How long can you survive without a monthly income?

[kenny]

I'd survive for the rest of my life.

 

[Daisys and Diamonds]

I don't want to know. Probably not long. My husband has been downsized 5 times in the past. In one 3 year period he was out of work for 18 months. Then another time it was 2 years. He didn't collect unemployment, I don't know why, but we used up a lot of our retirement funds and he's 60. Sooo. Don't know, don't want to know, the future doesn't exist to me, just the present moment.

oh lyra
its very hard right now
i think the best most of us can do is just live in the present
enjoy your husband's company, maintain special isolation and we'll figure this all out latter

 

[Dancing Fire]

We also have many Section 8 renters---so your BIL and SIL have the guaranteed monthly payment for the government portion. Downside is that if the renters pay part of the rent they may struggle.

A few yrs ago that's what happened to my other BIL. His tenant can't come up their share of $150 per month, so after 3 months he went court to have them evicted. After this eviction he sold his last rental property. He said... not worth the headache. He can't put up with the BS anymore. On his other rental property his tenant purposely jack-up the inside before they left after falling behind 3 months worth of rent.

 

[kenny]

This thread reminds me of a wonderful quote:

I have enough money to last me the rest of my life ... unless I buy something. - Jackie Mason

 

[FL_Sol]

My husband and I were set for over a year, maybe two. Now only two months. We purchased a home for his parents to move them closer because they were in a two story home and they need a ranch and were an hour away so taking care of them was very difficult and time consuming. It is not a cheaper home, either. Literally just 3 months ago. They can't help with the payments because his brother took all the equity in their other home to pay for his car and college, put the home in his name and built up the equity for himself (despite my husband helping with the payments for a couple of years).
I fear terribly for our financial situation right now.

 

[jordyonbass]

This thread reminds me of a wonderful quote:

I have enough money to last me the rest of my life ... unless I buy something. - Jackie Mason

This would have been true for me before I had my son to look after, I don't think I have enough now to see him through until he is 18 if I left the world tomorrow.

I guess that's why life insurance is still such a big seller

 

[MelloYello8]

My husband and I were set for over a year, maybe two. Now only two months. We purchased a home for his parents to move them closer because they were in a two story home and they need a ranch and were an hour away so taking care of them was very difficult and time consuming. It is not a cheaper home, either. Literally just 3 months ago. They can't help with the payments because his brother took all the equity in their other home to pay for his car and college, put the home in his name and built up the equity for himself (despite my husband helping with the payments for a couple of years).
I fear terribly for our financial situation right now.

You did a good thing for his parents. I hope your positive karma pays off.

 

[FL_Sol]

You did a good thing for his parents. I hope your positive karma pays off.

Thank you, I hope so too.

 

[Phoenix]

Both of our IRAs are worthless. We max out our IRAs for over 20 yrs and it is now worthless.. My stock accounts are worthless. When I buy you sell!.

The stock markets will recover, DF. They always will. It's just a matter of time, but when who knows? But it's usually within a few years, not decades.

 

[Grymera]

I'm cautiously optimistic about our family's situation, personally, although I know for our nation it's going to be really tough. Both my partner and I work for tech companies, so we've been working remotely since mid-March. We had a 4-6 month emergency fund in place (depending on how deep we cut), but we have a massive tax bill, which will cut it down to 3 months. Even if the taxes aren't technically due until July, we're just going to pay them and try to replenish. But in the larger sense, I think we have done everything we can. We got married 2 years ago, and did FPU from Dave Ramsey right after, which caused us to make some really big changes. We sold my partner's brand new, new construction home because it was too expensive and downsized. We're so glad we're in our current home, it's perfect for us and so much more reasonable. So for the past 2 years we've tried to make our finances more secure, and made some good moves, so now we just have to weather the storm.

 

[GliderPoss]

I can technically do my job from home so I’m really hoping the company I work chooses to keep my rather than laying me off! It’s headed up in the UK though so the loss of “a few Aussies” probably doesn’t seem like a big deal to them...

If I had to survive- reckon I could hold out up to 6 months with extremely cautious spending on bare necessities plus rent & electricity. At least I’m currently debt free thank goodness! If I had the money - I would actually invest in the Stockmarket right now whilst it’s lower.

 

[Dancing Fire]

The stock markets will recover, DF. They always will. It's just a matter of time, but when who knows? But it's usually within a few years, not decades.

Phoenix, Wish I was young as you..

 

[ringbling17]

We actually just sold our house at the end of February and downsized to a smaller house/property so we would be good for at least a year or more if we both suddenly lost our jobs. We would probably not be able to afford tuition though for both my daughter in college and my daughter in private high school. I would probably have to withdraw my daughter from her high school.
Luckily I have what is considered an essential job so hopefully I’ll be working all this time.
My husband hasn’t been at work in a week and he doesn’t know when he will be returning. I’m hoping soon but we shall see.

