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Hello everyone, I’m in my early 50’s, recently divorced, and I’m basically re-starting my life from square one, including finances. For reasons I won’t go into (other than to say it was almost a ‘flee with your life and the clothes on your back’ situation) I have no property, no large assets, nothing saved for retirement, no health insurance, and only 3k and change to my name. Because I was largely a stay-at-home mom, I haven’t paid enough into Social Security to even have a chance of drawing. I think I need two more points? Whatever that means. That’s the bad news. The good news is that I’m in a safe, stable situation and I just got hired. It’s part-time for now, about 25 hours a week at $9 per hour, gross. I’ve also got zero debt, am living rent-free, and will have a car to drive for another year that’s cost-free other than fuel and routine maintenance (oil changes, headlamps, tires, that sort of thing.) In a year, I’ll be taking over full ownership along with the insurance and registration on it, but it’s paid for and even though it’s a decade old with about 100k miles, it’s reliable at this point. My expenses will be groceries (~$100 per month,) half the utilities (about $200 per month), and a ‘dumb’ phone cell line at $24 a month. Of course, I’m hoping to better myself quickly as far as hours per week and salary, but frankly-- in my situation I’m beyond thrilled to even *have* a job at this point. Of course, health insurance is #1 priority, and I intend to use the cash I currently have to begin my emergency/recurring expenses funds and put some towards that 3-6 month cushion, eventual car replacement and towards having a constant monthly buffer, so I can live on last month’s earnings. My main question is, is it too late for me to build up any significant retirement account at my age? Should I concentrate on socking long-term savings away in something like a CD, or should I save up to start funding a Roth (or a 401k, if one’s offered through my employer-- I don’t know that yet, but should by the weekend), or do something else entirely? I realize I probably have pretty lofty goals on a miniscule income, but since I also have miniscule expenses at this point, and I’m willing to live on proverbial and literal beans and rice, I’m going to do all I can make every penny run a financial gauntlet before it gets out of my grasp. I’ve discovered YNAB from reading here (thanks, y’all!)and feel it’s a good fit for how my brain works, so that’s what I’ll be using for accounting. Thank you for any sage advice you may offer. My ignorance is profound, but I’m a very willing student. ~TMTM TooManyThisMorning fucked around with this message at 01:30 on Sep 16, 2014 |
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Sep 16, 2014 01:24
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Don't focus on retirement, focus on finding a high paying job. You might need to work to pick up a skill/education/certification to do this. I doubt you are too old, but I would aim for something that you could keep doing as you age. Also now that you are in a safe place, look into getting any of your ex's social security/pension/alimony, just because you couldn't do it to get out doesn't mean you aren't still entitled to it.
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Sep 16, 2014 01:49
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Foma posted:Don't focus on retirement, focus on finding a high paying job. You might need to work to pick up a skill/education/certification to do this. I doubt you are too old, but I would aim for something that you could keep doing as you age. Also now that you are in a safe place, look into getting any of your ex's social security/pension/alimony, just because you couldn't do it to get out doesn't mean you aren't still entitled to it. Thank you, Foma. I do intend to leverage this job for something much better, either within the company or otherwise. This is my foot in the door, at least, that should make the next job much easier to come by. I am looking into classes in conversational Spanish and French to regain my long-faded high school fluency, because in my area being bilingual or better is a huge advantage. I do have a current personal trainer certificate from ACE (which means its reputable), and I'm in the embryonic stages of building up a client base that should grow into a good second job, or with luck and good word-of-mouth, into a primary one. As for the ex, I know for sure that there's no pension, and no chance for alimony, but I am keeping an eye on him for social security. Let's just say, though, I'm not holding my breath for him to be a good sport for once and die before I do. Thanks again!
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Sep 16, 2014 02:00
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For whatever this is worth:the federal government posted:Benefits for a divorced spouse This makes it seem that you would be eligible for social security if a)you were married and b)for more than 10 years, regardless of what you paid into it and how many credits you personally have.
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Sep 16, 2014 03:24
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I think that's worth quite a lot, Kaishek. I was married for more than 10 years, so when I turn 62 I can at least tap into that. I'll keep up with possible changes in this law, and I appreciate you finding the information and quoting it here. Heh, now to see if Google Calendar will let me make a note 9 years into the future. 
