For those that don't or won't have 200k to 1mil for retirement, what's your plan?

My house and land should be paid for by then, and I hope to be out of all other debt in the next couple of years. I've worked all but 5 years of my adult life for non-profits-therefore I have NO retirement plan available that would pay much at retirement. I also have made only enough to do what needs to be done, and being a single parent has made saving impossible. My 'investment' has been my home and land. I plan to do one of two things:
1) a reverse mortgage and do some odd jobs like crafts and writing
2) sell and buy a smaller place with only enough room for a garden and a couple of hens in town.
I for one think that SS is really a type of retirement plan-probably the only one that any of us can count on in any way unless we work for a government agency. It appears that most other businesses are no longer offering retirement or are not living up to their responsibilties in an effort to make more money for share-holders.
I not worrying about it. I'm planning and figuring and living in the moment. I love my place, but by retirement I may not be able to keep up this place anyway. betty

It seems to me that SS could very easily disappear or become ridiculously low in its payouts. The system is financially derelict now and the future is not looking all that great........unless you are in the weapons business.

Any planning for the future should probably have very little reliance on SS.

The Waltons made good TV and gave us that feel good feeling like Andy Griffith. On the Waltons grandpa just happened to own a mountain and a sawmill that employed the family and provided a place for them to live. If I remember correctly they ended up going away to work even back then.

You can't draw SS because you didn't pay into SS correct? Did you opt out or was it the whole school district that was exempt?



I always like the argument about SS and how it's a bad investment, it's not an investment it's a tax. It is also a whole lot more than a retirement acct. I want to see the retirement acct. that you pay into and provides disability insurance and a never ending annuity with COL increases for everyone.

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"Education is the ability to listen to almost anything without losing your temper or your self confidence"
Robert Frost

Pancho, I'm glad your folks are doing well on SS, but remember there are all different levels that people get. If you pay in the maximum it might be over $1000 a month, but if you haven't, the amount you get might be much lower, $600-700 a month. That's a huge difference if it's what you have to live on.

Jennifer

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-Northern NYS

SS would be in much better shape if our government would have banked the money from the 16 paying in while 1 was collecting, but they spent every red cent and NOW they whine that there is only 2 or 3 paying in for each one collecting. They can hang ten with it IF they give me the money my employer and I paid in over the years in a lump sum and I will call it even. There isn't much hope for those of us 45-55 ever collecting anyway and with healthcare costs of about $20,000 a year for a couple if you pay on your own, that will keep us working until we drop. Only problem is if we go down before we actually drop, then we are out of luck. We have a 401K, promised pension for DH and SS to look forward too, however only the 401K can be counted on. House is paid, property taxes are around $4000 a year already and who knows what they will be in 10 years. My plan is not to live too long. Have seen problems with my parents at 80, OK for them but not what I want to do. Don't expect to have to worry about it, so hopefully more to leave to my kids.

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Cindy in PA

I'll be working until I'm dead. There is no way around it. My last SS statement said that when I retire I will get $276 per month. After the manditory medicaid payment I'll have less than $200 per month. I am treading water now so savings is not an option.

I think most people could live off SS, unless they smoke and drink.
It does depend on location too.
Personally, I doubt if I live that long, but if I do, I'd like to be out of debt first. I also have a 401k, but those aren't a gurantee anymore either.
I'd like to semi-retire at 50, but that's not looking too promising.

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Whenever you find yourself on the side of the majority, it is time to pause and reflect.
Mark Twain
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Enforced tolerance is oppression

ΜΟΛΩΝ ΛΑΒΕ

My home and land are paid for . I hope to acquire more parcels of land in the not too distant future in other places and just sit on them. I know its' a gamble but my intention is to find properties that will increase in value thru time and sell off a piece as needed. Even if I break even it's not really a loss other than the interest I could have made if the $ had been put into a bank. But I have the option of building a smaller home on it. As it stands now my Canada Pension would hardly be enough to support me but (hopefully) I still have many more working years ahead of me.

