Back when life was simpler, we retirees only had to worry about running out of our own money. Today? We have a plethora of new problems no financial advisor could have thought of. For example: I was told to plan for a 2% to 3% rise in inflation when I was doing my retirement planning thirty years ago. Nobody ever expected inflation to rise to 20% to 30%. We were told Social Security and Medicare were sure things. Yes, granted, those monthly SS benefits could go down by 25% in a few years but we all knew that the government ALWAYS steps in, makes adjustments and saves us all. Does anyone out there still believe that? I didn't think so.
Nowhere in my retirement financial planning did the word 'tariff' appear. In addition to our current cost-of-living crisis, we now have to contend with another increase in pricing of our goods and services. Estimates predict an additional $2,100 will be needed annually in order to maintain our current lifestyle thanks to the passing of residual tariffs. Click here for more info. Now I understand why all of this has to be done BUT couldn't they have thought of another way that didn't disrupt the 'little people'?
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| Remember when America had factories like this? Viet Nam charges a 97% tariff on their products. |
Being a retiree in America isn't fun anymore. At least for hubby and myself. The financial advisors were correct in their estimates of rising health care for us seniors (advised to have at least $165,000 in cash, after taxes for a couple to cover medical costs from age 65 to death. Click here for that info). There's no doubt in my mind that regardless of how healthy you have managed your life and lifestyle, when you hit your 70s YOU ARE GOING TO GET SICK. Period! I'm dealing with cancer and my husband is dealing with congenitive heart failure (and he's only 68 years old). I'm cured but hubby is just starting out on his own healing journey. Next month he is scheduled to get a heart ablation and his medical team is installing a Watchman (sort of like a pacemaker). He has to be on blood thinners (Eliquis) for at least four months. The cost of that drug is $542.07 a month! Thankfully his doctor can prescribe an alternative at only $100.36. But then we have surgery deductibles ($1800) and other medical costs I'm too dizzy to even think of. Does anyone have to endure this stress and then the additional stress of perhaps, having Medicare cancelled or reduced? Apparently we retirees have no choice.
I'm seeing more and more frugal retirees unable to meet their financial responsibilities. Despite downsizing, extreme frugality, being debt free, owning their own home and cars, DIYing, canning and/or simply going without, they are falling further and further behind. There always seems to be something new being thrown into their retirement survival ring. Financial Advisors had recommended that retirees retire with at least one million dollars securely available, but really? How many retirees do you know who have $1,000,000 in the bank? Or in the stock market? Which brings me to the next losing retirement topic: the stock market.
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| The stock market dropped between 4% and 5% in a single day. |
Thanks to more uncertainty, the stock market suffered a semi-market collapse on April 3, 2025. Click here for more info. More stock market declines have been predicted. All of this just makes another worry we retirees have to endure. Thankfully, I don't invest in the stock market. Not since 1987 when the market declined by dropping over 5,000 points in one day have I ever invested in the stock market since. I've seen too many retirees lose money in their retirement years without the time nor the energy to wait for a come back. I only invest in CDs. They're guaranteed, insured (fingers crossed) and despite not at times making a lot in interest at least I'm making something. It's better to make a little money than no money at all. Or suffer a loss without a comeback.
Flash Note: I wrote the above article before today (April 4, 2025), when the stock market dropped another 2,200 points! Click here for that info. That's another loss of about 6%. If you have holdings in the stock market, as many retirees do, this was not a good day for you. Nor for the very wealthy. The biggest cause of the stock market's deep decline is the uncertainty of the economy going forward. We're in uncharted territory. Technically, no one knows what's going on, what's happening or what our futures are going to be. From where I stand, it doesn't look good. Thankfully, we are NOT invested in the stock market. My little CD is paying 5.5% and I locked that rate in for several more years.
Everyone at least agrees on one thing: that going forward, times are going to get rough. Even the administration admitted today that their policies may take up to two years before anyone sees the advantage. That's an awful lot of time to stay strong and hold on. Hubby and I already downsized in 2001-2002. All our expenses are needs not wants. If I need to cut our bare bones budget now, we'd have to start going without in order to accomplish any downgrades. I very rarely buy anything unless it's a necessity. Hubs and I stopped at Aldi's this afternoon, just to pick up some of the things we ran out of, such as salad and bread. That tab came to $63. I couldn't believe it. And we didn't even buy any eggs!!
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