Plain Old Petunia
Senior Member
bloom where you are planted
Joined: Dec 21, 2010 2:09:44 GMT -5
Posts: 4,840
|
Post by Plain Old Petunia on Feb 22, 2011 12:40:59 GMT -5
I read this in my local newspaper this morning: www.modbee.com/2011/02/20/1565663/diabetic-prioritizing-which-health.htmlThis woman has worked for "4 decades", and immediately after losing her job she cannot keep her own home and moves in with a friend. She is a diabetic and cannot afford her medication. Do I feel for her? Yes. But, I can't help but wonder what her plan was. She is 61 and apparently has no savings. She is currently receiving $1836 per month unemployment. This is likely more than she will eventually receive in SS benefits, so how did she expect she was going to live on SS? Was her plan to be homeless during her golden years? I realize it is nothing new, but I continue to be flabbergasted that so many women fail to plan at all for themselves financially.
|
|
|
Post by Savoir Faire-Demogague in NJ on Feb 22, 2011 12:46:16 GMT -5
I realize it is nothing new, but I continue to be flabbergasted that so many women fail to plan at all for themselves financially.
The bulk of the US population has not a single clue of what is going on around them. This does not surprise me. I was speaking with an old female friend who retired in June 2010. She was 64 at the time and said she could not take working in the school system anymore. I proceeded to tell her she was making a good decision because the public pension system in NJ is a time bomb. By getting out and starting to collect she would more than likely not be affected. She replied that she doesnt know anything about that and cannot worry about it, or had no interest in understanding it.
|
|
Tiny
Senior Associate
Joined: Dec 29, 2010 21:22:34 GMT -5
Posts: 13,373
|
Post by Tiny on Feb 22, 2011 13:10:29 GMT -5
I've read an interesting book on time perspectives: "The Time Paradox: The New Psychology of Time That Will Change Your Life" by Philip Zimbardo and John Boyd.
I can easily see (and partially understand) how someone who deals with life from the "present" perspective wouldn't really be concerned about the future. They are living in the moment.
I suspect that most people on these particular boards are "futures". I'm really simplifying what the book talks about... it's a quick easy interesting read...
|
|
Urban Chicago
Established Member
Joined: Dec 23, 2010 9:21:48 GMT -5
Posts: 435
|
Post by Urban Chicago on Feb 22, 2011 13:10:28 GMT -5
Did you see that she still has a 400/month car payment? I really do hope I'm in a better situation at 61!
|
|
❤ mollymouser ❤
Senior Associate
Sarcasm is my Superpower
Crazy Cat Lady
Joined: Dec 18, 2010 16:09:58 GMT -5
Posts: 12,858
Today's Mood: Gen X ... so I'm sarcastic and annoyed
Location: Central California
Favorite Drink: Diet Mountain Dew
|
Post by ❤ mollymouser ❤ on Feb 22, 2011 15:59:01 GMT -5
I saw that $400 per month car payment ~ ouch.
|
|
shelby
Well-Known Member
Joined: Jan 17, 2011 21:29:02 GMT -5
Posts: 1,368
|
Post by shelby on Feb 22, 2011 16:26:18 GMT -5
This is my mother, same age no savings, no house old car really not one single thing to show for it. worked for 40 years spent her tiny 401k she had a few years ago on paying off debt. She says she will work till she is 75, but if she can't or loses her job I don't know what she will do, I have enough people to take care of so it won't be me.
|
|
zibazinski
Community Leader
Joined: Dec 24, 2010 16:12:50 GMT -5
Posts: 47,869
|
Post by zibazinski on Feb 22, 2011 17:32:08 GMT -5
Considering how the gov't taxes those who actually save for their retirement, maybe those that don't are smart.
|
|
Deleted
Joined: May 18, 2024 3:16:56 GMT -5
Posts: 0
|
Post by Deleted on Feb 22, 2011 17:38:16 GMT -5
My mother had a friend who had been married few times, never the required 10 years (to collect against husband's SS benefits), and who had worked on and off as a hairdresser, but not for the 40 quarters to qualify for SS on her own. (Not that it would have been much.) She just assumed she'd get SS at retirement age. She was very unhappy when my mother gave her a dose of reality. I'm forever grateful that my parents never let my sister and me fall for the fairy tale of the handsome prince who would make all the money and all we'd have to do is spend it.
|
|
Angel!
