Meet Jessica and Joel Soffer. They retired early a few years ago while still in their fifties. But the current economic crisis is catching up with them.
As somewhat misleadingly reported by the Los Angeles Times, the Soffers have a net worth of $1.4 million. I say misleading, because their actual retirement funds started at just over $600,000 and are now, of course,less. The remainder is equity in the home they love and have no intention of leaving.
One's net worth is not necessarily, or even usually, what is available for use during retirement. We all need a place to live, preferably a paid for, mortgage-free place. If we don't want to downsize or if that's not realistic (in my northwest city, downsizing is possible in terms of home size, but not realistic in terms of cost. If a 970 sq. foot downtown condo costs the same as my inner-city 2800 sq. ft. home, what's the point of moving?), then the equity is largely useless. That might change should the terms of reverse mortgages get more reasonable. But for now, when it comes to retirement planning, I only count pensions (as in, wish I had one coming!), Social Security (please let it be there when I'm ready to bail from working life!), and retirement savings.
I understand the Soffers' wanting to keep their family home. I also understand their desire to travel now while they are early in their retirement and still have their health. But one thing I don't get is the balance that the Soffers carry on their credit cards. It's not clear from the article if this is a decreasing balance or one that was acquired during retirement but either way, I'm surprised that they haven't made it a priority to wipe it out.
What I also note about the Soffers (and what I see as a real possibility in my own future) is how much they expend on their two adult children. Both of their children are single parents, and over the course of one year, the Soffers have helped out to the tune of $15,500. I wonder if they would have paid out that much had they both still been working and had a better sense of their own monthly expenses. For myself, while I do help out my five adult daughters (more than I want and less than they'd like), the fact that I have only a certain amount of income coming in each month limits how much of that I am willing to use for them. I wonder if my feelings will be different after retirement, when suddenly there is a larger "pot" of money from which to draw. I wonder if I'll remember that that "pot" must last my lifetime.
Sunday, May 31, 2009
Tuesday, May 26, 2009
May Update--Getting Back on Track
Well, what d'ya know. Paying down bills and not charging ANYTHING really does reduce one's debt! You might think I'd have figured this out earlier in my 60 years, but apparently it's one of those lessons one needs to keep repeating.
SO--I reduced my indebtedness by $1116.91 during May, have managed to pay every single bill that was due this month, and have not charged ANYTHING. (Yes, I said that twice, but I'm very proud of it. And yes, I know I still have a few days to go, but when the due date for a paycheck is on a Saturday, Sunday or Monday, my employer pays on the Friday before, so I figure I can remain a good girl for the next 2.5 days.)
SO--I reduced my indebtedness by $1116.91 during May, have managed to pay every single bill that was due this month, and have not charged ANYTHING. (Yes, I said that twice, but I'm very proud of it. And yes, I know I still have a few days to go, but when the due date for a paycheck is on a Saturday, Sunday or Monday, my employer pays on the Friday before, so I figure I can remain a good girl for the next 2.5 days.)
Thursday, May 21, 2009
Bathroom Books
I can't be the only one who does this.
I like to have at least one large tome in the bathroom that can be read in short doses without diluting either my interest or requiring me to hang out in the bathroom for more time than I already do.
Encyclopedic reference books are perfect, though they sometimes don't meet my second criterion, which is that it must be the kind of book that I won't mind getting wet, banged around, or curled up from humidity.
Enter Amy Dacyzyn's The Complete Tightwad Gazette.
I read the individual volumes as they came out, but since that was back in the '90's and frugality was still new to me, not much of it stuck. Also, I was greatly put off by an interview the author gave to Money Magazine where she was asked how her children fit in with their friends, and her response was that her children had each other--they didn't need friends. I wasn't sure what a mother who could say such a thing had to teach me about saving money.
However, this volume showed up at a library book sale a few months back, and for some time now has been my bathroom book.
Although it is dated, (computers and the internet figure not in her world) it is still a great read. I had forgotten what a strong sense of humor the author has about her own foibles, how honest she is about what does and doesn't work (getting kids to eat lima beans may never be worth the effort, no matter how frugal or nutritious), and how tolerant she is with regard to any mother's choice as to work outside the home or not.
It's the ultimate bathroom book, clearly meant to be absorbed in small doses. It took me four months to read, and I'd be willing to keep on going, if only I hadn't run out of pages.
Maybe the author was misquoted by Money Magazine? Or maybe I'll just have to forgive her for that lapse.
Oh, and her all-purpose stain removal recipe really does work!
I like to have at least one large tome in the bathroom that can be read in short doses without diluting either my interest or requiring me to hang out in the bathroom for more time than I already do.
Encyclopedic reference books are perfect, though they sometimes don't meet my second criterion, which is that it must be the kind of book that I won't mind getting wet, banged around, or curled up from humidity.
