I just read an article on a news website concerning seven ways you could easily blow your retirement nestegg. My first thought was, "What nestegg?" Exactly what audience do you think you're speaking to here, maybe ten percent of those who retire? Are we talking white collar class retirement? Doesn't matter 'cause most people who retire don't have a nestegg. If they're lucky, they have a retirement system they paid into for many years and can draw monthly payments on that . . . and there's always the meager social security checks, if you paid into that. But there's no savings account, or bonds, or stock holdings, or any sort of cash build-up for most folks.
But there's always the good advice about how to avoid having your retirment money sapped away, and of the seven ways to lose your money, I ran into several of them. Don't have a house note, the article said. Huh? Most retired people still pay house payments, unless they dump their property upon retirement. Don't support other folks, like your kids and grandkids. Ah, duh. Maybe the writer isn't old enough to know what that's like for older people with kids and grandkids. Don't run up credit card debt. Smart idea, but that's hard to avoid. Don't drive cars that are expensive to repair, or cost lots of money to buy. Another smart idea, but all cars are expensive to repair. Again, sounds to me like the writer has never been there when it comes to aging. Don't travel, too expensive. Got it, and I don't do it. Don't spend too much on your hobbies. Sorry, already did that.
I could add lots of other things, especially for people who don't have nesteggs to fall back on. Don't live above your means, meaning do some planning. Don't retire to any place (state or city) where property taxes are outrageous. Don't retire to places where rentals and property prices are out of sight. Don't give away any money that's not absolutely necessary - charities, churches, relatives, or civic projects. Old people are an easy target for these folks, so be aware of that. And plan for taxes 'cause they're damn sure not going away when you retire and start getting old. And finally, depending on your situational/conditional factors, think about another country as a place to retire. Yeah, I know, you want to be close to your friends and kids and all that. If you can live somewhere else for half what it costs to live here, it might be worth it.
I met a man who didn't plan well for retirement. He thought he was doing the right thing with investments, ended up losing it all, and was left with nothing to live on but social security, which was about $1,400 a month. His wife, a school teacher, was still working, had about two more years to go before retirment, but she had not invested in a teacher retirement fund and would likewise receive only social security. He moved to Ecuador where he could get along well on his S.S., and a couple of years later, she joined him there. With about $2,800 a month to live on, they did very well. They bought a nice condo and even opened a small books store, and ejoyed life . . . and had enough money left over to come back to the U.S. twice a year to visit kids and grandkids.
Here in a small town in central Texas, that much money would only get me half way there in just being able to survive. We have a nice house, good transportation, eat well, have hobbies, and it takes about $7,000.00 a month to live here. And that's with no savings and nothing left over . . . month to month. Oh, how I'd love to bail out of here and join those retirees down in Ecuador or some other country where living expenses are much less. Nothing about that scares me, and I entertain myself by doing research on various countries . . . but it will never happen. I'm trapped by old age, too many obligations, and a craving to see my kids and grandkids more than twice a year. I can afford to stay here and not live in poverty, even without a nestegg. And I'm lucky . . . so far.
Whoever wrote the article about retirement offered good advice, but they sure don't know the realities of what it's like here in America. Even good planning can't save you from economic woes in your old age. I look around me and see most people my age still working, still trying to make enough money to keep the leeches satisfied and the wolves at bay. And if you can't see yourself retired in this country on less than $5,000 a month, start thinking Ecuador, or Panama, or Costa Rica, or Malaysia, or wherever you can actually live and not just survive. It's either that or the leeches and wolves, and they are always hungry.
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