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Sep 16, 2014 04:12
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Regarding health insurance, don't forget that Obamacare is actually pretty great and the government will totally subsidize the gently caress out of it (amount depending on where you live) if your income is low, so feel free to start poking around on the exchanges or whatever right now.
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Sep 16, 2014 04:26
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Horking Delight posted:Regarding health insurance, don't forget that Obamacare is actually pretty great and the government will totally subsidize the gently caress out of it (amount depending on where you live) if your income is low, so feel free to start poking around on the exchanges or whatever right now. I did check that right away when I fled my home state. Unfortunately, the state I moved to dropped its low-income insurance plan right a couple of months before I got there (When I'd checked on it less than six months before, the new state told me I qualified for it and all I'd have to do is apply when I declared residency. Surely they had a clue by then that it was going poof... but anyway... *sigh*) When I went through Healthcare.gov back during the original enrollment period, it spit out the result that since I had no income at the time, I had to go onto my state's Medicaid program. Unfortunately, my current state of residence is one of those that declined to expand its Medicaid under Obamacare. If you're a legal US citizen in this state, there's no health coverage available through Medicaid unless you're a) 65 or older, or b) disabled. Once I get my first paycheck and so can estimate what I'll be bringing in, I'll go back to the Obamacare marketplace and see if I qualify for some sort of subsidy now that I've actually got some sort of income. With no coverage, I know I'm a financial disaster waiting to happen.
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Sep 16, 2014 05:15
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You have some huge advantages now - you're out of a bad situation and you have money coming in. Honestly it sounds like you're thinking clearly and doing all the right things. I agree with Foma, it's premature to worry about retirement savings. Think about income for now. Don't get sucked in by any of that Work At Home!!1! BE your OWN BOSS!!!2!! SELL AVONWAY#$%@#$% poo poo which targets people who are in exactly your position.
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Sep 16, 2014 16:15
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slap me silly posted:You have some huge advantages now - you're out of a bad situation and you have money coming in. Amen to that! Even with the stresses of ending a very long marriage, moving to a different part of the country, job hunting, watching my savings dwindle and dealing with a child's serious disabilities, I feel far more relaxed and at ease now than I have for *years.* Life's looking up! slap me silly posted:Honestly it sounds like you're thinking clearly and doing all the right things. I agree with Foma, it's premature to worry about retirement savings. Think about income for now. Don't get sucked in by any of that Work At Home!!1! BE your OWN BOSS!!!2!! SELL AVONWAY#$%@#$% poo poo which targets people who are in exactly your position. I'll take to heart the advice to keep my focus on increasing my income for now and set aside worries about my old age till I'm better established. Thank you for your encouragement. It's reassuring to hear that I'm probably headed in the right direction. Honestly, some of the threads on here are hair-raising, and I don't flatter myself that I'm any more self-aware than some of the more egregious posters. I *believe* I am, but then, don't we all? Good advice on the MLM/Work From Home con artists. So far my bullshit detector seems to be properly calibrated for that kind of thing, but extra caution never goes astray, eh! I do appreciate everyone taking the time to read and respond here. Thanks all!
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Sep 16, 2014 21:49
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TooManyThisMorning posted:My expenses will be groceries (~$100 per month,) half the utilities (about $200 per month), and a ‘dumb’ phone cell line at $24 a month. How much do you use your phone? For a dumb phone you can probably do better than $24/month. I'm light on usage (and rarely text) - I buy an $80 card from Page Plus (2,000 minutes, $0.05 per text message) and it lasts a year.
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Sep 16, 2014 22:19
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Yeah, I would look into a phone system that you buy a package of minutes and re-up when you're low, you could probably get that even lower. Since for now you're only working 25 hours and you seem tech-savvy enough, check out the threads here on blogging for bucks, the legit online money making thread and the now-defunct threads on writing and selling ebooks. Maximizing your income now is going to be key. You could look into a side gig as a personal assistant as well, are you good at organizing? Congrats on getting out of that bad situation, I'm glad you are safe and in a better place.
