Surviving On Part Time Income Before Retirement.

[CLT65]

It's a budget that works for us and has enabled us to keep the kids sheltered, fed, and healthy.

That's admirable for sure. So many Americans don't bother to live within their means, driving new cars and buying $8 coffees every morning and wondering why they can't make ends meet at the end of the month, and then there are others with far less income who get by OK.

A few months ago I made the decision to not spend any money on myself, eliminate my personal discretionary budget completely, other than annual range dues and occasionally $7 worth of gas to drive out there and back in my truck. For the foreseeable future, no more guns, ammo, reloading supplies, etc.. No more bought lunches for work, nothing unnecessary in the budget at all. I've been sticking with it very well so far.

Everyone has different financial and family situations. I make a decent tradesman-level income, but my wife hasn't been able to work for a long time, and we average probably $10k/yr in medical expenses, after insurance. I've found that a lot of people take their two-income households for granted, and have no idea what it takes to raise a family on a single income. Just a couple days ago I was talking to a good friend who's a car guy, and we were talking about the head gasket leak in my wife's car. He told me I just need to get rid of that old things (a 2009, nicest car we own) and buy her a new one. He thought I was just being cheap and need to loosen up and spend some money. Not so; we drive old, paid-for cars because that's the only way we can buy groceries and stay out of debt.

We've been able to stay out of debt, other than the mortgage, for many years. When it rains it pours, so they say, and it's been pouring lately. I've been working nights and weekends on essential home repairs for the last couple months, no time for guns. I just spent another $2500 on roofing materials, hope to finally get that nailed down (literally) this weekend. Then it's auto repairs on three vehicles, then more home repairs. If I calculate right, we won't have to go into debt, but we'll be living paycheck-to-paycheck for a while. Boy I hate living that way. My wife is more comfortable with it since she grew up that way, but I absolutely hate it.

Retirement? Yeah, I'll never retire. My hope is to be able to find a "retirement job" some day, or start a small business of some kind, some source of income to semi-retire with that isn't too bad. I had kind of assumed that someday I would get an inheritance. I'm in no hurry to inherit anything, but it is generally the natural order of things eventually. My dad passed away a couple years ago and my mom has been dealing with estate stuff. I was surprised to find that (without going into detail) because of the way things are with my family (no bad blood really, just weird family stuff), the entire multi-million-dollar estate will go to one of my siblings. Yeah that's a kicker, but whatever, they don't owe me anything. I really didn't think we were that kind of family though. Disappointing...

Like I said, we all have our own unique situations and financial issues. Ours would be very different if it weren't for my wife's medical issues. I imagine CamoDeafie's would be very different if it weren't for disability issues. Sometimes things happen that we have no control over, and you do your best to do your best, and that's about all you can do.

 

[ma96782]

RE: Retirement and money.
LOL.....this thread, has me reflecting.

On how much, money I've saved and how much happier I've been, since the 2nd divorce (over 10 years ago). Yup. BUT, But, but....."I got away lucky" (on both occasions). Mind you that I still have female companionship, though at the same time, I can see why some men say......

"If it flies, floats or f@#^s, don't buy it. Rent it."

Aloha, Mark

PS.....it's easier to admit that you're cheap than to keep trying to impress the people who you don't care about (or care about you).

 

[The Heretic]

I make a decent tradesman-level income, but my wife hasn't been able to work for a long time, and we average probably $10k/yr in medical expenses, after insurance.

I just joined a "membership" at my dentist - $74/mo - it will save me some hundreds of dollars. My Medicare "Advantage" plan only pays $1K per year in costs, and only pays for one "quadrant" of a cleaning. Dental insurance is usually very limited and this wasn't an issue when I made 3X what my income is now under SS - but now, I figure my dental & medical costs will be about $5K per year beyond what Medicare covers, and that is just normal costs. With SS benes only covering my mortgage & groceries/utils, I am having to budget for at least $5K-$10K pulled from my IRAs (fortunately, that is only 1% of the principal) to cover medical, car insurance/fuel, etc.

The problem is I am sure those costs will go up as I get older.