Enter Amy Dacyzyn's The Complete Tightwad Gazette.
I read the individual volumes as they came out, but since that was back in the '90's and frugality was still new to me, not much of it stuck. Also, I was greatly put off by an interview the author gave to Money Magazine where she was asked how her children fit in with their friends, and her response was that her children had each other--they didn't need friends. I wasn't sure what a mother who could say such a thing had to teach me about saving money.
However, this volume showed up at a library book sale a few months back, and for some time now has been my bathroom book.
Although it is dated, (computers and the internet figure not in her world) it is still a great read. I had forgotten what a strong sense of humor the author has about her own foibles, how honest she is about what does and doesn't work (getting kids to eat lima beans may never be worth the effort, no matter how frugal or nutritious), and how tolerant she is with regard to any mother's choice as to work outside the home or not.
It's the ultimate bathroom book, clearly meant to be absorbed in small doses. It took me four months to read, and I'd be willing to keep on going, if only I hadn't run out of pages.
Maybe the author was misquoted by Money Magazine? Or maybe I'll just have to forgive her for that lapse.
Oh, and her all-purpose stain removal recipe really does work!
Saturday, May 16, 2009
Moving Florence Up Front
Florence, whose blog Ruminations, is on my blogroll, left a comment on my last post, with a link to a great and cautionary tale
From an economist.
From an economist who writes for the NY Times!
Who writes about money!
Who clearly did NOT take his own advice.
So, here's the link, upfront in the blog: My Personal Credit Crisis
And here's to Florence who provided it.
From an economist.
From an economist who writes for the NY Times!
Who writes about money!
Who clearly did NOT take his own advice.
So, here's the link, upfront in the blog: My Personal Credit Crisis
And here's to Florence who provided it.
Thursday, May 14, 2009
Could've Been Me
Thanks to Boston Gal for linking to this story on public radio: Putting a New Value on the Golden Years.
I have very mixed feelings as I read it.
Pretty much, any story about a single (in Meredith McKenzie's case, widowed) older woman coping with today's economic environment captures my interest. I think it is cool that she gave up real estate (or, it gave her up) to take a lesser-paying but more emotionally fruitful position helping to protect the environment. She was able to turn volunteer work into a second career, which is also admirable, though funding for her position is now in question. And she is able to adapt from renting a large home on the beach, to a one room, converted garage--again, making do with what she (no longer) has.
But what about her lack of savings?
My God! She's 56 years old, and has apparently been a widow for more than a decade. Not to mention, she was earning six figures! How could she NOT have saved anything?
I don't have a lot of room to talk--I didn't start serious savings until I was in my late 40's. I have my excuses: my child-rearing didn't end until last year; I wasn't earning anywhere near six figures; I--oh, never mind! The truth is, I just wasn't paying attention.
Then again, what about Meredith's lack of real estate? I mean, she was in the business. You'd think she might have saved toward a down payment, if not for retirement.
Meredith scares me because I can see how easily I might be her! And yet, she seems like the kind of person who would be great to be friends with, or to have to dinner.
I guess I just wouldn't take financial advice from her!
I have very mixed feelings as I read it.
Pretty much, any story about a single (in Meredith McKenzie's case, widowed) older woman coping with today's economic environment captures my interest. I think it is cool that she gave up real estate (or, it gave her up) to take a lesser-paying but more emotionally fruitful position helping to protect the environment. She was able to turn volunteer work into a second career, which is also admirable, though funding for her position is now in question. And she is able to adapt from renting a large home on the beach, to a one room, converted garage--again, making do with what she (no longer) has.
But what about her lack of savings?
My God! She's 56 years old, and has apparently been a widow for more than a decade. Not to mention, she was earning six figures! How could she NOT have saved anything?
I don't have a lot of room to talk--I didn't start serious savings until I was in my late 40's. I have my excuses: my child-rearing didn't end until last year; I wasn't earning anywhere near six figures; I--oh, never mind! The truth is, I just wasn't paying attention.
Then again, what about Meredith's lack of real estate? I mean, she was in the business. You'd think she might have saved toward a down payment, if not for retirement.
Meredith scares me because I can see how easily I might be her! And yet, she seems like the kind of person who would be great to be friends with, or to have to dinner.
I guess I just wouldn't take financial advice from her!
Monday, May 11, 2009
Kharma, Kismet, What Have You
Not that I'm a big believer in fate, or Karma, or whatever you call it.
BUT on Saturday, I made out a shopping list for my alternate-monthly trek to Wal-Mart. It included an electrical power strip, a cheese slicer, rubber dishwashing gloves and light bulbs.
On the way out to my car, I saw that my neighbors were having a garage sale, so, naturally, I wandered over to check it out.
