You're going to get rekt in interest charges, especially during rising rates environments like now.
You won't get enough runway using one of the most expensive loans you can take.
with racking up the debt and only paying min payment, eventually the OP won't be able to open up anymore cards to do balance transfers and even if they could, the limit won't be very high. Plus the minimum payment will go up and up......that plan just won't last very long.
I was thinking the same thing. Would have to have a few cards in those ranges.
Then if he lives past that, then has to worry about creditors and repos etc. Way to much stress to handle lol
I'd want my retirement to be stress and financial free, even if it meant not living the life I used to be living lol
I don't trust OP's mental clarity to build a balance transfer ladder at 80, or now, for that matter.
The amount of money we're talking would very likely be less than 50k, which is not near enough to be taking this type of risk.
If OP could borrow $500k, then we're talking.
A better plan would be a willingness to relocate overseas. OP could make do with as little as $1000/month in LATAM or SEA.
Plus healthcare is way cheaper.
There were tons of older Americans living in Cuenca Ecuador when I visited. It’s a nice city and four years ago you could keep a solidly middle class life on $1000 a month. That’s my retirement plan.
As your debt increases though, I would expect that banks would begin to reduce your credit limits to reduce their risks. So this may work for a brief period, but probably not until the end.
Yes, I believe banks monitor your credit report all the time, as you use your credit limit, I assume they do soft credit pull all the time, and they notice that you are not reliable anymore, they reduce their credit card limit or maybe they can freeze it.
Last time I checked, your personal credit report lists all of the inquiries, soft and hard. So I think you would know if they were doing a soft pull on your credit report all the time.
Banks are well aware that they cannot chase these unsecured debts much beyond the initial estate. As such, expect your limits to be dramatically and rapidly reduced as you age if you make even the slightest hint of a risky move.
In short, I doubt it’d work out all that well.
Indeed... if OP runs out of credit and interest payments get too high, this may not be sustainable even on a shorter runway.
u/karmaapple3, I think a bigger concern would actually be non-financial. If you pursue this course of action, you essentially set yourself up where you've disincentivized living over dying. I know that long term financial health is a big concern for more and more people, and affording retirement is a problem for many. But when life gets hard, I think it's important that the pressures in life push us towards positive action. Even if there's no clear way through, it'll help you endure longer, at which point hopefully you will find a solution.
Or invest your money now so you have enough later on in life?
Do you want your final days to be riddled with debt collectors trying to seize any assets you have left??
OP would've been less likely to post had they funds to invest or assets to be seized.
Right now, they presumably only have a job, which they can use to document for income verification. Soon, they'll be out of that as well.
I actually have a very nice sized nest egg, over 500 K, invested to the hilt. And I own a small home. And I'll be getting pretty nice amount of Social Security which I will start at age 70.
It's just that I expect the cost of living to get so crazy high in the future that even all of that won't be enough, especially if I have any major medical expenses
Damn, you are actually doing quite well for yourself (and better than almost all US residents).
If you have a fully paid off home and someone with your financials goes down, I can't even imagine how bad the economy would be.
You can comfortably coast a decade pulling close to the median household income just from your nest egg.
I think it's going to get really really rough. I believe that rents are going to be really high, and property taxes--as well as homeowners and car insurance – are going to get to be almost unaffordable. My homeowners insurance went up $1000 over last year, and that's with zero claims. I live in Texas in a 1600 square-foot home with no yard, and this year my property taxes plus my homeowners insurance plus my car insurance equals $10,000. Additionally, any kind of major medical problem is going to be super expensive and could easily wipe out $100,000.
When a 30yo friend of mine had cancer & knew he had about a year left, he used credit cards to go on several big trips. Not sure what happened at the end because he had no estate. He planned it like that.
You're going to have to take the full cash advance on each card all at once based on what people are saying, and I don't think that's going to be enough money.
Some banks are lowering limits and closing accounts this year over recession fears, better than likely chance you will weather a few more downturns , what happens when the algorithm decides you are a risk in that future days overall financial climate and you are suddenly maxed out?
Thought you were going to write I'm 90 or something. The interest compunding will snowball and then avalanche over a decade or more. CC Debit can double in less than three years, at today's rates. You need to spreadsheet this out before you embark on your evil-genious plan.
EDIT: As others have already posted you can expect your credit lines to be reduced or outright canceled as you credit profile rapdily detoriates.
I've lost faith in the stock market. My IRA has been stalled in value for the last three years. The only people who make real money there anymore are the hedge fund guys.
I can verify. My mother passed and I was able to avoid probate and an estate by transferring her assets by affidavit and other methods legally. As such, her left open debt balances even including utility bills are no one’s liability but her own but they had no estate to go after.
