What Makes You Feel Poorer?

yakers said:
Well that about sounds right for me. I do have a pension. Our house value is much reduced but it is a residence not an ATM. Our IRAs are down maybe 25% but we are not drawing them down till 2010.
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Close to our situation as well. Our house has held its value for the most part, and we have never thought of it as an ATM. We will have a pension starting in June of this year. We're taking the smaller annuity and a partial lump sum estimated to be about $277k. (I'm still scratching my head on how to invest that money) With the pension annuity, we have enough cash to live on for 4 1/2 years until DH is 59 1/2. At that age, he'll start receiving money from his IRAs. I have an IRA that I will be able to receive money from in 8 years. We'll both start drawing ss at 62. Hopefully the economy will be better in a few years and we will be able to indulge in a whim or two.
yakers said:
I retired in March of 2008 so I can only compare retired life to work life and that certainly allowed for more activities on a 'whim'. But if I do not have the money I had when working I do have a lot more time and that is a trade I will happily make, at least so far. I am trying to get past the psychological effect of looking at reduced IRAs and feeling fear, doom & gloom by asking myself what has actually changed in my life. Since retirement is new to me I thought I would check in and see what has actually shown up in retiree's lives.
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Time is golden IMO.

Even though the real retirement for the both of us will officially start tomorrow, we've been in a retirement mode for quite a while. (ok, there have been a few toys purchased :blush:) I'm going to enjoy each day as best as I can. If tomorrow brings trouble, I'll deal with it. That is if I'm fortunate enough to see tomorrow. :)
 
Like others, the deferred comp account is down 25%, and that make us feel poorer even though we have no plans to draw from it for about another 10 years. DW worries more about it than I do, but then she'll probably outlive me so her concerns are not without foundation.

However, because I started a job last summer our income has been higher than we planned on. We were in a position to help out FIL, buy an expensive toy (with cash), don't have to think as hard as we did about going out to dinner, and replenish some of the losses.

Hearing about other's plights makes us very much aware of how fortunate we are.
 
We have less, but we don't feel poorer. Whatever we have will be enough, somehow. Feeling poor will occur when we are hungry for food, not when we are hungry for a second home. We can't afford it, but that is this week's want.
 
I don't feel very philosophical about this downturn. With a 37% loss in my retirement portfolio, I do feel less wealthy. I need to sell my townhome in order to reduce my expenses so that I can save more. I need to figure out if I want to buy again in this crazy housing market or rent. The prospect of renting feels like a loss of control over my housing situation and consequently a loss of security.

While these are not life or death situations and I can still buy food and pay my very expensive health insurance I have lost the confidence that in the future I will still be able to pay for necessities. Who knows what the heck will happen next? This economic crisis has caused me to lose my feeling of security and that feels more like poverty than any other aspect.
 
We're still working, our net worth has gone down 1/3 of a million on paper since the downturn started but our cash inflow has gone up slightly so it hasn't really affected our lifestyle. Our income gains have oustripped CPI but a couple percent so in some ways we are richer. But I can't help but be a little numbed as I see 10k or more each month vaporize...
 
I feel rich enough but the financial/economic news is contagious. I'm okay as long as my PF continues to bounce around within it's cushion; stay in that padded room, knock on wood. Feb. numbers will be in tomorrow evening, fingers crossed.

It is a truism that "if you've got your health, you've got just about everything." My health is improving so in that respect I'm on a bull run.
 
I am feeling everything. I keep losing money about 200K down and my house is down about 100K. I wanted to retire soon and if my portfolio grew like it did in 2007 I could live on investment easily. Now I am grateful to have a job I don't mind going to and love that the company is making record profits, giving 15% into profit sharing and giving bonuses. I a little worried it won't last, my eyesight is getting bad. People talk about the economy not turning up for 10 years or more so I will be over 70. Now even it it recovers I won't trust investing. I will start to pay down the mortgage and perhaps stay in this house I wanted to sell before retirement. I am ok anyhow, I have more than most people and I have been poor before.
 
Hey, for all those folks that saw their portfolios decline last year, remember that the loss you suffered is not totally yours.

For example, if you have a 401(k) that lost 30%, and your tax rate is 25%, then really you only lost 22 1/2% and uncle sam lost the other 7 1/2%.

If your taxable portfolio declined by 30% and you had unrealized gain, a $100K loss is really only around $82-85k, since the rest is less future tax.

