What would happen if one ran out of $ later in life?

[F.I.R.E User]

You did you part and the fire calculator gives you 100% chance of success. But something unexpected happened. In some cultures, the kids are obligated to take care of their elderly. That is not the case in US.

Assume you are in very good health but old and could not work. But only have the SS as the source of income which is not enough to cover the basics.

What happens then?

Also, we read so many articles on line about the "crisis" of Americans do not have enough to retire. Where are all those people who do not have $1000 to their name?

SS, SNAP, Medicare/Caid, Section 8. It is enough for basic needs. It other countries kids have to take care because government provides nothing. Many in USA still take care of parents.

 

[Koolau]

How many legged stool do we have? We each have (or will) the standard 3 legs of Pension, SS, and invested. So is that 3 or 6? And then we have a bunch of stuff we could liquidate for cash... Not really investments since most originally cost more than they would sell for, but easily cost $100K+ to replace.

I have very little of value - nothing approaching $100K except my condo. My cars might be worth $1000 and $5000. Heh, heh, maybe DW's Jewelry. She occasionally loses track of a piece. She might not notice. A couple of those pieces are worth $2K by now due to gold going up. Hmmm.

 

[athena53]

I'm not sure what is "wrong" with what picture, or that everyone who finds themselves in financial difficulty late in life got there due to irresponsibility.

Medical catastrophes, divorce, business failures - all these things can and do happen to good people who worked hard.

Absolutely- and many people just don't have marketable skills or a high native intelligence to begin with, which limits what they can make. If you're born into a functional, intact family who value education and have a strong work ethic, you started on third base already.

What bothers me are the posts I see on FB from people who say, "Well, if you save, the government just takes it for your nursing home care". I know the people here don't think that way, but I try to point out that it's not "the government"- it's the place that's providing your care and needs the money to feed you, put a roof over your head and pay its workers.

 

[Koolau]

I'm not sure what is "wrong" with what picture, or that everyone who finds themselves in financial difficulty late in life got there due to irresponsibility.

Medical catastrophes, divorce, business failures - all these things can and do happen to good people who worked hard.

BFF did all those wrong things and was fine - until he died. Now his DW is digging out. I haven't had the nerve to call her to see how she's doing. I know I need to, but the only excuse I can think of is to remind her that Megacorp has a $10K policy on BFF and she can collect it with a death cert.


I agree that many people end up in dire financial circumstances due to no fault of their own. But, I submit without data that most people have themselves to blame. As always, YMMV.

 

[MarieIG]

BFF did all those wrong things and was fine - until he died. Now his DW is digging out. I haven't had the nerve to call her to see how she's doing. I know I need to, but the only excuse I can think of is to remind her that Megacorp has a $10K policy on BFF and she can collect it with a death cert.


I agree that many people end up in dire financial circumstances due to no fault of their own. But, I submit without data that most people have themselves to blame. As always, YMMV.

You don't need an excuse to call. You can just say that you wanted to say hi and touch base with her. You may end up listening more than speaking.

 

[GenXguy]

SS, SNAP, Medicare/Caid, Section 8. It is enough for basic needs.

You must have missed the earlier posts where those are not available, long waiting lists, very difficult requirements to meet, and many don't even qualify for premium free Medicare Part A or SS benefits despite being 65+.

 

[F.I.R.E User]

You must have missed the earlier posts where those are not available, long waiting lists, very difficult requirements to meet, and many don't even qualify for premium free Medicare Part A or SS benefits despite being 65+.

There is a waitlist for S8 but depends on area. My mom pays nothing for her insurance. Everything is 100% covered.

 

[Koolau]

You don't need an excuse to call. You can just say that you wanted to say hi and touch base with her. You may end up listening more than speaking.

I'm sure you're right. I'm just not sure I know what to say. I certainly can't justify the way BFF left her. Nor can I suggest how to dig out of a deep hole. Telling someone to "stop spending so much" seems a cheap shot - though that's probably what needs to happen first.



I'm putting on next week's calendar to call. We'll see.

 

[Route246]

Just two points of clarification.

First, the comments were directed at those who complain about their situation when their own choices made their situation worse. I know there are plenty in dire straights, I just have something against those who complain when they only have themselves to blame.

Second, the "wrong with this picture" is when two siblings receive a substantial inheritance, one misses parents and puts the money away for safekeeping and the other celebrates like they hit to lotto and proceeds to spend it like it was a paycheck. It is just wrong that one gets a shot of dopamine and the other is grieving their loss of a parent.

I'm not sure what is "wrong" with what picture, or that everyone who finds themselves in financial difficulty late in life got there due to irresponsibility.

Medical catastrophes, divorce, business failures - all these things can and do happen to good people who worked hard.

 

[NW-Bound]

What bothers me are the posts I see on FB from people who say, "Well, if you save, the government just takes it for your nursing home care". I know the people here don't think that way, but I try to point out that it's not "the government"- it's the place that's providing your care and needs the money to feed you, put a roof over your head and pay its workers.

I think it is common for elderly people to complain about the cost of nursing home when they have to pay, but see that their indigent cohorts get free nursing home care from public assistance.

 

[youbet]

Just two points of clarification.



two siblings receive a substantial inheritance,

one misses parents and puts the money away for safekeeping

the other celebrates like they hit to lotto and proceeds to spend it like it was a paycheck. .

What about the one who spends the inheritance but without celebration or gleefulness. Say he pays for his kid's education or health needs of a sick relative? He misses his parents and is grateful for what they left to him. But, he does spend it.

