The Difference LBYM means

[pb4uski]

While I normally am not a fan of Yahoo! articles, this one seemed sensible.

http://finance.yahoo.com/news/signs-...130000057.html

Quote:

Once your paychecks stop coming, you need another way to pay your bills. You might get monthly payments from Social Security or a pension and continued income from a part-time or hobby job, but you will likely need income from savings or another source to cover all of your expenses. If you can't cover all your monthly bills by withdrawing no more than 3 to 4 percent of your retirement savings each year, you might benefit from spending another year or two in the workforce. Alternatively, you could try to significantly cut your expenses to live on the amount you have already saved. "If you are retired, you have more time to plan, so you can shop for a better deal," says Kevin Reardon, a certified financial planner for Shakespeare Wealth Management in Pewaukee, Wisconsin.

[bclover]

Quote:

Originally Posted by Danmar Not sure why these type of threads are so popular here? I guess it makes us feel good knowing we are so much smarter than all these "losers". I am as guilty as the next guy in this regard.

of course we do that. lol, the problem with us feeling smarter than the so called "losers" is that they really don't care what we feel.

My sister retired from nyc police department and then purchased a huge mcmansion. Her mortgage and property taxes easily top 5K a month. she never plans on LBHM's and is a happy as pig in slop......
meanwhile I stress over ever investment decision I make. so in reality who's the "smart" one?

After living my life like there would be a zombie apocalyptic then watching my husband, my baby brother and a good friend all die before 55, I no longer judge people who do not view money they way I do.

If it does not directly effect me and they are happy. C'est la vie".

[bclover]

Quote:

Originally Posted by pb4uski While I normally am not a fan of Yahoo! articles, this one seemed sensible. http://finance.yahoo.com/news/signs-...130000057.html

LOL I don't know pb4uski,

I'm a 10 years out from medicare and I will still have a mortgage but next year this gal is retiring (from at least mega corporation job)

I'm working on the "what to do" after I retire part as I definitely am not the type to sit home but hopefully by 12/2016 I'll have a game plan.

lol don't go by me though, my entire life when the world says go right, I go left.

[pb4uski]

I get you... I was 56 (9 years from medicare) when I retired and refinanced while I was "on vacation" (after stopping work but was still on payroll).

[Walt34]

Quote:

Originally Posted by Danmar Not sure why these type of threads are so popular here?

For me it's not so much the smugness (although I'll admit to some of that) but I'm curious about how they come to make those decisions, like the retired school teacher (a math teacher at that) we know slightly who is ~$500k in debt. Don't they realize they amount of interest they're paying? The options that they don't have because of the debt?

I just don't understand how or why an otherwise seemingly intelligent person would make those choices. Oh well, it's their bed, they can lie in it.

[Asher Aion]

Personally, I really try hard not to be smug, although it is often the default position.

In the back of my mind I know that my good decisions have fortunately outweighed my bad ones, and not always by design. As well, DW and I could have gone our separate ways over the years which would have had me years away from where I am now financially. I rather feel frantically fortunate.

We have friends who continually seem to fall face down into success. They never appear to worry, always fly by the seat of their pants, and are in a similar position as ourselves somehow. Yet I worry about everything. Such is life.

[hnzw_rui]

Quote:

Originally Posted by Walt34 For me it's not so much the smugness (although I'll admit to some of that) but I'm curious about how they come to make those decisions, like the retired school teacher (a math teacher at that) we know slightly who is ~$500k in debt. Don't they realize they amount of interest they're paying? The options that they don't have because of the debt? I just don't understand how or why an otherwise seemingly intelligent person would make those choices. Oh well, it's their bed, they can lie in it.

Is that $500K debt for mortgage? If so, I can understand someone who's receiving COLA DB pension deciding to keep the mortgage instead of raiding retirement savings (and paying a hefty tax bill) to pay it off with cash.

Yes, the interest payment for a 30-year mortgage is large but there's value in having liquidity not to mention the opportunity cost on that $500K+tax.

[MooreBonds]

Quote:

Originally Posted by bclover I only have 20 bucks in my main checking account. and I am retiring with 2 million in cash next year.

I also am willing to bet that you won't non-challantly try to charge things on your debit card and overdraw that account, get hit with multiple $25 NSF fees, and get denied at the cash register...all the while bragging/dreaming about your next splurge that you can't afford, and then bemoaning the fact that you don't have a job, and rip into those who have sacrificed to accumulate wealth...

[marko]

Quote:

Originally Posted by Senator It doesn't matter how much he has in checking, but when a check (or debit card) bounces, there is a major problem being able to retire in any kind of lifestyle.

My dear departed grandad (oft mentioned on this forum) had a NW of mid-high eight figures. Bounced a check. Had no problem retiring...his meager lifestyle was his choice.

Actually it was my fault. I was paying his bills for him in later life and overdrew. He was buffaloed..."so is the money gone?" (surprised I"m still alive!)

Regardless, IMHO checking account balance isn't a good indicator.

