I won $500"...and I would have to ask...yeah but how much did you lose?

Lots of people only remember their winning bets. To make real progress, you need to take stock of both your winners and losers.

 

[RetireeRobert]

As to OP, yes the couple is delusional about retiring given the data as stated in OP. They should not retire, barring a case where couple wants to live on welfare and food stamps.