So it really isn't that bad. Hey - if you work hard enough at it, you can see the positive in just about anything.

In fact, since you all felt you had lost the larger amount, you should all feel now like you are gaining something. Almost enough to offset the additional losses so far this year...:D
 
Seeing my portfolio shrink makes me feel poorer . I've cut way back on gifting and travel . I'm just not as free with money as I once was . On paper I'm still okay but I miss that heavily padded budget .
 
Going to FIREcalc and seeing I need to work until 58 to reach near certainty, rather than the 52 I got a year and a half ago.
 
The question is, poorer than what?

Like virtually everyone here, I have taken my knocks in this market and I have lost enough money to make my eyes water.

But poor? I am not poor and I have not been poor for almost 30 years. Right now, I am still working. Although I am not tapping into my nestegg, I am spending more money than I have ever spent before from my salary. My planned ER budget is less than it was a few months ago, but it is still more than I am presently spending.

I admire Thoreau, and include a quotation from Walden in my signature. I am nowhere near as together as he was, but I think that efforts to keep my "wants" under control have helped. I still have a long way to go in that department but making progress.
 
Blazing Saddles...one of my favorite movies! :D

I met Burton Gilliam a few years ago. He lives only a few miles from my abode. Maybe I'll go over to his place and borrow a cup of sugar.....:greetings10:
 
"We don't care how you git here folks, just git here..."

Burton Gilliam, starring in a Ford dealership commercial
 
CuppaJoe said:
I feel rich enough but the financial/economic news is contagious. I'm okay as long as my PF continues to bounce around within it's cushion; stay in that padded room, knock on wood. Feb. numbers will be in tomorrow evening, fingers crossed.
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We're also still in the padded room (FireCalc still gives me 100%) but I agree that the financial news is contagous. We find ourselves holding back on purchases and feeling poorer even though we know we are ok.
 
HFWR said:
"We don't care how you git here folks, just git here..."

Burton Gilliam, starring in a Ford dealership commercial
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When I met him, he looked great; same toothy grin, nice eyes and dark hair. I guess some people may wonder now if that's his natural hair color. I figure it is...at one point in his life....:whistle:

Dawg54 said:
Just don't ask for any beans!:blush:
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Hmm, maybe I should call and ask what he's been eating lately before I drop by.......:blink:
 
bbbamI, I just read your post from yesterday about waiting for xnumber of years until your husband turns 59 1/2 and start drawing from his IRA. Be advised that you don't have to wait for that age in order to take withdrawals. Check with your tax person but I think you can take regular specific monthly withdrawals earlier that 59 1/2 without penalty. There is also an IRS publication that touches on this subject. I did it when I was 55. I was retired, had the money in my 401k and took monthly withdrawals.
 
JOHNNIE36 said:
bbbamI, I just read your post from yesterday about waiting for xnumber of years until your husband turns 59 1/2 and start drawing from his IRA. Be advised that you don't have to wait for that age in order to take withdrawals. Check with your tax person but I think you can take regular specific monthly withdrawals earlier that 59 1/2 without penalty. There is also an IRS publication that touches on this subject. I did it when I was 55. I was retired, had the money in my 401k and took monthly withdrawals.
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Yes, that would be the 72t plan.

However, I believe we're not going to take this option as a large chunk of the 401k (hasn't been rolled into an IRA yet, but will be soon) is invested in equities. At this point, I think we need to leave it alone as we will be drawing down from a "whupped" account.

But who knows...maybe we'll change our mind. I appreciate your thoughtful post. :flowers:
 
yakers said:
But for myself I am not living poorer. What do the retirees here have to encounter that they feel poorer?
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Amongst all the Doom & Gloom it is good to have voices like Scott Burns in the wilderness:

Your Wealth Is Not Your Standard of Living

Here’s a challenging thought: Things aren’t as bad as they seem.
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We see things dark and hopeless because we are looking at the world through a wealth window, not an income window. Wealth changes faster than income. It also changes more than income. But when push comes to shove, the standard of living that most Americans enjoy is determined by flows of income and benefits, not wealth.
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Bottom line: Don’t get me wrong, there is plenty to worry about. But before you allow fear to run free, check the income that supports your actual standard of living.

And if you’re young and still working, remember--- it’s Bargain City out there. America is on sale.
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