Comments on: Sad Worlds Collide: The Unretired vs. the Unemployed http://toughmoneylove.com/2008/12/07/sad-worlds-collide-the-unretired-vs-the-unemployed/ The Hard Truth about Money and Personal Finance Tue, 31 Jan 2012 13:37:18 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Mr. ToughMoneyLove http://toughmoneylove.com/2008/12/07/sad-worlds-collide-the-unretired-vs-the-unemployed/comment-page-1/#comment-1632 Mr. ToughMoneyLove Wed, 10 Dec 2008 22:55:48 +0000 http://toughmoneylove.com/?p=361#comment-1632 @ NotSoFast: Congrats on the excellent planning. For the retired or "almost" retired, having a "wait out the market storm" fund is equally important as an emergency fund, so that you aren't destroyed by a market turn down early in your retirement. @ Ahead: Welcome. Using that inheritance to pay off your debt was abnormal, in that most would have probably used it to upsize or buy a bunch of adult toys and bling. Congrats on that. Glad to see that great patent lawyers think alike! @ NotSoFast: Congrats on the excellent planning. For the retired or “almost” retired, having a “wait out the market storm” fund is equally important as an emergency fund, so that you aren’t destroyed by a market turn down early in your retirement.

@ Ahead: Welcome. Using that inheritance to pay off your debt was abnormal, in that most would have probably used it to upsize or buy a bunch of adult toys and bling. Congrats on that. Glad to see that great patent lawyers think alike!

]]> By: Ahead of the curve? http://toughmoneylove.com/2008/12/07/sad-worlds-collide-the-unretired-vs-the-unemployed/comment-page-1/#comment-1631 Ahead of the curve? Wed, 10 Dec 2008 22:48:24 +0000 http://toughmoneylove.com/?p=361#comment-1631 Just found this blog. Hubby and I (mid-40s) paid off our entire mortgage upon receiving an inheritance in 2004. (We're in a market that has seen not so much decline in housing values--Denver) We talked with a few people and all thought we were nuts at the time, but I'll tell you--having two jobs and no mortgage debt (and no other either)--knowing that we could survive pretty much anything and stay in our house--is absolutely priceless. I can't tell you how much happier I am. Knowing that we can make far less and still keep our home makes it all worth it to me. Coincidently I am also a patent lawyer. Just found this blog. Hubby and I (mid-40s) paid off our entire mortgage upon receiving an inheritance in 2004. (We’re in a market that has seen not so much decline in housing values–Denver) We talked with a few people and all thought we were nuts at the time, but I’ll tell you–having two jobs and no mortgage debt (and no other either)–knowing that we could survive pretty much anything and stay in our house–is absolutely priceless. I can’t tell you how much happier I am. Knowing that we can make far less and still keep our home makes it all worth it to me.
Coincidently I am also a patent lawyer.

]]> By: Notsofast http://toughmoneylove.com/2008/12/07/sad-worlds-collide-the-unretired-vs-the-unemployed/comment-page-1/#comment-1599 Notsofast Tue, 09 Dec 2008 13:56:51 +0000 http://toughmoneylove.com/?p=361#comment-1599 I had 35 yrs experience as a maint' supv' in our local paper mill which taught me to plan for the unexpected and have replacement units and/or repair parts on hand! This has/is of great help to me in my 15yr retirement life ! Planning for the worst case is neither " oppimistic or pessimistic " but the practical thing to do! e.g. ... A rainy-day fund of three months income is a must-do, but how many do it? Americans are only now paying the price for " owning nothing " with everything a payment or two from going back including the hse, car, etc! I had 35 yrs experience as a maint’ supv’ in our local paper mill which taught me to plan for the unexpected and have replacement units and/or repair parts on hand!

This has/is of great help to me in my 15yr retirement life ! Planning for the worst case is neither ” oppimistic or pessimistic ” but the practical thing to do! e.g. …

A rainy-day fund of three months income is a must-do, but how many do it? Americans are only now paying the price for ” owning nothing ” with everything a payment or two from going back including the hse, car, etc!

