You touched on it in the conclusion, but the most important thing is to be totally debt-free when you "Walk Away." This means: no mortgage, no car payments, no credit card debt, no bills whatsoever. I retired at 59, after selling my business, and it is so much easier to enjoy life when you have no debt.
The other thing, of course, is health care. I have the advantage of having health coverage through the buyer until I reach medicare age, but hopefully there will be some plan in the near future that gives early retirees the ability to get affordable health care.
Once you retire, you have time to figure out how to do things and enjoy life without spending a lot of money. If you're not saddled with ongoing payments, you can really enjoy life very cheaply.
I serve coffee at church from a large cambro. We serve it in paper cups with liners. I want to be environmentally responsible but I wonder from a health standpoint is it safe to refill someones used cup. The act of pouring liquid into a cup could potentially aerolize (make airborne) any bacteria, viruses already in the cup from the user. Then it lands on the spigot. With the transmission of viruses still so much a mystery (i.e. the common cold) and H1N1 in the world; should we refilling coffee cups from either paper or plastic cups? Looked at the OSHA website and couldn't locate anything on this. I don't mean to be compulsive about it, just safe. Thanks!
As someone who has experienced several HMO denials, fought back and won, I have to disagree strongly with your main advice: calling and writing down a name. The thing that has worked for me time and time again (after a frustrating call) is TO WRITE. Find the address of the dispute resolution dept for your HMO ( either online or in your HMO handbook) and send your complaint in writing via certified mail. Oftentimes there is also a claim form to fill out.
In your complaint letter, document your request as logically as possible and cite your HMO handbook if possible. If you are not a good writer, find someone to review your letter. How you phrase things and how well you back up your claim is crucial. Unfortunately not everyone has a writing background or know legalese that well.
Lastly, I must say that it is unfortunate that in the U.S., you have to fight for your medical rights. In all my cases, the HMO agreed that my tests/procedures were indeed covered. If I had not the time, education level or inclination to fight back, I would have had to pay thousands of dollars despite being one of the 'lucky' insured ones.
I feel like I'm reliving my childhood reading your post. Thanks for the memories, my parents thought me all of those keys. What ever you do for yourself will benefit your pocket.
I'm confused...so a guy earns $80,000 and is spending most if not all of it because he has no retirement savings and he'll be okay? He might make due but will he make due because he has to or because he wants to. Luckily, I have some time before I retire but my goal is to live the way I want to. I don't want my money to dictate how I live. I guess I feel like today I see more and more people's lives that are dictated by their savings or lack thereof. If I enjoy my life at $80,000 I'm not going to all of a sudden choose to live off of $4,000 a year. I might be able to make due with less maybe even half but the key there is 'make due'. My goals in life aren't to 'make due' or to just get by. But that's just me.
Most people I know are surprised at how "cheap" I live because most of them know around what I make (because they know what I do for a living, and a couple of big investments I made, etc). I earn in the mid-six figures and live on less than 20% of it. I have a very simple apartment in a nice but not flashy building. I live in NY so I don't have a car, that is no biggie, most people here don't regardless of how much money they have. I have nice suits and business wear but my casual clothes are really cheap, mostly Old Navy and that type. My gf and I eat out at nice restaurants once in a while but both of us like cheaper casual places as well. Mostly though I just don't buy things, outside of furniture I can fit almost everything I own into a couple of suitcases. To me money is about piece of mind, that is the biggest luxury I enjoy. I could lose my job and not have to worry about a paycheck for over a decade. Maybe a couple decades.
@Shirley - Your strategy could very well be the best strategy for some people. However it is not guaranteed. You buy the life insurance to guarantee the principal, but it does cost a pretty penny ($26k/year). By taking the principal ($500k) and investing it in ladder bonds, stocks, and mutual funds, you do a few things:
1) Your returns won't be guaranteed, nor steady, and will fluctuate with both the stock markets and interest rates. This can be harrowing and very stressful for some seniors.
