Posted on 05/08/2025 6:07:19 AM PDT by Cronos
PFL
Nice thing about a passbook savings account is that it is about as liquid as you can get.
I retired four years ago and my wife and I are living off social security. But before I retired we became completely debt free. We own our home, four cars, and a fully stocked shop building. We also have 25 acres of forest that is harvestable every ten years or so, for many thousands of dollars.
Our monthly cost of living is half our SS checks. But the big key to this whole thing is that we simply need very little money to live. Part of it is the ridiculously low property taxes: 32 acres and a home, for the price of a large pizza every month.
And the other part is that we just don’t want much of anything. My one extravagance is that I pay for Youtube premium because I use it constantly, and it is also how I learn songs for my bands, which are really a hobby experience. It only earns me a few hundred a month.
But I feel richer than I have at any time in my life and I also enjoy more dayly joy than I have at any time in my life. I’m 71, and had an 11+ hour heart surgery two years ago that knocked 15-20 years off my age.
I know it won’t last forever, but I certainly never anticipated this retirement when I was a young man.
Nice thing about a passbook savings account is that it is about as liquid as you can get.
I retired four years ago and my wife and I are living off social security. But before I retired we became completely debt free. We own our home, four cars, and a fully stocked shop building. We also have 25 acres of forest that is harvestable every ten years or so, for many thousands of dollars.
BTW, I dreaded tax season every year back in the day. Now it takes me about a half hour to do my taxes. I pay no income tax any more. If push came to shove, I could even work a part time job and make almost $30k and still pay no income tax. But so far there is no need.
Our monthly cost of living is half our SS checks. But the big key to this whole thing is that we simply need very little money to live. Part of it is the ridiculously low property taxes: 32 acres and a home, for the price of a large pizza every month.
And the other part is that we just don’t want much of anything. My one extravagance is that I pay for Youtube premium because I use it constantly, and it is also how I learn songs for my bands, which are really a hobby experience. It only earns me a few hundred a month.
But I feel richer than I have at any time in my life and I also enjoy more dayly joy than I have at any time in my life. I’m 71, and had an 11+ hour heart surgery two years ago that knocked 15-20 years off my age.
I know it won’t last forever, but I certainly never anticipated this retirement when I was a young man.
So you don’t “have” $1.3 million,
You present a lot of “ifs”. We consider if’s but don’t live our lives around them. There are many more factors in his life than money. Same for you and me.
Always pay yourself first, focus on accumulating assets rather than debts, and (to your point) watch your spending on the frivolous stuff. You’ll likely be spending more in retirement than you thought and new income is going to be hard to come by.
“Buy quality and hold it.”
Amen.
Well, in my case various emergencies (extended unemployment, family medical issues not covered by insurance, etc.) ate up all savings. Then I realized. I do desk jobs. I don’t usually have to extend myself physically. I simply won’t retire. Not ideal, but provides for wife and special needs family members.
Some people buy quality companies that are reliable dividend growers (e.g., dividend aristocrats) and use the quarterly payouts to supplement whatever other income sources they have. But it can take a long time to build those income streams so not for everyone.
Great points! Lowering your expenses by being debt free changes everything for retirement.
Ditto here, little savings (VERY little).
But good pensions and a business.
So far keeping well ahead of inflation.
Yesterday drove to Lowes in one of our Unimogs and loaded it with rebar, cement blocks, concrete, etc., for the continuing rebuilding of our 4 story barn attached to our Victorian era money pit.
Live frugally, but have fun.
Last weekend volunteered as a ham radio operator at a stage rally at the Team O'Neil driving school.
This weekend, with others, getting ready for the annual ham radio Field Day.
I used to service the computer systems for the headquarters of a major ham radio organization headquarters in Wethersfield, Connecticut.
Those guys were frugal. They had a Panasonic laser printer that was old even then. It was a horrible device, because the developer was separate from the toner, no cartridge. So, they saved money on the toner. Unfortunately, the developer had to be replaced periodically (or resurfaced . . . THERE’S a lost art) and the developer cost more than several toner cartridges would have. A lot of people just put up with very faded printouts until it was illegible.
Pouring in toner from a jug was a mess.
These guys maintained it though. I got the feeling they liked doing things the hard way.
My wife and i starting cutting back on “unimportant” stuff a few years before I retired. We are fortunate that we have less than $4k left on our mortgage and we paid off all of the credit cards and car payments. It is really nice to pay ALL of your bills and have cash in your pocket.
But you are right…if you are not paying attention, things can swing out of control easily.
We measure every dime (more or less) and allow ourselves some “fun money” every cycle.
What gets measured…gets done.
I'm saying not to budget for $1.3 million, budget for $750,000. The $600,000 house isn't generating income cash flow.
-PJ
The best deal around is the military’s Thrift Savings Plan. The ones who took advantage and maxed their contributions did their 20 years and at 40 retired as millionaires with a military pension as well. Then they went out and got hired by govt. for another 20 years -if they so chose.
Did you come and stay legally? If not you are an example of why it is not prudent to deport every single illegal. Some, like you are an asset to America. A 'keeper".
I had very little luck in the stock market. I had a Roth IRA. I built wealth buying and selling real estate. That and precious metal. Now that the ability of the big banks to manipulate gold is waning we are going to be in great shape.
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