Senior Associate
Politics Admin
Joined: Dec 20, 2010 11:44:08 GMT -5
Posts: 10,722
|
Post by Angel! on Feb 22, 2011 18:02:01 GMT -5
Please explain how those saving for retirement are taxed more than those who don't. I can't think of how this would work considering that regular IRA & 401K investments are not taxed & there is even the additional savers credit for low income folks.
|
|
Deleted
Joined: May 18, 2024 3:16:56 GMT -5
Posts: 0
|
Post by Deleted on Feb 22, 2011 18:47:49 GMT -5
Please explain how those saving for retirement are taxed more than those who don't. I can't think of how this would work considering that regular IRA & 401K investments are not taxed & there is even the additional savers credit for low income folks. You do know that money gets taxed when you withdraw it, right? And there's no guarantee that the tax rates will be lower when we're retired, especially not with the deficits the government is running now. Note also that if you have sufficient income from other sources 85% of SS is taxed. I predict that SS will eventually disappear via some sort of stealth taxation for people who have saved enough that they have a decent income from their savings. (By "stealth tax" I mean that they'll deposit SS into your account and then tax it away on April 15). Then, of course, your savings and income keep you out of the running for other government benefits such as subsidized housing and Medicaid nursing homes. I'm not complaining, exactly- I made my choice and will stand on my own 2 feet instead of being part of the whiny AARP crowd who think the taxpayers owe them a living- but I do want to point out that yes, you get penalized for saving.
|
|
Mardi Gras Audrey
Senior Member
So well rounded, I'm pointless...
Joined: Dec 25, 2010 18:49:31 GMT -5
Posts: 2,082
|
Post by Mardi Gras Audrey on Feb 23, 2011 1:33:21 GMT -5
|
|
Deleted
Joined: May 18, 2024 3:16:56 GMT -5
Posts: 0
|
Post by Deleted on Feb 23, 2011 7:59:46 GMT -5
What I found sad about that article was that all the comments were focused on what "the government" should be doing for her. Isn't California about bankrupt already?
|
|
|
Post by cytoglycerine on Feb 23, 2011 8:07:15 GMT -5
What I found sad about that article was that all the comments were focused on what "the government" should be doing for her. Isn't California about bankrupt already? Yeah, seriously...Heaven forbid this woman actually SAVE something to support herself later in life. According to the article, she was "solidly employed for 4 decades" and at her most recent job she made $50k/year. And she couldn't find a way to save ANY of that?? Seriously?!?
|
|
zibazinski
Community Leader
Joined: Dec 24, 2010 16:12:50 GMT -5
Posts: 47,869
|
Post by zibazinski on Feb 23, 2011 8:20:20 GMT -5
50k in California isn't much money.
|
|
|
Post by cytoglycerine on Feb 23, 2011 8:30:19 GMT -5
50k in California isn't much money. True...But she found $400/month to buy a car. She could have gotten a car for $300/month and saved the rest. It's not a whole lot, but it's better than $0.
|
|
zibazinski
Community Leader
Joined: Dec 24, 2010 16:12:50 GMT -5
Posts: 47,869
|
Post by zibazinski on Feb 23, 2011 8:31:29 GMT -5
Very true. Probably nothing to put down and still owed money on old car!!!
|
|
|
Post by cytoglycerine on Feb 23, 2011 8:34:08 GMT -5
Very true. Probably nothing to put down and still owed money on old car!!! Most likely...the binds people get themselves into never cease to amaze me.
