Is this Amount of Income Enough to Retire Early On?

[haha]

Sorry. I thought this: "Unless there is some place in America where there are no drugs, no section 8, no illegals living 8 to an apartment, no street crime or break-ins in cheap neighborhoods, etc- then this stuff is mostly fantasy." was a statement about America in general, not specific to the northeast.

I see. I should have repeated the original task, to find someplace in the NE where the (long gone) OP could live on his small amount.

When I directly replied to him, I said if you mean NYC, or Boston, or Connecticut, I doubt it. But I would imagine that there are broken down towns in upstate NY, for example, where even the criminals have left for warmer weather and a larger clientele, leaving plenty of vacancies.

I guess I cannot wrap my mind around the idea of a young person who wants to take up residence in a (figurative) graveyard. And I don’t think that this describes the OP either, from a PM I received from him.

Ha

 

[RonBoyd]

Sorry. I thought this: "Unless there is some place in America where there are no drugs, no section 8, no illegals living 8 to an apartment, no street crime or break-ins in cheap neighborhoods, etc- then this stuff is mostly fantasy." was a statement about America in general, not specific to the northeast.

As did I. I offer my apology as well.

 

[52andout]

this discussion has a ton of useful information in it, although people seem to easily annoy each other.

We have some friends who are buying in Florida retirement communities for rock bottom prices. This trend will be interesting to see how it pans out. We have no desire to have a second home and this is where our life is so we are passing on that idea.

 

[NW-Bound]

Well, now that we don't want to talk about living under a bridge with $20K/yr - heck, not even in an RV for that matter - let's talk about something else then. I hate to see a good and hot thread going cold.

The info plex posted about Bloomfield Hills is really interesting. The Wiki link claims that "the median income for a family is over $200,000. In 2000, it was estimated that 49% of residential property in Bloomfield Hills has a value of over $1,000,000." That is very impressive. So, why is the town home referenced listed for only $99.5K? The fact that it has been on the market for 1yr does not bother me that much. RE market is really slow nowadays. And in addition, this unit commands a much higher price than the comps provided by Zillow. Even if this unit is nicer and deserves that price, that would explain why it would take longer to sell.

Also I did not see on the Zillow map what youbet has noted. That is, there are not that many houses for sale around this unit. Note that the blue marks with dollar amounts attached do not denote that the houses are for sale. They are simply Zillow's own estimates of what the houses are worth.

I recently read an article in Time, which said that there were neighborhoods around Detroit that had experienced a revival due to immigrants moving in. I found the story interesting and upbeat, but I of course know little about Michigan, leave alone the Detroit area. But the info provided by plex about Bloomfield Hills really tickles my curiosity. It seems like these town homes should cost more. If and when I drive my RV through the area, may just take a detour there to see for myself what it is about.

The price of $80K to $100K for a 1000 sq.ft. condo or town home is in line with what my daughter is looking to buy in Phoenix, and in a nice area. Not every location is as expensive as Seattle and San Diego (even after the crash!). Yes, one has to suffer the winter cold like in Michigan, or the summer heat as in the AZ low desert. But one should not assume that just because the condos cost 1/2 that in more expensive places that one would see drug pushers standing at each street corner, or that the local schools are underfunded.

this discussion has a ton of useful information in it, although people seem to easily annoy each other.

Ah, that's just how cranky retirees, or should I say geezers, act.

 

[Running_Man]

I see. I should have repeated the original task, to find someplace in the NE where the (long gone) OP could live on his small amount.

When I directly replied to him, I said if you mean NYC, or Boston, or Connecticut, I doubt it. But I would imagine that there are broken down towns in upstate NY, for example, where even the criminals have left for warmer weather and a larger clientele, leaving plenty of vacancies.

I guess I cannot wrap my mind around the idea of a young person who wants to take up residence in a (figurative) graveyard. And I don’t think that this describes the OP either, from a PM I received from him.

