Money Matters - Part 13

Cat - forgot to comment on your other link. You said the cost of health insurance was up only 4% this year. The article points out that it is only premiums that are up that much so far - not the cost of health insurance. It goes on to say that more people are paying higher out of pocket for their care. That is not something to celebrate. Also, as a percentage of their shrinking income, health costs are taking an even larger bite. As I posted yesterday, median income is lowest since '95. Middle class is getting decimated.

I used to be middle class - until I lost one class at school.

That article is very disturbing, but somehow, not surprising.

we're paying more for health insurance and the co pay is higher and that doesn't even include vision and detal which we used to have

Well yet another bailout announced by the Fed - so-called QE3 (quantitative easing where they leave rates alone, but keep buying more treasury bonds) to begin. I really don't see why this one would work where the others did not. What small businessman will now hire someone because the Fed is buying Treasuries???

Wow - 40 BILLION per month of bond buying. To continue indefinitely! Talk about inflating the next bubble...

Back to personal finance - has anyone really taken the time to try to estimate how much $ they will really need in retirement?? I will admit I have not. We just save as much as we can. Lots of variables, of course, like where you will be living. We will DEF not be in NY. Would like a small place, little or no maintenance and want to be able to travel.

What are your thoughts? Will you move? What do you want to be able to do?

Haven't really taken any time to look at finances when we retire other to look at those ss statements you get periodically telling you how much you're going to get a month...you know if I die now my kids will get more a month then if I live till retirement? what the heck!

I have done the retirement budget for my financial advisor. Every time I see him I have to update the amounts because utilities and taxes on my house keep going up. Also my vet bills are astronimical(sp)! I really can't retire until the cats go over the rainbow bridge. I have already planned to only take in Foster Cats when I retire so that I won't have the vet bills.

So hard to quantify. We try to take every tax break possible.

I think about retirement every week, every time there is a crazy day at work. There is no actual way to know when to retire because there is no way to predict investments, real estate or future health care costs and needs. I have figured it best by knowing when I can collect half of my husband's social security benefit at age 66 1/2, what I can save now into a variety of accounts with different risks, and what my pension will be. I consider also what I can do now to earn some money in retirement. If I decide to get nationally certified to do my work, would i enjoy some travel to do that, etc. Before I spend any money I ask what the return from the investment will be, even if it's to go out to dinner, because I need to relax, etc.

have not done anything about this either other than to save what we can. do not plan on moving as i have spent to much time building this yard. My wife would move today. I just tell her we need to be able to carry two properties for a year as i would need the time to move every rock/tree/bush i could!

I get depressed when I think about retirement - so I try not to think about it and try not to spend any money that I can avoid spending. I know that I will have to move to another State and then I get depressed about trying to un-hoard my house before I can put it on the market. Then I eat chocolate and feel much better!

In theory- we are open to the idea of downsizing to get out of Mary-Tax-Land. I saw with my mom how caring for a house became difficult. In reality though- that was where she had all her happy memories of raising her kids. And me, this house, has mine. It'll be tough. Also for short term, this is a good location for our own kids to jump off out of college.

Plenty of fast food.
(ba dump- dump- tchchch)

Downsizing and changing location can mean also having to build a new social network and learn a new area. THe older you are when you do that, the more challenge I think it would be.

I have a Sister in Virgina who is always telling me about the tax breaks there - no income tax on Social Security income for seniors for one. I have a Sister in Arizona and would move there except that they are selling their property with the guest house that I was scheming to rent! I can't go back to California - too expensive! When I was teaching two classes a year, I could pay my property tax from that, but now that it is one class and that is a maybe, I better plan on moving. Of course my house may not be worth enough to have anything left over from the sale . . . I NEED CHOCOLATE!

Chocolate helps everything...

Low taxes in Delaware too right?

First the location, then the concept- DH has said he has no interest in having to fix up an older home himself. I kinda like the idea of some of those historic houses with their great layouts. But we have friends who've gone that route- historic in Salisbury MD- and it ain't no picnic, financially or work wise. Cedar roof, wooden exterior painting, rotted bathroom subfloor., no central AC, tiny cramped kitchen, so much maintenance on old wood. Used it as beach-ish 2nd house.

Yay for chlockit as my grandies say!!!!

We have always thought about what we would NEED in retirement, so never spent a lot for vacations, except for the last two years. Always went camping. We don't eat out much either. We would like to move out of NJ someday. However we have grandies around the corner. That speaks volumes!!! But, there is no guarantee they will stay here forever. We would like to be near at least one of our kids. My in-laws moved to VA which was halfway between NJ and GA where their kids lived and they only saw them a couple of times a year. It was a major effort to drive there with a van full of kids to visit them. So we determined that when the time came we would like to be near family.

