Friday, July 9, 2010

Retirement 101-2

Angela said...Why not approach it with excitement rather than with fear.
That is a great question !

The simple answer is " It's all about the money.

We are programed from early on to plan and save for retirement. Our goal is to build a nest egg. Most people are unable to save. Some people are unable to buy a home and have it paid for by this time in life. Some are forced into early retirement. And are not prepared to have to live on any where from $600- 1400 a month. for example our house payment in St Louis was over $800 a month. Where most 3 bedroom homes in the area rented for over $1000.00 a month. Home tax's were $1400.00 a year. there is car insurance. medical insurance or bills. utility's. food. our total cost per a month was near $2000.00 a month to live in our old home.

Where now this house is paid for and tax is only $240.00 a year for near the same square foot home. And a 1/4 acre less yard. Sales tax is higher here. But personal property tax is lower. After medical cost are paid we have a little over $800.00 a month to live on. So you see if we were still in St. Louis we could not even make our house payment.

The question how do we survive on so much less income is the biggest fear of retirement.
In the past family's were still on family land and grew or hunted food. The grocery store replaced this for most people. And we are a spoiled nation. We use to much credit to buy things we want. And do not really need. So we spend most of our life paying off loans and credit cards. This prevents saving.

Another fear is the reality of getting older. We do not want to give up our life as it is. Hubby did not want to accept the fact he is not able to do his job any more. This hurts the ego. And made him feel like a failure. This starts depression.

Some people like my parents were lucky to get a pension along with Social security. At first is was not easy they had to pay allot to keep there medical insurance. Then time wise 1 year to 18 month later Medicare was available to them at a bit less money. So now they live comfortable. When there home is paid off. They then will have no worries.

We also had 2 cars. Now we have just 1. So car insurance is reduced. Once you make a budget and stick to it you can survive on retirement.

But I have not met any one yet who plans for happiness.
I know there are many living there retirement well.

It is a mind set. you have to plan for it.
Know in your heart this will be a time of doing things you enjoy. Spending quality time with your spouse, family and friends.

Have a wonderful day and remember to laugh and play.Photobucket


Gail said...

Good information.

angela said...

its so true, money is the primary concern. But still as long as we have enough to keep the wolf from the door we can at least try to be happy. People like you and me who have never had alot and are prepared to make the changes needed will fare better than most.

Wendy said...

You are very smart! Lots of good down-to-earth information here. Hope you are enjoying the summer.