|
|
zibazinski
Community Leader
Joined: Dec 24, 2010 16:12:50 GMT -5
Posts: 47,869
|
Post by zibazinski on Feb 23, 2011 8:35:16 GMT -5
Scary, isn't it?
|
|
Havoc
Junior Member
Joined: Dec 21, 2010 22:38:52 GMT -5
Posts: 221
|
Post by Havoc on Feb 23, 2011 8:40:02 GMT -5
I agree with Petunia's assessment. $53k annually may not be a lot of $$$ in California, but to be 60 years old, "solidly employed" for 40 years, and not have had a plan or built a personal safety net?
The article's focus was on the plight of the uninsured and I am sure that there are a lot of factors not mentioned that would affect anyone's assessment of her situation, but what few details that are referred to (that she had lived in a gated community, that she still had a car payment) would seem more indicative of someone who was living for a lifestyle, and then was at a loss for what to do when the pooey hit the fan.
Athena & Cyto - if you are bothered by the article's implied expectation that the government should be doing something more to help, read the comments to the article (if you haven't already)....
|
|
|
Post by cytoglycerine on Feb 23, 2011 8:54:53 GMT -5
Athena & Cyto - if you are bothered by the article's implied expectation that the government should be doing something more to help, read the comments to the article (if you haven't already).... I did - I read all 7 pages actually...And it nearly made my head explode...And I vote liberal - In Canada!
|
|
Deleted
Joined: May 18, 2024 3:16:56 GMT -5
Posts: 0
|
Post by Deleted on Feb 23, 2011 9:55:07 GMT -5
And, BTW, I can't feel bad about her not taking the $135 drug to prevent osteoporosis. Exercise and calcuim pills do the same thing, a lot cheaper, and you won't end up with osteonecrosis of the jawbone. The fact that someone with a fancy degree says you should take something doesn't necessarily mean you need it.
|
|
Deleted
Joined: May 18, 2024 3:16:57 GMT -5
Posts: 0
|
Post by Deleted on Feb 23, 2011 10:06:21 GMT -5
It's stories like that that make me nervous habout saving for retirement.
|
|
Mardi Gras Audrey
Senior Member
So well rounded, I'm pointless...
Joined: Dec 25, 2010 18:49:31 GMT -5
Posts: 2,082
|
Post by Mardi Gras Audrey on Feb 23, 2011 10:07:11 GMT -5
Actually, $50k a year in that part of CA is a lot of $$. Until the housing bubble, housing there was relatively cheap (Now that the bubble has popped it has returned to being cheap). If she is making that much on UI, she should be able to afford a relatively comfortable lifestyle. You can get a nice 1 bed apt there for ~$700 a month if you look around. That area is full of farmers so most of the year, food is cheap and fresh.
I know several people living in that area that support themselves and multiple children on that much money every month. They are able to do it while still having cable, cell phones, etc.
|
|
973beachbum
Senior Associate
Politics Admin
Joined: Dec 17, 2010 16:12:13 GMT -5
Posts: 10,501
|
Post by 973beachbum on Feb 23, 2011 10:21:33 GMT -5
I know this will sound contrary but seriously after reading this where does the "right after getting laid off" come from? Obviously if they said she exhausted her 6 months of eligibility for benefits after being laid off and then was without health insurance for a year after that she clearly wasn't "just laid off." And I know they mentioned the osteoporosis drug but this is much more serious and no one noticed it. Also I don't live in Cali but her unemployment of $1836 a month sounds like it wouldn't cover much in the way of living expenses there. I don't think she could easily sell in Cali now either. So even if she had savings it would have had to be a lot to stay afloat with all that going on. I agree she clearly didn't save enough to be this close to retirement but obviously she was "just laid off" either.
|
|
Mardi Gras Audrey
Senior Member
So well rounded, I'm pointless...
