retirement concerns

[olds442jetaway]

   We have never spent less on things even though we can afford it. The terrible returns on investments, for many retirees create a mental block where you think you can't do this or that and then you don't. Example....wife's car 11 years old, mine 18 years old. Use coupons for everything, going out to eat much less than some years ago, spending next to zero on house and yard, and on and on. Casino spending...yes, but that is about it. When our investment income paid all of our insurances and taxes, bought new stuff all the time including antique sports cars and antiques. Only spending now is absolutely have to spending. If some of you think I am the only senior living this way, try asking around. Also in prior years, been to Aruba 5 times. No trips in the last 5 years. It may have to do with leaving to your kids, I'm not sure, but the lack of guaranteed investment income, sure has changed our ways. I can't even remember the last time I was in a jewelry store nor can the wife.

[seemoreroyals]

    We have never spent less on things even though we can afford it. The terrible returns on investments, for many retirees create a mental block where you think you can't do this or that and then you don't. Example....wife's car 11 years old, mine 18 years old. Use coupons for everything, going out to eat much less than some years ago, spending next to zero on house and yard, and on and on. Casino spending...yes, but that is about it. When our investment income paid all of our insurances and taxes, bought new stuff all the time including antique sports cars and antiques. Only spending now is absolutely have to spending. If some of you think I am the only senior living this way, try asking around. Also in prior years, been to Aruba 5 times. No trips in the last 5 years. It may have to do with leaving to your kids, I'm not sure, but the lack of guaranteed investment income, sure has changed our ways. I can't even remember the last time I was in a jewelry store nor can the wife.

They say you can't take it with you but what you do right now directly affects where you will be 5 years from now. That is why it makes good common sense to be frugal. If only we had a crystal ball it might make sense to take extra risk with savings. Low interest rates on CD's and high cost on health insurance really were unexpected when we retired early almost 9 years ago but like you Olds, we have compensated by taking our frugality to an extreme. Except when it comes to gambling of course.

[notes1]

olds/smr, your comments are exactly what I have been seeing. most folks I know that got to retirement age in good financial shape, did so with planning and being careful with their expenditures. they do not want to be a burden to others or be reliant on the gov.

when a basic tool, such as the guaranteed account with a 3-5% return is eliminated, they become more cautious with their spending. fear/uncertainty have been the norm for the past 8 years. some apparently see this cautious/careful approach as a character flaw, I see it as folks being responsible.

for some it may be ok to substitute an investment with a 3% non guaranteed dividend payout and upside growth potential, for a guaranteed 3-5% return, but not for all. and, one cannot have all their money at risk.

the country, the world got into trouble due to debt. and now, the answer is to encourage more debt.

I often read that young folks do not buy or complain about the cost of healthcare insurance, because they feel they are paying more to cover the higher expenses of older folks. I wonder if they understand that older folks, the ones who have the majority of the money, are subsidizing their lower mortgage rates, on the backs of getting no interest on our savings.

[olds442jetaway]

I don't think they think about it all or the long term future either. It seems like it is what can I get now, what is the latest gadget...I have to have it...and on and on. Drop 20-60 bucks a week on car washes and detailing instead of doing things themselves, still wasting money on cigarettes and God forbid drugs, rarely going to the Dr. and on and on. Go to the movies on peak times at 15 bucks a ticket and pay extra for Imax and 3d, load up at the concession stand on overpriced junk, think nothing on a hundred dollar bar tab for an evening. At least that is what I am seeing. Forgot to add...charge everything and often times pay only the minimum payment.

[billryan]

I was wondering how long it would be before this descended into " Get off my lawn " territory. I'm surprised it lasted as long.
I wonder what these youngens think of grandma and grandpa *****ing about money but going to casinos as a hobby.

[notes1]

I was wondering how long it would be before this descended into " Get off my lawn " territory. I'm surprised it lasted as long.
I wonder what these youngens think of grandma and grandpa *****ing about money but going to casinos as a hobby.


DELETE.

[Lucky Larry]

I guess since I retired so recently (last 10 years) I've never worked with CD's. I've always chosen the safe US Bond route. Using Vanguard Total Bond Index fund we've had a safe return of about 4% annual for the past 5 years and over 5% the past year. While not the old 7-8% the money beats anything I've heard of from the banks.

The Vanguard Government Backed Intermediate-Term Government guaranteed bond is low cost only .10% or about 90% lower than similar government funds. Average return:
1 yr average = 5.9%;
3 yr average = 3.49%
5 yr average 3.43%

[notes1]

-an individual US gov bond, held to maturity, will give one the guaranteed interest rate plus principal. many consider a us gov bond, the safest debt on the planet. a 10 year us treasury is currently yielding approx 1.7%.

-a us gov bond fund is not the same. it is not guaranteed, as one does not own the bonds themselves, but rather shares in the fund. just like a stock fund, bonds can increase or lose value.

one should consult their financial advisor to understand all the ramifications of any investment.

one could have bought five years ago, a guaranteed fixed annuity, and gotten a rate higher than 3.5%, net of all fees or expenses, if held to maturity. those rates are no longer available.

[billryan]

There is nothing that says you can't make money in retirement.There has never, ever, been a better time to be a part time entrepreneur.
Saturday, I went to an auction preview. Spent about three hours meticulously examining lots and making detailed notes. Returned home and spent ninety minutes checking out similar stuff on eBay.Spent three hours at the auction, buying 18 lots for $528. Last night listed 30 items on eBay. As of now, 8 sold for $250. I estimate I'll clear close to $500 when three quarters of the stuff sells. I'm shipping via Priority mail which the buyers pay for and the Post Office picks up at my apartment. They also delivered the boxes to me at no cost.
Just one such auction a month gives a great return on your time and money.
Find auctions at auctionzing.com or Proxybid.
They are everywhere.
If you have a smart phone, stop by some garage or estate sales. You can check eBay to see what similar items sell for before making an offer.
There is no reason to have money sitting around making one tenth of a percent a year.

[notes1]

why not just have 70/80 year olds start delivering pizzas or drive a cab. of course, all older folks have the capacity to start some online business. amazing how someone who retires in their fifties and can go back to work, think it would be easy for all older americans to do the same.

I am sure this is how retired folks envisioned their golden years, working as 'store greeters' just to make ends meet.

many of these folks did nothing wrong, except to not plan for something, historic low interest rates, that had never occurred before and had not even been thought of.