Do any of you cut it really close in easy retirement?

[CalifGal]

WOW....I would have never guessed only $200 a month for property taxes on 3 acres in California? I'm paying just about that much in North Florida and I can lean out of my windows and touch my neighbor's homes!

Mike

Property Tax is not bad here in California. I think I mentioned we bought this as a fixer upper which is key. The purchase amount is what the tax is based on, no one comes back years later to see if you did any re-modeling. Prop Tax here is capped and Prop 13 is great because you can move your property tax, once in a lifetime, to your next home. Auto insurance is also fairly reasonable here

 

[CalifGal]

If your SS check combined is 3005, and you spend 2280, you should have $725 per month left over, not $100-200. That is a pretty large difference so I suspect your monthly budget is a lot higher than you are reporting. You may want to go back a year or two and really nail down your expenses to see where you can cut. You also need to save for lump sum big ticket repairs or a replacement car.

When the first of you dies the other could be in big trouble. Hopefully you stay healthy but anything can happen at any time. My 66 year old husband was fine until last August when he was diagnosed with Glioblastoma and advised the median survival rate is 14-18 month even with surgery, chemo and radiation. We over prepared for retirement so I will be fine, but if we hadn’t, I would be panicking about finances as well as his health.

Yes the numbers were wrong. It was $2265 per month forever then there was a Cola increase so it's closer to $2300. With the Pan Am indenmnity Increase of $15 each, it sorta ate most of it up. I've asked him to show me but he's not wanting to do it. The budget is surely higher than I listed as we sell eggs to the neighbors and some folks from church but I don't consider that $$. We haven't even counted it, it's just in containers in the closet.

 

[CalifGal]

Sorry, I don't see you as set to retire. You are scraping by without any rain falling in your lives, but occasional rain, and sometimes a real storm, is inevitable.

Okay, thank you. He's considering working this summer, we'll be working together if that happens. it does seem to be cutting it too close.

Supposedly that's the reason we bought all the new items, so nothing needs replacing until age 70 when the IRA should grow enough we have the cushion needed.

 

[CalifGal]

Thanks for sharing but with no debt and living beneath our means allows us to not have to watch nickles, dimes and pennies. We're blessed to have more than we can ever spend so we donate heavily to charity and get whatever crosses our minds at the moment. My nephew and his wife are expecting their first this summer so we're learning about 529 plans.

I am glad you planned so well and the result is as such. Nice you give generously too. Just for the record, I don't pinch pennies. We just have a routine, nothing ever goes wrong. Maybe because we live out in the sticks so we don't have a ton of culture or ways to spend extra $ around us. The occasional fundraiser comes around we always participate in, and sometimes we volunteer.

Our town is a small Tourist town which 60% of the homes are vacation homes. Jobs here are available but only during the Tourist season of about 3-4 months a year. Working a real job is to drive at least 1 hr to the next closest Tourist town. There are plenty of job openings in that town

 

[Teacher Terry]

Due to an unexpected gray divorce at 67 my budget is tighter than what it was. I went back to consulting part time and either eliminated or substituted many items so I can live on my SS and pension. I’m either saving or using the earnings for unexpected expenses. This way I don’t have to use my savings. I really enjoy part time consulting so will continue as long as possible. Your income is too low for 2 people especially when one of you passes and is reduced further.

I donated money when married but no longer do because I can’t afford it and neither can you. I still help people with my time which I have always done.

 

[CalifGal]

Due to an unexpected gray divorce at 67 my budget is tighter than what it was. I went back to consulting part time and either eliminated or substituted many items so I can live on my SS and pension. I’m either saving or using the earnings for unexpected expenses. This way I don’t have to use my savings. I really enjoy part time consulting so will continue as long as possible. Your income is too low for 2 people especially when one of you passes and is reduced further.

I donated money when married but no longer do because I can’t afford it and neither can you. I still help people with my time which I have always done.

Sounds like you had unexpected things happen to you if you are consulting right now realizing you need to, so glad you enjoy it in this late stage of the game. I agree, our income is too low to retire. No one here liked the idea of getting a job later in life if need be, even at 70 yrs old, and a possible room-mate, and/or downsizing. Regarding the donation, I feel it is best to continue that. It can be reduced a little but the church is small, the pastor works p/t and he needs some financial support. Being Christian, those beliefs come from the Bible as do trying to avoid welfare (though we go to the Indian Health Clinic as stated) as much as possible. He kept his license active so we should be okay working together, full time, for 4 months a year during the peak season.

