Anyone else here forced to retire and scared to death?

[NW-Bound]

I do not know about Alexandria, Virginia, but this sad story makes me think about the peril people in high-value RE area face. That is high rent or high mortgage is OK until you lose your job, or your high-tech employer stumbles. Then, it is hell to get out of the obligations that you carry.

If you get hired by a well-known high-tech firm like Google, it's hard to say no, even if the higher pay still does not make those million-dollar bitty homes affordable. I have told here the story of how my brother quit his job at Google, and gave up the higher pay and also option worth around $500K when they wanted him back. It's all because of the housing situation. One would have to be among the first few employees and with loads of shares to feel comfortable living there.

 

[Hermit]

Op will pay $20k for his apartment for 8 mos. He has stated that $800/mo in the Richmond area would suit his needs. If it is worth the extra $13,600 to keep his good credit and to honor his commitments, I not only don't see anything wrong with that but applaud his moral character. I also see nothing wrong with talking to a lawyer to find out what the law says his legal options might be. Either way, I don't think the $13,600 is going to put him in the financial peril that a lot of folks here are suggesting. As well as finding appropriate housing in a close but more affordable area, the Op has made an appointment with a lawyer. I think he is on a good course that will serve him well.

 

[NW-Bound]

Op will pay $20k for his apartment for 8 mos. He has stated that $800/mo in the Richmond area would suit his needs. If it is worth the extra $13,600 to keep his good credit and to honor his commitments, I not only don't see anything wrong with that but applaud his moral character. I also see nothing wrong with talking to a lawyer to find out what the law says his legal options might be. Either way, I don't think the $13,600 is going to put him in the financial peril that a lot of folks here are suggesting. As well as finding appropriate housing in a close but more affordable area, the Op has made an appointment with a lawyer. I think he is on a good course that will serve him well.

+1

The OP still has money. That extra $13,600 hurts some, but then it buys him some time to clear his mind and to research his options.

In the long run, he will need to relocate not just to save on housing costs, but to also get some work to help get some income. With SS and a downsized budget, he does not need much to be OK financially.

 

[alaska55]

Some of the people clarified the information I had given before.

People asked if friends and family can help me out. Yes, I have some friends and family in the area but they are not close enough to really get much emotional support from. Were friendly but not close. So for all practical purposes I am alone in all of this. (I said earlier I have no family or friends who can help me out- this is basically true.)

People asked about my $300K in savings. I burned through my 401k and IRA foolishly in a previous job loss and long term unemployment years ago. After that I did OK for a time and managed to save and invest the $300K, which all sits in a Fidelity Account. $280K is in mutual funds and $20K in money market.



People asked if I am collecting jobless benefits. I was collecting-up to a few months ago, but they ended. Now I make no income at all.

People asked why I don't just move to a cheaper spot. I have an apartment lease that goes another 8 months and they told me I would be sued and my credit will be destroyed if I break it. There is a special website apartment complexes and landlords use to check up on potential renters. If I am evicted or break my list, I will show up on that website as a dead beat. Having a good reputation and credit was always important to me. I am so proud of my 821 FICO score.

People ask how I can be spending $2500 in rent. Because every time I signed a new lease the rent went up 10% or so and I was too lazy to move. Rent is very expensive in Alexandria VA. The prices you see online for apartments is for the first year only. If you sign a new lease, expect to pay 10% more each year. The rent just went up each year to the incredible $2500 a month rate.

People ask why I don't just get a part time or temp job to get me some money. I have tried EVERYTHING but no one wants me, likely because of my odd personality, being old and having white hair and being 300 pounds.

People asked what I did before I was fired. I was an Operations Manager for a large company in Crystal City VA and made really good money. I was fired after six years of employment- with no notice or warnings at all- because my boss of many years said-- "it was not a good fit."

No close family and friends that can really help? I think it time to pack up and start all over somewhere new. I would start looking in a warm weather climate. Some where like Port St Lucie/Jensen Beach Florida or north to Coco Beach area. Their are lots of retirees in that part of Florida and it cheap even compared to Richmond.

http://www.zillow.com/homes/for_ren...82,26.978687,-80.543175_rect/10_zm/?3col=true

 

[eta2020]

I do not know about Alexandria, Virginia, but this sad story makes me think about the peril people in high-value RE area face. That is high rent or high mortgage is OK until you lose your job, or your high-tech employer stumbles. Then, it is hell to get out of the obligations that you carry.

