retiring without saving

[ExFlyBoy5]

Social programs can only do so much. I volunteer a couple times a month for a senior's legal clinic and the issue of "no money" is a very common issue. It's sad to see and the safety nets that are out there are often difficult to get and the fact is, sometimes these older folks are not able to complete the tasks to even get on the lists and sometimes, the lists are so long, they are dead and gone before getting help.

I have also done Meals on Wheels for many years and most of those clients are older folks. A large percentage of these folks live a life that is NOT enviable for most of us in this country.

The sad fact is that our society has adopted "out of sight, out of mind" when it comes to this population...very similar to the increasing homeless population.

I could keep going, but we don't need Porky coming around.

 

[2HOTinPHX]

But...you have to check your zip code.

Not retired yet but do see tons of those commercials. Serious question here...What are they going on about and is it legit or another load of BS?

 

[F.I.R.E User]

One of my friend who is 31 who doesn’t believe in retirement savings. Lives it up and lives paycheck to paycheck. He is also an alcoholic and doesn’t care about his health. Let’s see how he does in retirement.

 

[aja8888]

One of my friend who is 31 who doesn’t believe in retirement savings. Lives it up and lives paycheck to paycheck. He is also an alcoholic and doesn’t care about his health. Let’s see how he does in retirement.

I'll bet he won't make it to retirement age.

 

[2HOTinPHX]

Social programs can only do so much. I volunteer a couple times a month for a senior's legal clinic and the issue of "no money" is a very common issue. It's sad to see and the safety nets that are out there are often difficult to get and the fact is, sometimes these older folks are not able to complete the tasks to even get on the lists and sometimes, the lists are so long, they are dead and gone before getting help.

I have also done Meals on Wheels for many years and most of those clients are older folks. A large percentage of these folks live a life that is NOT enviable for most of us in this country.

The sad fact is that our society has adopted "out of sight, out of mind" when it comes to this population...very similar to the increasing homeless population.

I could keep going, but we don't need Porky coming around.

Thanks for what you are doing. When we retire and have more time it would be nice to give back like that.

 

[Sunset]

Not retired yet but do see tons of those commercials. Serious question here...What are they going on about and is it legit or another load of BS?

It's legit, some medicare advantage insurance cost nothing and pay the person back cash from the ~$13,000 the gov't gives for each person signed up (because now the person is not on Medicare and not the gov't responsibilty).
The trick is the advantage insurance limits the doctors and procedures done, makes the person jump through hoops to qualify for a procedure, etc. Anything to reduce the cost of providing the medical care.

However, if I had no money and could barely pay rent and food, then this is all I could afford and it's better than nothing.

 

[tryan]

Having owned and rented out rental property in the inner city for decades, I can tell you the poor have made a job out of managing their piece of the guv'mnt dole.

I once calculated each of my section 8 tenants where pulling a minimum of 35k/yr from their mailboxes.

All single moms. In a second or third generation of living on the dole. Taught at an early age how to "play " the system and to breed, as this only results in higher subsities.

Not that there's anything wrong with that !

 

[ExFlyBoy5]

Not retired yet but do see tons of those commercials. Serious question here...What are they going on about and is it legit or another load of BS?

I couldn't really tell you. I think it's a great example of washed up actors that are used to take advantage of a very susceptible population. And some of those actors have NO EXCUSE for doing it (and yes, I am looking at you, Tom Selleck).

It's legit, some medicare advantage insurance cost nothing and pay the person back cash from the ~$13,000 the gov't gives for each person signed up (because now the person is not on Medicare and not the gov't responsibilty).
The trick is the advantage insurance limits the doctors and procedures done, makes the person jump through hoops to qualify for a procedure, etc. Anything to reduce the cost of providing the medical care.

However, if I had no money and could barely pay rent and food, then this is all I could afford and it's better than nothing.

Ah, reminds me of the documentary "The Wild Wonderful Whites of West Virginia" It was an interesting show.

Thanks for what you are doing. When we retire and have more time it would be nice to give back like that.

