Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
NVIDIA THE KING OF THE METAVERSE! - 10th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
MATTERPORT (MTTR) - DIGITIZING THE REAL WORLD - METAVERSE INVESTING 2022 - 7th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
METAVERSE - NEW LIFE FOR SONY AGEING GAMING GIANT? - 6th Jan 2022
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Can a Doublewide Save Your Retirement

Personal_Finance / Pensions & Retirement Jan 21, 2015 - 04:16 PM GMT

By: Dennis_Miller

Personal_Finance

The rumors are true: Florida is full of 55-plus communities with rows of doublewide mobile homes. The nicer ones have amenities like golf courses, swimming pools, clubhouses… you name it. As you’d expect, the living cost is modest. But here’s the part that blows people away: many of the people who live in these communities are quite wealthy.

That’s right—not everyone living in a doublewide is a NASCAR fan.


My wife and I have friends who live in these communities… people who’ve enjoyed successful careers and built up respectable nest eggs. They still play golf or tennis and participate in the weekly wine and cheese party. Their biggest complaint, frankly, is having a social calendar that’s too packed.

What’s their secret? None looked at downsizing as a step down. Instead, they considered it a prudent way to free up their time and money. These folks are 100% debt-free and are wealthy enough to spend their time however they choose. They found a way to retire rich on their own terms—a milestone I fear most never reach.

A Rude Awakening

When I ran retirement projections in my 40s, I had three teenagers preparing for college and more immediate priorities. I’d tell myself to worry about it later, drop another $2,000 in my IRA, and keep my nose to the grindstone.

Time went by quickly. By my 60s, there was not much “later” left.

According to Fidelity’s annual roundup, savers on the brink of retirement age (55 to 64) had an average 401(k) balance of $165,200 in 2013. While that number is up from $143,300, it still won’t stretch that far.

Even retirement savers with both a Fidelity-managed 401(k) and IRA had a combined average balance of $261,400—still not much. If Mr. Average were to draw down his $261,400 combined balance over 40 years, assuming a modest 5% annual return and 3% inflation, his first month’s income would come to a measly $773.

I encourage everyone to download the Miller’s Money Retirement Income Calculator to run a similar projection. You can personalize it, adjusting the rate of return, inflation, beginning balance, and number of years your portfolio needs to last.

If you’re approaching retirement age and off the mark, you still have recourse.

Remember, the goal of retirement saving and investing is to build enough wealth to live comfortably without working. What’s comfortable? For most, it’s simply maintaining the same lifestyle they enjoyed during their working years.

If you’ve lived in a middle-class neighborhood for the last 40 years, you want the option to stay there. If you keep a nice home at the country club and play golf three times a week, you likely want to continue that lifestyle. Whatever you’ve grown accustomed to is what “comfortable” means for you. We all want to keep on keepin’ on.

So run the numbers. If you’re off the target but still young, small adjustments can go a long way. But if you’re approaching retirement age, you have options… some of which are more appealing than others.

Option #1: Downgrade your lifestyle expectations. At the most extreme, this means accepting that you’ll only have enough for a subsistence lifestyle in retirement. You will constantly worry about money and likely become a burden to your family. I don’t know anyone who wants that, so let’s move on to more optimistic choices.

Option #2: Work longer. Readers often write to tell me they’ll never have money worries because they plan to work forever. Don’t fall into that trap. Now, if you’re healthy enough to work and enjoy your job, by all means, keep at it. But you can’t assume that will always be the case.

All bodies wither. Sometimes our minds fail us. 70-year-olds get pushed out of jobs. And frankly, some people just get tired or would prefer to spend their time doing other things.

So continuing working is not the solution in and of itself. If you choose to work longer than you’d initially planned, upping your savings rate is crucial. Set a new target date and a new savings goal. Curb your spending, and you’ll get there.

This doesn’t mean you have to quit working when you hit your savings target. If you enjoy working and know you can quit anytime, it takes a lot of the pressure off.

There are additional ways to maximize this catch-up time:

  • Develop a plan to get totally out of debt. No debt, no mortgage, no excuses. Start with a five-year timeframe. If that’s not enough time, try seven years. If you need longer than that, get real about the next two points.
  • Attack your spending. Most people don’t have a saving problem; they have a spending problem. Unless you reduce spending, saving is very difficult. To retire rich, you have to live below your means. It’s the only way.
  • Lower fixed expenses. Do you own too much house, too many cars, and maybe even a boat? You might be surprised by how freeing it is to let go of large, recurring expenses.
  • Get a handle on your investments. Get educated and get involved. No one should rely solely on a money manager. Remember, there are no do-overs, and your financial well-being matters to you more than anyone else.
  • Be realistic about what will work for you. A good plan you don’t implement won’t help, so be honest with yourself. Then commit and get it done!

Are you thinking about downsizing but don’t want to live in a doublewide? You don’t have to.

If you’re playing catch up, though, don’t just keep working. Build a five-year plan to get out of debt and save as much as you can. If you’re a NASCAR fan, you may even have enough left over for the better seats at Daytona.

All jokes aside, if you’re not on track, overwhelmed, or just need someone to bounce ideas off of, the right financial planner can help you map out a workable plan. There are tricks to finding the right planner—a planner who’s obligated to put your best interests first. You might be surprised to learn that not all financial planners are held to this standard.

There’s a lot to know about financial planners, money managers, and the like, which is why the Miller’s Money team put it all together for you in The Financial Advisor Guide. Find out more about this must-read special report here.

The article Can a Doublewide Save Your Retirement was originally published at millersmoney.com.
Casey Research Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in