"If the overall economic situation remains basically the same for another 12 years..."


it's fairly certain the overall economic situation in the united states will NOT remain the same. there are quite a few trends that CANNOT continue.

1) the united states borrows from foreigners an average of $2,500,000,000 (that's two and a half billion) per day from foreign lenders to support our lifestyle. that's seven days a week. (we're borrowing to pay the interest on what we already owe, and to spend more than we have.)
can you say unsustainable?

2) united states households have an average negative (-0.5%) savings rate. that means the citizens are now spending 100.5% of their income. the difference is made up by either going into debt, dipping into previous savings, or selling off/mortgaging assets.
can you say unsustainable?

3) peak oil.
can you say unsustainable?

4) interest rates paid by banks are below the rate of inflation. (if you believe the government inflation figures, wake up! look around.)
can you say insustainable?

5) mortgage defaults are rising and set new records almost every month.
can you say unsustainable?

the list goes on and on....

the economic situation WILL NOT, CANNOT remain basically the same. i'm amazed it's held together this well this long.

pax
t.f.

an interesting article with a possible solution:

http://www.321gold.com/editorials/ca...sey121206.html

In Louisiana, the first $75,000 of your homestead's worth is NOT taxed. And even then, taxes are not outrageous as the state depends mostly on a state income tax and fairly high sales taxes for most of the revenue.

Since your home is not held against you when filing for Medicaid, it is possible to have a small place (especially in the rural areas) of 5-10 acres with either a small house or a house trailer, and not be penalized.

Therefore, you can have a bit of land, a home, a decent used car or truck, and still qualify for Medicare and Medicaid. This means most of your drugs will be free or very reasonably priced. If you want to use the state's Charity Hospital system (which admittedly has its flaws) your health care will be free, if your retirement income is less than about $24K/year for a couple.

Real Estate is good because they aren't making any more but I often wonder about investing in spare land. You have the interest you pay out on the loan for the land and then you have taxes and possibly insurance to pay. If you could lease the land out to cover the expenses that would make it profitable but otherwise a good investment might be better.

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"Education is the ability to listen to almost anything without losing your temper or your self confidence"
Robert Frost

Retired last week at (almost) 50. I had a 401k which is now an IRA. We hope to be paid out of debt in a week or so, no small feat and have enough to purchase some (5 to 10 acres) and build a reasonable house (+/-1800 sq. ft.). After doing this, we should have "some" money left to leave invested.

Our food needs will be handled by "growing our own" as much as possible and shopping at costco or the like. Buying what we must buy in bulk. There will still be utilities, cable, internet, a new vehicle once and awhile and of course HEALTH needs ... I am praying the next bunch in Washington will be forced to do something about Americans who have no or little health coverage. There will soon be a large group of people (voters / baby boomers) who are or should be MORE concerned with health care than with Iraq and other places our tax money is wasted. The "system" is designed to get all that you've been able to save as insurance payments .... It's a gamble not to have health insurance. I believe the MAJOR issue facing Americans today who are 40 and older is health care ... the price we're charged and the coverage we recieve. The money to be spent in Iraq, this year alone, would furnish health insurance for every citizen in this country for life.

Another thought for those who are 40 to 55 and looking at retirement ... the tax laws have changed. The way "lump sums" are being paid and taxed have changed and are continuing to change. Annuities are being delayed to 65 or 70 ... In other words, what you're planning on in 5 to 10 years may not be the reality. The money that you have TODAY "might" be worth more TODAY than your investment is worth in a few years. EARLY retirement might give you more spending power than working another few years .....

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I would rather be exposed to the inconveniences attending too much liberty than to those attending too small a degree of it."
Thomas Jefferson

That is very true. But look at it another way. If you did not make enough money during your working years to get the maximun you are very used to living on a reduced income. SS should not be that difficult to live on as you have already been living on less.

What social security? Many are going on the assumption that it will continue and they will actually be receiving it. And of course, hopefully we will not have another volatile period in the stock market again where people loose tons of their equity in the 401Ks.

