swamp
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Post by swamp on Jun 30, 2011 10:01:34 GMT -5
If I had a stroke tomorrow and was incapacitated as a result, my life would suck no matter how much planning I did.
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thyme4change
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Post by thyme4change on Jun 30, 2011 10:08:57 GMT -5
Well, I have been putting assets away for awhile now. It greatly changes how I can deal with adversity now or in the future. Because I have found happiness in a fairly simple life, it would make it much easier to sustain in a future downturn that affected my income, and any I would probably find it easier adjusting from a small 4/2 house to a smaller 3/1 apartment than I would if I lived in a 5500 square foot house with 9 bedrooms and 7 bathrooms.
So, conceptually I guess I see it.
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Gardening Grandma
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Post by Gardening Grandma on Jun 30, 2011 10:15:30 GMT -5
I have two budgets. The one we are using right now has some discretionary spending based on withdrawals from our retirement savings. If the market were to tank, and we were in for a long haul depression, I'd suspend the withdrawals and go to the "bare bones" budget which is based on our pensions and SS.
As long as we have our health, I think we can be happy.
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Wisconsin Beth
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Post by Wisconsin Beth on Jun 30, 2011 10:33:30 GMT -5
Do you think you can prepare for a really bad economy, says much worse than the depression and be happy in that scenario? Also does preparation for that possibility mean losing out in a future where the economy has prospered? I suspect what they're trying to achieve is the "be happy with who you are and what you've got. If you are, you'll be ok no matter what happens." For example, people who do retail therapy to avoid dealing with issues with their spouse/significant other/family/etc. will be unhappy when/if they lose that outlet. Keeping up with the Jones's is expensive where being happy with what you've got isn't necessarily as expensive. If that makes sense. It sounded better in my head than it did written out.
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midjd
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Post by midjd on Jun 30, 2011 10:37:15 GMT -5
I don't think you can ever completely prepare for anything. But "hope for the best and plan for the worst" is practically my motto... sometimes it has paid off, sometimes I've looked back and thought I could have taken more risks. I think it is possible to lose out on future gains by overpreparing for disaster - but it would have to be pretty extreme (e.g. taking all your cash out of the market and hiding it in your mattress, or spending your retirement savings on a bomb-proof bunker). Other than that, it depends on your risk tolerance and what you have to do to let yourself sleep at night - if that means a slightly lower return in exchange for a feeling of security, so be it
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cronewitch
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Post by cronewitch on Jun 30, 2011 10:52:12 GMT -5
I go to one podcast where the premise is that you can live a good life in the future if you prepare right now, no matter what the future brings. Also the host thinks to prepare for that possibly bad future is really not that different from preparing for any other future. Do you think you can prepare for a really bad economy, says much worse than the depression and be happy in that scenario? Also does preparation for that possibility mean losing out in a future where the economy has prospered? I can be happy almost anywhere. I have saved enough to live on about 40K but if I had to live on 30K I would and I wouldn't suffer. I would adjust by doing things like having more roommates or selling off the excess stuff. I could rent out spaces in my garage or basement as storage. I could sell the house and buy something much smaller or move to a low income senior housing apartment. Even if I lost 90% of my life savings I would be the richest one there.
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cronewitch
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Post by cronewitch on Jun 30, 2011 10:52:43 GMT -5
I go to one podcast where the premise is that you can live a good life in the future if you prepare right now, no matter what the future brings. Also the host thinks to prepare for that possibly bad future is really not that different from preparing for any other future. Do you think you can prepare for a really bad economy, says much worse than the depression and be happy in that scenario? Also does preparation for that possibility mean losing out in a future where the economy has prospered? I can be happy almost anywhere. I have saved enough to live on about 40K but if I had to live on 30K I would and I wouldn't suffer. I would adjust by doing things like having more roommates or selling off the excess stuff. I could rent out spaces in my garage or basement as storage. I could sell the house and buy something much smaller or move to a low income senior housing apartment. Even if I lost 90% of my life savings I would be the richest one there.
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dancinmama
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LIVIN' THE DREAM!!
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Post by dancinmama on Jun 30, 2011 11:10:02 GMT -5
We're about as prepared as we can be. When we bought our retirement home, we made an investment in our lifestyle. We have the funds to pay off the mortgage if needed. In spite of the neighborhood we live in, we choose to live very simply. We have coffee on the patio in the morning and cocktails in the evening. We like to put a fire in the fire pit, roast marshmallows, and downstream a Netflix on the computer outside. We have three animals that bring us a lot of joy and enjoy taking them on walks (the doggies that is). Our cars are paid for, older model Toyotas that have low mileage (< 82K) and have been well maintained, so there will be no need for replacements for years to come. In the last couple of years, I have built of a back stock including most/all of the non-perishables that we use, several staples like booze (it's a staple for us ), coffee, sugar, salt, pasta, etc. and various other foods that have a long shelf life, meats, bacon, and sausage, and pet food. So ya, we'd be okay. But just as we are okay today (no job losses so far, but company layoffs are on the way) and have not changed our lifestyle all that much due to the crappy economy, I do find that it has an effect on me/us. I am tired of so many people having to suffer who did nothing wrong - no easy loans for homes etc., but who have lost their jobs due to the resulting crappy economy.
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Clever Username
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Post by Clever Username on Jun 30, 2011 11:37:38 GMT -5
It's all about Balance. I could retire today, but that would be sign me up to living in a trailer away from friend and family, not doing the things I like to do.
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Deleted
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Post by Deleted on Jul 2, 2011 2:11:40 GMT -5
My plan is "Hey Mom, I'm back"
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Deleted
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Post by Deleted on Jul 2, 2011 13:45:30 GMT -5
Health is what would do me in. Living a life devoted to taking care of health issues would be hell on earth to me. I've been broke a lot in my life. I know how to handle that. And it is possible to enjoy life with little money. Ongoing health issues would be a different story.
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Post by Savoir Faire-Demogague in NJ on Jul 2, 2011 15:03:06 GMT -5
I downsize about 19 years ago, and spend the next 15 years preparing.
I am living the dream now.
The other day my boss read me the riot act concerning a major project, I told him to pound sand and read him the riot act. You should have see the look on his face. Priceless.
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Gardening Grandma
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Post by Gardening Grandma on Jul 2, 2011 19:37:22 GMT -5
My plan is "Hey Mom, I'm back" You'd better not be one of MY kids!!!
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TheOtherMe
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Post by TheOtherMe on Jul 3, 2011 19:22:55 GMT -5
My health will do me in as I am already retired and on my pension. Have great insurance. Just need to make it until I'm 65 and hope Medicare is still there.
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Deleted
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Post by Deleted on Jul 3, 2011 19:30:32 GMT -5
My plan is "Hey Mom, I'm back" You'd better not be one of MY kids!!! Since we live 2000 miles away, I'm sure she'd love it for the first 6 months and then we would probably kill each other.
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