We had dinner the other night with a couple of neighbors who are both retired and in their late 60s. They are both very involved in multiple things including his having a part time job which provides medical coverage.
At some point in their life they bought a couple of timeshares and this came up in conversation. More specifically the money they make going to timeshare presentations. My wife and I have done this twice in the past and back when we did it we made $100 per. Our neighbors just collected $300--they said this is now the going rate.
They also made a comment about this being a way that "old" people make money. A big focus on this site has been trying to figure ways to supplement typical income sources in retirement. I don't know anything about how often someone can do this but $300 for 90 minutes is not too shabby.
If this is possible to do once a month it seems like it could be a useful thing. $300 would cover our Directv bill, cell phone bill, land line, and ISP service. This is not insignificant.
The point is not to run out and try to go to timeshare presentations every week but this will fit for some folks like my retired neighbors. Arizona has a lot of these and other places probably not but it is a unique idea and for many people the retirement solution will have to include innovative ideas.Something like the timeshare scam plus a modest income from even a low paying part time job like maybe $600-$800 (I don't think that low of an income would affect social security benefits but I am not positive) plus social security (for as long as it is there) and a couple with a modest lifestyle only having to pay for utilities, insurances, taxes, food and health coverage will not have to put a huge burden on their savings. In this sort of scenario a $500,000 portfolio could generate another $1000 per month for walking around money and provide money for a big trip (or several smaller trips) while not exceeding the 4% withdrawal rate. Or for people more conservative this leaves a healthy margin for various one-offs like home repairs, new tires, veterinarian bills and the like.
For people who are not wealthy this sort of scenario seems plausible. Of course the cornerstone is living modestly and going into retirement with no debt. As many of the articles about whether home ownership makes sense any more or not seem to mention, it used to be that people bought a house when they were young and got it paid off shortly before retirement. The concepts of trading up and HELOC spending has resulted in more people going into retirement with a mortgage. Obviously an extra $2000-$4000 in fixed expenses in retirement is going to be a deal breaker for many people.
Here is a related post from Kirk Kinder.
This spring (probably May or June) we are going to build an outbuilding that will serve as an office where I will work everyday. A friend, knowing this, sent along a link to an article on Popular Mechanics about this sort of thing. The picture is of one of the sheds from the article. The shed is built upon (and so the jeep is parked between) two cargo containers. I call this shed The Hoarder's Delight. We are going a more conventional route but I really got a kick out this.
While the term Man Cave is out of the question, I do like Secret Volcano Lair (nod to Austin Powers movies) but we are open to suggestion if you have something funny to offer.
12 comments:
Here in Naples, we have the "Surf & Turf" circuit. Same concept as the cash for timeshare attendance, but payment is in the form of food! 60 minutes of some life insurance premium financing scam or domicile planning seminar at some of the best steak houses in town. The retirees make the rounds for a season or two and enjoy great food before their invitations stop coming!
free dinners seems like it could help.
You are encouraging people who are going senile to go to hi pressure sales tactic selling events. They are easily manipulated and deceived. I do not view this as a good suggestion having cared for a father who demanded to live independently and make foolish decisions.
Many of the elderly are not as savvy as many readers here.
wow that is a very hasty generalization.
I would add that the people you are concerned for, by your own statement, are not reading this blog so are not being encouraged to do anything. actually readers of the blog are only being encouraged to think outside the box.
I thought of doing this before, but when I pitched to my wife, I got the ole eye roll that said to drop it and never bring it up again.
Forgot to mention earlier - my wife and I picked up a free 4-day/3-night cruise for attending a travel agency seminar this winter. It made for a great escape weekend for 60 minutes of a Sunday afternoon.
@anonymous - I have the same parent issues and I certainly don't believe a blog discussing these ideas would encourage them one iota.
My dad was active in the markets, but not computer savvy. Had he been computer savvy he likely would have read a penny stock blog.
One of the odd things about older people is they often will not take sound advice from any of their children, but will sign up for lousy supplemental health care based on a free lunch and free feature in the program even though the health care is much much worse then they had.
Sorry if I seem whatever about this topic, but it was not just my dad. Their were plenty of other older people who were also taken in by these scams at his condo community.
Plenty who were not taken in also, but you would be amazed at the easy pickings for scam artists in FL
Focus groups are another way to sometimes make some painless money.
I've taken part in a couple that each paid $100, and were in nice office buildings and conducted on behalf of very reputable companies. No selling, just collecting consumer opinions....
I admit that my wife and I have gone to a few, and received value in return. However, just tolerating the hype and sales gimmicks makes me think that there must be other avenues to make money by the hour.
Pimping comes to mind.
I guess once receiving sheckles by the hour for showing up is established as a legitimate tool, the sky's the limit.
Time-share scam? Have we no shame?
Whatever happened to the old-fashioned way of earning money in Arizona -- riding in on horseback and sticking up banks.
BillM
anon 9:09--I was in the market research business, and we had to screen out participants who had been to an interview within some predetermined period. Sadly, some folks became regulars around the holidays to raise money for gift-giving. On the other hand, clubs and organizations often volunteered their members as a way to raise money for whatever cause, which always felt just a bit more legit to me.
Wandom Woger's Wabbit Warren.
:-)
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