[Cue the Twilight Zone music]
Lo and behold, they had a heavy-duty power strip for $1.
AND a cheese-slicer--a much nicer one that I would have bought--for the incredible price of a dime.
But wait, there's more!
They also had three unopened packages of rubber gloves, size small. (When I check my weight on those charts, I immediately go to "big-boned." But that is such a lie--I have small hands, and, if I admitted it, which I won't, a small frame.) Each package was another dime.
For a grand outlay of $1.40, I got nearly everything on my list, and saved myself a trip across town.
OK, I never did get the light bulbs. Apparently there are limits to one's karma. But I'm not complaining.
BUT on Saturday, I made out a shopping list for my alternate-monthly trek to Wal-Mart. It included an electrical power strip, a cheese slicer, rubber dishwashing gloves and light bulbs.
On the way out to my car, I saw that my neighbors were having a garage sale, so, naturally, I wandered over to check it out.
[Cue the Twilight Zone music]
Lo and behold, they had a heavy-duty power strip for $1.
AND a cheese-slicer--a much nicer one that I would have bought--for the incredible price of a dime.
But wait, there's more!
They also had three unopened packages of rubber gloves, size small. (When I check my weight on those charts, I immediately go to "big-boned." But that is such a lie--I have small hands, and, if I admitted it, which I won't, a small frame.) Each package was another dime.
For a grand outlay of $1.40, I got nearly everything on my list, and saved myself a trip across town.
OK, I never did get the light bulbs. Apparently there are limits to one's karma. But I'm not complaining.
Friday, May 8, 2009
More On Disappearing Bloggers
Sheesh! Now Brian at "Over 40, Overweight and In Debt" has joined the ranks of "Where'd They Go!" Come on folks--give us a heads up or a warning or a last post or SOMETHING!
Shevy from Shevy's Miscellaneous Life brings up the possibility that some of the bloggers may have died--I certainly hope that's not the case for most of them! But before I went into the hospital for my heart surgery, I did leave an envelope with my will that let my children know about my blog (which they don't know about because I've never told them) and gave them the password so that one of them could do a final post letting folks know I didn't make it.
I do think if we've taken the trouble to bring strangers into our financial life, we owe them an explanation when we decide to slam the door shut (or get it slammed on us).
Morrison from All Doors Considered posits that no one wants to read downer posts from bloggers but then, again, she says she strives to put up positive posts. Say what? I love her blog, but on any given day, she drives right over the proverbial cliff when it comes to depressing posts!
I know that Sra. Dog over at Dog Ate My Finances isn't much enjoying being jobless but I have to say, I do like reading about her struggles and find much of what she has to say about it helpful in thinking about what I would do if I were suddenly downsized out of a job. (One option: make nice to her still-employed husband so he'd let me move in with them?)
Personally, I think blogging about the "downs" of our financial lives can be as instructive as lauding our successes. Life has always tended to be more of roller-coaster ride than an ever-upward climb to the top of the mountain.
I'm not going to eliminate some of these missing blogs from my blogroll just yet. I'm keeping my fingers crossed that they will return. For future reference--if you're planning on leaving the blogging world in a non-terminal way, at least drop Grace a line first!
Shevy from Shevy's Miscellaneous Life brings up the possibility that some of the bloggers may have died--I certainly hope that's not the case for most of them! But before I went into the hospital for my heart surgery, I did leave an envelope with my will that let my children know about my blog (which they don't know about because I've never told them) and gave them the password so that one of them could do a final post letting folks know I didn't make it.
I do think if we've taken the trouble to bring strangers into our financial life, we owe them an explanation when we decide to slam the door shut (or get it slammed on us).
Morrison from All Doors Considered posits that no one wants to read downer posts from bloggers but then, again, she says she strives to put up positive posts. Say what? I love her blog, but on any given day, she drives right over the proverbial cliff when it comes to depressing posts!
I know that Sra. Dog over at Dog Ate My Finances isn't much enjoying being jobless but I have to say, I do like reading about her struggles and find much of what she has to say about it helpful in thinking about what I would do if I were suddenly downsized out of a job. (One option: make nice to her still-employed husband so he'd let me move in with them?)
Personally, I think blogging about the "downs" of our financial lives can be as instructive as lauding our successes. Life has always tended to be more of roller-coaster ride than an ever-upward climb to the top of the mountain.
I'm not going to eliminate some of these missing blogs from my blogroll just yet. I'm keeping my fingers crossed that they will return. For future reference--if you're planning on leaving the blogging world in a non-terminal way, at least drop Grace a line first!
Thursday, May 7, 2009
Where'd They Go? And Why?
Not to sound overly cranky, but why is it that some of my favorite bloggers have decided to drop off the face of the internet?