]]> By: Mr. ToughMoneyLove http://toughmoneylove.com/2008/12/07/sad-worlds-collide-the-unretired-vs-the-unemployed/comment-page-1/#comment-1597 Mr. ToughMoneyLove Tue, 09 Dec 2008 13:12:41 +0000 http://toughmoneylove.com/?p=361#comment-1597 Notsofast: I agree. The folks in the article show us that sometimes it doesn't always pay to be optimistic. A little pessimism would be have gone a long way toward helping them get ready for the future if things went south. Notsofast: I agree. The folks in the article show us that sometimes it doesn’t always pay to be optimistic. A little pessimism would be have gone a long way toward helping them get ready for the future if things went south.

]]> By: Notsofast http://toughmoneylove.com/2008/12/07/sad-worlds-collide-the-unretired-vs-the-unemployed/comment-page-1/#comment-1585 Notsofast Tue, 09 Dec 2008 08:44:24 +0000 http://toughmoneylove.com/?p=361#comment-1585 Retired 15 yrs I sadly understand how people with the best of intentions and money too can unknowly fall into this financial trap from poor planning. " Pray for the best! But plan for the worst! " is fitting here. Plan for the " unexpected " ( worse case ) vs the expected ( best case ) scenario. In the BusinessWeek Article all three cases were examples of planning for the best case scenario that was fool hardy at best! Life is fall of downside surprises especially after retirement with health issues, etc. Retired 15 yrs I sadly understand how people with the best of intentions and money too can unknowly fall into this financial trap from poor planning.

” Pray for the best! But plan for the worst! ” is fitting here. Plan for the ” unexpected ” ( worse case ) vs the expected ( best case ) scenario.

In the BusinessWeek Article all three cases were examples of planning for the best case scenario that was fool hardy at best! Life is fall of downside surprises especially after retirement with health issues, etc.

]]> By: RetiredAt47 http://toughmoneylove.com/2008/12/07/sad-worlds-collide-the-unretired-vs-the-unemployed/comment-page-1/#comment-1574 RetiredAt47 Mon, 08 Dec 2008 19:12:38 +0000 http://toughmoneylove.com/?p=361#comment-1574 Interesting discussion. I paid off my mortgage several years before I retired early. It wasn't something I talked about much, but amongst those who knew my situation, I did face some of the usual arguments. Couldn't I do a better job of investing that money than pay down the approx. 6% mortgage? My argument was that I didn't know of an investment that could consistently and safely exceed my mortgage rate. I also acknowledge that there is an emotional component here - some of us just feel more secure without that monthly obligation hanging over our heads. As for the liquidity issue, anyone even thinking of retiring and living off some of their assets needs to do a lot of reading and understand asset allocation. A recession/bear market is scary enough without finding ourselves in a position where we must sell off stocks while they're down. Interesting discussion. I paid off my mortgage several years before I retired early. It wasn’t something I talked about much, but amongst those who knew my situation, I did face some of the usual arguments. Couldn’t I do a better job of investing that money than pay down the approx. 6% mortgage? My argument was that I didn’t know of an investment that could consistently and safely exceed my mortgage rate. I also acknowledge that there is an emotional component here – some of us just feel more secure without that monthly obligation hanging over our heads.

As for the liquidity issue, anyone even thinking of retiring and living off some of their assets needs to do a lot of reading and understand asset allocation. A recession/bear market is scary enough without finding ourselves in a position where we must sell off stocks while they’re down.

]]> By: Mr. ToughMoneyLove http://toughmoneylove.com/2008/12/07/sad-worlds-collide-the-unretired-vs-the-unemployed/comment-page-1/#comment-1559 Mr. ToughMoneyLove Sun, 07 Dec 2008 22:11:06 +0000 http://toughmoneylove.com/?p=361#comment-1559 @Brian: I agree about retail vs. mfg. I'm guessing the job applications at 50+ friendly retailers like Home Depot are way up. Stop: Thanks. I'm one of those that believes that not only do we as a nation need to improve our knowledge of economics, we need to act on what we learn to protect ourselves. @Brian: I agree about retail vs. mfg. I’m guessing the job applications at 50+ friendly retailers like Home Depot are way up.

Stop: Thanks. I’m one of those that believes that not only do we as a nation need to improve our knowledge of economics, we need to act on what we learn to protect ourselves.

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