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Retire on $1200 A Month!


Retire on $1200 a month? Am I crazy or am I still living in 1957? This is a typical monthly retirement budget for retirees in Johnsville. (For readers outside of the US the amounts shown here are in US Dollars.)

Rent $1000
Electricity 70
Gas 20
Water & Garbage Collection 25
Auto Maintenance & Fuel 250
Phone land line 25
Cell phone 70
Cable television 50
Internet 50
Food* 500
Total 2060

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* Our food bill, for two, averages $97 a week and we go to Sam’s (You might go to Costco.) for bulk buying every two months and spend an average of $250 per trip. That comes out to $97 a week times 52 weeks = $5044 + $250 times 6 = $1500. $5044+$1500= $6544. If you divide that by 12 our monthly food bill would be around $545. We eat salmon twice a week so be sure we get our Omega 3s. Your food bill might be more or less.

The budget numbers are on the high side. My cell phone bill is about $25 for me and $25 for my wife. If you only have one cell, then your cost would be $25. This is a POP – Plain Old Phone. It’s not an I-Phone or the latest whiz bam phone. We can get calls and make calls. Our cable is also around $25. (No HBO, no On Demand, just basic cable television). But I doubled the price for Johnsville because your numbers might be different. Continue reading Retire on $1200 A Month!


Are There Dangers of a Reverse Mortgage?


You have been considering a reverse mortgage for some time but now you’re afraid. Some people might be telling you about the dangers of reverse mortgages. These dangers can become apparent once you decide to get a reverse mortgage. (If you missed the article that discussed the Reverse Mortgage Overview, you can read it here.) But do these dangers have any basis in fact or reality? Or these are simply dangers that you should not mind because the benefits are just too good to ignore?

First, let’s list four major benefits:

  1. Benefit #1 – You get to own your home or estate for so long as you are living in it, maintaining it, and paying its insurance and property taxes.
  2. Benefit #2 – You get to enjoy the monthly cash flow from the loan without taxes and you can spend it without restrictions.
  3. Benefit #3 – You get the option to use it on the education of your grandchildren or on other large expenses like uninsured medical.
  4. Benefit #4 – You are protected by the federal government because of certain strict regulations and safeguards placed on this financial mortgage program.

There are many other benefits that one can get by getting a reverse mortgage, but just like any financial loan, whether taxable or not, there are also some dangers which you should know before deciding to take the reverse mortgage so you have some facts and avoid regretting the decision later on. Continue reading Are There Dangers of a Reverse Mortgage?


AARP Dental Insurance


I’m going to look into the AARP Dental Insurance plan. If you saw my article where I just joined the AARP, you know that I saved ½ on my car insurance just by joining AARP. When I retired on October 1st, 2009, I took the whole medical/ dental package, since I didn’t know how my expenses and my medical/dental coverage was going to all work out. So I got the whole package combined.

My dental premiums are banded and based on age. Band or banded is a term that means people are grouped into a rate category by age. Think of the band like a group. The band I am in is for the 51 to 60 years old. The next band goes from 61 to 65. Then from 66 to 70.

My dental premiums are the same as they were when I worked full time. That’s because the company was not paying half for the dental insurance – they were only paying for ½ of the medical. My medical is twice what I used to pay since the company is not paying half like they used to. But I knew that was going to happen. Continue reading AARP Dental Insurance


I Just Joined the AARP


Please don’t laugh. I’m over 50 and for the past two years, the only people that know this is the AARP. I’ll bet I get a letter from them, about joining the AARP, about every three months. I’m not sure I like their political leanings, but I have to admire the benefits of membership.

I joined because the price of my car insurance is going to be ½ of what I was paying before. I don’t know if I made that clear enough – I’m paying ½ of what I was paying before. I signed up for a 10 year membership, so my AARP renewal will come due shortly after I am eligible to start collecting Social Security – if it is still around in ten years.

I have always been careful with my car and how I drive. I don’t get tickets and don’t get into accidents, and every year the cars get one year older and my premium goes up and I pay more money for what amounts to be less insurance. Continue reading I Just Joined the AARP


My Life Story - Page 2


When you read My life story – Page 1, you already know that I was a senior manager at the company where I worked for the past two decades. I worked for a director, who was nice enough. But I really felt that the job she had, really should have been mine. She had only been with the firm ten years and did not have the breadth of experience I had. I do not know how she got the job. It really doesn’t matter. She was one of the few old company workers who was not getting a package, since she was not over fifty. She worked for one of the new Vice Presidents at the new firm.

At the time I retired, looking at what I was going to do in retirement, I knew certain things about me. I am not a person who can sit in a lawn chair and watch the grass grow. Even though I was retired, I wanted to do something; to be an active participant in life. I’ve done lots of volunteer work and although it was interesting at the time, it was not fulfilling to me. There are some people who are good at it and then there are folks like me. I’ve done the Habitat for Humanity, volunteered for the Red Cross, donated over 10 gallons of whole blood for the local blood bank, was the company chairperson for the Race for the Cure, and lots of other things. But none of them really lit a fire under me.

When I left the 9 to 5 life and retired, I decided I was going to go down a different road. I wanted to try my hand at different things, I wanted to do different things, I wanted to meet different people. Maybe I would get into sales. I wasn’t really comfortable with sales, but since I was exploring and had a good retirement income behind me, I put that on my list of possibilities.

I had invested in a start-up Internet Service Provider (ISP) in the middle nineties, and have given some thought to doing something internet based, like marketing or something. That went on my list of possibilities. Continue reading My Life Story – Page 2