I forgive JW, whose "Need to Be Debt Free" was one of my favorite reads--apparently someone turned his employer onto the blog and put JW's employment in jeopardy. The blog or the job -- pretty easy choice, there!
But what is Bluebird's excuse? I have always found his blog, Hedonic Adjustment, to be an interesting read. I'm hopeful about him, because he's wandered away before, and then returned. As for him being tired of blogging--my personal opinion is that no blogger should disappear until or unless GRACE grows tired of reading them!
I have no idea what happened to Petunia at Keeping Score--one day she was there and the next, she wasn't.
Then, just as I was thinking about adding Change Can Be a Good Thing to my blogroll, the author decides to hang it up. I especially like the title of that blog in all of its connotations, except the idea that she can change her mind about blogging!
Whoever said "All good things must end" probably got it right. But I reserve the right to whine and blog about it.
I forgive JW, whose "Need to Be Debt Free" was one of my favorite reads--apparently someone turned his employer onto the blog and put JW's employment in jeopardy. The blog or the job -- pretty easy choice, there!
But what is Bluebird's excuse? I have always found his blog, Hedonic Adjustment, to be an interesting read. I'm hopeful about him, because he's wandered away before, and then returned. As for him being tired of blogging--my personal opinion is that no blogger should disappear until or unless GRACE grows tired of reading them!
I have no idea what happened to Petunia at Keeping Score--one day she was there and the next, she wasn't.
Then, just as I was thinking about adding Change Can Be a Good Thing to my blogroll, the author decides to hang it up. I especially like the title of that blog in all of its connotations, except the idea that she can change her mind about blogging!
Whoever said "All good things must end" probably got it right. But I reserve the right to whine and blog about it.
Wednesday, May 6, 2009
Freebie Time
OK, I admit it--I DO (sometimes; occasionally; not more than twice a week!) eat fast food. Which is why I like this coupon from Kentucky Fried Chicken for a free meal.
You can print out up to four of the coupons. As long as everyone in your party shows up in person, each person can use their own coupon.
It's good through May 19th, but it is not usable on Mother's Day.
Come on! Mother's Day? It would be just tacky to treat mom with a free coupon even if you did try to convince her that KFC was her favorite restaurant!
You can print out up to four of the coupons. As long as everyone in your party shows up in person, each person can use their own coupon.
It's good through May 19th, but it is not usable on Mother's Day.
Come on! Mother's Day? It would be just tacky to treat mom with a free coupon even if you did try to convince her that KFC was her favorite restaurant!
Friday, May 1, 2009
It's a New Month; It's a New Day!
So a couple of days ago, I was blithering about frugal fatigue and being stuck in the financial doldrums. Today, I'm feeling much better about my finances. Why? I have no clue.
But there were a few small bright spots:
For one, my oldest daughter, out of the blue, paid me back $400. The thing is, while I do "loan" my kids money from time to time, I never really expect to see the money again. My oldest daughter probably owes me around $1300 over the past year but I haven't hounded her for repayment. In fact, I've never mentioned it. That's why it was great to get an early Mother's Day card with her cash inside it. I assume it came from a tax return but whatever the source, I was glad to get it.
Another reason to feel good is that my 403(b) is finally showing signs of health. No, it's not back to where it was in October, 2007. But it's quite a bit above the "under $100,000" point it had dropped to just this past March.
And finally, I realized that April, 2009 was the first month in a long time where every single bill, including every single unexpected expense that suddenly arose, got paid, with no borrowing and no robbing one creditor to pay another. It feels fine, so fine that I want to do it again in May!
But there were a few small bright spots:
For one, my oldest daughter, out of the blue, paid me back $400. The thing is, while I do "loan" my kids money from time to time, I never really expect to see the money again. My oldest daughter probably owes me around $1300 over the past year but I haven't hounded her for repayment. In fact, I've never mentioned it. That's why it was great to get an early Mother's Day card with her cash inside it. I assume it came from a tax return but whatever the source, I was glad to get it.
Another reason to feel good is that my 403(b) is finally showing signs of health. No, it's not back to where it was in October, 2007. But it's quite a bit above the "under $100,000" point it had dropped to just this past March.
And finally, I realized that April, 2009 was the first month in a long time where every single bill, including every single unexpected expense that suddenly arose, got paid, with no borrowing and no robbing one creditor to pay another. It feels fine, so fine that I want to do it again in May!
Wednesday, April 29, 2009
Financial Doldrums & April Update
So I've been blogging about my finances since mid-2007. The general idea has been to self-monitor my debts and, one hopes, watch the indebtedness dwindle. The debts have indeed dwindled, but at an alarmingly slow pace. Here I am, almost two years later, and I've only dented the indebtedness by a total of $4900. Even that hasn't a steady drop--more like a series of rises and falls as life and Murphy keep intervening.
