The Fixed Income Myth

[Aleta]

There are alot of no cost things for people to do besides going out to eat. They can go to libraries. Parks often have special activities set up for retirees. My brother set up activities at a park where they even had a cruise trip offered for one day at a special price. Yes, it is great that they get out but I don't think that they have to eat out everynight. My grandparents never new that luxury and they lived many many years.

[Joan.of.the.Arch]

I don't think anyone is trying to make the case that retired people need to eat out everyday.

Let us acknowledge that, among the retired, there is an entire range of financial situations. I'm sure Exile would acknowledge that there are people who live on nothing more than Social Security whom he would never have had on his collections lists as they do pay all their bills because do not rack up bills they will not be able to pay.

[LivingAlmostLarge]

Exactly, I don't think it's excessive to eat out IF you can afford it. But I am wondering why are people allowed to complain about a fixed income when they have fat in their budgets?

[disneysteve]

Exactly, I don't think it's excessive to eat out IF you can afford it. But I am wondering why are people allowed to complain about a fixed income when they have fat in their budgets?

Well, people are allowed to complain about anything at all. Whether or not anyone takes their complaints seriously or has any sympathy for them is another issue.

Personally, I don't have much sympathy for folks who complain about never having any money when it doesn't take an MBA to look at their lifestyle and see why they never have any money.

[SacredFaerie]

I get that older people can't work, but i don't get why they need to eat out everyday? How is it justifiable just because you are 80 but not 25?

Why is there a line it's "okay" to have a "latte" tax and pay stupid tax daily on eating out but then complain about affording things?

I understand that fixed incomes are hard, but aren't we ALWAYS preaching to live to your income? Well then it might meaning not eating out breakfast everyday for the old person if they "live" to their income.

A part time job is not the only way to make money. There's no reason that someone couldn't think outside the box a little and maybe sell a few items laying around the house to turn a quick profit. Maybe they could even expand on that idea and buy and sell items on a site such as Ebay. All this could be done from the comfort of one's home. That is much easier for a 75 year old to handle than say, standing at the drivethrough window at McDonalds all day. There's always a way to make money. You just need to be creative.

So you expect every retired person to move to the Philippines?

Also you're sure that this lady can cook for herself.....how? She could very well take some form of senior friendly transportation to get breakfast and then have an aide come and prepare lunch and dinner.

This whole thread is irrelevant and you're just judgmental.

I requoted myself to answer that question. The client I just recently finished working with lives in a building with other adults who have mobility issues or brain injuries. Around here, most of the assisted living facilities are senior facilities and these residents are too young to qualify for a spot. Quite a few get together with other residents who have better vision and go around the corner or across the street to get a meal when their aide isn't available. It happens.

And to answer BJ, you have to think about vision and such. If they can barely afford food what makes you think they can afford pcs?

[woodie96]

Fixed incomes are just like most other aspects of life. If you live beyond your means, then you will most likely, not have much to show for it in the end. People that begin early in life being frugal, will most likely have lots more to show for it in the end.

[Exile]

So you expect every retired person to move to the Philippines?

I'm fortunate that I had this option. However, at first when DW suggested it, I was dead set against the idea. But eventually I came around. The point is that I knew that we were heading for serious financial problems if we continued drifting. So we did something about it. Maybe if more people would get creative and at least try to think outside the box about their futures, they might improve their situations.

Curious if you are really living/retired in the Philippines? If so, your checks must treat you like a king there.

Yes DW and I are living in the Philippines as retirees. Our checks allow us to live modestly but comfortably (hardly like royalty).

[SacredFaerie]

Exile you're not dealing with all the inflated costs here in the US. Everyone can not up and move to the Philippines.

[asmom]

Exile you're not dealing with all the inflated costs here in the US. Everyone can not up and move to the Philippines.

And why should they have to just to avoid being tagged a deadbeat? This is my home and I have a right to live and die in the place I was born and have worked and paid my taxes to live.

[SacredFaerie]

And why should they have to just to avoid being tagged a deadbeat? This is my home and I have a right to live and die in the place I was born and have worked and paid my taxes to live.

Amen.

[Exile]

Exile you're not dealing with all the inflated costs here in the US. Everyone can not up and move to the Philippines.

You're missing my point, SacredFaerie. Relocating to the Philippines is the route that DW and I happened to take in order to escape the inflated costs in the U.S and to deal with other issues as well, such as job uncertainty. There are other options for securing one's future, and that's what I meant about thinking outside the box.

Admittedly, since the economic meltdown, living from day to day has become difficult enough for millions of people in the U.S. (did you see the unemployment figures for December?) let alone planning beyond tomorrow. But that's another point that I was trying to make: DW and I saw a bleak future even before the crash and tried to do something to protect ourselves. For those who are still in a position to plan ahead, consider all your present options and create new ones too if necessary.

[cptacek]

I think it is interesting that when someone posts here about how much they are in debt, and wants help to decide what to do to get out of it, we all say things like stop eating out, stop cable, stop cell phones, sell a car, sell a house (well, maat usually does this one), etc, but no one asks how old they are and if they get social security. We don't change our advice depending on how old they are (except for investing allocation) we just tell them to suck it up and quit spending more than they earn or start earning more than they spend.

[maat55]

IMO, the mindset in our country is to retire at 65 debtfree and live off SS. Some will save up a small fund for things other than day to day expenses.

Many are accustom to a certain lifestyle and believe they can maintain it during retirement.

The more years they live the tighter things get, and are stuborn to change their living expenses by moving to lower cost areas or major cut backs.

Retirement these days is not cheap. It has to be planned for and many wait till it is too late. Some think a boat or a motorcycle is more important than money in the bank.(My stupid brothers)

[SacredFaerie]

I intend to save for retirement (I'm 19 now). But realistically I don't expect my retirement to last. I really feel like SS won't be there when I retire and I'll be lucky if my savings and pension hold out.

[Exile]

I think it is interesting that when someone posts here about how much they are in debt, and wants help to decide what to do to get out of it, we all say things like stop eating out, stop cable, stop cell phones, sell a car, sell a house (well, maat usually does this one), etc, but no one asks how old they are and if they get social security. We don't change our advice depending on how old they are (except for investing allocation) we just tell them to suck it up and quit spending more than they earn or start earning more than they spend.

So why are such tips as "stop eating out" (if that's what the complainer is doing) be any less valid just because someone is older?

IMO, the mindset in our country is to retire at 65 debtfree and live off SS. Some will save up a small fund for things other than day to day expenses.

Many are accustom to a certain lifestyle and believe they can maintain it during retirement.

The more years they live the tighter things get, and are stuborn to change their living expenses by moving to lower cost areas or major cut backs.

Retirement these days is not cheap. It has to be planned for and many wait till it is too late. Some think a boat or a motorcycle is more important than money in the bank.(My stupid brothers)

That's exactly my point maat55. I wouldn't dream of trying to retire in the U.S. based on social security income alone. In fact if DW and I had stayed in America, I don't know if or when, based our situation there, we could have retired at all--ever.