Retirement, economy, plan for it now

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Read through Hoots post, and self sufficiency, and Anna"s remark about economy, Made me wonder how many of you all out there relize, that when you retire that your income is probably a third of what you are all use too.Since we retired, on a fixed income, with only a slight increase in social security each year, We have watched our income not go as far as it use too. Some months get darn bad, especially when we have to come up with car insurance. If we didn"t have this house payed for,and we live in a low property tax area. We would be in lots of trouble. I don"t care what the government says, this country is slowly going down hill. Our C D"s are only paying 2 1/2 percent now, Just a little saveings we manage to save over the years. All you baby boomers, at least do everything you can to get your house payed for. Get as self sufficient as possible, cause all the bills you have now, you will have when you retire, and maybe more for medicine. Food prices are going up, Look at clothing its high too. You can"t even make your own clothes any more, the material is so exspensive, patterns are worse. Feed for animals is getting higher. Do every thing you can now, while there is time, I really believe it will not be as easy for you younger ones,

-- Irene texas (tkorsborn@cs.com), March 02, 2002

Answers

Irene, you couldn't be more right!! When my husband considered taking an early retirement, we found out that we'd be getting less than a third of his annual income! Even though we're in pretty good shape, financially speaking with no house payment or car payment and no more credit card debt than we can handle in one month, I was still appalled at how little his retirement would be. Fortunately, we've always been agressive savers and very frugal, but with the cost of medicine going up every day that alone would be difficult to handle. I honestly worry about what some people will do. Thanks for the heads-up.

Wishing you enough.

-- Trevilians (Trevilians@attbi.net), March 02, 2002.


Irene----that is why we are planning on selling out here & sizeing down & starting another business we can work into our retirement---- it is never toooo early to plan a head!!

-- Sonda in Ks. (sgbruce@birch.net), March 02, 2002.

Hi Irene, according to the goverment, the recession is almost over!!! KInd of as believable as the statement, "Hi, I'm form the goverment and I'm here to help you!" I was just thinking about our local economy, and it is not that great. We have had so many stores and businesses close in the last year. I wonder where it is going to end. Here in the Ohio Valley it seems to take us a few years to cathc up to the rest of the world.

All I know is to cut costs as much as possible, which isn't always easy with 4 kids. We are doing some serious thinking on more radical ways to save money, I know we need to cut back on our bills even more than we have.

Although we live fine, I think we need to save more for retirement, and we have 4 kids to send to college, of they want to go. They will have to work too, but we want to help them as much as we can.

It is a world controlled by money, becasue no matter how independent you would like to be, you still must pay property taxes! Even my Amish friends pay high amounts for taxes, feed bills, and for fule for lanterns, and stoves. So today, even being Amish is not as independent as you might think!

I am going to be doing some serious thinking over the next few weeks on ways to cut back even more, and I hope to share some information with all of you, and maybe glean some from you as well!

-- Melissa in SE Ohio (me@home.net), March 02, 2002.


Irene, With a bit of homework you should be able to get at least 3 1/2 % on your CD's. I agree that it isn't much but it sounds better than what you're getting now. I have found that I get a much better return banking over the net. I only deal with American FDIC insured banks. If you decide you need some place to start, let me know.

-- DAVID Constantin In Wisconsin (cajundavid@hotmail.com), March 02, 2002.

I looked at what my retirement would bring and said the heck with saving for retirement. I am purchasing older homes that need fixing up, remodeling them (doing as much myself as I can), and renting them out. I figure in another year, I can quit my 'day job' and 'retire' with higher cash flow that won't change when I turn 65.

-- Rose (open_rose@hotmail.com), March 02, 2002.


I know a couple of people who have 'un-retired' in the last year or so and another who has already started back part time and that "part" is growing monthly.

-- Gary in Indiana (gk6854@aol.com), March 02, 2002.

BTW, Pfizer, one of the largest pharmaceutical companies in the country has a new program for those folks who are on Medicare...you can contact them and they will give you a card to take to the pharmacy..any of their medications will cost a maximum of $20 per prescription..off the top of my head, they make, Neurontin, Lipitor, a bunch of antihypertensives, etc..Also, for folks with little income, nearly ALL of the drug companies will provide medication at no cost through your physician. Many folks are totally unaware of these great programs....As far as retirement goes, neither one of us ever dreamed we would be not able to work while still in our 50s...I am so happy that before his accident and my illness, we both saved and saved and saved, and years ago got into the habit of not buying anything we truly didn't need..we buy used vehicles, used clothes, discount groceries, yard sale and flea market goodies and any food we do not grow ourselves, we buy in season at farmer's market.We never go to the movies..we wait until they come out on VCR tapes and then buy them after the price has gone down to $6.00....We never eat out..too expensive and frankly cannot be bothered. Our idea of a really good time is to have friends over and chat, play chess or monopoly, or sing ....we both make models..DH does railroad buildings and Civil War figures..I do chess sets..we make birdhouses and antique-reproduction furniture to sell. We read voraciously! Our single connection and concession to the modern world is the computer...When you realize at a younger age that there are so many things you just do not need to have, all that nice $$$$ goes into savings....I told our youngest son to put $100/month away and never act as if it is there until his 50th birthday..keep rolling it over into long-term CDs..he is 21..what a nice nest egg he will have in 29 years...Irene is right..no planning for the future means you are not in control of your life..circumstances will control you because you will have no choices.

-- lesley (martchas@bellsouth.net), March 02, 2002.

Me and the wife retired four years ago. I was 56 and we took some big cuts to go out then rather than 60. We had the choice how to set up my check and opted for her to draw the same as I after my death. She is 14 years younger and would stand unless something unexpected to out live me a good amount. (Yes she is 14 years younger and was a cheerleader eat your hearts out men) We did the thing with the rental property and decided that retiring to work on someone else's commode was not our idea of retiring so we sold them out paid the tax and moved on. Yes we don't have the money we had when working but don't have lots of the expenses. We planned ahead bought the tools and property we thought we would need and seemed to be doing alright. We don't go to the movies, rent some, eat out seldom and then at lunch its much cheaper than evening meals expecially good resturents. would not consider going back to work. We know at some time we might have financial shortfalls but so what that could have happened working full time. Retire enjoy. David

-- David in North Al. (bluewaterfarm@mindspring.com), March 02, 2002.

All of you are so right about the high cost of medical; that is the only thing that frighten my wife and I. Even though neither of us are close to retirement age, the medical is scary. Day to day doesn't bother me much; I dress like a scarecrow, or so some tell me, but my boss doesn't mind; he knows my work and appearances don't count in construction drawings, it is the work on the drawings. We have no debt on cars, home or credit cards, so as long as family remains in good health, should be smooth sailing. We are pretty frugal, don't run heat in winter so get $40.00 on elec. But living in south Texas, we don't get the REAL COLD weather most of you do either.

CDs aren't paying a lot, but with stock market volatility, got to be careful there. We diversify, some safe stocks, CDs, money market accounts.

Irene, you are so right on cost of clothing material. A catalog was selling a silk sleeping bag for $60.00. My wife figured she could do it herself for less. Yeah, silk runs near $8.00 a yard, with the amount she needed, would come out to near $80.00.

-- j.r. guerra in s. tx. (jrguerra@boultinghousesimpson.com), March 04, 2002.


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