Right now I feel like I'm in the financial doldrums--the fiscal version of the depressing calm that beset sailors in olden times. It's not that anything terrible is happening to me financially. But it's also not like I'm making any great progress on debt reduction, either.
Case in point: For the month of April, I managed to reduce my total indebtedness by a whopping $88.41!
I gotta do better than this if I plan to ever retire debt-free.
Right now I feel like I'm in the financial doldrums--the fiscal version of the depressing calm that beset sailors in olden times. It's not that anything terrible is happening to me financially. But it's also not like I'm making any great progress on debt reduction, either.
Case in point: For the month of April, I managed to reduce my total indebtedness by a whopping $88.41!
I gotta do better than this if I plan to ever retire debt-free.
Friday, April 24, 2009
Five Thoughts for A Friday
A bunch of small things on my mind on this beautiful Friday (The weatherman is promising a nice week-end as well, but he's fickle and untrustworthy.):
1. A fair number of bloggers are getting burned out worrying about their finances. KemKem, at Life As I know It, and Karissa at Keeping It Seriously Simple are both having a bad case of the "Blahs." I know these thoughts only too well. Some might suggest just ignoring the feeling and soldiering on. But I think it is a sign of frugal fatigue and should be combatted by a small amount of personal, fun spending. One nice meal out or a single overnight getaway won't break the bank, and may well help get someone who is suffering back on the frugal track. At least, if we don't do it every week!
2. Earth day came, and Grace came up short, as usual. But I am making one new concession to greening the planet--I am using (mostly, when I remember--currently, I have remembered during two of my last three trips to the grocery store) one of those ubiquitous canvas shopping bags.
3. Mighty Bargain Hunter has a lovely post about help given to a homeless woman. While I could not (or maybe, would not) have charged $55 as easily as he did, I greatly admire his deed.
4. I never thought I would consider an annuity. In fact, they have always seemed to me to be an expensive and not very effective retirement option. But this article from the Wall Street Journal has gotten me thinking.
5. And finally, for those who have e-mailed me to ask--I am feeling great. According to my doctor, whom I saw yesterday, I am the poster child for anyone recovering from heart surgery. I've lost 11 pounds and I'm walking every day--something I should have been doing over the past year. Too bad it took this wake-up call to get me serious about weight loss and exercise!
1. A fair number of bloggers are getting burned out worrying about their finances. KemKem, at Life As I know It, and Karissa at Keeping It Seriously Simple are both having a bad case of the "Blahs." I know these thoughts only too well. Some might suggest just ignoring the feeling and soldiering on. But I think it is a sign of frugal fatigue and should be combatted by a small amount of personal, fun spending. One nice meal out or a single overnight getaway won't break the bank, and may well help get someone who is suffering back on the frugal track. At least, if we don't do it every week!
2. Earth day came, and Grace came up short, as usual. But I am making one new concession to greening the planet--I am using (mostly, when I remember--currently, I have remembered during two of my last three trips to the grocery store) one of those ubiquitous canvas shopping bags.
3. Mighty Bargain Hunter has a lovely post about help given to a homeless woman. While I could not (or maybe, would not) have charged $55 as easily as he did, I greatly admire his deed.
4. I never thought I would consider an annuity. In fact, they have always seemed to me to be an expensive and not very effective retirement option. But this article from the Wall Street Journal has gotten me thinking.
5. And finally, for those who have e-mailed me to ask--I am feeling great. According to my doctor, whom I saw yesterday, I am the poster child for anyone recovering from heart surgery. I've lost 11 pounds and I'm walking every day--something I should have been doing over the past year. Too bad it took this wake-up call to get me serious about weight loss and exercise!
Tuesday, April 21, 2009
The Parking Ticket Rant
ARRGH!
Never mind that I deserved what I got. Never mind that I have no excuses. None of that will prevent me from ranting about parking tickets.
First, I hardly ever take my car to work. I am a firm believer in mass transit; my office subsidizes annual bus passes; I love riding the bus because it gives me uninterrupted reading time.
BUT--part of the fallout from heart surgery is the necessity of doctor's appointments. For whatever reason, all of my appointments have been scheduled mid-day. This means I can't economically use the parking lots near my office because none of them allow "in and out" access. Going in and out twice in the same day is prohibitively expensive.
So I park on the street. At 1.5 hour meters. Which I then sometimes forget about.
That particular brand of forgetfulness costs me $24 a ticket.
Today, I got my 4th ticket in a month.
A total (so far!) of $96!
Money that could have gone to debt reduction. Money that I would much rather have wasted some other way!
May I just say again: ARRGH!
Never mind that I deserved what I got. Never mind that I have no excuses. None of that will prevent me from ranting about parking tickets.
