ER - Am I ready?

[wabmester]

The mortgage companies earn a penny off each transaction but they do a million of them a day.

More like 1% per transaction, and since real estate prices have risen so high, that's a *lot* of money. I mean oodles and oodles of money. Probably the easiest way to get rich today.

 

[uncledrz]

The mortgage company figures they can take your fees as their income, repackage your loan with a bunch of other subprime mortgages, and sell the whole mess to pension funds & CDO investors. 

The weasels executives who developed this plan will all cash in their options and be working at other firms before the mortgage company goes bankrupt. 

Which is why with the period of very easy money coming to an end we need to keep an eye on the leverage and credit quality of our investments. 

 

[uncledrz]

We know a guy who got laid off from a university teaching position when he was about 40.  Now he is in his early sixties.  He has lived for more than 20 years, on less than $10,000 a year.  He works handiman jobs.  He grows his own food. Sometimes has a car, sometimes doesn't.  Is very healthy and has no insurance.  Last summer he took a 2000 mile canoe trip with his dog  from Wisconsin to Montana, most of it UP the Missouri river.  Amazing guy. 

Inspirational. Only shows that too many time our foucs is misdirected, only toward the financial, the paying part, and not on the actual living part.
I canoe, and prefer to go downstream. But what a neat trip, Wisconsin to Montana, upstream.
If you are ready to take that trip, take it. There will be plenty of time to get back into the workforce or find other ways to make some income if you need to.
Uncledrz

 

[Mr._johngalt]

Inspirational.  Only shows that too many time our foucs is misdirected, only toward the financial, the paying part, and not on the actual living part. 
I canoe, and prefer to go downstream.  But what a neat trip, Wisconsin to Montana, upstream.
If you are ready to take that trip, take it.  There will be plenty of time to get back into the workforce or find other ways to make some income if you need to.
Uncledrz

I'm ready, but I would have to go downstream and stay in motels.


Martha's acquantance is a good example of "Possum Living" which I have posted about before (inspired by BlackHillsBob). We are a long way from that but could wind down to it. Sometimes I'm not so sure we should
not have already. In a prescient moment, maybe 30 years ago, I told my former wife that if we ever did split up I would probably adopt a subsistance
lifestyle. Never did it, but I still think about it a lot.

JG

 

[Mr._johngalt]

The lender exhaustively analyzes your pension & future SS income, goes over your retirement portfolio with a fine-toothed comb to verify it'll survive repaying the mortgage, checks your medical history under a microscope to ensure you'd be able to return to the workforce if necessary to avoid declaring bankruptcy, and estimates your remaining lifespan to ensure you don't die before payoff.  The mortgage company figures they can take your fees as their income, repackage your loan with a bunch of other subprime mortgages, and sell the whole mess to pension funds & CDO investors. 

The mortgage companies earn a penny off each transaction but they do a million of them a day.

The weasels executives who developed this plan will all cash in their options and be working at other firms before the mortgage company goes bankrupt. 

Hey Nords! This "plan" is brilliant. It's capitalism man............ the engine that
powers the economy (for now anyway). Did you get hit on the head
by your surfboard?

JG

 

[Martha]

A few more things about our "possum living" acquaintance. He is very self reliant BUT he is also dependant on others. My husband's brother drove out to Montana in his suburban to pick him up after his canoe trip. Once he drove down from Wisconsin to Florida is his latest beater to visit his mom. He slept in the car and brought his own food. But in Florida, he stayed with my FIL. My FIL was invited out to dinner with the guy and his mom. My FIL ended up picking up the check for everyone. The trip cost him gas money, that was it.

He is kind of a mooch. Not that there is anything wrong with that.

 

[Repairmanjack]

"He is kind of a mooch. Not that there is anything wrong with that."

Unless you are the moochee.

 

[retire@40]

Getting back to a $15K budget for a single person, this is the budget for the guy we talked about here before that lives out of his RV.  http://vagabonders-supreme.net/BudgetInfo.htm

Even his budget is over $21K, and he spends under $5 a day on groceries.

AVERAGE MONTHLY INCOME:
Social Security: $1,049
Google AdSense & Affiliate Ads: $770
Donations: $99
Average Monthly Total Income: $1,918

AVERAGE MONTHLY EXPENSES:
Auto Fuel & Tolls: $370
RV repairs by mechanics: $388
MsTioga parts, oil, tires, improvements: $190
Groceries: $146
Dining Out: $46
Insurance: $78
Medicare health insurance: $75
Internet related expenses: $223
TV & Satellite Radio: $36
Cell Phone: $42
Propane: $39
Misc. Expenses: $149
Average Monthly Total Expenses: $1,782

Average Monthly Net Income (savings): $136

 

[GTM]

Getting back to a $15K budget for a single person, this is the budget for the guy we talked about here before that lives out of his RV.  http://vagabonders-supreme.net/BudgetInfo.htm

Even his budget is over $21K, and he spends under $5 a day on groceries.

AVERAGE MONTHLY INCOME:
Social Security: $1,049
Google AdSense & Affiliate Ads: $770
Donations: $99
Average Monthly Total Income: $1,918

AVERAGE MONTHLY EXPENSES:
Auto Fuel & Tolls: $370
RV repairs by mechanics: $388
MsTioga parts, oil, tires, improvements: $190
Groceries: $146
Dining Out: $46
Insurance: $78
Medicare health insurance: $75
Internet related expenses: $223
TV & Satellite Radio: $36
Cell Phone: $42
Propane: $39
Misc. Expenses: $149
Average Monthly Total Expenses: $1,782

Average Monthly Net Income (savings): $136

And those figures are only over the last 12 months.
How about the expenses that come up every few years that are not included.
Eyeglasses, dental work, replacement costs etc.

I do not doubt someone can live on minimal #'s but I do not think many around here do.

 

[Mr._johngalt]

And those figures are only over the last 12 months.
How about the expenses that come up every few years that are not included.
Eyeglasses, dental work, replacement costs etc.

I do not doubt someone can live on minimal #'s but I do not think many around here do.

My son lived in a van for quite some time. He parked it in friend's
driveways and they let him use the shower, etc. He is very
handy and creative, and would work just enough for
"walking around money". Eyeglasses, dental and etc
were all deferred until he went back to a "real job". He went
for years and years with no visible means of support.
(I wasn't helping him) Now, he works for the federal
government..................Argggggggghhhhhhhhhh............

JG

 

[maddythebeagle]

Back to original subject I dont think the original poster was considering "substance living" considering he has cable, broadband, and a newer SUV? I think he pointed out that he was thinking of doing some odd jobs for some cash under the table. Really sounds like he is looking to semi-retire.

 

[ladelfina]

Martha said:

The difference between retiring with a portfolio that yields $15,000 a year and being low income and earning $15,000 a year is that the one with the portfolio has more to lose if something goes wrong.

That's true, but if you don't have all the job-related expenses like clothes, commuting, lunch/coffee money, higher taxes... the portfolio $15K may represent more like $20k or more of a 'real-world' salary.

I would be on the optimistic side, especially if occasional odd jobs or other flexible work is in the mix.

 

[kat]

There's also the substantial advantages in having paid off the mortgage and not having to save that big percentage of salary that went to retirement accounts.