[Senator]

Quote:

Originally Posted by marko Regardless, IMHO checking account balance isn't a good indicator.

Perhaps, but I think it is an issue with not thinking ahead... And spending too much on other 'necessities'. I have seen him that way his entire life, always spending to the last dime.

[bclover]

Quote:

Originally Posted by MooreBonds I also am willing to bet that you won't non-challantly try to charge things on your debit card and overdraw that account, get hit with multiple $25 NSF fees, and get denied at the cash register...all the while bragging/dreaming about your next splurge that you can't afford, and then bemoaning the fact that you don't have a job, and rip into those who have sacrificed to accumulate wealth...

Oh absolutely Moore. lol I hate, loathe and despise paying the 3 buck fee some places want to charge me for using a non member atm

I got mad at my bank because evidently the default position if one doesn't have any money in the account is to cover the charge. I had to write a letter changing that. HOW in the world does that make sense. LOL, I grew up in an age if you didn't have the cash, your check (no atms in the dark ages) bounced.

I'm pretty lucky in that I've had my good friends (the ones I travel with) for over 35 years now, so we no longer feel the need to impress one another and we support each other lol We went to the Montreal Jazz festival this July and Montreal is known for their deals on fur coats, evidently it was once the fur trading capital of North America, coupled with the fact that the dollar is doing great against the CAD. anyhoo, our tour company had an excursion to some furriers, talk about "old girls gone wild" lol. I felt no problem saying a 5K fur coat is not in my budget. They all know I want to retire in 2016 so no one batted an eye.

Personally when I hear these stories I don't think it's a "financial" problem, I think it's more of the quality of peoples friends.

Now the thing is like I said before, in most cases if someone is bragging on items they can't afford and has been doing it all their lives, rarely do they care about what I say or encourage them to do.

Now mooching is a whooooole different story

[RISP]

Quote:

Originally Posted by Danmar I keep our cash balances (checking and savings) in the mid 6 figures to be very safe and to smooth out divs received.

Mid 6 figures? As in, half a million dollars? Wow.

I'm around 2% of that, and consider myself overly cautious.

[tmm99]

I keep over 10K in my checking account at BofA. And some more at Ally Bank (better choice obviously... 0.99% earning). The money at BofA gives me the warm and fuzzies (although it is costing me), that I could just go to the bank and get that much in cash if I ever have to, without waiting for 2 days for money to be transferred from other accounts. I've done that for years.... If I could do it over, I would probably put most of it in CD's or something, but who can say...

[mpeirce]

Quote:

Originally Posted by bclover Oh absolutely Moore. lol I hate, loathe and despise paying the 3 buck fee some places want to charge me for using a non member atm

My DW simply refuses to use fee charging ATMs. Occasionally this is a problem, so we're now using Schwab Bank's ATM card which can be used fee free with any ATM.

It's also fee free overseas (which is what motivated me to add this to our Schwab account).

[Danmar]

Quote:

Originally Posted by RISP Mid 6 figures? As in, half a million dollars? Wow. I'm around 2% of that, and consider myself overly cautious.

I keep quite a lot in case my divs get cut or large unexpected expenses. Quite cautious for sure. Really depends on what your yearly spend is, I think.

[Meadbh]

Quote:

Originally Posted by Danmar I keep quite a lot in case my divs get cut or large unexpected expenses. Quite cautious for sure. Really depends on what your yearly spend is, I think.

I tend to keep about $5000 in cash between all my checking accounts. If I could just add two zeros to all my numbers, I would be very happy!

[Walt34]

Quote:

Originally Posted by hnzw_rui Is that $500K debt for mortgage?

It's for multiple mortgages, car loans, credit cards and once even a car title loan to go on a trip.

They spend first, think later.

[Vagabond2020]

I like to keep ~$10k in checking. Which is 6 months living expenses.

[gauss]

Quote:

Originally Posted by tmm99 I keep over 10K in my checking account at BofA. And some more at Ally Bank (better choice obviously... 0.99% earning). The money at BofA gives me the warm and fuzzies (although it is costing me), that I could just go to the bank and get that much in cash if I ever have to, without waiting for 2 days for money to be transferred from other accounts. I've done that for years.... If I could do it over, I would probably put most of it in CD's or something, but who can say...

Does Ally Bank offer a Visa or Master card branded debit card for your account? If so, you should be able to take that and your drivers license to any Visa/MC member bank and get an "over the counter" advance against your debit card inside the bank. Unlike ATM service, the member banks providing the cash service do not (probably banned by Visa/MC contracts) charge a fee for this. You typically don't need to be a customer of the bank either.

The main thing to worry about would be the daily limit that Ally would place on your account for this type of transaction. I think I have $5,000 on mine with another online bank, but they were willing to raise it for me.

This is how I solved this problem. I do it a couple of times per year just to assure myself that it still works.

-gauss

[kcowan]

Quote:

Originally Posted by Meadbh I tend to keep about $5000 in cash between all my checking accounts. If I could just add two zeros to all my numbers, I would be very happy!

That is why I think it is better to deal in %. Less envy develops.