If you get hired by a well-known high-tech firm like Google, it's hard to say no, even if the higher pay still does not make those million-dollar bitty homes affordable. I have told here the story of how my brother quit his job at Google, and gave up the higher pay and also option worth around $500K when they wanted him back. It's all because of the housing situation. One would have to be among the first few employees and with loads of shares to feel comfortable living there.

San Francisco Home Values Have Increased 557% Since 1986

Not so if you make your priority to pay off your expensive house. 2 Software professionals can still pay off small house in Mountain View in less then 10 years and small Condo in less then 4-5. (And you don't need a car)

You can actually FI quickly in such location.

 

[ivinsfan]

Op will pay $20k for his apartment for 8 mos. He has stated that $800/mo in the Richmond area would suit his needs. If it is worth the extra $13,600 to keep his good credit and to honor his commitments, I not only don't see anything wrong with that but applaud his moral character. I also see nothing wrong with talking to a lawyer to find out what the law says his legal options might be. Either way, I don't think the $13,600 is going to put him in the financial peril that a lot of folks here are suggesting. As well as finding appropriate housing in a close but more affordable area, the Op has made an appointment with a lawyer. I think he is on a good course that will serve him well.

No one said he was going to end up sleeping under a tree He's the one who picked the named "forced to retire" and said he was worried about money....It's not the 13K. it's the fact if he stays in that apartment HE WILL EVENTUALLY GO BROKE. Posters are trying to give him alternatives and saying the sooner he moves on the more money he will retain. He has stuff he needs to do now to be ready to move on within a few months.

 

[Teacher Terry]

Wasting $ on an expensive apartment in his position is just stupid. One day the $ will run out. I have seen people procrastinate right up until they are broke.

 

[EastWest Gal]

San Francisco Home Values Have Increased 557% Since 1986

Not so if you make your priority to pay off your expensive house. 2 Software professionals can still pay off small house in Mountain View in less then 10 years and small Condo in less then 4-5. (And you don't need a car)

You can actually FI quickly in such location.

Seriously? Two software professionals? Average software engineer salary in Silicon Valley is $134K per indeed.com. I guess you are assuming a married couple, both of them high up in a major software company, not a startup which may go belly up. $1M+ for a 1300 square foot house is typical there. What if one of them loses their job? Paying off a home in 5-10 years in this low interest rate environment also makes no sense, if one is a high earner and needs the tax deduction. It's better to pay off slowly and invest your extra income.

A 30 year mortgage on $800000 is about $3500/mo, a 15 year mortgage is probably over $5500/mo. One is better off investing the difference, LBYM, then RE and going to a lower COL area.

What happens when there is another market downturn and real estate values drop, at the same time one or both become unemployed? Ouch.

The OPs reality is that he is beginning to panic over his choices this past year. People make mistakes. It's disturbing that some of us on this forum are being very critical of someone who is taking a good hard look at his reality and trying to deal with it. He also seems to be getting bad advice. Break his lease? Then where will he live? Who would rent to someone who broke his lease? Apartment owners can and do check backgrounds and credit information nowadays.

It seems weird that people here are expecting this guy to make a move 6 days after his first post. Give the man a break. You've probably scared him away by now.

He's still better off than many people I know.


Sent from my iPhone using Early Retirement Forum

 

[eta2020]

I am not critical of OP. I am only commenting on NWBound's post.

Yes it is my experience that you can be FI much faster in Silicon Valley or Boston if you have a right skills and live LBYM.

And yea if I was an OP I would break a lease

 

[Teacher Terry]

He would rent a cheaper apartment first and then break his lease. People do it all the time when circumstances change.

 

[NW-Bound]

... Yes it is my experience that you can be FI much faster in Silicon Valley or Boston if you have a right skills and live LBYM...

I am sure that quite a few manage to pull this off. But again, that's when everything works out as you plan. Some people may not be so fortunate. I am a pessimistic guy (wonder how I did leave my cushy job at megacorp to join a startup), so always think about the doomsday scenario.

About LBYM, my brother and his wife are not known for that, and there's no way in Mountain View they could afford the same 4,000-sq.ft. home they live in now. Their walk-in closet is about 1/2 the master bedroom of my modest 2,700-sq.ft. home. He did not share with me his calculations, only that the salary increase, the forfeited option, plus the prestige were not enough for the "hardship" caused by the reduction in standard of housing.

PS. They recently upgraded from 3,500-sq.ft. to that bigger home. This, when they start to be empty nesters in a few years, is beyond me. Good thing that they are not in Northern CA, because they would be so deep in debt.

