Category Archives: Family

Family life among people in later life

Coming Home: Multigenerational Households are Growing—Part 1

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Coming Home-- Photo by Jamie Harris

Multigenerational households are growing in the United States, according to a 2010 study by the Pew Foundation. Such households were common in the early twentieth century, then they declined, reaching a relative low point around 1980. They have been rising since then, showing a distinct uptick with the recent recession. In a culture that emphasizes independence, multigenerational households generally expand out of necessity, providing further evidence that times are tough. These trends will affect the retirements of millions of Americans.

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A Boy and His Turtles: Christmas 1987

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The story below is Andy’s. It is about accepting the real nature of things, which is always appropriate at Christmas. We helped him write it up, and we sent it out as our Christmas message in 1987. People in their fifties and older often enjoy remembering holidays with young children. We like remembering this one, and we hope you will like it too.

Dad said I either had to do the dishes or write the Christmas note. I want to tell you about my turtles. Last spring I wanted turtles and Mom bought two. They were small and friendly, and I named them Dribble and Drabble. When we brought them home I put them in a pan on the front porch. Kevin was there and he wanted one but I said no. Dixie, our neighbor’s dog, was there too and she ate the turtle food.

I went to play, and when I got back, Dribble was gone. I thought Dixie ate him, so I went to the garage to get a stick to beat her. Mom caught me just as I was headed across the lawn, and she wouldn’t let me go. Mom said there was no proof Dixie ate it, and even if she did, I still couldn’t beat her. The next day I drew Dribble’s picture in a notebook and he looked like this:

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Offering Responsible Help

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The last post related how emergencies can put a retiree’s living standards at risk. Now the discussion turns to thinking and working through emergencies in ways that manage the risk appropriately.

If retirees pay regular living expenses from their investment portfolios, and then spend some of those investments to resolve emergencies, they put future withdrawals at risk. It’s different in middle life when living expenses are paid from salaries or wages, and savings are commonly used for emergencies.

Some Financial Approaches

One solution is to set aside a portion of a retirement portfolio for emergencies. A retiree with a $500,000 portfolio could set aside $100,000 for emergencies, using only $400,000 for ordinary living.  If the withdrawal rate is 4 percent, the retiree would withdraw $16,000 annually for ordinary expenses. The $100,000 emergency fund would be left alone.

In addition, retirees have other options:

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Risk Retirement for a Loved One?

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An idealized retirement story might sound like this: Saving for years, retiring from work, then taking planned withdrawals on through retirement. It sounds orderly and easy, yet many retirees know it is anything but.

Emergencies arise, not only in a retiree’s life, but also in the lives of loved ones. Ordinary life includes a leaky roof, a needy middle-aged son or daughter, or a troubled grandchild. If retirees have savings, even if they rely on them for monthly living, there is the ever-present urge to liquidate savings and put some money on the problem.

An Ugly Trick

There is an ugly trick with the urge to be generous, and it’s subtle.

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