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Sep 17, 2014 01:41
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TooManyThisMorning posted:I think that's worth quite a lot, Kaishek. I was married for more than 10 years, so when I turn 62 I can at least tap into that. I'll keep up with possible changes in this law, and I appreciate you finding the information and quoting it here. Heh, now to see if Google Calendar will let me make a note 9 years into the future. If I read it correctly, you can tap into when your ex-spouse retires and is 62 - before you are 62 or retired yourself. I am not a lawyer, but I'm glad that is a helpful tidbit. Seems fair to me, given the number of spouses that don't work - it would totally screw over a stay at home mom that divorces later if the system didn't work this way. Also, just to say: no debt, even without retirement savings, puts you ahead of a lot more people than you'd think. You're on the right track. Good luck!
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Sep 17, 2014 04:56
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Engineer Lenk posted:How much do you use your phone? For a dumb phone you can probably do better than $24/month. MAKE NO BABBYS posted:Yeah, I would look into a phone system that you buy a package of minutes and re-up when you're low, you could probably get that even lower. The $24 per month covers both my phone and my son's, as part of a family plan with two others that share a pool of minutes. It's one we've had for about a decade, at least, so there's no data allowance on it. I haven't heard of Page Plus, but I'll check into it. One of my concerns is that, with my son's condition, I have to be able to be contacted anywhere, any time. With a lot of less expensive carriers in my area, that's not a given-- dead zones and dropped calls abound. As far as I can tell, seems like it's either Verizon or AT&T for reliable coverage in this area. :-/ MAKE NO BABBYS posted:Since for now you're only working 25 hours and you seem tech-savvy enough, check out the threads here on blogging for bucks, the legit online money making thread and the now-defunct threads on writing and selling ebooks. Maximizing your income now is going to be key. You could look into a side gig as a personal assistant as well, are you good at organizing? Thank you for that suggestion! I used to write for Textbrokers, but that's pretty much dried up, the last time I checked their site. I'll certainly be digging up the threads you suggest on this site. Writing is fun for me, and I enjoy the research that goes along with nonfiction writing.
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Sep 21, 2014 20:00
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kaishek posted:If I read it correctly, you can tap into when your ex-spouse retires and is 62 - before you are 62 or retired yourself. I am not a lawyer, but I'm glad that is a helpful tidbit. Seems fair to me, given the number of spouses that don't work - it would totally screw over a stay at home mom that divorces later if the system didn't work this way. Thank you for the kind words! That does make me feel a little more relaxed about my situation. Google does allow the setting of dates far into the future, so I set a reminder for myself for a few months before the Ex turns 62. And yeah, the situation you describe is pretty much where I am, so thank heaven the system's set up that way. At least, it is for now! Again, thank you all so very much for your excellent advice and your kind encouragement.
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Sep 21, 2014 20:04
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Just by the fact you are thinking about this and concerned puts you on the right track. Keep a tight budget, save what you can, live within your means and you'll be way ahead of most people. Will you be taking frequent trips to southern France in your retirement? No. Will you have a comfortable retirement with food, a roof over your head, and no-frills trips to see family and friends? Yes.
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Sep 21, 2014 20:44
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TooManyThisMorning posted:The $24 per month covers both my phone and my son's, as part of a family plan with two others that share a pool of minutes. It's one we've had for about a decade, at least, so there's no data allowance on it. I haven't heard of Page Plus, but I'll check into it. Page Plus resells Verizon (subject to some limitations like 3g data) - the coverage is a big reason we went with them over other no-contract budget carriers.
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Sep 22, 2014 06:39
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MAKE NO BABBYS posted:
Hate to be Debbie Downer but I would not recommend getting involved in any of this right now. Not that they don't work for some people or are somehow dishonest or shady. They require a large time commitment and may not ever turn a profit. 50 isn't too old by any stretch of the imagination, however you have to consider your competition. Your are going up against younger people who have grown up with computers, they are passionate about blogging or writing and have nothing but time to invest into it. Even with all that most of them will not make any money off of it. Your time would be better spent doing just about anything else in my opinion. The only caveat being the transcription jobs. People can make a reliable source of income off of transcriptions. However if you have never done transcription and have none of the equipment it may be a long time before your getting steady work. I think your time would be much better spent job hunting or working towards a degree or certification. Get your resume' polished up or create one if you don't have one. It may seem like your don't have marketable skills but you may be surprised. A responsible mom in her 50's might look great to an employer if all they want is someone to hold the keys, keep an eye on employees and not burn the place down. If you can answer phones, type on a computer and smile at customers then you can work at a front desk. Work on your interview skills, build your confidence up and you'll be ahead of lot of the competition. Your are far from screwed. The fact that you have a stable living situation, no debt and a bit of emergency cash is huge. It's going to take some serious work but there is a whole lot of ballgame left for you.