... The OPs reality is that he is beginning to panic over his choices this past year. People make mistakes. It's disturbing that some of us on this forum are being very critical of someone who is taking a good hard look at his reality and trying to deal with it.

... It seems weird that people here are expecting this guy to make a move 6 days after his first post. Give the man a break. You've probably scared him away by now.

He's still better off than many people I know.

+1

 

[W2R]

OK, I haven't rented in 14+ years, so my memory is a little hazy and things might have changed. In other words, I might be grasping at straws.

But don't most standard lease agreements these days still give the renter an "out" if he is in the military and gets orders to another station far away, or if he is a civilian and can prove that he involuntarily lost his job? It might be worth looking to see if such a clause is in the lease.

 

[Texas Proud]

OK, I haven't rented in 14+ years, so my memory is a little hazy and things might have changed. In other words, I might be grasping at straws.

But don't most standard lease agreements these days still give the renter an "out" if he is in the military and gets orders to another station far away, or if he is a civilian and can prove that he involuntarily lost his job? It might be worth looking to see if such a clause is in the lease.

I have not rented for 30+ years... so I have no idea about today in a normal apt....

But, my leases never had an out for military or loss of job...

Now, my son just signed a lease for his university... and there are no out options at all...

There might be a law that allows military to get out, but I do not think it is spelled out in the lease...

 

[W2R]

I have not rented for 30+ years... so I have no idea about today in a normal apt....

But, my leases never had an out for military or loss of job...

Wow, my ex was in the Navy and every lease we had, all over the country, had an out like that in it. Of course it was not spelled out on the front page of the standard lease forms, but it was in there if you looked. We never stayed to the end of a lease.

Now, my son just signed a lease for his university... and there are no out options at all...

There might be a law that allows military to get out, but I do not think it is spelled out in the lease...

Fooey. Sorry to waste everybody's time. I thought that might still be spelled out on the back page of the standard lease form somewhere.

 

[FI by 2024]

I have not rented for 30+ years... so I have no idea about today in a normal apt....

But, my leases never had an out for military or loss of job...

Now, my son just signed a lease for his university... and there are no out options at all...

There might be a law that allows military to get out, but I do not think it is spelled out in the lease...

A military clause is commonly spelled out in the lease in areas where military renters are common. Sometimes you get a landlord who hasn't heard of the military clause but in that case I've never had a problem getting them to add an addendum to the lease. I think everybody understands that active duty military don't get too much choice in their location. A typical military lease says if the member is ordered to a new location more than 50 miles away, they can break the lease with 30 days notice. The Servicemembers Civil Relief Act also affords some protection if there is no military clause in the lease.

But OP isn't military, so he'd be concerned with whether the lease said anything about losing a job involuntarily. I've signed 5 leases in the last 14 years and I don't think any of them had a job loss clause.

 

[W2R]

A military clause is commonly spelled out in the lease in areas where military renters are common. Sometimes you get a landlord who hasn't heard of the military clause but in that case I've never had a problem getting them to add an addendum to the lease. I think everybody understands that active duty military don't get too much choice in their location. A typical military lease says if the member is ordered to a new location more than 50 miles away, they can break the lease with 30 days notice. The Servicemembers Civil Relief Act also affords some protection if there is no military clause in the lease.

But OP isn't military, so he'd be concerned with whether the lease said anything about losing a job involuntarily. I've signed 5 leases in the last 14 years and I don't think any of them had a job loss clause.

Thanks. I didn't know that not all standard lease forms have a military clause and that's too bad. IIRC the leases that my ex and I signed way back when, had a brief but important phrase in the military clause that was added to appease litigious civilians, saying that if they lost their job with no choice in the matter, and had to move, they were covered too just like the military. (This phrase was easy to overlook IIRC.) But probably that has changed since this was back when dirt was young.

 

[Toocold]

People ask why I don't just get a part time or temp job to get me some money. I have tried EVERYTHING but no one wants me, likely because of my odd personality, being old and having white hair and being 300 pounds.

Forced, Out of curiosity, would you hire someone like you if you were in the position of hiring?

 

[Texas Proud]

OK.... decided to take a look at lease of my son...

There are NO exceptions to break the lease except for 'by law'... they even say no school withdrawal, loss of job, marriage, divorce, health issues or even death!!!


I do see a military exception with some stipulations.... for change of station, deployment or being drafted... it is probably following the law, so is probably the same in all leases...