Ha

here's a nice little condo with 1000 sq feet in Bristol Conneticut that can be purchased for around 100K, resulting in a payment of about $500 per month. Bristol was ranked 84th in Money Magazines best places to live in the USA in 2010.
506 King Street, Bristol CT 06010 | Homes.com

 

[travelover]

..............
The info plex posted about Bloomfield Hills is really interesting. The Wiki link claims that "the median income for a family is over $200,000. In 2000, it was estimated that 49% of residential property in Bloomfield Hills has a value of over $1,000,000." That is very impressive. So, why is the town home referenced listed for only $99.5K? The fact that it has been on the market for 1yr does not bother me that much. RE market is really slow nowadays. And in addition, this unit commands a much higher price than the comps provided by Zillow. Even if this unit is nicer and deserves that price, that would explain why it would take longer to sell.

Also I did not see on the Zillow map what youbet has noted. That is, there are not that many houses for sale around this unit. Note that the blue marks with dollar amounts attached do not denote that the houses are for sale. They are simply Zillow's own estimates of what the houses are worth...........

DW teaches in Bloomfield Hills, so I know a little about it. The house noted in the Zillow link is actually in the next town north, Pontiac AKA little Detroit. You'll note that this house is just slightly east of a closed GM truck assembly plant.

http://www.bloomfieldhillsmi.net/FrontDesk/Maps/Map-ZoningMap.pdf

 

[haha]

this discussion has a ton of useful information in it, although people seem to easily annoy each other.

You came in too late to find out how annoyed people can get around here. This is all peaches and cream.

For myself, I am amazed at how cheap things can be. I think if a place is land constrained, and also creates a lot of well paid to extremely well paid jobs, property costs a lot. Otherwise, not really.

I suppose there might be a geographic arbitrage available, but for someone else, not me.

Ha

 

[haha]

DW teaches in Bloomfield Hills, so I know a little about it. The house noted in the Zillow link is actually in the next town north, Pontiac AKA little Detroit. You'll note that this house is just slightly east of a closed GM truck assembly plant.

http://www.bloomfieldhillsmi.net/FrontDesk/Maps/Map-ZoningMap.pdf

Well, blow me down! Somewhere, over the rainbow, skies are blue...

An interesting thing I note in discussions of this type... first we get a 1500 sq ft townhouse in Bloomfield Hills, which morphs to a 1000 sq ft. townhouse in Pontiac. About the only similarity is that they both contain square feet.

Then we are talking about condos. Kind of a moving target, and the posters who say there is cheap everywhere seem to be right, if the constraints are fairly loose.

I have been looking for over 2 years- not real steadily, but most places I walk in and walk right back out. Though it does get better every week.

Ha

 

[NW-Bound]

I think if a place is land constrained, and also creates a lot of well paid to extremely well paid jobs, property costs a lot. Otherwise, not really.

Ah, but isn't a retiree's advantage is that because he no longer needs a job, he would have more choices?

Here's an example. In Victoria BC, we spent some time looking at postings on an RE sales office window, and noted how prices were significantly lower than in Vancouver. They weren't cheap mind you, but less expensive than in Vancouver, where there were those jobs the workers needed. Of course, a retiree may still want to live in Vancouver because it's more "fun", but not all retirees want to be in the crowded city in addition to paying higher prices. Right? I myself take Victoria anytime over Vancouver.

 

[haha]

Ah, but isn't a retiree's advantage is that because he no longer needs a job, he would have more choices?

Here's an example. In Victoria BC, we spent some time looking at postings on an RE sales office window, and noted how prices were significantly lower than in Vancouver. They weren't cheap mind you, but less expensive than in Vancouver, where there were those jobs the workers needed. Of course, a retiree may still want to live in Vancouver because it's more "fun", but not all retirees want to be in the crowded city in addition to paying higher prices. Right? I myself take Victoria anytime over Vancouver.

Sure, and for some people that would be fine. But I like lively places with young, creative, working people (including my own children). I would not be happy in a retiree haven.

Ha

 

[NW-Bound]

I don't think Victoria is a retiree haven in the usual sense. But it certainly is not as "lively". For an self-proclaimed extrovert like you, Vancouver would be a retiree haven.

PS. By the way, I was talking about houses in Saanich Peninsula in Victoria, not further up north of the island where Ted Kaczynski would feel right at home.

 

[DblDoc]

I don't think Victoria is a retiree haven in the usual sense. But it certainly is not as "lively". For an self-proclaimed extrovert like you, Vancouver would be a retiree haven.