 

[GenXguy]

Yes the numbers were wrong. It was $2265 per month forever then there was a Cola increase so it's closer to $2300.

The original post says - Combined Social Security is $3005 per month

That's a lot more than $2265 or $2300.

 

[CalifGal]

Thanks for this. Sounds like you did a great job of planning out your life yet unexpected events occurred. Glad you like your job, that really helps in this stage of the game.

He kept his license active, as we worked a little over the summers together throughout the years. It's really the easiest way to make the most money is to work together for 4 months year, full-time. The donation is really needed. Our Pastor works p/t but works for the church so need some financial support. There is no extra volunteer opportunities besides what I listed we already do which is have the church over twice a month during the winter months.

Thanks to everyone for their input, I really appreciate it This has been very helpful, I'll take away what I can green from everyone's input.

 

[tmm99]

I wouldn't have retired if my money was as tight as yours. Your life would crumble if you encountered something unforeseen for a year for example (no longer able to do any work around the house, one of you getting sick, a huge disaster with your house, injuries, a stroke, death, etc, etc.) You will burn through your emergency funds in no time and will put a huge dent in your savings as well. You may even end up selling the house. But some people do what you do and hope for the best. A lot of people in fact do just that. I've seen enough people on TV who ended up filing for bankruptcy, having their house taken away, living with relatives, living in cars, etc.

I don't mean to scare you. I'm just sharing my POV. Things may work out for you with a lot of luck. But I wouldn't take that chance myself.

 

[Fermion]

We should also get the perspective of someone who didn't cut it close, made sure they had plenty of money and then died before they could enjoy any retirement at all.

 

[GenXguy]

We should also get the perspective of someone who didn't cut it close, made sure they had plenty of money and then died before they could enjoy any retirement at all.

Yes, if you know someone that fits the bill, invite them to post here.

 

[Dreamer]

I've asked him to show me but he's not wanting to do it. The budget is surely higher than I listed as we sell eggs to the neighbors and some folks from church but I don't consider that $$. We haven't even counted it, it's just in containers in the closet.

Wow. That sentence that you have asked him to show you but he's not wanting to do it, is huge red flags to me. Why would he not be willing to show you the financial information? I take care of our financial life, but I always show my spouse what I am planning on doing before I do it.

I agree with the majority here. I would not be able to sleep at night, if we were cutting it anywhere near that close. I would personally be working at whatever job I could find, as soon as possible.

 

[MissMolly]

Wow. That sentence that you have asked him to show you but he's not wanting to do it, is huge red flags to me. Why would he not be willing to show you the financial information? I take care of our financial life, but I always show my spouse what I am planning on doing before I do it.

I agree with the majority here. I would not be able to sleep at night, if we were cutting it anywhere near that close. I would personally be working at whatever job I could find, as soon as possible.

+1

 

[Gumby]

Yeah, it's pretty clear she is taking the willing along for a ride.

I wouldn't be so hasty to label someone. Sometimes people forget their login credentials and start a new account instead of contacting the help desk. It has been straightened out.

 

[rodi]

There are some "lean" fire folks here, but most of our regulars have plenty of excess in their financial budgets.

My MIL and FIL were examples of retiring on a shoestring. One small SS income from blue collar labor and one small federal pension, and a paid off house. Medical was through the federal pension but wasn't free. Their regular expenses were covered with a few extra $ each month, and their IRA/TSP money was less than $200k when they retired.

When MIL started showing signs of dementia I started helping with their taxes. While FIL was still alive they had an income (pension, RMD from TSP and IRA, and SS) of about $29k/ year.

And MIL was still saving. She was a product of the depression and could squeeze a penny till it bled.

FIL passed 10 years ago and even without the SS she was able to live within her means. Until she had to enter memory care 8 or so years ago.

DH was her financial guardian. She passed a week ago at age 97. Even with memory care drawing down her savings she's still leaving a small inheritance to her kids. The very modest house was sold when she went into memory care so that helped refill her savings at the time.

