Money continued: Worth more dead than alive

Just as I was thinking about money, my social security statement arrived in the mail. I also received a $3.92 rebate from Staples. A friend of mine said, "I hate those things" referring to social security. But I, on the other hand, love them. I find them very comforting.

Here's a breakdown of my estimated benefits:

-If I retire at 67, I'll have $1,430 per month.
-If I retire at 70, I'll have $1,807 per month.
-If I stop working at 62, I'll get $956 per month.
-If I am disabled, I'll get $1,269 per month.

But here's the best part. I am literally worth more dead than alive to my family - in the monetary sense only:)

-If I die this year, my child will receive $1,007 per month.
-If I die this year, my spouse caring for my child will receive $1,007 per month.
-If I die this year, my spouse will receive $1,343 until retirement age (about 20 years!)
-If I die this year, my total family benefits cannot be more than $2,467 per month

That last figure is not TOO short of my take home pay now. So, minus my expenses (eating, eating out, drinking, minimal annual clothing purchases), I am almost worth more dead than alive.

What this cheerful flyer also made me realize, is if I want to have approximately the same income I have now when I retire (assuming Social Security exists), I only need an additional income of about $1,200 per month. Assuming I start saving in my 401K and assuming I might inherit a smidgeon of resources and assuming I wisely choose an investment property or other investments with my resources - this figure is doable. I will be able to retire!

However, I will not have enough for nursing home coverage. Perhaps this is good news as well.

Money

I went from a feeling of sedate security to outright money panic in less than 24 hours. How did it happen? Well, I heard the news that my father (retired attorney) and my mother finally put together a will/trust. This was such good news! and I thanked God outright that they finally paid the money to protect their money and designate what they want done with it - if there is any left. Other pluses, there will not be a legal mess to deal with when they die and who knows? perhaps I will inherit a little security.

Though I have very little detail about their will, this secure feeling was nice and necessary as I have literally $450.00 in my 401K. I've cashed out various 401ks over the years as employment has changed for - bills, trips, a car, finishing the basement etc. So you see the thought of inheriting even a small amount of money brought me comfort - as I have nothing.

This peaceful, easy feeling however quickly faded upon having financial discussions with my father-in-law, among others. When talking to him, I quickly realized that my parents have enough income to support likely one of them in a nursing home. This realization quickly made me realize that I have NO income to support myself in my old age - not to mention nursing home coverage. Good God, if I make it to nursing home age - I will need $150K per year to live in nursing comfort. I don't even think social security will exist for me in 23 years but if it does and I am still living here - it will not even cover my taxes by then.

Good news a few days later I returned to my relatively normal peaceful state by simply not thinking about money at all.

Now I realize this money panic thinking is not productive. But I also realize that prudent planning is necessary. Even if I start saving now, I may have say $100K by the time I retire. What will that get me?

It's important to realize that people with oodles of money do have money problems and worries. Just look at the owners of the Dodgers who are divorcing . . .It would also be great to find out for oneself that oodles of money doesn't make you happy.

How to strike a balance? I really think the only thing one can do is to think abundant thoughts, think it will all work out, think I will have enough for my needs. Because the alternative is pretty scary. I've been there.

Unrelated thoughts

-A friend who visited Wisconsin described it this way: lots of beer, beef, and cheese

-I received far better service at Home Depot than I did at my bank. Who do you think will keep me as a customer?

-"I'll be with you shortly" doesn't make me feel particularly good.

-Seen on a beat up pick-up truck: "Reading and Spelling Tutor"