 

[CLT65]

I just joined a "membership" at my dentist - $74/mo - it will save me some hundreds of dollars. My Medicare "Advantage" plan only pays $1K per year in costs, and only pays for one "quadrant" of a cleaning. Dental insurance is usually very limited and this wasn't an issue when I made 3X what my income is now under SS - but now, I figure my dental & medical costs will be about $5K per year beyond what Medicare covers, and that is just normal costs. With SS benes only covering my mortgage & groceries/utils, I am having to budget for at least $5K-$10K pulled from my IRAs (fortunately, that is only 1% of the principal) to cover medical, car insurance/fuel, etc.

The problem is I am sure those costs will go up as I get older.

So true. I don't have any answers and I don't believe that anyone has any perfect fix for the broken system; I don't want to get into any political discussions, but I definitely can understand why people want to try to fix it, however misguided they may or may not be.

We should see if OHSU has any kind of membership/frequent flier program for things like joint replacements and tumor removals.

 

[arakboss]

I am in relatively good health at the moment. I would like to enjoy some of the time I have left, before things really start going downhill.

 

[gryghin]

Thank you for sharing this. It really brings home the message that we really need to plan with intention.

Here's another video that I recently saw that discusses why you should take Social Security as soon as possible or at least consider taking it as soon as possible.

My prostate cancer was attributed to genetic mutation of the BRCA2 genes. Studies have shown that a male with BRCA2+ attributed cancer has a 37% chance of developing one of the other BRCA2+ cancers within 7 - 10 years.

My personal situation leads me to taking the money as soon as possible. But to each their own.

 

[arakboss]

Thank you for sharing this. It really brings home the message that we really need to plan with intention.

Here's another video that I recently saw that discusses why you should take Social Security as soon as possible or at least consider taking it as soon as possible.

My prostate cancer was attributed to genetic mutation of the BRCA2 genes. Studies have shown that a male with BRCA2+ attributed cancer has a 37% chance of developing one of the other BRCA2+ cancers within 7 - 10 years.

My personal situation leads me to taking the money as soon as possible. But to each their own.

Hope you get through the prostate cancer. My dad was diagnosed with advanced prostate cancer and it has already spread outside his prostate. Not sure if he and or I have that gene problem but I want to enjoy my active years doing something besides working. When it comes to the decision of collecting SS early or not, I am undecided. Regardless I will still have to work until I physically can't any longer. The longer I put off collecting SS, the less hours I will have to work.

I want to deprioritize fiat money in my life and be satisfied with having just enough to get by.

 

[The Heretic]

We should see if OHSU has any kind of membership/frequent flier program for things like joint replacements and tumor removals.

OHSU & Legacy Health just announced a merger. My Cardiologist is a member of Legacy. I have no idea how this will affect my health care - probably not at all.

 

[CLT65]

OHSU & Legacy Health just announced a merger. My Cardiologist is a member of Legacy. I have no idea how this will affect my health care - probably not at all.

We are very familiar with both, and have gotten very good care and results from both organizations. My son's specialist is at Legacy Emanuel. He's seen her several times a year for the last 14 years. She's almost like family, an exceptional doctor.

 

[arakboss]

 

[gryghin]

This made me laugh.

A lot of people take a long time to get to the realization that each path to the end is different... some never do and model their lives on what they are spoon fed as "making it".

This guy realized sooner than most. The video is 7 years old, so most likely he's a millennial. He never mentions setting aside money for savings or emergency funds.

 

[arakboss]

This made me laugh.

A lot of people take a long time to get to the realization that each path to the end is different... some never do and model their lives on what they are spoon fed as "making it".

This guy realized sooner than most. The video is 7 years old, so most likely he's a millennial. He never mentions setting aside money for savings or emergency funds.

I have come to the realization very late in the game, that I want to ride the consumption train much less than I have been. I am going to drastically shrink my expenses and discretionary spending to about $1500 a month. I am hoping that will allow me to move from working full time to part time.

I love to shop so it is going to be a very difficult transition for me.

 

[The Heretic]

This guy realized sooner than most. The video is 7 years old, so most likely he's a millennial. He never mentions setting aside money for savings or emergency funds.

