It's been documented that more than half of the over-50 will be forced out of jobs. Those who land on their feet and do get another job will likely earn less. Only one in 10 of those will receive comparable income. Here is the recent research from ProPublica.
That means that with aging come challenges about getting and sustaining financial solvency. The risk of homelessness is real. Elder homelessness is increasing.
One now-common way to lose a grip on finances is to take out a large loan to purchase a new car.
As The Wall Street Journal reports, with cars costing more, the amount of the loan is more. More and more there is coming a time when the new car owner can't afford the monthly payment and the car is repossessed. Or, there is simply an angst-filled struggle to pony up that monthly nut.
In addition, NerdWallet estimates that the yearly cost to operate a car driven 15,000 annually is about $8,469.
In short, driving used to be a cheap activity. Currently it isn't.
Some Baby Boomers recall GM's success with the old commercial to see the USA in one's Chevrolet. That was an experience open to most families. Now, car ownership can eat a big hole in a budget.
Financial planning for semi-retirement and retirement could include exiting car ownership.
That entails, first of all, being in a location with plentiful, reliable, and affordable public transportation. All three are necessary.
The New York Metro area has only two of the three. Even the subway is less affordable. And crossing bridges and hopping on the Metro North to commute to Manhattan had become pricey.
The good news about cities and towns with all three is that there is usually a senior citizen discount. In Toledo, Ohio that's significant.
Also, for seniors who download ride-hail apps there are Uber and Lyft. Meanwhile, even using traditional taxi services still is less expensive than car ownership.
The aging focused on fitness can make it their business to approach bike-riding as basic transportation.
Maybe balance is off. Then, there is the adult tricycle or, as it's called, the "trike." Its three wheels guarantees a feeling of stability when traveling. Trikes come with just one gear or multiple gears.
There are also e-versions of trikes. They have an electric motor to supplement peddling.
The biking culture creates unique opportunities for socializing and participating in special events.
Another kind of solution is co-living, where resources are pooled. For example, the widow is determined to hold onto the house. She screens "boarders" for private bedrooms and use of common areas based on their ability to extend what she can do. The ideal boarder would be a car owner whose vehicle is paid off and who has the know-how to maintain the auto on the cheap.
Full Disclosure: On the last day of September 2019, I got out of the car game. I donated the 2010 vehicle to Kars4Kids. That is, the loan had already been paid off.
Opting to go carless has eliminated the bills for insurance, gasoline, washes to remove the salt on the undercarriage in winter, oil changes and other kinds of maintenance, and repairs. Regarding the latter, a stone which hits the windshield can throw off an already tight budget.
If I want to see the USA I will pull up on the internet those online deals for cheap car rentals. They provide calculators to estimate how much that travel will set a driver back.
Smart global ghostwriting, with social networking know-know. Emergencies welcome. Complimentary consultation (pressure-free) janegenova374@gmail.com.
Comments