 

[Phoenix]

Phoenix, Wish I was young as you..

You'd be surprised!

 

[missy]

I don't want to know. Probably not long. My husband has been downsized 5 times in the past. In one 3 year period he was out of work for 18 months. Then another time it was 2 years. He didn't collect unemployment, I don't know why, but we used up a lot of our retirement funds and he's 60. Sooo. Don't know, don't want to know, the future doesn't exist to me, just the present moment.

@lyra I feel you. We are in a similar situation. My dh is over 60 and there is no job security where he works. Depending on how this all goes down there may be no job when it is over. But I keep telling myself first things first and we have to get through Covid-19 and worry about everything else later. It's the best we can do and we have no control over many things. So it is wasted energy to worry too much over what we cannot control. We have to do our best to remain well, control what we can and take it one day at a time. (((Hugs))).

oh lyra
its very hard right now
i think the best most of us can do is just live in the present
enjoy your husband's company, maintain special isolation and we'll figure this all out latter

Yes, not to wax poetic or anything but the most important thing right now is to take it one day at a time, one hour at a time and get through this. We have to live in the present and we can worry about tomorrow when tomorrow comes. The main thing is we survive this and we can take care of the fallout after Covid-19 is over. Prioritization #1 is to survive this pandemic. We can pick up the pieces later.

 

[Trekkie]

Well, I’m about to find out.

I resigned a few weeks ago because we planned to move to the UK at the end of April/early May. Cashed in my pension.

DH was supposed to stop working at the end of April. We were then going to use my pension, his pension and our savings to meet the £78000 savings requirement to move DH and our two kids to the UK (they only have South African passports).

Now they’ve closed the borders so we can’t move. And I don’t have an income. Fortunately my DH has not yet resigned, but it’s going to be tight.

In the meanwhile our currency has tanked, DH’s retirement account has taken a knock, and I don’t know if we’ll still meet the financial requirements to move together.

I might have to go over on my own for 6-9 months to work in order to prove that I can support DH and the kids without needing state benefits. My kids are 2 and 4. I’m trying really hard not to think about it.

I guess at this point we’ll have to wait and see

 

[diamondringlover]

maybe 2-3 months and then hit the retirement account

 

[OoohShiny]

Well, I’m about to find out.

I resigned a few weeks ago because we planned to move to the UK at the end of April/early May. Cashed in my pension.

DH was supposed to stop working at the end of April. We were then going to use my pension, his pension and our savings to meet the £78000 savings requirement to move DH and our two kids to the UK (they only have South African passports).

Now they’ve closed the borders so we can’t move. And I don’t have an income. Fortunately my DH has not yet resigned, but it’s going to be tight.

In the meanwhile our currency has tanked, DH’s retirement account has taken a knock, and I don’t know if we’ll still meet the financial requirements to move together.

I might have to go over on my own for 6-9 months to work in order to prove that I can support DH and the kids without needing state benefits. My kids are 2 and 4. I’m trying really hard not to think about it.

I guess at this point we’ll have to wait and see

I hope it works out for you, Trekkie. These are uncertain times but hopefully we can all get through them and out the other side without too much disruption.

 

[whitewave]

Supposedly the US government is working on a measure that would allow workers to withdraw up to 10% of retirement without a penalty. If that happens, we will do that and reorganize money per suggestions from our financial planner. Have more liquid just in case.

 

[AV_]

No one lives that long.

 

[1ofakind]

We could live off the bank account for 6 months or more by paring down all non-essential spending. We do not have a huge cash reserve but our living expenses are very low as we have no debt and own our home, we don’t have small children at home. This was an intentional decision many years ago to live debt free and we struggled/sacrificed at the time to accomplish it. (Thanks to Dave Ramsey- I know people don’t always agree to his strategies and we didn‘t follow 100% but it‘s kind of hard to argue with the financial peace we have as a result.). DH’s job is considered essential (for now) so he will get paid. We have retirement funds that we could use but don’t anticipate needing to do that. I’m pretty thrifty, I can pinch a penny till it screams if needed. Growing up in extreme poverty teaches one what is truly essential...I can do without a lot.

 

[GreenPapaya]

Luckily we don't have any debts (no school loans, don't own a home nor cars) and have been living below our means. I guess we can survive some years, but it's still so stressful. What if our liquid assets are worthless? What if dh's job is gone? I try not to think too much, like others say, take it hour by hour. I don't even look at our TSP/401K/IRAs anymore. When people say buy more stocks, do you mean specific stocks or indexed funds?