2) Your fixed income investments (eg: the bonds) will generate interest income, which is fully taxable, and may further decrease your after-tax income.
The best thing to do is consult with your financial planner who can help you determine the best investment strategy for you.
Nearly all Americans have the immigrant experience in our family history. This article was a good reminder of the valuable lessons our forebearers gave us and many of us have "forgotten".
Real wealth is achieved through a life-time of learning. We've made a lot, and lost a lot in this economy. We're on the mend now.
It's hard to walk away even at 50, because there's always a fear we will never have enough and die broke. Funny thing is, I'd argue that if one has kids, there would be less fear b/c one's family will always take care of each other.
I just went to my mailbox and got one of these cards - with my name on it. I know good and well I never applied for it...but HAVE had prepaid debit cards in the past (maybe that's where they got my name).
At any rate, it's going into the shredder - immediately...as I'm not working now, I don't even HAVE a paycheck to direct deposit into it! I'm not even going to call them to delete the account (but I WILL write the account number down - in case anything ever comes back to bite me in the butt about this alleged "account").
When you ask for the person's name, ask them if they are located in the US or an offshore call center. If in US, ask for city/state, if they refuse, at least ask for time zone. Also helps to ask for their employee number and their direct telephone #. Not always effective, but has worked for me many times. Distinguishes you from other callers and implies you know their system. They are anxious to keep up their productivity quota and don't like to be slowed down, so most are anxious to take care of your need and get on to the next person.
Hey Katrina gave warning and look what happened there. Tornado,s, Earthquakes, Chemical spill/accident,or god forbid another terrorist attack using Bio-Chem-nuke. These are all a "come-as-you-are-party". After New Orleans, I think it is safe to assume the only one looking out for you is YOU. Well planned, a few months of food and basic needs doesn't take much space and if TSHTF you will be glad you planned ahead.
When I was growing up, my father told me that the best inheritance he could give me was a good education. He sent me to a good college. He also introduced me to various teachings about life. My father passed away many years ago, but what he taught me about life and the school education I received have helped me through every turn in my life. I must say that I would not worry about leaving my children enough money. I would just do the same as my father did, giving my children any opportunity possible to learn about life, and encouraging them to receive a good school education. I would let my children decide for themselves about what they want to do for living and how much money they want to make before they retire. I would give them advice if sought after. Otherwise, I would just enjoy my retirement thereafter.
you buy a term 100 $500,000 life ins for $25,575. so you spend $26k then when you die your family get4 $500k as an annuity , right? Yuo buy a fixed annuity, ladder bonds and buy stks or mutual funds. Wouldn't this be diversified enough even if you are 65 and retired to get you thru the next 20-30 years? And still be somewhat safe and secure?
So now that we are talking about death... it's interesting to note that the Japanese who committed suicide when they couldn't pay their mortgages in the last downturn saddled their next generations with their burden. They have multi-generational mortgages!
Your point is well taken, that's why I wrote, "Does Bernie Madoff WIN In The End? I think the answer is yes to the detriment of his victims.
Bernie may have done more for American society than we all think. Lotsa little Bernies running around emulating his plans of trickery.
Keigu,
Financial Samurai
"Slicing Through Money's Mysteries"
What a lot of people seem to assume about "not loving life" is that once you're dead, it doesn't matter how much you "loved life". You're dead. Period. End of story. If you spent 40 years making $1 million and die, it's no different of an ending than if you spent 40 years in debt and died $1 in the hole.
You touched on it in the conclusion, but the most important thing is to be totally debt-free when you "Walk Away." This means: no mortgage, no car payments, no credit card debt, no bills whatsoever. I retired at 59, after selling my business, and it is so much easier to enjoy life when you have no debt.
The other thing, of course, is health care. I have the advantage of having health coverage through the buyer until I reach medicare age, but hopefully there will be some plan in the near future that gives early retirees the ability to get affordable health care.
Once you retire, you have time to figure out how to do things and enjoy life without spending a lot of money. If you're not saddled with ongoing payments, you can really enjoy life very cheaply.