 

[Gumby]

I have observed many instances over the years where it appears that people do not get the just consequences for their bad behavior or get more good fortune than their talents and work ethic would seem to warrant. But I can't spare the mental energy to be upset about the fact that life isn't fair. If I focus on what I have, ask myself whether that is enough for me and answer in the affirmative, then I will be happy no matter what happens or doesn't happen to other people. And if the answer is that I don't think I have enough, then I am the only one likely to change that state of affairs, again regardless of what has happened or not happened to other people. Envy is one of the Seven Deadly Sins for good reason.

 

[Aerides]

I'm sure you're right. I'm just not sure I know what to say. I certainly can't justify the way BFF left her. Nor can I suggest how to dig out of a deep hole. Telling someone to "stop spending so much" seems a cheap shot - though that's probably what needs to happen first.



I'm putting on next week's calendar to call. We'll see.

You don't talk need to plan anything. You just call (today is good).

How are you?
I was thinking of you
Can I help you with anything?
You're in our thoughts...

that's all she needs to hear.

 

[jazz4cash]

I'm sure you're right. I'm just not sure I know what to say. I certainly can't justify the way BFF left her. Nor can I suggest how to dig out of a deep hole. Telling someone to "stop spending so much" seems a cheap shot - though that's probably what needs to happen first.



I'm putting on next week's calendar to call. We'll see.

Respectfully, could there be something deeper going on? Just say “I was thinking of Joe and wanted to see how YOU are doing”….(be prepared for a rant or whatever). You don’t need a reason to call but it only gets harder if you wait and reminding her of the megacorp insurance sooner rather than later might be significant.

 

[jazz4cash]

You don't talk need to plan anything. You just call (today is good).



How are you?

I was thinking of you

Can I help you with anything?

You're in our thoughts...



that's all she needs to hear.

+1. I tried to say this but got wordy.

 

[MarieIG]

I'm sure you're right. I'm just not sure I know what to say. I certainly can't justify the way BFF left her. Nor can I suggest how to dig out of a deep hole. Telling someone to "stop spending so much" seems a cheap shot - though that's probably what needs to happen first.



I'm putting on next week's calendar to call. We'll see.

You can start with your DW and I have been thinking about you, and wanted to see how you are doing. You are not going to be able to justify your BFF's spending, nor should you try - and - unfortunately, you are not going to be able to "fix" the situation. She is actually going to have to come to some realizations herself. Just - be prepared - to listen.

Maybe offer for you and DW to take her out for coffee?

 

[MC Rider]

+1. I tried to say this but got wordy.

You don't need more than a few words to get the conversation ball rolling.

 

[ivinsfan]

You must have missed the earlier posts where those are not available, long waiting lists, very difficult requirements to meet, and many don't even qualify for premium free Medicare Part A or SS benefits despite being 65+.

You keep saying this and it's not the case where I live...

 

[GenXguy]

You keep saying this and it's not the case where I live...

I wasn't the only one saying it. Some of that stuff was mentioned first by others (Section 8, for instance). Of course, location varies.

 

[Music Lover]

Some people go out of their way to spend all their money and will make terrible financial decisions. I've told this story before:

A co-worker/friend (single) built a house that was too expensive. After 10 years living cheque to cheque and suffering from the stress that resulted he finally sold the house and moved to an apartment. Due to increased property values he probably netted a little under $100k. He was happy and stress free.

But then he decided to retire early from a govt job and took both the age and years of service penalties and upgraded from a decent 2 bedroom apartment to a much nicer 3 bedroom (still single). He had a 10-year old Rav4 that was in great shape, it only had $130,000 kms on it. The engine was replaced under a hidden warranty because it was burning oil. So he now had a 10-yaer old Rav4 in perfect shape with a brand new engine.

So what did he do? He immediately sold the car and leased an $85,000 car that came with $560 monthly payments. I estimated that his rent and the car lease used up about 90% of his reduced pension. He supplements that by drawing on his savings.

My point is that some people will go out of their way to run out of money for no good reason.

 

[Koolau]

Some people go out of their way to spend all their money and will make terrible financial decisions. I've told this story before:

A co-worker/friend (single) built a house that was too expensive. After 10 years living cheque to cheque and suffering from the stress that resulted he finally sold the house and moved to an apartment. Due to increased property values he probably netted a little under $100k. He was happy and stress free.

But then he decided to retire early from a govt job and took both the age and years of service penalties and upgraded from a decent 2 bedroom apartment to a much nicer 3 bedroom (still single). He had a 10-year old Rav4 that was in great shape, it only had $130,000 kms on it. The engine was replaced under a hidden warranty because it was burning oil. So he now had a 10-yaer old Rav4 in perfect shape with a brand new engine.

So what did he do? He immediately sold the car and leased an $85,000 car that came with $560 monthly payments. I estimated that his rent and the car lease used up about 90% of his reduced pension. He supplements that by drawing on his savings.

My point is that some people will go out of their way to run out of money for no good reason.

Sounds like my late BFF except he was married (and they both spent every dime they had and many they didn't have.) I swear, it's a disease.

 

[thatguy]

How many legged stool do we have? We each have (or will) the standard 3 legs of Pension, SS, and invested. So is that 3 or 6? And then we have a bunch of stuff we could liquidate for cash... Not really investments since most originally cost more than they would sell for, but easily cost $100K+ to replace.

I call it 6 legs but a couple legs will fall away when one of us expires.
Fortunately we don't need income from all 6 legs at the same time.

 

[NW-Bound]

^^^ But think about the space you now have with only one sitter on the stool instead of a couple.