Have been trying to build up a portfolio that we could use to bolster SS. I am slowly purging the stuff in the house cuz it's just stuff. The kids have gotten things they want, so..... When my folks moved in here we probably could have opened an antique store with the things they brought. I have attachment to some things, but in reality I could get rid of a lot.

Our decision to be made now is whether we want long-term care insurance. We are waiting on our financial guy with a number for the premium. My mom had it, but we didn't use it, cuz I was able to keep her here at home. Is this something you all have considered? Do you consider it worthwhile? Why or why not?

All my mother's extra health policies (like a cancer policy) were wasted money. Even if she had a long-term care policy, it wouldn't have done much good as far as what it provided. She lost her real property assets through misguided financial management not too long before her stroke, but Assisted Living facilities would have eaten it up in a heartbeat anyway.

The real need is for folks with a spouse to look at what they need if one is stricken so the other can still survive while the other is maintained with care.

My mom would never have used it- She was self sufficient (me a half hour away) till quite late, and her medicare and retirement health benefits covered everything she ever needed in hospital and rehab (hip replacement, byppass, stents, chronic leukemia, over about fifteen year span not all at once!) I think she'd have just died rather than go to assisted living. OTOH, my BIL sister was just diagnosed with alzheimer's. She's getting rough, she lives with her mother, who naturally hoped that the DD would be the helper to the mom. There is a genetic component, doc said. Yet her older brother (69) and her mother (88) are both not affected- Who the heck ever knows.

RIght now we don't feel we have any extra cash to even consider it. and given my grumpy feelings on insurance co's, I'd rather buy bonds.

Darius, so sorry to hear those sad events for your mom.

Of great benefit to a senior, is someone younger and trustworthy outside the family circle but nearby. No magic on how to find that though.

I considered and rejected long term care insurance. The chances of using it is 50-50 I am told. Of my 4 Grandparents there was maybe 6 month of long term care between them and I have better health than they did. Also I have in my medical directives that I am not to be given anything to extend my life if I get to long term care.

Nothing galls me as those who seem to take advantage of our precious elders. Ugh!!! Best laid plans... Mom's Medicare and supplemental insurance covered most everything, 'cept her meds. The hospice care was cheaper than a facility anyway. I need to stay on the good side of our DDILs. Heehee

Yes, that is another thing we need to do is the medical directives and update our wills.

Yes, I need to consider a medical directive. They ask every time I'm in the hospital.

But then I remember a friend remarking about a coma patient who made a full recovery after several years in a coma.

We have had long term insurance for a long time. When you are young when you start, it is very reasonable. I def think it's worth it. Enables you to stay in your home vs being institutionalized, among other things.

Health care proxy, D. Carries more weight than a 'living will'.

Thanks for the info!

One item to consider with the living will issue- on a frail elderly patient, unless otherwise directed, they would have to do a full (aggressive) resuscitation on cardiac arrest. Spare the details, it is not something you'd want to put that patient through.

Which is why you need a proxy - a person to make that call.

I'm thinking that's also referred to as Medical POA?

Could be. Each state may call it something different.

Yikes. Apparently I am not the only one who did not like the Fed's latest move.

http://www.forexlive.com/blog/2012/09/13/egan-jones-analyst-hints-at-us-rating-downgrade-post-qe3/

Google has very fine restaurants for their employee's (closest Boston), Say they buy 360 lbs of delmonico steaks and only serves 100 lbs. The rest goes in the trash. Everything they dont serve goes in the trash. Its a pitty they dont send it to food shelters.

I know this as a freind is a Chef, in Boston.

as a whole America is a very wasteful country



Went to Target the other day I need to buy a new stariner they wanted $15!!! geez aloo

about the steak- pretty sick

about the strainer- same reaction- lots of cute kithchen doo dads but the price...sheesh seems high.

Great charity that I have given to for years - City Harvest - goes around to restaurants, diners, delis, etc., and collects leftovers to feed the poor.

Shocking! Not.

http://abcnews.go.com/WNT/video/us-bridges-roads-built-chinese-firms-14594513?tab=9482930?ion=1206853&playlist=14594944

grrrrrrr

When I lived in Asheville, there was "The Blue Bus" that provided a free hot bowl of soup, a salad and a slice of bread daily in the scuzzy part of downtown to anyone who lined up. The hippy guy behind it was driving through Asheville when the bus broke down, so he stayed. Every evening he went around and collected produce and day old bread that he prepared on the bus in huge ss vats, and had proper 2 or 3 stage washing vessels to clean the bowls and utensils. He disappeared after a couple of years... the City officials probably shut him down.