Ot Retirement continued

Northvale PA · May 13, 2017

So, a lot of the talk is about money, of course. I like reading basic ideas too. Things like pay off the house. Grow more food. I realize the older you are the less physical things are possible. Any other small time things you did to either cut expenses or pick up helpful income? For example, we burn fire wood. I need to look into solar water heating. Doing basic car repairs myself. How about small time custom farm work? Too much trouble and work? Buy / sell auction or yard sale deals. I have about zero time currently to do any actual side work after my full time drive + commute + own farm work. But retirement = you now have the time others do not.

Dick2 · May 13, 2017

When we retired and moved out in the desert we decided: No Pets; No Plants. That cut down on our work, as I was busy with woodwork. When we moved back to the city to be near the specialists that I need, the HOA required plants in the front yard. They are more work than I wanted to do, so I removed several of them. Now with my & wife's health problems I'll have to hire someone to care for the remaining plants.

So be careful in your planning. Have an escape plan ready if it becomes necessary to cut back on your workload.

wjytexas · May 13, 2017

In my opinion, while you need to have finances in order, the other most important thing is to have a plan for your time. From your list of options for generating a little income it doesn't appear you'll have a problem finding something to do paid or not. I have seen many folk who were use to working hard retire and sit. They usually are dead or have emotional issues in a couple of years.

Goose · May 13, 2017

One thing to consider. My wife and I are in the middle of refinancing our acreage for a shorter term loan at a 3% better interest rate. While doing that, the loan officer at the new mortgage company was appalled at what we were paying for insurance. Upshot was, we switched insurance companies on both homeowner's and vehicles.

Adding it all up, we're coming out over $3,000 per year less expenses.

JDEM · May 13, 2017

How the heck does someone get to retirement age and still have a mortgage? That one baffles me. Same with car payments. Well, unless there is a person in the family who insists on spending money on credit - forever. I had a mortgage once in my life in 1979. Paid it off in 8 years and never made a lot of money. NEVER again. I worry more now about property taxes then mortgage payments. I go to court near every year fighting our taxes. So far, I have won every time - and then the assessor just hikes them up again.

ffreeb · May 13, 2017

I retired from my full time job last September. I also have a farm and taught adult night classes two nights a week. I now teach two days and nights a week and still have a farm. I thought I would have a lot of time after I retired to do the jobs I had put off for when I had more time . It seems now that I have less time than ever. I had several jobs planned to get done in the house during the winter while I wouldn't be able to do things outside. None of them got done. I had to force myself to take a day off to go fishing with my buddy last fall. I had people I used to work with that retired warn me that it would happen but never really believed that it would happen until it did to me.

Traditional Farmer · May 13, 2017

They still have a mortgage because they've refinanced and spent the equity they had built up in their properties over the years.Its the same as financing one's lifestyle on
credit cards and paying the minimum payment every month just with the home loan the interest rate is less.

jon f mn · May 13, 2017

First a divorce, then mynwife ended up disabled and unable to work, then personal health problems. I'll work til I end up in a government home or die. It happens more than you think.

oldtanker · May 13, 2017

(quoted from post at 05:47:40 05/13/17) How the heck does someone get to retirement age and still have a mortgage? That one baffles me. Same with car payments. Well, unless there is a person in the family who insists on spending money on credit - forever. I had a mortgage once in my life in 1979. Paid it off in 8 years and never made a lot of money. NEVER again. I worry more now about property taxes then mortgage payments. I go to court near every year fighting our taxes. So far, I have won every time - and then the assessor just hikes them up again.

Simple, the average professional person (city dweller) today buys a "new" home every 5-10 years. Homesbuild value so fast these days that after 5 years normally you can flip your home for a profit plus most are making more money. So as income and family both grow instead of making do they buy a new larger home or a home in a better area with better schools. As far as vehicles? Have you priced a new car or truck lately? If you like nice vehicles, not eco-mobiles, that's 20K or more. There are not many people who have 20-80K sitting around to buy a new car with (that's for regular vehicles, not fancy imports). So yea, people still have mortgages and car payments right up till they die.