 

[smitcompton]

Hi,

I'm retired, so I look for both investment vehicles and CD's to live. Stock market tanked and interest rates also tanked. Same thing happened during the Financial crisis. So luckily I have a CD coming due March 31st where I will remove some cash to make sure I am liquid to pay my expenses for at least a year. My income will fall again as interest rates on other CD;s have fallen so that my income will fall by half.
I also did well during the financial crisis and have started to dollar cost average. I added to one stock on Thursday, 300 shares, and by Friday morning the stock had risen 12 points. I got so excited I told myself SELL. I did sell and I put in another limit order at the same price as before and hope maybe I can repeat the move. I made $3300 in a day.

DF I lost money on an oil stock. I'm waiting for it to declare bankruptcy.. Some of them will come back. I try to buy dividend stocks.

Lyra-- don't fret over the money now. Get your self well. I recall how nicely you helped me buy my Fridge. Thanks again.

Annette

 

[anne_h]

Luckily we don't have any debts (no school loans, don't own a home nor cars) and have been living below our means. I guess we can survive some years, but it's still so stressful. What if our liquid assets are worthless? What if dh's job is gone? I try not to think too much, like others say, take it hour by hour. I don't even look at our TSP/401K/IRAs anymore. When people say buy more stocks, do you mean specific stocks or indexed funds?

Hi Dizzy,

I can share what I do personally... I invest mainly in index funds & ETFs, all with high stock exposure (because that matches my personal time horizon and risk tolerance). I have played a little with picking individual stocks myself, but found it time consuming and stressful, so now I stick mainly with low-fee funds. I manage my own portfolios (no broker/advisor)... this helps keeps overall fees low. In my experience, most retail managed products have fees of ~2%, I find that totally ridiculous.

I also maintain a separate emergency fund in cash. That's so I hopefully never have to tap my investments when the market is down, realizing a loss.

Maybe others will chime in to share their own strategies...

Anne

 

[Dancing Fire]

DF I lost money on an oil stock. I'm waiting for it to declare bankruptcy.. Some of them will come back. I try to buy dividend stocks.

XOM will survive.

 

[1ofakind]

We don’t own any single stocks at the moment. When we have it has only been play/gambling money that if we lose won’t hurt much. Years ago DH was awarded company stock which we turned over to other investments as soon as eligible. Other employees who stayed invested in that single stock were very sorry when it fell dramatically. We also manage our own investments and contribute regularly as timing the market day to day is tricky. Now is an obvious buying opportunity which we will take advantage of us much as possible. DH spends some time now planning financial strategies for retirement but we have some time before we get to that.

 

[voce]

A few yrs ago that's what happened to my other BIL. His tenant can't come up their share of $150 per month, so after 3 months he went court to have them evicted. After this eviction he sold his last rental property. He said... not worth the headache. He can't put up with the BS anymore. On his other rental property his tenant purposely jack-up the inside before they left after falling behind 3 months worth of rent.

This makes me realize how fortunate my family is to have tenants who are 1) retired already or 2) work at a public school as a schoolteacher. My parents, myself, and my fiance all work at Essential Businesses. Business volume may be reduced, but I don't have to worry about not being able to pay the bills, at least not yet. However, I now realize I have been way too cavalier about my bling purchases, and wish I had a higher balance in my bank after I pay bills.

 

[Phoenix]

Luckily we don't have any debts (no school loans, don't own a home nor cars) and have been living below our means. I guess we can survive some years, but it's still so stressful. What if our liquid assets are worthless? What if dh's job is gone? I try not to think too much, like others say, take it hour by hour. I don't even look at our TSP/401K/IRAs anymore. When people say buy more stocks, do you mean specific stocks or indexed funds?

You can do either or both. People who are novices/ are not familiar with the stock markets should go for indexed funds. If you have experience and knowledge, you can buy stocks. There are plenty that are "very cheap" right now and big names too, like Apple, Google, Microsoft, Intel etc etc..

 

[dk168]

Just requested a payment holiday on my mortgage and on the finance of my current car, see how it goes.

These are my biggest monthly outgoings, fingers crossed that the providers will agree.

DK

 

[luv2sparkle]

We just retired on 2/14 but haven't started getting checks yet. We will still have money coming in from payouts from sick time and a few other things. We could go on for a while. All of our retirement/deferred comp money is in a stable income fund but I haven't dared to look at it. When retirement starts paying we will be just fine, but I may need to help my daughter and sil. Thankfully, my adult children are still living with us, so I won't have to worry about how they are doing. One, has been on disability after being hit head on by a gentleman from another country driving on the wrong side of the road, one completely laid off from two restaurant jobs, and one recently home from teaching overseas for almost 10 years.
My handicapped son lives in a group home and we will not be able to even see him til this is over.
Today is his birthday.