"outliving your money" case on MSN.com

[mistymoney]

https://www.msn.com/en-us/lifestyle/parenting/i-didn-t-count-on-living-this-long-my-money-is-running-out-and-i-m-ashamed-of-being-a-burden-to-my-kids/ar-AA1gSm6h?ocid=hpmsn&cvid=d69369cf19e14680aab84d57ad6a78e9&ei=39

Tommy died in 2012. I sold our home and moved to my current neighborhood. Rents continue to rise. My retirement funds slide in the opposite direction.

What I didn’t count on was living this long. I turned 85 in August. My father died at 45, mother at 67. How could I live to this old age? I’m currently heathy. If an accident or errant cell doesn’t intervene, I could live into my 90s.

[Agatha Thrifty]

"I’m considering downsizing. I could move out of this classy neighborhood and find one more affordable. I could end my membership in my high-class health club."

. . . and yet, nowhere does it seem to occur to her that, had she made these moves 5 - 10 years ago, that perhaps she wouldn't be running out of money now.

[zolotiyeruki]

This really belongs in the Antimustachianism Wall of Shame and Comedy.  Agatha Thrifty is spot on.  So are the commenters on the article!

"I'm living beyond my means.  I'm going to run out of money.  But I'm not willing to make any lifestyle changes in order to fix it.  Woe is me!  Pity me!"

Come on.  You've had years (over a decade!) to prepare for this possibility.  Take responsibility.  That means more than just acknowledging that you made poor choices in the past.  It means that you have to make better (and harder) choices now.  Yup, that means you'll have to give up the gym membership and the posh apartment.  You might even have to take up a part-time job.  But you're in good health, right?

[mistymoney]

This really belongs in the Antimustachianism Wall of Shame and Comedy.  Agatha Thrifty is spot on.  So are the commenters on the article!

"I'm living beyond my means.  I'm going to run out of money.  But I'm not willing to make any lifestyle changes in order to fix it.  Woe is me!  Pity me!"

Come on.  You've had years (over a decade!) to prepare for this possibility.  Take responsibility.  That means more than just acknowledging that you made poor choices in the past.  It means that you have to make better (and harder) choices now.  Yup, that means you'll have to give up the gym membership and the posh apartment.  You might even have to take up a part-time job.  But you're in good health, right?

lol - you aren't giving the writer enough credit! She is upping the revenue on this article instead!

Which was surprisingly light on details....how much is that rent? social security income? the pricey gym? How much savings did she start out with? What proceeds of home sale, etc.

Some people - espeically in this aged cohort of 85 - think retiring with social security, a paid off home, and 100k in the bank is like a lot. Then the 100k is in CDs. It's an older mindset, and likely worked well at some point in time. Maybe?

But not with the tony gym membership and expensive apartment!

[dandarc]

This really belongs in the Antimustachianism Wall of Shame and Comedy.  Agatha Thrifty is spot on.  So are the commenters on the article!

"I'm living beyond my means.  I'm going to run out of money.  But I'm not willing to make any lifestyle changes in order to fix it.  Woe is me!  Pity me!"

Come on.  You've had years (over a decade!) to prepare for this possibility.  Take responsibility.  That means more than just acknowledging that you made poor choices in the past.  It means that you have to make better (and harder) choices now.  Yup, that means you'll have to give up the gym membership and the posh apartment.  You might even have to take up a part-time job.  But you're in good health, right?

lol - you aren't giving the writer enough credit! She is upping the revenue on this article instead!

Which was surprisingly light on details....how much is that rent? social security income? the pricey gym? How much savings did she start out with? What proceeds of home sale, etc.

Some people - espeically in this aged cohort of 85 - think retiring with social security, a paid off home, and 100k in the bank is like a lot. Then the 100k is in CDs. It's an older mindset, and likely worked well at some point in time. Maybe?

But not with the tony gym membership and expensive apartment!

When interest rates are high, CD's can appear to be a good investment. Maybe even are, temporarily. Long-term guarantees are incredibly expensive. Which we mostly know here, but you'd be shocked how many people, even young people, who haven't learned the first thing about growing wealth effectively. Gonna be plenty of people for advisors to fleece for as long as there are people and money.

[Much Fishing to Do]

"I’m considering downsizing. I could move out of this classy neighborhood and find one more affordable. I could end my membership in my high-class health club."

. . . and yet, nowhere does it seem to occur to her that, had she made these moves 5 - 10 years ago, that perhaps she wouldn't be running out of money now.

5 to 10 years ago? Heck, she's only "considering" these things today....

I frankly wouldn't facepunch anyone for making the conscious decision they would live a certain lifestyle until 85 knowing that if they are fortunate enough to be alive at that point serious cuts would likely then be needed...would be a reasonable choice...just don't now be shocked the caviar at the club is now gone.

[LongtimeLurker]

"I’m considering downsizing. I could move out of this classy neighborhood and find one more affordable. I could end my membership in my high-class health club."