First, I hardly ever take my car to work. I am a firm believer in mass transit; my office subsidizes annual bus passes; I love riding the bus because it gives me uninterrupted reading time.
BUT--part of the fallout from heart surgery is the necessity of doctor's appointments. For whatever reason, all of my appointments have been scheduled mid-day. This means I can't economically use the parking lots near my office because none of them allow "in and out" access. Going in and out twice in the same day is prohibitively expensive.
So I park on the street. At 1.5 hour meters. Which I then sometimes forget about.
That particular brand of forgetfulness costs me $24 a ticket.
Today, I got my 4th ticket in a month.
A total (so far!) of $96!
Money that could have gone to debt reduction. Money that I would much rather have wasted some other way!
May I just say again: ARRGH!
Tuesday, April 14, 2009
Healthy Health Insurance
For obvious reasons (like, say, quadruple bypass heart surgery!) I am grateful that I have health insurance. Mine is through Kaiser. So far, the costs of the initial testing and subsequent surgery total $47,458.12.
My personal costs? $20 in co-pays for two office visits plus another $30 for additional medications.
I went back to work full-time yesterday, exactly four weeks and two days after the surgery.
Health insurance is on my mind because a colleague submitted her resignation in my absence, and I can't help but think she's making a terrible mistake. She's not happy with her supervisor, but the two of them have worked together for over 25 years. What would another couple of years matter?
More importantly, she's only 62. She can get social security, but she won't be eligible for Medicare for another three years. Unfortunately, even if she can afford COBRA (and I'm not sure she can) it will only cover the first 18 months after she leaves. That means she will be uninsured for another 18 months until Medicare kicks in.
Her response? "I'll just go to the emergency room. Besides, I'm healthy."
Umm--Hello? Didn't my experience teach you anything? I thought I was healthy, too. Instead, I've been a walking time bomb for years.
Who wants to risk a $47,000+ debt hanging over their retirement?
Not me, that's for sure. Now if I could just persuade my colleague.
My personal costs? $20 in co-pays for two office visits plus another $30 for additional medications.
I went back to work full-time yesterday, exactly four weeks and two days after the surgery.
Health insurance is on my mind because a colleague submitted her resignation in my absence, and I can't help but think she's making a terrible mistake. She's not happy with her supervisor, but the two of them have worked together for over 25 years. What would another couple of years matter?
More importantly, she's only 62. She can get social security, but she won't be eligible for Medicare for another three years. Unfortunately, even if she can afford COBRA (and I'm not sure she can) it will only cover the first 18 months after she leaves. That means she will be uninsured for another 18 months until Medicare kicks in.
Her response? "I'll just go to the emergency room. Besides, I'm healthy."
Umm--Hello? Didn't my experience teach you anything? I thought I was healthy, too. Instead, I've been a walking time bomb for years.
Who wants to risk a $47,000+ debt hanging over their retirement?
Not me, that's for sure. Now if I could just persuade my colleague.
Monday, April 6, 2009
The Finances of Friendship
Miss M has a new post about friendships and how they are impacted by economic status. I don't disagree with her conclusion that we tend to keep our closest friendships with those who are also close to our class.
But it does cause me to reflect on my closest friendship.
L and I met in graduate school thirty-five years ago. We are both loners. Neither of us married. Depending on where we were living (currently we're in the same city, but we've been as much as 2000 miles apart), the closeness of our relationship has ebbed and flowed.
We discovered early on that we travel well together, so we've always taken vacations with one another. She is the friend I went with to Japan last October.
Since my heart surgery, and after my daughter returned home to her family, L has been dropping by for dinner four nights a week. She has also provided me with transportation since I'm still not released to drive.
We're a lot alike. But NOT financially.
She is quite wealthy and always has been. Not only does she come from a wealthy family, but she has taken private sector jobs that pay very well.
We have worked hard over the years to keep money from being an issue.
We both like to eat out. In general, we take turns paying. When I'm paying, we're likely to hit the local Thai restaurant. When she craves something more exciting and more expensive, she pays. We don't try to keep the money even--just the number of times each of us pays.
On vacations, we tend to agree as to the quality of the lodgings we want--we both want a certain level of comfort, but she never insists on top-drawer accommodations. We both like to play tourist, so I make sure in advance that I can afford the museums and other attraction costs. We both agree to fly coach. Actually, she flies a lot in her job, and she takes coach, then, too.
Shopping has always been a joke between us. She is an inveterate shopper and she loves it. I'm not. I accompany her with a book in hand, and I head for the nearest chair while she scouts out her "must-have" purchases. She comes home from our vacations with at least one extra suitcase of new stuff while I tend to be happy with a couple of bookmarks or coin purses.
But in spite of our class differences and the variance in our financial status, we have remained friends all this time. I would hate to think that something like money could ever change that.