There is always some gamble with everything. Everybody has to take that chance. It is either that or, as some posters have mentioned, commit succide. I will take the chance. Others are free to choose what they want to do.

Well I'll be. People that disagree???? Like rome what if our goverment falls??????
You have one fella that states you can make it on little or no income. Have you ever gone without? I have. Food and shelter. Your child goes to school just to eat. Living off the charity of others. Man your pride goes out the window to keep them fed. Programs, goverment, religious or any that I ran into never gave you a hand up just ahand out.Let me beat that drum a little louder. I homestead now to eat. It was not the goverment that helped me qulify to have what I got and it will not be the goverment that will take care of me when I am older.
What if I die today??? My organs will go to help others and I will be a cadavor cut up for study in a university. Freak yall out those are the hard cold realities of the folks you share time with here.My child is in college and paying her own way. She triyed to enlist in the service and was raped by the recruiter. He was arrested by local athorities and then the mp's took him. We have never heard what happened to him. Goverment help? Look at all the trailers in Arkasas that were to go for hurricane victims. More goverment help??? I have been blessed and it has not been from our goverment or one certain religous denomination. I was directed to where I am by living in a Halfway house to help convited felons readapt to society.They would have a Bible study and I found The Lord. I read for direction daily and it does not say anything about retirment as I have seen yet. I have lived in Texas, Tennesse, Arkansas. Homeless in Tn and Ar. I was working both times and could not make enough to rent a home or apartment. There are not many places that will help a man with a girl child. I will not be a burden to any of the people that have helped me along this life journey but If nessacery The Goverment could come to bat finally and take care of me for having never helped my single mom or me and the Fed pen looks pretty good to me.The only person that will look out for me is me. I have not walked in fortunate shoes and not bitter just hard. So if you got to chastise me GO FO IT. Or share your space with one less fortunate? TRUTH & MERCY Big Dave

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You call a 1800 sq ft house "reasonable" sized? Wow, that's more like a MANSION as far as I'm concerned. I can't even afford to buy/rent/run one of those on a full time income of the two of us.

In one month I will be 64. I do not intend to retire until I reach full retirement age of almost 67 and only then if my job ends or I'm no longer able to do it.

We had retirement plans laid out ... exactly what we would save, what we would do for our home to be maintenance free, newer vehicle, new appliances, savings, etc. Then dh became disabled. We were fortunate in that he got Social Security on his first application. Since that time ALL money that was planned for retirement has gone to pay health insurance premiums and medical expenses not covered by health insurance or Medicare ($10,000 to $12,000 per year). We will be debt free by March with our final mortgage payment. It is my plan to now save that amount each month, but so late in the game its not going to do much for the long term picture. Should dh or I have to enter a nursing home it would have to be on Medicaid which means the State would end up owning our home. So I'll keep working and praying my health stays good enough to do so and plant my big garden and stay out of debt and pray that Social Security and Medicare continue to exist. Mainly I just plan to keep on keeping on and trust that the Lord will continue walking by my side.

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This is the day which the Lord hath made; we will rejoice and be glad in it.

Ann,

Thank you for replying. I think I read you correctly in saying that you did not intend to commit sucide, but if you decided that it was a better plan then it would not be out of the realm of possibility.
If that is correct than I would still politely flame you. I believe that God orders your days. To tell the one who created the universe and who is all wisdom that you have had enough now and want to "jump to the head of the line" is arrogant beyond compare.
I know I sound touchy but let me explain, I have a loved one who is in final stages of renal failure. It is abundantly clear the the days ordered for her are about up. So, is you don't want to use all of your days, can she have your left overs? She would put them to good use, I promise.
Oh, that things could be so simple!

I think you're going to have to give us a little more information to make us believe you've retired before 50 with a little money and haven't bought land or built your place yet. We want to believe and we want your plan on rising costs and especially health insurance.

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"Education is the ability to listen to almost anything without losing your temper or your self confidence"
Robert Frost