One thing I learned early on in my life, is that "stuff happens".

I didn't really learn to prepare for it the way I should, but I did learn that I shouldn't be surprised when it happens.

I was relatively poor as a young adult - I was unemployed half the time - no real skills to show, or education (I did not have my HS diploma) or job experience. Back then people like me were lucky to get any menial min wage (< $3 per hr) job, much less keep it year round as most of those jobs were seasonal or temporary at best. So quitting a $80K/yr job to find meaning in my life was a dream that didn't occur to me until I was in my 60s - I was just trying to survive and provide for my family.

 

[Camelfilter]

I just joined a "membership" at my dentist - $74/mo - it will save me some hundreds of dollars. My Medicare "Advantage" plan only pays $1K per year in costs, and only pays for one "quadrant" of a cleaning. Dental insurance is usually very limited and this wasn't an issue when I made 3X what my income is now under SS - but now, I figure my dental & medical costs will be about $5K per year beyond what Medicare covers, and that is just normal costs. With SS benes only covering my mortgage & groceries/utils, I am having to budget for at least $5K-$10K pulled from my IRAs (fortunately, that is only 1% of the principal) to cover medical, car insurance/fuel, etc.

The problem is I am sure those costs will go up as I get older.

If such is the case ($5,000 out of pocket annually), perhaps look into how folks go to other countries for medical care. Could possibly get some of your travel wishes in, while getting care at similar cost.

Thailand & Philippines come to mind.

Haven't looked into that for us, just mentioning is all.

 

[nwslopoke]

When I got out of the USAF in early 90s, CA at least was in huge recession. Several military bases, the navy shipyard closed and their vendors were leaving. Jobs were there but a lot of companies figured out they didn't have to pay high wages.

I found a $10hr very physical job drill holes in the streets. One guy I worked with was a layed off engineer who had a kid and was trying to make ends meet.

Between that and my current job, the only thing that really got me out was God and networking. The hookup I got was through a guy I didn't know in my reserve unit, but let me know of a job opening, which I still have 26yrs later.

Although I hated my previous job, I kept a good attitude and worked hard on my Reserve weekends. Thankfully people notice. If you're a slacker people take note as well when you're a hard worker.

But in the end I was young enough and willing to relocate (still in Ca). Because years of trying to make it in my backyard wasn't working. About 5 yrs later I took another chance and moved here.

 

[gryghin]

I'm a Gen X that really took to heart when "they" said that Social Security is going to be bankrupt by the time your generation is going to be eligible.

It helped being 2nd generation American as well as 2nd generation Navy enlisted. My Dad was a Navy Chief and I grew up on reduced lunch. My Dad told me there was no money for college, so I either had to take loans or join the military.

After I joined, one of the things he asked when I was done with nuclear power school was how much I think I'll drink between pay days. I said probably $100 a week. He told me, so leave $200 a pay day in your checking and to put the rest of the money in another account or else you would spend it.

I've lived this way since 1985. Every dollar has a job. I live with intention. I would rather fix something than replace it. I tend to keep cars until I either can't fix or don't want to pay someone else to fix them.

I told my kids that there will always be something broken, some unexpected issue with your house, your car, your spouse, your work... something out of whack. How you live during this adversity determines the quality of your life.

Back in the 80's, I thought nuclear power industry would be where I would make my nest egg for retirement. When I got out in the 90's, the industry was shrinking. I had a number but had to pivot to a different industry to fund it.

Right before covid hit, I hit that number because every time I got a raise I took 1% and put it in one of the other 6 direct deposit accounts that I split my pay check into. At the start 27 years ago, it was funny to see $5 every 2 weeks go into a separate account. At the end of my career, each of those accounts were quite a bit more.

I originally planned on continuing to work for "Inside Blue" the gorilla in the high tech industry of Silicon Forest, but having cancer caused me to reevaluate the retirement timing.

I am fortunate that I listened to my Dad and leverage the skills I learned in the Navy into a career that lead to a company that paid for my engineering degree.

I hope this helps some to get an understanding that stability is possible.