But it does cause me to reflect on my closest friendship.
L and I met in graduate school thirty-five years ago. We are both loners. Neither of us married. Depending on where we were living (currently we're in the same city, but we've been as much as 2000 miles apart), the closeness of our relationship has ebbed and flowed.
We discovered early on that we travel well together, so we've always taken vacations with one another. She is the friend I went with to Japan last October.
Since my heart surgery, and after my daughter returned home to her family, L has been dropping by for dinner four nights a week. She has also provided me with transportation since I'm still not released to drive.
We're a lot alike. But NOT financially.
She is quite wealthy and always has been. Not only does she come from a wealthy family, but she has taken private sector jobs that pay very well.
We have worked hard over the years to keep money from being an issue.
We both like to eat out. In general, we take turns paying. When I'm paying, we're likely to hit the local Thai restaurant. When she craves something more exciting and more expensive, she pays. We don't try to keep the money even--just the number of times each of us pays.
On vacations, we tend to agree as to the quality of the lodgings we want--we both want a certain level of comfort, but she never insists on top-drawer accommodations. We both like to play tourist, so I make sure in advance that I can afford the museums and other attraction costs. We both agree to fly coach. Actually, she flies a lot in her job, and she takes coach, then, too.
Shopping has always been a joke between us. She is an inveterate shopper and she loves it. I'm not. I accompany her with a book in hand, and I head for the nearest chair while she scouts out her "must-have" purchases. She comes home from our vacations with at least one extra suitcase of new stuff while I tend to be happy with a couple of bookmarks or coin purses.
But in spite of our class differences and the variance in our financial status, we have remained friends all this time. I would hate to think that something like money could ever change that.
Thursday, April 2, 2009
Retirement Practice
Even though the damage to my heart turned out to be worse than expected (a quadruple by-pass as opposed to a triple), my recovery could not have been smoother. I've had surprisingly little pain, more energy than I expected, and WAY too much free time on my hands. I won't be allowed to drive for another week and a half, which keeps me at home.
So I'm looking at this as retirement practice.
It is frustratingly clear to me that between now and the time I actually do retire (which, according to my schedule is in 9 years), I'd better have serious plans in place.
Getting up late, reading a lot, and watching daytime television is already getting old and I've only been doing it for three weeks.
I am so BORED!
Part of it, of course, is that my close friends are still working so they are not available to play with me during the day. Also, a "real" retirement would include volunteer activities, writing, travel, and, probably, a car. That latter is a bit iffy since I'm not the world's greatest driver, and who knows how much worse I'll be in another decade.
I am less able to structure my time than I expected--something that will have to change once I retire.
Still, it's been an interesting exercise--and proof to me that I am, in no way, ready to retire right now.
So I'm looking at this as retirement practice.
It is frustratingly clear to me that between now and the time I actually do retire (which, according to my schedule is in 9 years), I'd better have serious plans in place.
Getting up late, reading a lot, and watching daytime television is already getting old and I've only been doing it for three weeks.
I am so BORED!
Part of it, of course, is that my close friends are still working so they are not available to play with me during the day. Also, a "real" retirement would include volunteer activities, writing, travel, and, probably, a car. That latter is a bit iffy since I'm not the world's greatest driver, and who knows how much worse I'll be in another decade.
I am less able to structure my time than I expected--something that will have to change once I retire.
Still, it's been an interesting exercise--and proof to me that I am, in no way, ready to retire right now.
Tuesday, March 31, 2009
Quarterly and Monthly Updates
My net worth, which I figure quarterly, is down 7% to $482,715. No big surprises, there.
On the other hand, I reduced my indebtedness by $828.60 this month.
Focusing on debt-reduction is obviously the way to go these days.
On the other hand, I reduced my indebtedness by $828.60 this month.
Focusing on debt-reduction is obviously the way to go these days.
Sunday, March 22, 2009
Do As I Say---
I read Trent's "A Simple Dollar" regularly but unlike his legions of admirers, I don't necessarily assume that he all the answers all the time. I also susupect that, from time to time, he is driven by financial hubris, as are most of us.
But Saturday's columm regarding his family purchase of a new 2009 Toyota Prius via financing is a revelation--partly of the lengths Trent will go to deny that he hasn't made the most financially sound decision and partly the reprobation of his fans who seem unwilling to cut any slack for a less-than-stellar but hardly devastating purchase.
I worry about bloggers like Trent and JD at Get Rich Slowly who have been set up the role models. I continue to read them because I have so much to learn before I even get where they are. Yet, learning from people who have to be perfect takes a toll from all of us.
Can I just fess up now that I have learned at least as much from MP Dunleavey and the Women in Red? I shake my head at some of her financial machinations because I see my younger self in her actions. But I do rejoice when I see her learn her financial lessons so much sooner than I did.