Joined: Dec 25, 2010 18:49:31 GMT -5
Posts: 2,082
|
Post by Mardi Gras Audrey on Feb 23, 2011 10:41:54 GMT -5
Beach, in that area of Cali, $1836 goes very far. I lived there on UI ~10 years ago and was fine (at that time, UI was ~$900 a month). Housing prices are about the same from the time I lived there (I have checked and I know a lot of people living in that area). Gas, food, and utilities would be higher but shouldn't be that much higher. Maybe she needs to move to Modesto (A bigger city about 15 miles North) and find some kind of roommate arrangement.
|
|
The J
Senior Member
Joined: Dec 18, 2010 11:01:13 GMT -5
Posts: 4,821
|
Post by The J on Feb 23, 2011 10:59:25 GMT -5
50k in California isn't much money. I lived in NYC on $42k/year, including over $400/month in student loan payments, and still managed to put away a little bit for the future.
|
|
|
Post by cytoglycerine on Feb 23, 2011 11:05:03 GMT -5
50k in California isn't much money. I lived in NYC on $42k/year, including over $400/month in student loan payments, and still managed to put away a little bit for the future. Yeah, but you're "lucky", just like everyone who can eek out some kind of savings
|
|
Deleted
Joined: May 18, 2024 3:16:56 GMT -5
Posts: 0
|
Post by Deleted on Feb 23, 2011 11:17:54 GMT -5
It's stories like that that make me nervous about saving for retirement. Don't be nervous. Just do it. I think the trap most people fall into is thinking that they can't save very much, so they don't save anything at all. If you start early (and learn from your mistakes early), you'd be surprised at what the magic of compound interest can do.
|
|
973beachbum
Senior Associate
Politics Admin
Joined: Dec 17, 2010 16:12:13 GMT -5
Posts: 10,501
|
Post by 973beachbum on Feb 23, 2011 11:37:18 GMT -5
Beach, in that area of Cali, $1836 goes very far. I lived there on UI ~10 years ago and was fine (at that time, UI was ~$900 a month). Housing prices are about the same from the time I lived there (I have checked and I know a lot of people living in that area). Gas, food, and utilities would be higher but shouldn't be that much higher. Maybe she needs to move to Modesto (A bigger city about 15 miles North) and find some kind of roommate arrangement. I don't know that part of Cali so I defer to you. But if you take out the $500 a month she would have been required to for state health benefits it is $1336 for housing a car and everything else. So is $1336 a month enough to live on including a car in that area? A car is necessary in most parts of Cali the last time I was there to get a job or even grocery shop. Has this changed? On a purely financial level at her age and obviously poor health she should have ditched everything like the condo and car as soon as she got laid off. She could have mailed back the keys to the bank and rented an apartment. If she turned in the car she could have used some savings on a decent used car and saved on the car insurance. But people rarely just ditch everything and punt. Also around here isn't that also a sin?
|
|
skubikky
Senior Member
Joined: Dec 20, 2010 7:37:12 GMT -5
Posts: 3,044
|
Post by skubikky on Feb 23, 2011 12:45:08 GMT -5
I don't see how a story like this would make you nervous. There's not enough detail regarding how she handles her finances over that 40 years to draw an intelligent conclusion. The fact that she had a $400/month car payment and obviously little savings speaks to what I might believe is a profound lack of fiscal sense.
That all being said. Cawiau....you already know and have embraced the basics of fiscal sensibility. You're utilizing the opportunities to pay yourself first through 401(k) contributions, attempting to live below your income, working towards eliminating wealth reducing debt(not mortgage payments kids) and all the other tenets of a sound financial plan.
Don't look to others to determine your values and goals. You educate yourself and with that make logical and responsible decisions as best you can.
The poor decisions of others will not dissuade me from continuing on with what I've been doing for over 30 years. A balance of today and tomorrow....nuf said.
|
|