I serve coffee at church from a large cambro. We serve it in paper cups with liners. I want to be environmentally responsible but I wonder from a health standpoint is it safe to refill someones used cup. The act of pouring liquid into a cup could potentially aerolize (make airborne) any bacteria, viruses already in the cup from the user. Then it lands on the spigot. With the transmission of viruses still so much a mystery (i.e. the common cold) and H1N1 in the world; should we refilling coffee cups from either paper or plastic cups? Looked at the OSHA website and couldn't locate anything on this. I don't mean to be compulsive about it, just safe. Thanks!
As someone who has experienced several HMO denials, fought back and won, I have to disagree strongly with your main advice: calling and writing down a name. The thing that has worked for me time and time again (after a frustrating call) is TO WRITE. Find the address of the dispute resolution dept for your HMO ( either online or in your HMO handbook) and send your complaint in writing via certified mail. Oftentimes there is also a claim form to fill out.
In your complaint letter, document your request as logically as possible and cite your HMO handbook if possible. If you are not a good writer, find someone to review your letter. How you phrase things and how well you back up your claim is crucial. Unfortunately not everyone has a writing background or know legalese that well.
Lastly, I must say that it is unfortunate that in the U.S., you have to fight for your medical rights. In all my cases, the HMO agreed that my tests/procedures were indeed covered. If I had not the time, education level or inclination to fight back, I would have had to pay thousands of dollars despite being one of the 'lucky' insured ones.
I feel like I'm reliving my childhood reading your post. Thanks for the memories, my parents thought me all of those keys. What ever you do for yourself will benefit your pocket.
I'm confused...so a guy earns $80,000 and is spending most if not all of it because he has no retirement savings and he'll be okay? He might make due but will he make due because he has to or because he wants to. Luckily, I have some time before I retire but my goal is to live the way I want to. I don't want my money to dictate how I live. I guess I feel like today I see more and more people's lives that are dictated by their savings or lack thereof. If I enjoy my life at $80,000 I'm not going to all of a sudden choose to live off of $4,000 a year. I might be able to make due with less maybe even half but the key there is 'make due'. My goals in life aren't to 'make due' or to just get by. But that's just me.
You can also look for a job opportunities at the freelance-leads.com websites. It has about 700 IT jobs added daily.
Thanks, your website is very helpful
"Am I invaluable to the firm." If the answer is no, I try and get back to that status.
Keigu,
Financial Samurai
"Slicing Through Money's Mysteries"
This is a really good article. I guess you really don't have to spend as much money as you would think for a party with lots of kids.
this is a nice list to put up on the wall of a cubicle in the case of an employee. so as to remind them of their goals and dreams
Most people I know are surprised at how "cheap" I live because most of them know around what I make (because they know what I do for a living, and a couple of big investments I made, etc). I earn in the mid-six figures and live on less than 20% of it. I have a very simple apartment in a nice but not flashy building. I live in NY so I don't have a car, that is no biggie, most people here don't regardless of how much money they have. I have nice suits and business wear but my casual clothes are really cheap, mostly Old Navy and that type. My gf and I eat out at nice restaurants once in a while but both of us like cheaper casual places as well. Mostly though I just don't buy things, outside of furniture I can fit almost everything I own into a couple of suitcases. To me money is about piece of mind, that is the biggest luxury I enjoy. I could lose my job and not have to worry about a paycheck for over a decade. Maybe a couple decades.
I don't know whom to credit for this, but it's one of my favorite quotes:
"John D. Rockefeller was one of the richest men in the world.
And now, with sound financial planning,
he's dead."
@Shirley - Your strategy could very well be the best strategy for some people. However it is not guaranteed. You buy the life insurance to guarantee the principal, but it does cost a pretty penny ($26k/year). By taking the principal ($500k) and investing it in ladder bonds, stocks, and mutual funds, you do a few things:
1) Your returns won't be guaranteed, nor steady, and will fluctuate with both the stock markets and interest rates. This can be harrowing and very stressful for some seniors.