PS. By the way, I was talking about houses in Saanich Peninsula in Victoria, not further up north of the island where Ted Kaczynski would feel right at home.

Hey. I grew up there . Not as isolated or as redneck as it used to be as all the frozen Eastern Canadians retired to the "Banana Belt" of Canada.

As for Victoria it is still the city for "Newlyweds and Nearly Deads", also known for being more British than Britian. And I agree with Ha, I'd live in Vancouver over Victoria any day. Unfortunately real estate prices continue to be exorbitant there. When I was young it was driven by Hong Kong money with families establishing a foothold in Canada before HK reverted to China, now it is wealthy Chinese buying property for similar reasons Is Vancouver in a real estate bubble? - The Globe and Mail.

DD

 

[NW-Bound]

So, you are a Canuck! How far up north of the island were you?

In my last visit, I wanted to drive up to Port Hardy, but only made it as far as Qualicum and Port Alberni. The other day, I was looking at the map to see if I can take my RV to Port Hardy, then take a ferry to go further up to Alaska. So much to see. I have had enough of Vancouver traffic jam, thank you.

 

[veremchuka]

Sheesh. This unbridled enthusiasm needs tempering with the facts:

"Texas is infested with scorpions, rattlesnakes, fire ants, crazy raspberry ants, cockroaches on steroids, killer bees, mosquitoes, ticks, chiggers, tarantulas, brown recluse spiders, love bugs, swarming crickets, copperheads, cottonmouths, rabid skunks, wild hogs, alligators, oppressive heat & humidity, bleak desolate scenery, dirty beaches, polluted air, dust storms, drought, wildfires, water shortages, recurring floods, tornadoes, hurricanes, rednecks, huge piles of flaming mulch, spontaneously combusting playgrounds, roads hot as flowing lava, the stench of natural and unnatural gasses, pirate attacks and amoebic meningitis lurking in area lakes, recurring ebola virus outbreaks, flesh eating bacteria, the highest homeowner insurance rates in the US, unbelievably high property taxes, mandatory death sentences for DUI convictions, polygamous religious sects, and, lest we forget, doesn't look kindly towards Yankees (per Orchidflower)."

so where's the down side, texas does not have a state income tax and great pistol carry laws!

 

[REWahoo]

so where's the down side, texas does not have a state income tax and great pistol carry laws!

Ever give any thought as to why so many Texans might need to carry?

 

[Nords]

Ever give any thought as to why so many Texans might need to carry?

Californians?

 

[usrules]

20k is certainly doable.

I will only talk about the unfordable health insurance myth in the great socialist heaven of NY.
One can purchase health insurance (with a $1200/year "high deductible") for $180/month as long as one worked (even part time) at any point in the 12 months before the FIRST enrollment and income is less than $2200/month around the time of each annual renewal. More importantly, pre-existing conditions do not exclude nor influence premiums in NYS.
If income is even lower, one can qualify for cheaper or free plans...

 

[NW-Bound]

All right! Socialism is not all that bad, when it works in our favor. And NY is in the North East as our OP desired.

About the working requirement, our hypothetical retiree would not mind being a Walmart greeter for 1 week, before quitting.

With medical costs out of the way, let's work on housing for him.

I am afraid NYC is out. For affordable housing, does one have to stay in the Adirondack with the infamous flies like I read about in another thread?

 

[52andout]

20k is certainly doable.

I will only talk about the unfordable health insurance myth in the great socialist heaven of NY.
One can purchase health insurance (with a $1200/year "high deductible") for $180/month as long as one worked (even part time) at any point in the 12 months before the FIRST enrollment and income is less than $2200/month around the time of each annual renewal. More importantly, pre-existing conditions do not exclude nor influence premiums in NYS.
If income is even lower, one can qualify for cheaper or free plans...