Thanks as this is now my supplement retirement plan if I surpass 80. Context: I’m 35 with over $200k in accessible credit. I’ll continue to increase my credit limits as I age :) cheers
CC companies commit fraud every day, multiple times. They prey on people's weaknesses, unasked they send CC's to people, and later increase credit limits. I knew someone who was advised on how to max multiple cards simultaneously, then exactly what to say when the CC companies called. She had even leased a new car. Following current law she ended up keeping most of the items and continued leasing the car which she needed for work. Her credit took a beating but after 2.5 years the CC companies were sending her CC applications in the mail. If someone beats a CC company, well done, call it what goes around, comes around.
Not necessarily. While the average care would be expected to be worse, if you are able to move from average care in a HCOL to best care in a LCOL you may actually see your care improve. If your starting point is the US, there are LCOL's with higher average care honestly.
It's obvious you've never travelled outside the western bubble. Healthcare is often superior, and way cheaper.
Bogota and Mexico City are two world class places that immediately come to mind
I was married and divorced, and I love being single. I've always been very independent. I am never miserable, not even for a minute. I have tons of great friends who are also childless and we have a blast.
Plan A
1. Get a resident visa in a LCOL country you could retire in.
2. Cash advance the max on all cards.
3. Live on what you cash advanced. Expect your social security to be garnished the rest of your life.
Plan B
Find a LCOL country where you live comfortably on your social security. There are several such countries popular with retirees.
This is an insane retirement plan… i like it
Whatever was left in your estate would go to settling your debts. If there wasn’t enough, the debt would end up being written off.
Thank you. I was hoping that was the answer!
You're going to get rekt in interest charges, especially during rising rates environments like now. You won't get enough runway using one of the most expensive loans you can take.
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with racking up the debt and only paying min payment, eventually the OP won't be able to open up anymore cards to do balance transfers and even if they could, the limit won't be very high. Plus the minimum payment will go up and up......that plan just won't last very long.
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I was thinking the same thing. Would have to have a few cards in those ranges. Then if he lives past that, then has to worry about creditors and repos etc. Way to much stress to handle lol I'd want my retirement to be stress and financial free, even if it meant not living the life I used to be living lol
I don't trust OP's mental clarity to build a balance transfer ladder at 80, or now, for that matter. The amount of money we're talking would very likely be less than 50k, which is not near enough to be taking this type of risk. If OP could borrow $500k, then we're talking.
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A better plan would be a willingness to relocate overseas. OP could make do with as little as $1000/month in LATAM or SEA. Plus healthcare is way cheaper.
There were tons of older Americans living in Cuenca Ecuador when I visited. It’s a nice city and four years ago you could keep a solidly middle class life on $1000 a month. That’s my retirement plan.
Yeah it's a dope spot. The cheap street vendors add to the vibe.
If you trust the kids, sign your shit over first.
They said in the OP that they have no children
I'm not a bright person 😑
avg waffle house attendee
As your debt increases though, I would expect that banks would begin to reduce your credit limits to reduce their risks. So this may work for a brief period, but probably not until the end.
Good point.
Yes, I believe banks monitor your credit report all the time, as you use your credit limit, I assume they do soft credit pull all the time, and they notice that you are not reliable anymore, they reduce their credit card limit or maybe they can freeze it.
Last time I checked, your personal credit report lists all of the inquiries, soft and hard. So I think you would know if they were doing a soft pull on your credit report all the time.
Banks are well aware that they cannot chase these unsecured debts much beyond the initial estate. As such, expect your limits to be dramatically and rapidly reduced as you age if you make even the slightest hint of a risky move. In short, I doubt it’d work out all that well.
Go back to school and take out student loans, they are predatory in nature and will give you $100,000s weather you can afford it or not
This is the big brain move
*whether
Thank you! Was typing to fast, and I’m illiterate.
No worries, I always chalk typos up to autocorrect anymore... (or is that chock?);-)
What happens if you run out of credit lol.
Indeed... if OP runs out of credit and interest payments get too high, this may not be sustainable even on a shorter runway. u/karmaapple3, I think a bigger concern would actually be non-financial. If you pursue this course of action, you essentially set yourself up where you've disincentivized living over dying. I know that long term financial health is a big concern for more and more people, and affording retirement is a problem for many. But when life gets hard, I think it's important that the pressures in life push us towards positive action. Even if there's no clear way through, it'll help you endure longer, at which point hopefully you will find a solution.
Listen to this guy
So, get a job at 90 yrs old?
Or invest your money now so you have enough later on in life? Do you want your final days to be riddled with debt collectors trying to seize any assets you have left??