Give it up, Trent! You WANTED the Prius! You did NOT want to put all of your savings toward the car, so you financed it. Revisit that decision occasionally and tell us how it's working for you. And do it honestly. If it's a mistake but one you're glad you made, so be it. If it is something you have to pay off sooner just to get back to financial peace, admit it and move on. It it turns out to be a disaster, well, let us in on that one, too.
We're all big kids here--we can handle it.
But Saturday's columm regarding his family purchase of a new 2009 Toyota Prius via financing is a revelation--partly of the lengths Trent will go to deny that he hasn't made the most financially sound decision and partly the reprobation of his fans who seem unwilling to cut any slack for a less-than-stellar but hardly devastating purchase.
I worry about bloggers like Trent and JD at Get Rich Slowly who have been set up the role models. I continue to read them because I have so much to learn before I even get where they are. Yet, learning from people who have to be perfect takes a toll from all of us.
Can I just fess up now that I have learned at least as much from MP Dunleavey and the Women in Red? I shake my head at some of her financial machinations because I see my younger self in her actions. But I do rejoice when I see her learn her financial lessons so much sooner than I did.
Give it up, Trent! You WANTED the Prius! You did NOT want to put all of your savings toward the car, so you financed it. Revisit that decision occasionally and tell us how it's working for you. And do it honestly. If it's a mistake but one you're glad you made, so be it. If it is something you have to pay off sooner just to get back to financial peace, admit it and move on. It it turns out to be a disaster, well, let us in on that one, too.
We're all big kids here--we can handle it.
Friday, March 20, 2009
Grace is BAAACK!
One thing you have to admit--medical care in the US is quite the modern miracle. This is apart from all the "soclialized medicine" debates. Where else can one go in to surgery one day, and come out four days later with Frankensteinian staples, four cleaned out arteries (or valves, or SOMETHING!) and not that much pain.
But hey! Step away from the Percocet!
I have lots to say about the financial end of all this, but not a lot of energy.
Be assured that I came through the surgery well and my doctors are pleased with my rate of recovery.
More, later.
But hey! Step away from the Percocet!
I have lots to say about the financial end of all this, but not a lot of energy.
Be assured that I came through the surgery well and my doctors are pleased with my rate of recovery.
More, later.
Thursday, March 12, 2009
Life Whaps Grace Upside the Head
Aging is about more than finances. It's about life's little (and not-so-little) surprises.
While it is my intent to concentrate on finances in this blog, there are times when real life trumps even the money.
Consider Tuesday.
There I was, sitting in a hospital room in one of those ridiculous open-backed gowns, looking at pastel watercolors of a human heart and listening to my cardiologist explain all the ways in which Grace's heart did NOT look like the pretty pictures.
If I'd had any warning, any pain, ANY sign at all that I was in trouble, I might have been more prepared. As it was, I'd come in for an angiogram because a routine stress test had shown "ambiguous" results. That, along with some seriously lousy genetics (mom, dad, grandparents on both sides all had heart conditions) led to the angiogram.
Long story short, I'm undergoing open heart surgery on Saturday. Triple by-pass time.
Funny how finances don't play into situations like this. I didn't even ask about my insurance coverage. I still haven't. I just assume it will mostly cover what I need, and if it doesn't--well, like Scarlett O'Hara in a different context, I'll think about it tomorrow.
Thank God I HAVE health insurance. And a job. And my family. Two of my daughters are professional caregivers, so I'll be in good hands.
I expect to be off the computer for a few days.
After that, I'll explore the finances of aging with much more attention to the details.
While it is my intent to concentrate on finances in this blog, there are times when real life trumps even the money.
Consider Tuesday.
There I was, sitting in a hospital room in one of those ridiculous open-backed gowns, looking at pastel watercolors of a human heart and listening to my cardiologist explain all the ways in which Grace's heart did NOT look like the pretty pictures.
If I'd had any warning, any pain, ANY sign at all that I was in trouble, I might have been more prepared. As it was, I'd come in for an angiogram because a routine stress test had shown "ambiguous" results. That, along with some seriously lousy genetics (mom, dad, grandparents on both sides all had heart conditions) led to the angiogram.
Long story short, I'm undergoing open heart surgery on Saturday. Triple by-pass time.
Funny how finances don't play into situations like this. I didn't even ask about my insurance coverage. I still haven't. I just assume it will mostly cover what I need, and if it doesn't--well, like Scarlett O'Hara in a different context, I'll think about it tomorrow.
Thank God I HAVE health insurance. And a job. And my family. Two of my daughters are professional caregivers, so I'll be in good hands.
I expect to be off the computer for a few days.
After that, I'll explore the finances of aging with much more attention to the details.
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