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Sep 22, 2014 16:32
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Regarding social security and medicare, you can qualify based on your ex-spouse (if you were married 10+ years) if you do NOT remarry. So if I were you, I wouldn't worry too much about SS and Medicare for the next 10 years or so except DO NOT GET REMARRIED. As long as you stay single, you'll get the same medicare coverage and at least half the social security income that your ex gets.
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Sep 22, 2014 17:49
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kansas posted:Just by the fact you are thinking about this and concerned puts you on the right track. Keep a tight budget, save what you can, live within your means and you'll be way ahead of most people. At $9/hr and 20 something hours a week she is not capable of living within her means. If you have spare time gently caress around getting a cheaper phone bill, but focus on getting better employment or advancing at your current job. This should be your primary focus, go to school or training in a field that you can excel at. It is even ok to go into debt to do so (as long as there are good odds that a better job really awaits when you finish). Ignore all the people trying to optimize your phone plan that isn't the issue, you need to make at least $15/hr and have a 40 hr a week job. Focus on that. You are currently not in an ok situation, your aren't in trouble at the moment, but you need to improve greatly from where you are to have any semblance of safety long term. At some point the car will need to be replaced and the free rent will end. This gives you a runway to fix things. Foma fucked around with this message at 00:37 on Sep 23, 2014 |
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Sep 23, 2014 00:34
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TheHistoryChannel posted:Hate to be Debbie Downer but I would not recommend getting involved in any of this right now. <snip> However if you have never done transcription and have none of the equipment it may be a long time before your getting steady work. Honestly, I never think of that sort of opportunity as anything but a way to *make* a few bucks in my spare time, rather than making zero bucks watching TV or reading or staring out the window, y'know? Just a hobby that may actually earn instead of cost. TheHistoryChannel posted:I think your time would be much better spent job hunting or working towards a degree or certification. Get your resume' polished up or create one if you don't have one. It may seem like your don't have marketable skills but you may be surprised. A responsible mom in her 50's might look great to an employer if all they want is someone to hold the keys, keep an eye on employees and not burn the place down. If you can answer phones, type on a computer and smile at customers then you can work at a front desk. Work on your interview skills, build your confidence up and you'll be ahead of lot of the competition. The company I'm with now is super-solid, and employee-owned. I've met several folks already who've been working there 20+ years, who started at entry-level and are now exactly where they want to be, whether in retail management or in the corporate or warehouse/production side of the corporation. The company also reimburses for tuition for approved courses, and also offers raises at regular intervals (based on performance, of course. And I'm dead-set on being the best damned employee they've ever hired!  ) So, yeah, not earning much now, but full-time and a comfortable living wage could be within my near future if disaster stays away and I do as sterling a job as I intend to.There's also stock sharing, and quarterly profit-sharing, and 401k matching that's offered after a year of employment and a certain number of hours in that year (which I'll meet even at my current level). TheHistoryChannel posted:Your are far from screwed. The fact that you have a stable living situation, no debt and a bit of emergency cash is huge. It's going to take some serious work but there is a whole lot of ballgame left for you. Thanks! I do admit I hear the flapping of Time's winged chariot louder and louder at my back, but yeah, I'm not heading for a wheelchair and a drool-bib for quite a while yet!
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Sep 24, 2014 17:09
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Engineer Lenk posted:Page Plus resells Verizon (subject to some limitations like 3g data) - the coverage is a big reason we went with them over other no-contract budget carriers. Thanks! I'll look into them. Probably still more than I want to spend right now, but maybe later when I've got a bit more wiggle-room in the budget.
