Wednesday, October 21, 2015

5 Retirement Options for People Without Savings

Welcome amigos!  Today's financial literacy piece is on retirement.  The word, "retirement," has become synonymous with the word, "boogeyman" these days.  I mean...can it get any more depressing?  Today on yahoo: The 401k crisis is getting worse.  If you've not yet read it, don't waste your time now.  (Nothing we didn't already know).  And look at this shocking headline...another article at Yahoo today: Today's college graduates might not retire till age 75.  Great, right?

I don't know about you, but I'm certainly tired of reading about the inability to retire at a decent age.  By decent, I mean 62.  And I'm equally repulsed by the myriad number of articles suggesting "saving more" or "working longer" as the only solutions.  Duh!

It'll be a cold day in hell if I allow myself to work one day past 55.75 years of age.  I don't care what my financial situation will be at the time.  I've set my mind to end my years as a classroom teacher at that age.

You may be asking yourself, "Well, how you gonna do that, Carlos?  What if your financial advisor tells you that you don't have enough to last you until you pass away?"  I've thought about that exact scenario many times and have come-up with some possible solutions to a lack of savings (for retirement) situation.  I'd like to share them with you.  And no, not a one includes..."save more money" or "work longer."  They are in no particular order:

1.  Find a commune.  Here are the top 10 "Experimental Towns and Communes" in the world.  Some are in the U.S.!  Top Ten Communes.  You'll still be working, but not a traditional job.  Instead, your work will help the community continue to thrive.

2.  Downsize to a trailer home.  Yes, you are told to sell your McMansion and downsize to a small, low upkeep home.  Skip that!  If you really don't have retirement savings, buy a trailor home in the cheapest park (low rent for your space) you can find in your state.  Just make sure it meets your live-ability criteria.  Yearly housing expenses are a huge hit to your retirement savings, so make your money go further by living at a trailer park.  Some of these homes are really nice! 

3.  Rent a room at your child's house.  Let's be this country, the wealth gap is out of control and we're a wake-up call away from all hell breaking loose.  That's many, many, many, unhappy people angry at a few, and I mean, few, people.  So chances are your child will need a little extra money to pay down their rent or mortgage.  Why not rent a room from them?

4.  Start scouting out third world countries.  I have!  I'm looking at Belize, Ecuador, Panama, Costa Rica, and Mexico to move to once I retire.  With dual citizenship, I can own a home in Mexico.  Although I may just rent a nice place near the ocean somewhere on the Pacific.  Don't worry about being immersed in a new culture.  American expats have been colonizing these countries for years!  They celebrate the 4th of July in Costa Rica!  Not kidding.  Renounce your American citizenship and you won't have to pay taxes each year.  Taxes in America are Un-American!  Do like these 1,300 plus Americans who gave up their citizenship in the first quarter of this year: New un-American Record.

5.  Find senior retirement housing.  There are communities in cities and towns all over America that rent homes specifically to seniors at a discount.  Rents are below-market value and there may be additional perks in store (use of a gym, e.g.) depending on the community.  Again, housing will be your biggest expense so seek to minimize the damage each month.

Well, these are the alternatives I have to the suggestions of "saving more" and "working longer."  I know this is not what most of us want to hear.  If you have an open mind, the five suggestions above may become something you really take into consideration.  Depending on your age, you may have some time to let the 5 options sink in and prepare yourself.  Or you could just work longer, work yourself to death, and not worry about retirement.

You guys got any other ideas for this problem you want to share with the rest of us?  Comment below.

Thanks for reading!  Until next time.  Please subscribe to this blog on your way out.  

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