Re-Thinking Retirement Objectives

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EndGamePlayer's picture
EndGamePlayer
Status: Platinum Member (Offline)
Joined: Sep 2 2008
Posts: 546
Re-Thinking Retirement Objectives

So I'm looking at retirement in the next 10 years and realize -- there will not be money from social security or medicare. my first thought - buy houses or apartment complexes to rent to supplement my income in later years, but that can be a lot of work. . . however I'm seeing a small amount of houses for sale at reasonable prices. And, the cost analysis says it will take 15 years to pay off the mortage on the places.

Ideas please on:

What to do if your parents are NOW living on SS and what can they do when SS becomes insolvent.

What to do if you have 10 years before retirement.

30 years before retirement.

Are we looking at multi-generational living? Communal retirement places? Or will people be working till they drop dead?

So, what does the future of the aging population look like?

joe2baba's picture
joe2baba
Status: Martenson Brigade Member (Offline)
Joined: Jun 17 2008
Posts: 807
Re: Re-Thinking Retirement Objectives

martin weiss at money and markets just came out with a report on the housing market.

his read is pretty bleak so if you are planning on buying  it would be wise to wait as we have not hit bottom yet. it depends somewhat on where you live of course

rentals are a LOT of work and a royal pain in the ass. you will not be retired by any stretch unless you have someone to manage them. ( i had one rental for ten years i am a real estate broker)

i will be working till i drop dead. my retirement had been to live in india but inflation there is nuts so 10- 20 years down the road i would have to work anyway.

fortunately i have no debt own my place 4acres free and clear.

i can grow a lot of my own food and heat with wood if need be. my goal is to keep my overhead as low as i can.

i see living arrangements changing with families moving back in together. taking care of aging parents etc. i see it more and more. i see people taking in roomates to help with expenses.

all in all the times they are a changin and some of the changes might not be bad......more community and tighter family bonds.

om shanti

joe

rlee's picture
rlee
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Joined: Sep 18 2008
Posts: 148
Re: Re-Thinking Retirement Objectives

Hey EGP,

In response to "what to do if you have 10 years to retirement" 

Three years ago I relocated my family to a much quieter lifestyle in the upper northeast.  It meant a cut in pay, some lifestyle changes, and the need to move my retirement account out of the public sector account it was in and invest in an IRA.  At the time, with the projected gains (very conservative mind you) I had another 10 - 13 years of working.  That seemed good since my kids would just about be three years out of college and probably self sufficient by then.

But OOPS came the great fall, and I have yet to put my Humpty-Dumpty IRA back together again.  So far, I've lost pretty much every last gain in the account since its inception.  So, if the market goes up, and stays going up TODAY, then my plans move another 3-4 years forward.  Since we all know that it ain't gonna happen, then I guess the answer to your question is "work until you die!"

Now, in the grand scheme of things, isn't that what Big Brother needs us to do?  He's preparing us to live without Social Security, and continue the work / borrow / spend lifestyle that makes this country great!

I (we) am/are not alone in this one.

Bob 

FYI:  I've already told my kids they'll need to stay close.  Daddy's gonna need someone to feed him his applesauce and wipe off the poo in a few years!

Ray Hewitt's picture
Ray Hewitt
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Joined: Apr 5 2008
Posts: 458
Re: Re-Thinking Retirement Objectives

I'm not even thinking of retirement. And I'm 66. When my company's pension fund goes bankrupt, I'll be working. When SS and Medicare go belly up, I'll be working. As long as I'm healthy and my job holds out, I'll be working.

martin weiss at money and markets just came out with a report on the housing market. 

Tthe Weiss article confirmed what I what I was thinking. Inflation has been going on for almost 100 years. Prices would have to go back to what they were in the 20s before it's all wringed out. If it's any consolation, the era of big government is coming to an end.

James Wandler's picture
James Wandler
Status: Martenson Brigade Member (Offline)
Joined: Aug 12 2008
Posts: 219
Re: Re-Thinking Retirement Objectives
[quote=joe2baba]

fortunately i have no debt own my place 4acres free and clear.

i can grow a lot of my own food and heat with wood if need be. my goal is to keep my overhead as low as i can.

i see living arrangements changing with families moving back in together. taking care of aging parents etc. i see it more and more. i see people taking in roomates to help with expenses.

all in all the times they are a changin and some of the changes might not be bad......more community and tighter family bonds.

[/quote]

Well said Joe,

Plus, keeping active in "retirement" keeps you healthy and young.  Might help with medical bills - could an excess medical insurance coverage suffice?

Moving to areas currently considered "marginal" may actually be the most valuable areas to live.   Properties would, generally, be cheaper and less influenced by the housing bubble.  If zoning allows for some agricultural use so much the better but if there are neighbours providing food (chickens, eggs, etc.) then there is the possiblity of having it cheaply available.  Maybe you can preserve food that can last the winter without energy and swap the extra for preserving done by someone else?

Maybe you can cut back transportation to one vehicle.

Look at investing in "negawatts" - which is a fancy name for investing money in promoting energy efficiency.  Once this has been done the remainder could be provided from renewables - wood in Joe's example above.

Have energy efficient appliances, ones that last, ones you can repair yourself.  A friend of mine likes www.staber.com.  Here's a quote from their site.  "It is designed to be end user repairable, even if you are not ‘mechanically-inclined’. We do not require authorized service technicians for service on our washer. There is total front access to the parts, no transmission to worry about, and fewer overall moving parts."   Is it more expensive?  The site claims that the energy efficiency can pay for itself.

Pay off debt, don't take on new debt.

Buy only the house that you need - this minimizes property tax. 

Homeschool over private school.

Prepare foods from "scratch" and avoid fast food and eating out.

Entertain friends at home - but without the fancy food - just like minded people getting together.  Board games, poker leagues?

Visit relatives instead of expensive vacations.

Find something that you enjoy doing - maybe even something that you'd do for free - but that others would pay you for your services.  This can bring in some "effortless" income.

Basically, you go and up and down over your expenses again and again asking yourself month after month - do I really value what I'm spending my money on - could I replace the activity with something better value for money - decisions over which only you can decide.  This is the premise behind the book Your Money or Your Life by Joe Dominguez and Vicki Robin.  More information can be found on their website http://www.yourmoneyoryourlife.org/ 

Sure, this may not be the retirement that you had in mind....but in the end could it be a lot more meaningful?  I hope so. 

All the best,

James

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