Thanks. Only my DW and forum members here are privy to this. I have never done stuff like this for recognition (it would be embarrassing for me)...but I do think it's incumbent on most of us to help out a little. Besides, the tax payers were kind enough to pay for my law degree so it's only fair that I return some of their investment.

 

[Mr._Graybeard]

In general, there's far too many people who've "pursued their passion" in degrees and activities that do not lead to gainful employment.

Someone never took them aside and said "it's fine to be interested in xyz, but how about making it your hobby/avocation and instead focus on how you're going to keep body and soul together".

A couple hundred grand for a PhD in PreColumbian South American Women's Art, anyone? Yeah, she’s now teaching second grade and barely scraping by with 3 roommates, 36 years old and $250k in the hole.

I'm fortunate in that I studied journalism in college and managed to make a reasonable living out of it (and retired comfortably in my late 50s). But the idea that a lot of people studied some arcane field that didn't have a reasonable payoff is a canard, IMO. Not that they don't exist.

Teacher Terry's reference to her friend in IT suggests that coding isn't necessarily the unfailing path to prosperity. Even an MBA isn't a guarantee. A lot of issues can pop up, such as mental problems (the thought of pursuing an MBA-driven career would have given me a nervous breakdown).

 

[Mr._Graybeard]

Having owned and rented out rental property in the inner city for decades, I can tell you the poor have made a job out of managing their piece of the guv'mnt dole.

I once calculated each of my section 8 tenants where pulling a minimum of 35k/yr from their mailboxes.

All single moms. In a second or third generation of living on the dole. Taught at an early age how to "play " the system and to breed, as this only results in higher subsities.

Not that there's anything wrong with that !

And did you give them their money back, saying, "I cannot profit from this system?"

 

[aja8888]

And did you give them their money back, saying, "I cannot profit from this system?"

Why would he give them their money back if the rent he charged was for their use of the property?

 

[Mr._Graybeard]

Why would he give them their money back if the rent he charged was for their use of the property?

If I benefited from the system I'd be reluctant to bitch about it. But that's me.

 

[aja8888]

If I benefited from the system I'd be reluctant to bitch about it. But that's me.

I don't think he benefited by running a Section 8 property, it's the occupants that he mentioned benefited (by abusing the gov system). Rents he charged are controlled by the government.

My wife ran one of these properties when she was working for a fee managed concern that owned section 8 properties. The amount of government subsidy abuse by those residents is mind boggling. Taxpayer funded, of course.

 

[jazz4cash]

I have a family member that only has SS to support herself. She worked low paying jobs all her life, but travelled the world as a military spouse. Her 2nd husband neglected to add her to his pension when they married. He fell ill and they used all their savings and home equity for his assisted living expenses. She qualified for spousal SS and lifetime medical care (tri care) from 1st husband. I think she gets around the average monthly payment..$1500-1700 /mo. She lives in a very nice Senior housing community that is subsidized by tax credits. This is a HCOLA so her unit is about 40% below market. Technically her income is too low to qualify for her apartment but they permitted her to have a co-signer that is not obligated legally.

 

[NW-Bound]

It's legit, some medicare advantage insurance cost nothing and pay the person back cash from the ~$13,000 the gov't gives for each person signed up (because now the person is not on Medicare and not the gov't responsibilty).
The trick is the advantage insurance limits the doctors and procedures done, makes the person jump through hoops to qualify for a procedure, etc. Anything to reduce the cost of providing the medical care.

However, if I had no money and could barely pay rent and food, then this is all I could afford and it's better than nothing.

Hmmm... Interesting. I guess the patient and the insurer can tacitly agree to forgo medical expenses and just share the $13K/year. Yeah, medical care is overrated anyway. How many people you know die in hospitals? Don't go there. If you die, you die. At home.

So, what would be the equitable split? 50/50?

No, I think the patient should have much more, because his well-being is at risk. The insurer does not risk anything.

Hence, I propose $11K to the patient, and $2K to the insurer. What y'all think?

