Comments on Boston Gal's Open Wallet: Money Makeover: Phyllis Werlin

You're welcome. Longtime lurker, rare poster. Now ...

2009-11-17T22:58:45.709-05:00

You're welcome. Longtime lurker, rare poster. Now I can look forward to discussing your blog with Phyllis!

I love your blog. I keep all my investments on a ...

2009-11-16T16:25:53.898-05:00

I love your blog. I keep all my investments on a spreadsheet also and I constantly update it.. I should only do it Mondays and Fridays, but I get a bit obsessed about it.

If I read all the blogs I like I'd never leave the house, but I look forward to reading yours for money saving tips and advice.

Thank you again Phyllis for adding to the conversa...

2009-11-16T15:30:40.140-05:00

Thank you again Phyllis for adding to the conversation.

Also - welcome to the wonderful world of personal finance blogging where we do hash out all of these knitty gritty financial details!

This is a very interesting article. It certainly h...

2009-11-16T15:28:03.759-05:00

This is a very interesting article. It certainly helps to hear from Phyllis herself. This is quite different from those other stories we read on the news or on other websites, where sometimes you have to wonder if it's not some fictional character.

I do wish things turn out for the better. And thanks for the personal perspective!

A couple things I want to add: 1) No mention at a...

2009-11-16T14:10:04.901-05:00

A couple things I want to add:

1) No mention at all was made about health insurance. I'm on COBRA, which is being subsidized and w/out the subsidy is $400+. In MA, I can get a cheaper plan, if I like the plans they offer, but I'd prefer BC/BS, which is $$$. I haven't made a decision about what to do yet. I need to have good insurance, let's just say. The thing about never dying? That made me laugh. I've already outlived my mother by 35 years.

I could choose to cancel any one or more of the following items that for me, are necessities:
cell phone, internet, my car, dental insurance, the gym, etc. But I haven't felt the need. I do not intend to stay unemployed forever. It hasn't even been a year, and I've been looking and interviewing, but it's rough out there.

I thought about refinancing, but my rate is pretty low. Plus, I'm unemployed.

I also could go live with my sig. other, who has a house, but we haven't hashed out all those details because we are very independent people. I love my condo, and it would cost a lot to put stuff in storage, move, and renovate (and be a "landlord").

So I have options. But it was interesting to read all these comments! I had no idea this stuff was hashed out so much. I usually read these things and then move on.

thank you,
phyllis

What a treat to have the subject of the article po...

2009-11-16T13:58:39.798-05:00

What a treat to have the subject of the article pop in to fill in some of the blanks! Thank you, Phyllis.

I'm a single woman and expect to retire with about the same income you are expecting. One thing I don't see mentioned at all which I expect to continue doing is to have a roommate. Perhaps you are not open to this, but if you have an extra bedroom, I believe it is worth considering provided you can find a roommate who is a good fit. When you are working with a modest budget, an extra $500 per month can make all the difference. The right roommate is a positive addition to your life, not an annoyance.

Best of luck to you, Phyllis.

Hi Phyllis, Thank you for commenting and adding t...

2009-11-15T20:33:28.137-05:00

Hi Phyllis,

Thank you for commenting and adding those much needed details to your story. It is very helpful to the rest of us (folks like me) who read these makeovers and try to glean tips/advice we can use in our own financial lives.

Also thank your friend for me who passed along the link to my blog :)

In response to anonymous:

Refinancing may not be an option for Phyllis since she is currently unemployed and plans to seek a new job at a much lower pay rate.

Likely her best bet over the next decade is to seek part-time work that pays enough to not just close her current monthly expense gap, but also allows her to send in extra principal payments.

Since she purchased her condo five years ago, I assume she has 25 years left on her mortgage. Every year she can lop off that payment will make her later years that much more financially comfortable.

I wonder if refinancing would be an option and a w...

2009-11-15T20:02:52.828-05:00

I wonder if refinancing would be an option and a wise move? Sounds like housing expenses are clocking in at more than half of total annual living expenses at the moment. Mortgage rates are down about 1% from where they were 5 years ago (although of course it depends on type of mortgage). Might be worth looking into. It could free up a nice chunk of change each month, taking some pressure off and giving much more flexibility.

Hi Phyllis, Any way you could strike down the 41,0...

2009-11-15T19:37:28.091-05:00

Hi Phyllis, Any way you could strike down the 41,000 a year? When could the condo be paid off? I fear for stuff like this since I went part-time at an early age, and I live off no more than 20,000 a year (though I don't pay rent/mortgage).

A friend sent me a link to your blog after my stor...

2009-11-15T16:35:11.799-05:00

A friend sent me a link to your blog after my story appeared this morning.

Since they insist on using real names, I asked the journalist to please NOT post the amount of my nest egg, and she complied. (I agree with you that if it was anonymous, I would have allowed more details. I almost backed out but she convinced me to go through with it.)

I own my condo, purchased 5 years ago at a very low rate. Mortgage, condo fee and utilities equals around $2000. Then there's car insurance, food, gas, tolls, car repairs, etc. I love to shop, but I love off price stores and web bargains. I get magazines free at the library. I have worked to bring down my electric bill. I even stopped my Globe subscription.

My annual earnings over the last 10 years, which often included overtime and off hours, was around 45K. And yes, sometimes I overspent my take-home pay but always had a cushion so I never let it bother me.

I'm not sure about the SS thing either exactly. This planner talked about what she would do w/ my portfolio. Since currently I work w/ a broker, we have to discuss my options going forward.

Hopefully my 15 minutes of fame are over now.

phyllis

Social security payments are based on your highest...

2009-11-15T15:58:39.259-05:00

Social security payments are based on your highest 35 years of wages.

The highest 35 years of indexed
earnings are added together and divided by 420 months (the number of months in 35 years) this creates "Average Indexed Monthly Earnings” (AIME). You can go to the Social Security Website to play around with the payment calculator.

Since most financial planners recommend that you w...

2009-11-15T15:38:20.944-05:00

Since most financial planners recommend that you w/draw 4%/year, I would guess that her portfolio is a bit over $800,000.

I agree. Not very much to go on here. My guess is...

2009-11-15T14:59:33.741-05:00

I agree. Not very much to go on here. My guess is that she has a sizeable inheritance. Usually financial planners never touch the principle, so I'm sure it is sizable if she can still get $34000 a year and never die.