21 Ways to Cut Expenses in Retirement

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Former Fed employee, spent plenty of time living well overseas, then decided after kids were self-sufficient, to find a charming small town where life was inexpensive, buy house on several acres for cash, and finally focus on filling up days with things I wanted to do.
Virginia, south of Richmond, is chock-a-block with small quaint towns as yet undiscovered by the yuppie hoards....circle a 150 mile radius from east to west below Richmond/Midlothian (go down 360W), and you'll discover charming houses and other properties way below 100k...fixerupper near me on 26 acres is going for 70k! Check out Clover, Va (home of Henrietta Lacks, whose 'immortal cells' have made the NYT best-seller list), Halifax and South Boston area (3 4 star restaurants - google 'The Molassas Grill,' 'Bistro 1888,' and 'Berryhill Plantation Resort - and a renovated tobacco warehouse theater -google 'The Prizery' in South Boston (Prizery hosted the Vienna Boys Choir at $50 per seat -- I wan unable to get tickets at 2xs that amt in Vienna!)
Within a 5 mile radius of my house, there are newcomers from NY, DC, the United Kingdom and the Netherlands - well-traveled members of 'the creative classes!' Go to www.historicproperties.com or 'Honey Davis Realty' in South Boston. Nathalie is another charming town - Martha Stewart and her crew did a show at "Punk's Country Store' (no, Punk's isn't on the internet yet) and it's possible to live a rock-bottom existence with a new wealth of possibilities here -- draw a horizontal line under Richmond Va with Richmond at the center of a humdred mile span, and verticle lines at each end, and then explore towns down to the North Carolina border. Don't miss the Victorians on Main St in South Boston, the antebellum houses on Mountain Rd in Halifax, or the charming country cottages spread across the small towns that fan out across Halifax County! Seriously, you can live on just your social security here, but be forewarned -- there is no Starbucks yet, but the yuppies are indeed coming....

Eleanor Digges of VA 12:55PM July 19, 2010

I escaped hot/cement covered Los Angeles, and a dull UNIV job and I bought a cute fixer cottage in a remote coastal town at age 50. A home based biz supported me, div., no kids, just dogs now. At 61 I now don't like the 'actual' small/welfare/pothead/backwards feel here. But the house is paid for, low taxes, ocean & redwoods beauty all around so I stay. Would rather be where there are lots more social options, a higher energy town like Portland/Seattle.
But cost of living, plus slump in house value stops me from taking the risk, and expense. I may rent this house out, and keep my on-site work studio as my apartment, then travel for a few years to FIND where I want to be. And maybe the market will change, or I will decide what is more important as I age into my 60s.

Scottish Thistle of CA 4:43PM July 01, 2010

Folks on the Gulf Coast realize that the Gulf is now dead thaks to BP. There will be a forced evacuation/relocation for the area within the next two months. The financial burden of having 25 million American's without food, shelter, income, and VERY SICK FROM THE TOXIC BP FUMES of CorExit and Oil!
We are in a major depression and the oil volcano will kill all oceans within 18 months.

USA of FL 11:45AM July 01, 2010

First of all, leave the stocks markets are the financial crisis is going to last for a long time. Second, move your assets to low-correlated funds in regard of the stock and bond markets. But these type of funds have low correlation to risks too. You can built a nice wealth with a good diversification about these funds with a regular yearly yield of 10 to 15% without downside. You can even inscrease in putting first the best of these funds and resume living in a comfortable way.
www.gardinerfinance.com

Michel Bigot 8:39AM July 01, 2010

My husband and I are in our 50's. I retired from my position as high school principal in order to stay home with our three youngest adopted children. We are in an unusual position of raising young kids, living on a dramatically reduced income, and trying to balance the needs of growing children with the reality of getting older and wanting to downsize. Any suggestions out there?

Pam of MI 7:58PM June 30, 2010

I am so depressed by all this and the continued losses on the stock market. Don't go to the doctor now and don't plan to.

Senior Sad of DE 7:54PM June 30, 2010

There are some great resources I have found online that have helped my family get by after our income was cut in half by a job loss and many surgeries in 2005. While changing your lifestyle is never easy we are actually much happier now and really enjoy the simple things in life. No more worying about credit card debt. Try these sites for good homecooked recipes, tips to save money (I even make my own laundry detergent now which works better than anything I have ever bought!) and how to get food cheaply:
www.hillbillyhousewife.com
www.angelfoodministries.com

Lisa of OH 4:54PM June 22, 2010

My honest suggestion to you all is make sure you have the real riches
not the ones that can be stolen or incur loss of value. Your not taking anything of the earth with you when your time has come and your time is done.
Then, others will take your riches.
Believe in Jesus now and receive the free gift of eternal life right now.
He is wonderful! Just say Lord Jesus I receiver you right now into my heart.

G. of NY 11:55AM June 22, 2010

Down size your home long before you retire! It's nice to have that big house during the holidays, but once the last kid leaves for college, sell their bedroom furniture!
Changing home towns and homes is very stressful. Think it through before you leave the place you have grown comfortable with over the last 20 years or so. I've had friends move to the sun belt only to move back to the circle of good friends and their home town.
Start doing financial planning long before you retire. It's simple math, nothing more difficult than addition and subtraction. Build three or four different financial models. Retire at 62, 65, IRA growing at 8%, IRA loosing 2%, no medical expenses, medical expenses of $X,000 per month. I've been working on my retirement plans since 1994.
Medical expenses can be the difference between living good and having your children move back home and pay rent so you can get by at 60.
My plans? I'll be 59 1/2 in December. I've down sized to a two bedroom ranch, and have been cutting costs to keep kids in school. Now that they are on their own with multiple degrees, I'm pulling the plug. Income will come from two different employers and a IRA. Medical expenses are covered, and at 62 I get a raise from Social Security, then at 65 I get a small raise from a third employer.
The "Fully vested after 7 years" clause has really benefitted me as has throwing a few bucks into an IRA very early in life then watching it grow for thirty years.

Kent of WI 11:14AM June 21, 2010