2) Your fixed income investments (eg: the bonds) will generate interest income, which is fully taxable, and may further decrease your after-tax income.
The best thing to do is consult with your financial planner who can help you determine the best investment strategy for you.
Thanks for the comment!
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Nearly all Americans have the immigrant experience in our family history. This article was a good reminder of the valuable lessons our forebearers gave us and many of us have "forgotten".
Real wealth is achieved through a life-time of learning. We've made a lot, and lost a lot in this economy. We're on the mend now.
It's hard to walk away even at 50, because there's always a fear we will never have enough and die broke. Funny thing is, I'd argue that if one has kids, there would be less fear b/c one's family will always take care of each other.
Thanks for sharing your thoughts FS.
I've never had any dealings whatsoever with Capital One (except watching their annoying commercials) - but I got one of these cards anyway.
I just went to my mailbox and got one of these cards - with my name on it. I know good and well I never applied for it...but HAVE had prepaid debit cards in the past (maybe that's where they got my name).
At any rate, it's going into the shredder - immediately...as I'm not working now, I don't even HAVE a paycheck to direct deposit into it! I'm not even going to call them to delete the account (but I WILL write the account number down - in case anything ever comes back to bite me in the butt about this alleged "account").
Lord, the ways people try to rip you off!
When you ask for the person's name, ask them if they are located in the US or an offshore call center. If in US, ask for city/state, if they refuse, at least ask for time zone. Also helps to ask for their employee number and their direct telephone #. Not always effective, but has worked for me many times. Distinguishes you from other callers and implies you know their system. They are anxious to keep up their productivity quota and don't like to be slowed down, so most are anxious to take care of your need and get on to the next person.
Hey Katrina gave warning and look what happened there. Tornado,s, Earthquakes, Chemical spill/accident,or god forbid another terrorist attack using Bio-Chem-nuke. These are all a "come-as-you-are-party". After New Orleans, I think it is safe to assume the only one looking out for you is YOU. Well planned, a few months of food and basic needs doesn't take much space and if TSHTF you will be glad you planned ahead.
When I was growing up, my father told me that the best inheritance he could give me was a good education. He sent me to a good college. He also introduced me to various teachings about life. My father passed away many years ago, but what he taught me about life and the school education I received have helped me through every turn in my life. I must say that I would not worry about leaving my children enough money. I would just do the same as my father did, giving my children any opportunity possible to learn about life, and encouraging them to receive a good school education. I would let my children decide for themselves about what they want to do for living and how much money they want to make before they retire. I would give them advice if sought after. Otherwise, I would just enjoy my retirement thereafter.
you buy a term 100 $500,000 life ins for $25,575. so you spend $26k then when you die your family get4 $500k as an annuity , right? Yuo buy a fixed annuity, ladder bonds and buy stks or mutual funds. Wouldn't this be diversified enough even if you are 65 and retired to get you thru the next 20-30 years? And still be somewhat safe and secure?
So now that we are talking about death... it's interesting to note that the Japanese who committed suicide when they couldn't pay their mortgages in the last downturn saddled their next generations with their burden. They have multi-generational mortgages!
Your point is well taken, that's why I wrote, "Does Bernie Madoff WIN In The End? I think the answer is yes to the detriment of his victims.
Bernie may have done more for American society than we all think. Lotsa little Bernies running around emulating his plans of trickery.
Keigu,
Financial Samurai
"Slicing Through Money's Mysteries"
Hilarious! Now if we all made bucko bucks... we'd never have to even bother! :)
Keigu,
Financial Samurai
"Slicing Through Money's Mysteries"
What a lot of people seem to assume about "not loving life" is that once you're dead, it doesn't matter how much you "loved life". You're dead. Period. End of story. If you spent 40 years making $1 million and die, it's no different of an ending than if you spent 40 years in debt and died $1 in the hole.