Frugal can work. There are real works examples out there.

 

[slaternuthink]

I wouldn't be so hasty to label someone. Sometimes people forget their login credentials and start a new account instead of contacting the help desk. It has been straightened out.

I was referring to the factual inconsistencies.
If others don't mind, I will butt out, sorry.

 

[pdxgal]

The upside is we can sign up at any time for a drug plan without penalty so only the first month would be out of pocket.

Having a drug plan does not necessarily mean no out of pocket expenses. It depends on the drugs you take and the costs per the insurer's formulary. I have a drug plan, and my out of pocket expenses are still $258/mo. YMMV of course.

 

[CalifGal]

Having a drug plan does not necessarily mean no out of pocket expenses. It depends on the drugs you take and the costs per the insurer's formulary. I have a drug plan, and my out of pocket expenses are still $258/mo. YMMV of course.

Sorry to hear you are spending so much $ on drugs, wow. Hopefully that will change next year. We also have the $400 a mo. extra from the Indemnity Plan and the medications are sold at cost so that should help

I am at work right now. So happy they provided internet, it's gone well so far and this internet is much faster than ours. One 24 hr shift per week with a lady who has dementia yet she's healthy otherwise. Does most everything for herself and got 4 hrs of sleep last night despite going to bed at 10pm so as I get used to the bed, should sleep more. My friend works here too. Thanks for your input

 

[pacergal]

Sorry to hear you are spending so much $ on drugs, wow. Hopefully that will change next year. We also have the $400 a mo. extra from the Indemnity Plan and the medications are sold at cost so that should help

I am at work right now. So happy they provided internet, it's gone well so far and this internet is much faster than ours. One 24 hr shift per week with a lady who has dementia yet she's healthy otherwise. Does most everything for herself and got 4 hrs of sleep last night despite going to bed at 10pm so as I get used to the bed, should sleep more. My friend works here too. Thanks for your input

Bolded by me
You are working? You do not have work income listed in your first post.
That is confusing to me as far as your income/budget listed.

 

[Gumby]

As hinted at above, there was a dual account issue. I have merged the two introductory threads so that everyone can get a better picture of the OPs situation.

 

[GenXguy]

Bolded by me
You are working? You do not have work income listed in your first post.
That is confusing to me as far as your income/budget listed.

There's a new OP to start the thread, and it says:

In Retirement, I'll work 60+ hrs a wk during the Tourist Season only, hopefully until I drop dead

Right now, I work one 42 hr shift per week.

 

[pdxgal]

We also have the $400 a mo. extra from the Indemnity Plan and the medications are sold at cost so that should help

With the crazy way that drugs are priced in this country, you never know. The $258 I pay each month is the discounted price, because I go through Kroger and they have a deal with the drug maker. The "at cost" price is $301.

 

[CalifGal]

With the crazy way that drugs are priced in this country, you never know. The $258 I pay each month is the discounted price, because I go through Kroger and they have a deal with the drug maker. The "at cost" price is $301.

Ouch

 

[CalifGal]

Bolded by me
You are working? You do not have work income listed in your first post.
That is confusing to me as far as your income/budget listed.

Yes I just went back to my former job I had for a short time. My close friend works here managing the home for a lady w/dementia. They loose a lot of staff. Her behavior issues are worse than her dementia. To bed around 9-9:30pm, up around 8am. Lots of time off downstairs where we have a living room, covered deck, 3 bedrooms and two baths, tv and so far, very fast internet compared to this one.. Nice bed, not too bad of a job, hopefully, for the long run.
A staff wants time off. I told her I would cover her 48 hr shift starting tomorrow morning at 11am so she can get away to watch the Super Bowl. She's burnt out so we'll see how she feels when she comes back.

 

[freddyw]

Welcome to the forum and I wish you and your hubby well in your retirement.
My wife and I have a similar story having a child diagnosed as Bipolar as a teenager. It's been a rocky road trying to keep her between the guardrails. She is doing well now but we're always concerned she will relapse at some point. She and her 2 boys live full time with us so life can be adventurous at times as you probably well know. I fully understand your need to simplify life as much as possible because living with chaos can be really draining both physically and emotionally. Keep up the good work and enjoy your retirement.