Rick

rrlund · May 13, 2017

When I retire,I'm gonna be a farmer. LOL

Traditional Farmer · May 13, 2017

Farming is a lot more fun when you don't have to make a living doing it.

rrlund · May 13, 2017

That's kinda like what the milkman always said,"Farming would be fun if you had the money to do it right".

Northvale PA · May 13, 2017

Yes, A real issue is pet expenses. We have had some and they can get big. Often, in the last 6 months of a pets life. And the vets are now real sales people too. I like the companionship as almost all of the readers here. So, maybe having those hard rules get set out before attachment and emotion sets in. I personally have had a long commute in my career industry. So, I know I will have more time. I also agree there will be a desire to just take a long rest. Keep the ideas coming thanks.

rrlund · May 13, 2017

I'm mystified by the same thing John. I'm just about to turn 62 and it blows my mind that somebody my age or older could have lived this long and still have debt. My oldest brother's about to turn 71 and his house isn't paid for. Makes me shake my head until my brain rattles.

I know people who say they're out of debt because their house is paid for,but they still have a car payment and a stack of credit card bills. They live in a fantasy land.

Donald Lehman · May 13, 2017

It sure does Jon , and many times it is something you have no control over. Company my wife worked for 28 years went ESOP and then belly up within a few years. Everybody lost 90% of their retirement. Try that hat on for size when your are in your mid-50's.

K Effective · May 13, 2017

The old couple who sits behind us in church had me and my oldest son stop by their new mobile home to pick up some unwanted scrap lumber. When she asked if I was interested in the scraps, she gave me the lot number, and I jokingly said I would just look for the newest, largest one in the park. BINGO!. Son asked why is Bill still working anyways?, since we just prayed for his upcoming hip replacement surgery. He's 80 or 81 now, a self-employed electrician. I told him it's because he has to work, they still have a mortgage. But Dad, you are 30 years younger and paid off your mortgage? Yep, we have made vastly different choices, son. Glad he noticed.

Bruce from Can. · May 13, 2017

When I grow up , I want to be a farmer too !

steve706 · May 13, 2017

I own my own farm outright, never had any debt of any kind my entire life and I am in my mid forties. Employer going bankrupt,divorce, and health issues can turn back the clock financially so you are living like a 19 year old again. No matter how responsible you are, or how much you plan, nobody can predict how life plays out as you age. I don't question why some retirement aged people have mortgages and debt because they likely have a pretty good reason and it's their business not mine.

Bruce from Can. · May 13, 2017

Rather than try to make a buck doing custom farm work ,I think you would have a better chance of making a profit being a "Yoder Toter " . Amish pay a good dollar to have the "English "drive them wherever they need to go . Could held pay your car/truck cost.

John T · May 13, 2017

You ask a good question John,

"How the heck does someone get to retirement age and still have a mortgage? That one baffles me. Same with car payments

As an estate planning attorney I can answer that, I've seen it caused by:

ACCIDENTS,,,,,,,,ILLNESS,,,,,,,,,,CANCER,,,,,,,,,,HEART DISEASE,,,,,,,,,UNFORSEEN LIABILITY,,,,,,,,,,,CHILDREN OR ADULT CHILDREN NEEDED HELP,,,,,,,,,,,,TRAGEDY IN THE FAMILY

And that's even with people who were frugal, always paid cash, had plenty of money prior with NO car payments NO unpaid mortgages or credit card debt and had insurance even, but catastrophic incidents like the above can still wipe them out.

