South Florida, a senior enclave, sees more people ‘unretiring’ due to living costs

[alarmguy]

I am not sure how you quantify that, but I imagine it is true. Education needs to include personal finance.

The financial lobby will never allow that to happen and the public too dumbed down to fight for it

Sad but true without a significant percentage of the American public turning over their income every single week to pure profits for banks the banking industry would get turned upside down. If people became responsible and did not rely on them to buy things they cannot afford or have the maturity to save up for.

It’s absolutely unbelievable that a United States citizen considers being able to afford something if they could make a payment to a third-party to get the money to buy something that they don’t have the money for.
I mean, how stupid is that?

 

[Mechanician]

The financial lobby will never allow that to happen and the public too dumbed down to fight for it

Hopefully the lobbyist's effort to dismantle the "Fiduciary Rule" for retirement funds will finally fail.
Then the dumbing down won't be as effective.
https://www.thinkadvisor.com/2024/07/12/dol-fiduciary-rule-mania-what-happened-and-where-its-headed/

 

[JeffKeryk]

People plan based upon what they know.
Most people don't retire with a lot of contingency money.
Unanticipated large increases to the cost of living may be critical for these folks.
They thought they'd done the math and all of a sudden a large and unexpected increase in property taxes, insurance costs, condo fees or rents set their carefully figured plan on its head.
There are many here with plenty of cushion, but there are many not so well situated.
At retirement age, there isn't anything to help with that. What people should have done twenty years ago doesn't help them now.

A straight up failure of our education system. Give people a fighting chance.
Because if you don't, they will suffer and others will need to pick up the slack.

Planning, people.

 

[wpod]

Paying off a home removes uncertainty. Sure there can be arithmetic that shows other strategies make more sense, but there is nothing like having a free-and-clear home. Nothing like it.

Dividends paying funds really come into play in retirement. Paying a lotta taxes when you don't have a job is freakin' unbelievable.

Long term tech; just look at the S&P, etc.:
View attachment 236527

Bond funds are not for every portfolio, for sure. For me it is a double tax free CA Muni Bond Fund that offers safety (is there is such a thing) and a nice income. Part of a highly diversified portfolio for certain investors. In my case, I could live on this fund and SSI very comfortably. Minimize risk and uncertainty later in your investing career.

I paid off my house in 1989 and it is really nice.

 

[JeffKeryk]

The financial lobby will never allow that to happen and the public too dumbed down to fight for it

Sad but true without a significant percentage of the American public turning over their income every single week to pure profits for banks the banking industry would get turned upside down. If people became responsible and did not rely on them to buy things they cannot afford or have the maturity to save up for.

It’s absolutely unbelievable that a United States citizen considers being able to afford something if they could make a payment to a third-party to get the money to buy something that they don’t have the money for.
I mean, how stupid is that?

AG if there are strapped people of any age, others will have to help.

I think you are talking about credit on the last part of your post. Credit is nothing more than using other people's money to gain an asset. That can be really smart or really not-so-smart.

Having said that, credit can really scare me.

 

[JeffKeryk]

I paid off my house in 1989 and it is really nice.

Well done. IMO, there is nothing like having a place to lay my head, free and clear.

 

[Dinoburner]

Inflation will do more to destroy retirement than anything else if not planned for.

 

[alarmguy]

AG if there are strapped people of any age, others will have to help.

I think you are talking about credit on the last part of your post. Credit is nothing more than using other people's money to gain an asset. That can be really smart or really not-so-smart.

Having said that, credit can really scare me.

In most cases that is a depreciating asset, the public doesn’t have the intelligence to calculate exactly what that credit is costing them over the term of the loan
I think you will see in the United States the vast majority of people using credit out there has nothing to do with really smart.

I’m all for people volunteering their income to help other people. I am not for forced confiscation, my hard earned money and I know you’re not either

 

[Shel_B]

Saw this today and was reminded of this thread...

 

[Fitter30]

Mother told me pay me first. Was 23 already bought a house, married and kid on the way. $3.75 a hour 1.5 Times after 40 hours made almost $10k first year after trade school. Worked a year got fired started a new job in 4 days. Worked 1.5 years almost doubled my pay quit on friday started on monday $8.75 hour 1.5 for overtime after 8. Work hard, educate and invest. Worked with guys that were house poor, car poor and toy poor. Retired 13 years pension and ssi. Reasonably health insurance from my union for my wife and after im gone. Scripts, dental, glasses, hearing aids and health center.

 

[Mechanician]

Saw this today and was reminded of this thread...

After the building collapse in Surfside the state cracked down on HOA standards. Everything had to be inspected, and brought up to snuff.

Then there's the cost of insurance in Florida, crazy now. Climate change - whatever people wish to believe - has added to that cost.

 

[doitmyself]

Changing course a bit here, since all of us successful people participating here have it figured out.

Many here take the easy path and blame politicians for inflation (let's NOT go there). Supply/demand issues during the pandemic certainly caused price hikes. There was the vehicle chip shortage, changing the whole sales model. Corporations are buying up rental properties. Lots of deferred repairs maybe spiking HOA fees. The push for higher wages. Shortage of trades people for necessary work. Lots of changes during and post pandemic.

Besides the changes above, I wonder how much the inflation is due to manufacturer greed. Companies figured out they could sell necessary items (food, rent, vehicles) at higher prices. Why lower them? Why produce entry level vehicles vs. forcing people to buy feature loaded units? Why build entry level homes when people can be forced to buy 4 bedroom/5 bath homes for more profit?

 

[JeffKeryk]

Besides the changes above, I wonder how much the inflation is due to manufacturer greed.

Not saying I am disagreeing, but one person's greed is another's successful business. It just depends on which side of the deal you are on.
A market economy is about winners and losers; there is no fair and everything changes.
Net net, our economy is the envy of the world.

 

[wpod]

I am retired and get SS and it is taxed....

I am 71 years old and paying more taxes that I ever have.

 

[JeffKeryk]

I am 71 years old and paying more taxes that I ever have.

Well done! That's the object of the game.

 

[Pablo]

Well done! That's the object of the game.

No it is not.

Some taxes are fine and I don't mind paying them, but abusing success with progressive sliding scales is a fake game with severe side effects and weird unintended consequences, especially when it involves free stuff at any level.

 

[Mechanician]

Well done! That's the object of the game.

I've always thought "The object of the game" was to have everyone else pay all the taxes

 

[JeffKeryk]

No it is not.

Some taxes are fine and I don't mind paying them, but abusing success with progressive sliding scales is a fake game with severe side effects and weird unintended consequences, especially when it involves free stuff at any level.

I don't get to make the rules, but paying taxes means you are making money. If @wpod is paying more in retirement than while working, his plan musta paid off.

Pablo I hope you are in a crazy high tax bracket. It's a great problem to have, IMO.

 

[SC Maintenance]

I am pretty sure taxes will get higher going forward. Something to consider.

 

[tbm5690]

I am pretty sure taxes will get higher going forward. Something to consider.

ROTHs FTW, as long as they remain sheltered that is