 

[Walt34]

He (and she apparently) couldn't seem to understand that you take the job that pays the bills. IF you can find a job that is fun, more power to you.

That was the dilemma that I had in the late 1960's - I loved flying (took my first flying lesson at age 15, paid for with lawn mowing money) but when I looked into employment opportunities it looked pretty dismal until you got to the left front seat of an airliner, and you were only there for maybe 10 years at best. (I wore glasses even then so military aviation was out - they wanted 20-20 vision to even consider you.)

So I picked the career in law enforcement, which worked out well for me but there's an element of luck involved with that too. Along the way I did get my private license and even owned an airplane for a couple of years and had a ball with that.

 

[MarieIG]

I'll bet he didn't live in his car.

I'll also bet that most (like 99%) of college professors don't live in their cars.

As always, bad news is good.

I think it is safe to say he did not. Neither will your DSS. I had a neighbor with a similar background. He did get tenor, but eventually went the private sector route and really made bank.

 

[Bigdawg]

I have a family member that only has SS to support herself. She worked low paying jobs all her life, but travelled the world as a military spouse. Her 2nd husband neglected to add her to his pension when they married. He fell ill and they used all their savings and home equity for his assisted living expenses. She qualified for spousal SS and lifetime medical care (tri care) from 1st husband. I think she gets around the average monthly payment..$1500-1700 /mo. She lives in a very nice Senior housing community that is subsidized by tax credits. This is a HCOLA so her unit is about 40% below market. Technically her income is too low to qualify for her apartment but they permitted her to have a co-signer that is not obligated legally.

Did 1st husband make his 20 in the service? If so, the only way she wouldn't get his military pension is if she willing signed it away.

 

[HawkOwl]

Did 1st husband make his 20 in the service? If so, the only way she wouldn't get his military pension is if she willing signed it away.

A lot of caveats. She would get up to 55% (not 100%) of his retirement pay, unless they agreed to less (there is a cost for this benefit, and some couples prefer money now to possible money later). And if the retired service member had an ex spouse while he served who has higher priority, that spouse might get the pension instead of the current spouse.

 

[marko]

. But the idea that a lot of people studied some arcane field that didn't have a reasonable payoff is a canard, IMO. .

My quote that you reference is from personal experience of my best friend's daughter, literally as I spelled it out. No reasonable payoff for her.

 

[F.I.R.E User]

I'll bet he won't make it to retirement age.

Who knows.

 

[Scuba]

My MIL retired with a teacher’s pension, SS, and a small nest egg. She has actually added to her savings during retirement as she doesn’t spend all of her income. She rents a small cottage that she loves, surrounded by nature, and lives a simple lifestyle. She thinks she is wealthy because she buys anything she wants for herself, plus she gives her grandkids and one of her sons a fair bit of money every year.

She does not receive any social services and is on traditional Medicare with private supplemental insurance. Her healthcare costs are minimal.

The key is being happy with what one has. DH and I would not want to live on her income, but for her, it’s more than adequate and she has never withdrawn a dime from her nest egg since retiring.

 

[2HOTinPHX]

It's legit, some medicare advantage insurance cost nothing and pay the person back cash from the ~$13,000 the gov't gives for each person signed up (because now the person is not on Medicare and not the gov't responsibilty).

The trick is the advantage insurance limits the doctors and procedures done, makes the person jump through hoops to qualify for a procedure, etc. Anything to reduce the cost of providing the medical care.



However, if I had no money and could barely pay rent and food, then this is all I could afford and it's better than nothing.

Thanks for the reply.

 

[ncbill]

Who knows.

Excess alcohol consumption is a great way to kill yourself slowly.

Saw that with the last guy I worked for in the corporate world who died a few years ago.

He bled out internally from a simple fall, despite emergency surgery.

Not that surprising since the liver is key in producing clotting factors.

Died ~15 years earlier than his life expectancy after just a few years retired.

 

[tryan]

If I benefited from the system I'd be reluctant to bitch about it. But that's me.

Hmmm.... no bitching. I retired in my 40's from the proceeds. Tell me the rules to the game .... i'll win.