 

[nash031]

Op will pay $20k for his apartment for 8 mos. He has stated that $800/mo in the Richmond area would suit his needs. If it is worth the extra $13,600 to keep his good credit and to honor his commitments, I not only don't see anything wrong with that but applaud his moral character. I also see nothing wrong with talking to a lawyer to find out what the law says his legal options might be. Either way, I don't think the $13,600 is going to put him in the financial peril that a lot of folks here are suggesting. As well as finding appropriate housing in a close but more affordable area, the Op has made an appointment with a lawyer. I think he is on a good course that will serve him well.

He stayed there while out of work once. The longer he stays now, he more inertia he has to overcome when this lease runs out. By his own admission, he said he was too lazy to leave before. If he starts thinking, "Well, I am OK so far, I will go another year" then it becomes a big issue. He needs to leave now while he has impetus to do so, IMO.

 

[ivinsfan]

Seriously? Two software professionals? Average software engineer salary in Silicon Valley is $134K per indeed.com. I guess you are assuming a married couple, both of them high up in a major software company, not a startup which may go belly up. $1M+ for a 1300 square foot house is typical there. What if one of them loses their job? Paying off a home in 5-10 years in this low interest rate environment also makes no sense, if one is a high earner and needs the tax deduction. It's better to pay off slowly and invest your extra income.

A 30 year mortgage on $800000 is about $3500/mo, a 15 year mortgage is probably over $5500/mo. One is better off investing the difference, LBYM, then RE and going to a lower COL area.

What happens when there is another market downturn and real estate values drop, at the same time one or both become unemployed? Ouch.

The OPs reality is that he is beginning to panic over his choices this past year. People make mistakes. It's disturbing that some of us on this forum are being very critical of someone who is taking a good hard look at his reality and trying to deal with it. He also seems to be getting bad advice. Break his lease? Then where will he live? Who would rent to someone who broke his lease? Apartment owners can and do check backgrounds and credit information nowadays.

It seems weird that people here are expecting this guy to make a move 6 days after his first post. Give the man a break. You've probably scared him away by now.

He's still better off than many people I know.


Sent from my iPhone using Early Retirement Forum

I think you are a little off the mark here, most of the Buck-up critical posts seem to deal with the fact that the OP is seemingly blaming everyone and everything for his problems and implies he is helpless to help himself and a victim of circumstance. This isn't a site of members that sit by and don't take the bull by the horns. Nothing wrong with a call to action.

 

[pb4uski]

I sort of agree with EastWest Gal that there has been a lot of piling on... it takes time to make an appointment to see a lawyer on the lease, prudently investigate apartments in a different area, etc. though I will concede that we have not yet heard anything on the progress of the OP in the actions he committed to take in his post earlier in this thread (quoted below) but it has only been two business days and I think he said that he did have an appointment to talk with a lawyer.

OK, someone asked me to stopping complaining and make some changes to my attitude and DO SOMETHING about my situation. So here is my plan for today:

Go to every temp agency in the area and push hard for temp work to tide me over until I can move.

Do more research into how I can use my $300K in my Fidelity Account to pay for my expenses so it won't run out before I die.

Talk to a legal aide attorney about how I can break my lease without destroying my credit so I could not rent in the future.

Look into selling some of my stuff to get a cash infusion.

Look into cancelling my $800 a month COBRA health insurance and going on Obama Care with federal subsidy.

Drive down to suburban Richmond VA and check it out. I can live there and be within 100 miles of my friends and family in the DC area but live in a cheaper more low keyed town. I see nice apartments advertised there for under $800 a month. I will talk to them about how I can rent without a job but with assets. (Maybe pay a year ahead in rent?)

 

[travelover]

I sort of agree with EastWest Gal that there has been a lot of piling on...........

Yea, blood in the water brings out the worst in people.

 

[Corporateburnout]

Yea, blood in the water brings out the worst in people.

+1

 

[ivinsfan]

I sort of agree with EastWest Gal that there has been a lot of piling on... it takes time to make an appointment to see a lawyer on the lease, prudently investigate apartments in a different area, etc. though I will concede that we have not yet heard anything on the progress of the OP in the actions he committed to take in his post earlier in this thread (quoted below) but it has only been two business days and I think he said that he did have an appointment to talk with a lawyer.

Yes, well the OP has also started 4 threads at the same time. And I've noticed he throws out a topic and seems to just sit back and read for entertainment purposes. I'm not sure what he wants from this board. Piling on, I've seen worse. He put on a huge list of things he was going to do in one day and there hasn't been any update from him. I'm starting to think that some of the concerned posters here are more worried about his situation then he is.

 

[target2019]

OP may have found a gentler forum. Same end game, though, I believe.