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Sep 24, 2014 17:11
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Droo posted:Regarding social security and medicare, you can qualify based on your ex-spouse (if you were married 10+ years) if you do NOT remarry. So if I were you, I wouldn't worry too much about SS and Medicare for the next 10 years or so except DO NOT GET REMARRIED. Married again? Oh GAWD NOOOOOO! LOL, first, I don't kid myself that I'm any more self-aware and wise than the myriad who marry a shiny new arsehole just like the one they ditched. Even a saintly man who's been married/widowed is hauling emotional baggage and prior family complications (as am I, obviously,)and a man who's never married by this stage of life? Wellll, that flips a whole different set of red lights and warning klaxons. So no, companionship or even a committed relationship, maybe. Legal marriage? Not on my agenda, regardless of the financial implications. Though the financial implications alone are enough to scare me off at this stage.
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Sep 24, 2014 17:17
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Foma posted:At $9/hr and 20 something hours a week she is not capable of living within her means. <snip> Ignore all the people trying to optimize your phone plan that isn't the issue, you need to make at least $15/hr and have a 40 hr a week job. Focus on that. I agree completely, and if the job I've started was a dead-end 'y'want fries with that?' deal, I'd be plotting my employment improvement plan even as we speak. As it is, I see this rate of pay/hours as my foot in the door of a company I really want to be part of. A company that (so far,) realizes that it is where it is because of its employees. It's made Fortune's "100 Best Places to Work" every year since 1998, and won Glassdoor's Employee's Choice award as one of the top 50 places to work this year. It's won other prestigious awards from Fortune for women in top positions, and for its financial status among privately owned companies. Anyway, the company is 84 years old, solid, stable, growing, carries NO DEBT, and employee-owned. I'm going to do my darndest to gain first a raise, then a full-time position, and eventually a career with them in whatever sector of the company I find fits my abilities and interests the most. That's the plan, anyhow. I do realize I'm still skating on thin ice at this point, but I'm considering that a gamble towards a better future. And yeah, I've started setting aside money for car repair AND replacement, because, well, much as I love Boop-- it'll die eventually.
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Sep 24, 2014 17:35
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From what you said I'm gonna take a stab at guessing you work for hyvee maybe? see what you can do with employee discounts.(honestly, i have no clue what they offer, but everyone i know who's worked there has said it's a great place to work, and i do know a guy who started as a bagger and is now a GM, so there is some room for growth, but you may be eligible for things like free meals from the hot bar) Also look into all the social services programs in the area. If you have kids, you're probably eligible for food stamps etc. in your area, and you can knock down your grocery bill to $0 out of pocket, and that's an extra $100 to throw towards building an emergency fund/new car fund/etc. Also, if it was a "get out now" situation, look into DV shelters in the area who can put you in touch with sources to get you alimony, child support, etc. My suggestion would be go talk to DSS in your area and see what you're eligible for, because you'd be surprised at what your state offers in terms of things. Food stamps, you may be eligible for medicaid just from having a child, even if your state didn't extend the medicaid thing. Go spend a day at DSS, and then be glad for everything that you *do* have and how you won't have to deal with the DSS hassle for long.
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Sep 30, 2014 02:49
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I'm going to make one small dissent here: do think about retirement accounts, or at least keep the thought in the back of your head. Once your financial situation stabilizes a little, start a retirement account and contribute what you can. A 401(k) from your employer would be great, because you can contribute a little at a time, as you're comfortable doing (definitely enough to get any matching), but if you don't have one, try to save up enough to open an IRA. Try to do it this tax year if possible. I'm not sure if Roth or traditional is better in your case, though I'm leaning towards Roth because you can draw principal in an emergency and you're in the lowest tax brackets. A traditional IRA lets you sock away 10-15% more now, but you'll pay more taxes later. The Long-Term Investing thread will be happy to pick apart all the details for you. In either case, the big driver behind this is that your income is low enough that you qualify for the Retirement Savings Contributions Credit. It's like getting a 401(k) match from Uncle Sam, and being in your early 50s you're not all that far from being able to draw on it.
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Oct 2, 2014 11:41
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TooManyThisMorning posted:The company also reimburses for tuition for approved courses, and also offers raises at regular intervals (based on performance, of course. And I'm dead-set on being the best damned employee they've ever hired! Sounds a lot like Starbucks, save for the quarterly profit-sharing.
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Oct 2, 2014 18:15
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