. . . and yet, nowhere does it seem to occur to her that, had she made these moves 5 - 10 years ago, that perhaps she wouldn't be running out of money now.

5 to 10 years ago? Heck, she's only "considering" these things today....

I frankly wouldn't facepunch anyone for making the conscious decision they would live a certain lifestyle until 85 knowing that if they are fortunate enough to be alive at that point serious cuts would likely then be needed...would be a reasonable choice...just don't now be shocked the caviar at the club is now gone.

This is why I don't consider SS in my FIRE calculations. I figure the extra $1800 a month or whatever it ends up being at 70 years old should be enough to cover any deficit if there are increased expenses or the stash starts running out because I am 95 years old and I "planned" to die 15 years ago.

[TheFrenchCat]

I'm most flabbergasted that her children are going to cover her rent, no matter what, but she's only "considering" a cheaper apartment.  And she talks about feeling shame over the situation.  I hope to be able to fully fund my retirement, but if my child was going to help, I'd do whatever I possibly could do to reduce the cost to her.  I can't imagine living in a posh apartment paid for by my kid...maybe if they were already set for several lifetimes, but even then.

[mistymoney]

I'm most flabbergasted that her children are going to cover her rent, no matter what, but she's only "considering" a cheaper apartment.  And she talks about feeling shame over the situation.  I hope to be able to fully fund my retirement, but if my child was going to help, I'd do whatever I possibly could do to reduce the cost to her.  I can't imagine living in a posh apartment paid for by my kid...maybe if they were already set for several lifetimes, but even then.

hmmmm good point! I'm starting to wonder if this piece wasn't just an excuse for her to brag? Seems a lot of hubris with her career and maybe this was just a chance to relieve her glory days there?

How much do people get fro writing these kinds of fluffy pieces?

[vand]

I'm most flabbergasted that her children are going to cover her rent, no matter what, but she's only "considering" a cheaper apartment.  And she talks about feeling shame over the situation.  I hope to be able to fully fund my retirement, but if my child was going to help, I'd do whatever I possibly could do to reduce the cost to her.  I can't imagine living in a posh apartment paid for by my kid...maybe if they were already set for several lifetimes, but even then.

Well I see this point of view, but you have to bear in mind that people do become less flexible, more reliant on others, and more set in their ways as they get older. 85yo you isn't as flexible and doesn't have the same tolerances as 50yo you, who again doesn't have the same energy, attitudes and tolerances as 25yo you.

TBH sure, she's outlived her money, but she had 85 years of good life. She's done better than most non-hardcore FIREes. And who's the say she hasn't played a blinder and finally passes on the same day as her account hits $0.

[Ron Scott]

I'm most flabbergasted that her children are going to cover her rent, no matter what, but she's only "considering" a cheaper apartment.  And she talks about feeling shame over the situation.  I hope to be able to fully fund my retirement, but if my child was going to help, I'd do whatever I possibly could do to reduce the cost to her.  I can't imagine living in a posh apartment paid for by my kid...maybe if they were already set for several lifetimes, but even then.

Well I see this point of view, but you have to bear in mind that people do become less flexible, more reliant on others, and more set in their ways as they get older. 85yo you isn't as flexible and doesn't have the same tolerances as 50yo you, who again doesn't have the same energy, attitudes and tolerances as 25yo you.

TBH sure, she's outlived her money, but she had 85 years of good life. She's done better than most non-hardcore FIREes. And who's the say she hasn't played a blinder and finally passes on the same day as her account hits $0.

I’m with you.

I reacted less to her finances than to the multiple references to marrying for money. A prostitute is certainly more honest and respectable, and probably deserves more consideration as a companion.

[VAR]

It was "funny" how she said people will read this and say don't complain....and then complained some more. How entitled can you be? You want to brag about how smart and well connected you are (I have references!) but apparently can't do basic math? Gross. It does seem like this person just wrote it to brag and/or hope for a nice widower to come take up the challenge?

[kite]

Harsh crowd.
FTR, she didn’t marry for money.

What she did, apparently, was fund a retirement lifestyle that drained her savings within 20 years. She took a giant hit in 2008 and didn’t recover, possibly because she moved out of equities and into something ‘safer’ that never rebounded. She gambled on not living 20 years beyond her mother’s age. Not altogether unreasonable when you consider that SS and every single pension fund is facing the same dilemma. Folks living longer because statins, anti-hypertensives and metformin are giving them many extra years.

I think it’s useful to view her tale as a generously shared warning about what might happen so you can take steps to protect yourself. I’m not worried about her. She’s still selling her story and she has 2 generations of offspring willing to help. We should all be so fortunate. 

[vand]

There are zero details of how her money was actually invested and managed... almost certainly poorly, as people with money but withno idea how to look after that money tend to be taken advantage of and/or poorly advised by an industry that relies on such cash cows to fund them.  And yes, of course its possible that she or her advisors have made catastrophic behavioural mistakes along the way that have destroyed her wealth.