I also live in NY state and I was thinking about this. This morning the NY legislature is trying to figure out how to close a huge budget gap. When the national healthcare plan is in place I would not be surprised to see programs like this go, or the income limits lowered or premiums raised. Without the national plan I still think that this could be changed. Since social security, military retirement, government raises, medicare etc are all being mentioned as ways to help balance the budget I can't honestly see these programs as being quite as generous as they are now. I am not a doom and gloomer by any stretch of the imagination however the reality of the mess we are in needs to be looked at realistically. You can only raise taxes so much. When you are living on an income level this close to the bone it could be a deal breaker.

by the way, when I looked at the plan you mentioned, Healthy NY I was quite surprised to see they only looked at income. I could cash a bunch of stuff in by Dec 31, then only make or withdraw a small amount of taxable income and qualify despite having 401K's etc. Crazy.

 

[NW-Bound]

by the way, when I looked at the plan you mentioned, Healthy NY I was quite surprised to see they only looked at income. I could cash a bunch of stuff in by Dec 31, then only make or withdraw a small amount of taxable income and qualify despite having 401K's etc. Crazy.

From the post by usrules, I think he said the requirement is for "employment", which means you must have some earned income by working.

About disqualifying someone because of a large 401k, it sounds reasonable. But do we count the value of the account, or just the income from it?

And then to be fair, how about someone with other types of assets, like a big paid-for house, some farmland, etc... It can get complicated quickly.

PS. I guess it is called means testing, which is done in other countries, I have read.

 

[oldtrig]

I plan to retire with income of about $20,000. I will make it ok. You people who say it cannot be done do not know what you are talking about. I only made $9000 in 1994 and $12000 in 1996 and I am still here. I have saved though. I have never owned a new car but I still get to where I am going. We never eat out and never travel. I traveled the world in the 60's while in the military so there is nowhere I want to go. I have never had to hire a plumber, mechanic or anyone to help me fix things. I figured out how to do them myself. Everyone today worries about health insurance. I am going to do without until Medicare kicks in next year. I plan on doing away with my phone, tv and INTERNET. I grew up without any of these and made it quite well. oldtrig

 

[Martha]

So Oldtrig, what do you plan to do all day? I am not making fun, I am curious. I know someone much like you that lives on social security, in a small house he owns out in the boonies, and fixes everything himself. He watches no tv but recently got the internet. I am sure he lives on less than 20,000 a year. He seems busy all the time but I can't quite figure out what he does all day. Putzing I guess. LIke me, just different putzing.

 

[oldtrig]

Martha, I plan on working everyday at the shop I own. I can weld, work on small engines and believe it or not I taught myself 12 years ago to repair and network computers. I worked in this shop for almost 30 years before I give it up 14 years ago to take the job I have now. The difference now is I will not have to make ends meet because I will have income. I also plan on playing golf when time permits. I also plan on helping older people who cannot afford to have things fixed. I see no way I will have time for TV, talking on a phone or surfing the internet. Most or time wasters anyway. I am in good health and hope to stay that way. Leaving stress at my present job will aid in keeping me healthy. When I start my new goal in life if stress comes along I will just close the shop doors and go home
Finally I will be able to work on things and enjoy it, at least that is my plan. Oldtrig

 

[Midpack]

Martha, I plan on working everyday at the shop I own. I can weld, work on small engines and believe it or not I taught myself 12 years ago to repair and network computers. I worked in this shop for almost 30 years before I give it up 14 years ago to take the job I have now. The difference now is I will not have to make ends meet because I will have income. I also plan on playing golf when time permits. I also plan on helping older people who cannot afford to have things fixed. I see no way I will have time for TV, talking on a phone or surfing the internet. Most or time wasters anyway. I am in good health and hope to stay that way. Leaving stress at my present job will aid in keeping me healthy. When I start my new goal in life if stress comes along I will just close the shop doors and go home
Finally I will be able to work on things and enjoy it, at least that is my plan. Oldtrig

Too bad you don't surf the internet, you'd enjoy this site Early Retirement Extreme: — written by Jacob Lund Fisker, Freelancer

Is that you Jacob?

 

[NW-Bound]

... Finally I will be able to work on things and enjoy it, at least that is my plan. Oldtrig

Thanks for posting, oldtrig. People who live a city life simply cannot understand how one can live simply in a rural area for so little. I am a city rat myself, but I know others can do it. It's good to know you can keep yourself entertained without having to spend a lot of money. Also, you seem to be able to keep from getting bored.

Best wishes. And don't swear off the Internet! You've got to keep us informed on how you are doin'.