Of course, absent the above I agree 100% and think (and I do) at or before retirement have everything paid for, a pension and money in the bank, good insurance, possibly long term care insurance (if warranted),,,,,,,plenty of liability insurance,,,,,,,,,good solid well diversified investment portfolio LIKE THE TV COMMERCIAL SAYS "A LIFE WELL PLANNED"

Some have been blessed with the above HOWEVER unfortunately some have not. Good traditional Christian Conservative lifestyle with God, Family, and Country as priorities has worked for me, maybe not others, to each their own I say.

John T

Eldon (WA) · May 13, 2017

I heard it costs $233,000 to raise a kid these days...must not have been near that for my parents that had 14 and were out of debt by the age of 50 (farm income only, no less). I went the opposite route, looks like we didn't have 8 kids, working on not having number 9

Roger Tomfohrde · May 13, 2017

Quite easy-- lose your job a few times and start over after not finding work locally for a while and then have to move to get work to live.Ben there twice.

rrlund · May 13, 2017

If I ever grow up,I might be smarter than that.

El Hombre · May 13, 2017

The cards you're dealt in life; luck, has a tremendous effect on how things turn out.

Be born in the right family, the one with connections, probably on your way.

Happen to be in the right place, at the right time, with the right skills, ditto.

I read a lot, and that's something I see over and over, how they're either connected, or just lucked into some gig.

You get a lot of peeps that planned a career like a teacher or an engineer, but there's a whole bunch that didn't do that kind of training and are doing just as well if not better....YMMV

Geo-TH,In · May 13, 2017

Older brother he could pick up money doing handy work, yard sales, even selling hot dogs. What he didn't plan on is becoming totally disabled, not able to pick up extra money and living in the poor house.

In my humble opinion inflation will eat up your retirement. So you need to plan on your income increasing as you get older. Relying on picking up extra money isn't a good idea.

I've seen many old people in their 80-90's trying to make it on their SS income.They are living in poverty and having medical issues.

No thanks, don't retire thinking you can just make it and your expenses will be less.
geo

W_B · May 14, 2017

When your mortgage is paid off you have a huge illiquid asset that you can't get at with any speed. Many financial advisors now advise you don't pay it off but keep that money in more liquid form.

Eldon (WA) · May 14, 2017

(quoted from post at 19:37:59 05/14/17)
When your mortgage is paid off you have a huge illiquid asset that you can't get at with any speed. Many financial advisors now advise you don't pay it off but keep that money in more liquid form.

If a financial advisor told me that, he would not be my financial advisor! It is very easy to get a home equity loan if you own property outright.

Andy Martin · May 15, 2017

(quoted from post at 19:45:58 05/14/17)

(quoted from post at 19:37:59 05/14/17)
When your mortgage is paid off you have a huge illiquid asset that you can't get at with any speed. Many financial advisors now advise you don't pay it off but keep that money in more liquid form.

Click to expand...

If a financial advisor told me that, he would not be my financial advisor! It is very easy to get a home equity loan if you own property outright.

Ditto, or a reverse mortgage. That money in liquid form just runs out of small holes in the bucket. Then it's gone.

W_B · May 15, 2017

(quoted from post at 03:45:58 05/15/17)

(quoted from post at 19:37:59 05/14/17)
When your mortgage is paid off you have a huge illiquid asset that you can't get at with any speed. Many financial advisors now advise you don't pay it off but keep that money in more liquid form.

Click to expand...

If a financial advisor told me that, he would not be my financial advisor! It is very easy to get a home equity loan if you own property outright.

Isn't that a mortgage by another name? Maybe you can get one, assuming you have the ability to pay on it... banks want paid back, they don't want your property if you can't pay for it. Suppose you are disabled and can't work or farm... sell the place might be your option but that can take time. If you have other savings and investments and they are enough, you should be golden, if not, then what. I know my crystal ball is cloudy on my future, maybe yours tells you every major life event and when it will happen and what it will cost.

I'm just saying to folks to think about paying off a mortgage when you get to retirement age and how that may hurt or help you. Everyone's situation is different.

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