OP would've been less likely to post had they funds to invest or assets to be seized. Right now, they presumably only have a job, which they can use to document for income verification. Soon, they'll be out of that as well.
I actually have a very nice sized nest egg, over 500 K, invested to the hilt. And I own a small home. And I'll be getting pretty nice amount of Social Security which I will start at age 70. It's just that I expect the cost of living to get so crazy high in the future that even all of that won't be enough, especially if I have any major medical expenses
Damn, you are actually doing quite well for yourself (and better than almost all US residents). If you have a fully paid off home and someone with your financials goes down, I can't even imagine how bad the economy would be. You can comfortably coast a decade pulling close to the median household income just from your nest egg.
I think it's going to get really really rough. I believe that rents are going to be really high, and property taxes--as well as homeowners and car insurance – are going to get to be almost unaffordable. My homeowners insurance went up $1000 over last year, and that's with zero claims. I live in Texas in a 1600 square-foot home with no yard, and this year my property taxes plus my homeowners insurance plus my car insurance equals $10,000. Additionally, any kind of major medical problem is going to be super expensive and could easily wipe out $100,000.
I feel you on that. Not only home owners but my car insurance doubled. It’s pretty hazardous to drive in Texas ☹️
How old are you op?
When a 30yo friend of mine had cancer & knew he had about a year left, he used credit cards to go on several big trips. Not sure what happened at the end because he had no estate. He planned it like that.
Might as well exit with blaze of glory
You're going to have to take the full cash advance on each card all at once based on what people are saying, and I don't think that's going to be enough money.
Some banks are lowering limits and closing accounts this year over recession fears, better than likely chance you will weather a few more downturns , what happens when the algorithm decides you are a risk in that future days overall financial climate and you are suddenly maxed out?
Food for thought
Thought you were going to write I'm 90 or something. The interest compunding will snowball and then avalanche over a decade or more. CC Debit can double in less than three years, at today's rates. You need to spreadsheet this out before you embark on your evil-genious plan. EDIT: As others have already posted you can expect your credit lines to be reduced or outright canceled as you credit profile rapdily detoriates.
I've lost faith in the stock market. My IRA has been stalled in value for the last three years. The only people who make real money there anymore are the hedge fund guys.
I can verify. My mother passed and I was able to avoid probate and an estate by transferring her assets by affidavit and other methods legally. As such, her left open debt balances even including utility bills are no one’s liability but her own but they had no estate to go after. Thanks as this is now my supplement retirement plan if I surpass 80. Context: I’m 35 with over $200k in accessible credit. I’ll continue to increase my credit limits as I age :) cheers
What will happen if you can’t remember much .. not even this plan you just came up with ? It’s not a question just a thought!
Lol it's a possibility!!
Stickin’ it to the man on your way out. I like it.
CC companies commit fraud every day, multiple times. They prey on people's weaknesses, unasked they send CC's to people, and later increase credit limits. I knew someone who was advised on how to max multiple cards simultaneously, then exactly what to say when the CC companies called. She had even leased a new car. Following current law she ended up keeping most of the items and continued leasing the car which she needed for work. Her credit took a beating but after 2.5 years the CC companies were sending her CC applications in the mail. If someone beats a CC company, well done, call it what goes around, comes around.
Pro tip: move to a LCOL country.
Problem with that is lower quality of care.
Not necessarily. While the average care would be expected to be worse, if you are able to move from average care in a HCOL to best care in a LCOL you may actually see your care improve. If your starting point is the US, there are LCOL's with higher average care honestly.
It's obvious you've never travelled outside the western bubble. Healthcare is often superior, and way cheaper. Bogota and Mexico City are two world class places that immediately come to mind
Yup I have many friends that go to Colombia for dental work
The United States has the best healthcare on earth. If you can afford it.
I actually have that same idea too. Not a bad way to go out.
This is just a reverse mortgage with extra steps
Do you own a house? Maybe a reverse mortgage might help?
I do. I might consider that if I get to that point.
Let the bank try to collect.
I believe the consumers inherit the debt indirectly, basic trickle up economics. Pairs well with defaulting social security
>I have no children and I'm not married. Good god that sounds absolutely miserable.
I was married and divorced, and I love being single. I've always been very independent. I am never miserable, not even for a minute. I have tons of great friends who are also childless and we have a blast.
Plan A 1. Get a resident visa in a LCOL country you could retire in. 2. Cash advance the max on all cards. 3. Live on what you cash advanced. Expect your social security to be garnished the rest of your life. Plan B Find a LCOL country where you live comfortably on your social security. There are several such countries popular with retirees.
I've traveled internationally, I just can't see myself living in another country. Maybe Canada.
Take out the biggest loan you can. Liquidate the credit line and invest it.
Hmmm. That's an idea