But that is the problem with the self-funded retirement. Smart people and Idiots both have to save for retirement. The idiots, of course, will predictably do idiotic things.
This is all going to blow up in a few years. It is starting now... It is pretty much what I have been saying would happen, in my blog. From the article:
"Many Boomers didn't save enough, invested badly or raided their retirement accounts."
About half the homes here on retirement island are paid for in full. But a lot are not. For pensioners, this is less a problem, particularly when husband-and-wife are both retired NYS school teachers each pulling in $70K a year.
For those retiring on their savings? Ouch.
Oh, and there are a few who have done the reverse mortgage thing as well.
"Snyder, who gets by on a $1,215 monthly Social Security check, says she didn't even know that her husband, Theodore, had taken out a $225,000 reverse mortgage on their Las Vegas town house. When he died in 2010 at age 77, the bank wanted its money back and "would not talk to me," Janet says."Typical of most married couples - they don't talk about money. And Dad takes out a reverse mortgage that doesn't list his wife on the policy, so it would continue after he dies. Of course, this meant he got more money in the short term. And after he's dead? Fuck her!
Others, of course are complaining because the caviar and champagne are too warm:
"In mid-2010, Tod Lindner lost his oceanfront home in California's Marin County. He ran into trouble after the finance company that employed him was acquired and the new owners refused to pay him fees he thought he was owed and which he was counting on."
People are just plain greedy, convinced they were financial superstars, and that they would "beat the system". The system beat them:
"Lindner had bought the house for $330,000 in the late 1980s. But he'd refinanced to pull out money to invest, swelling the mortgage to $680,000..."
Like our reader said, so many other problems with the article. People getting greedy, being unrealistic, and just plain stupid.
"At the time, Lowe was making $51,000 at an environmental consultant. Kanz was experimenting in commercial fishing and earning around $10,000."