Who does this anymore?

[TJ_98370]

.
I've recently made the acquaintance of an 87 year old gentleman. His wife and my mother are residents at the same memory care facility. He visits his wife every day and we talk occasionally. He is a bit lonely and he likes talking about his life history and I listen.

He is a WWII vet and during the war he was trained to be a tank and auto mechanic. He never attended college. After the war he went to work at the Puget Sound Naval Shipyard as a mechanic and his wife worked in the "duplicating office". In 1964, at 44 years of age, he bought his first and only house in which he still lives. It was built in 1963, 2200 sq ft, 2 bed, 2 bath and in a community that was definitely upscale at that time. Now get this – He bought the house on an 8 year contract and paid it off in 4 years! Wow! Not bad for a blue collar worker (or anyone else, IMHO). Can anyone do that today?

[redmondjp]

This sounds a lot like the story of my 90-year-old neighbor and his wife. He's still living at home (but really shouldn't be) with his wife. They live in a 1800 sf (approximate--buyer to verify ) 3/1 house that he built BY HIMSELF 50 years ago, where the Kirkland Costco now sits. He then had the house moved onto the site of his parents' farmhouse in Redmond where he was born in 1917.

The house still has the original kitchen cabinets which he built himself, and has been updated only minimally since he built it (but it has been kept in very good condition).

He was a WWII Vet, didn't go to college, worked as an ironworker on the Boeing plant in Renton straddling the roof girders, and then was a boxcar riveter at Paccar, and finished his career working as a garbageman for 20+ years. He worked hard for most of his life. Still can't talk about some of his experiences in WWII (pacific theater, late in the war) as the memories are too graphic for him.

One of the Great Generation, as Tom Brokaw calls them (and he's right).

And of course he has no mortgage, which is good since he's on a fixed income.

Yup--they don't make them like that anymore!

Now we have one Iraq war veteran who buys a house with an ARM he really can't afford after it resets, takes out a 2nd mortgage to do (probably unnecessary) remodeling, and then can't seem to figure out why he is in trouble:

My non-college-educated 90-year-old neighbor, with what mind he has left, is still smart enough to see the folly in doing something like that!

[TJ_98370]

redmondjp-

If your neighbor is anything like my acquaintance, I bet he thinks of debt as being in the same catagory as a fatal disease.

My acquaintance has one credit card, that he never uses, and always paid CASH for his automobiles. Who the hell does THAT anymore?

What's really sad is that the $5000 per month cost for keeping his wife in the memory care facility is going to wipe out his savings in about a year and a half. He figures he will have to sell his house if she is still around after that. It's a shitty deal for him to be in that situation at his age. I guess it's something we all get to look forward to.

[laxtosnoco]

My acquaintance has one credit card, that he never uses, and always paid CASH for his automobiles. Who the hell does THAT anymore?

Uh, I think a lot of us still pay cash for cars. I was willing to use student debt as an investment in myself, and I'm okay with mortgage debt because there's ultimately a break even point vs. renting, but I don't see the advantage of auto or other consumer debt. If you can't afford the car, buy a cheaper one or save up some money.

[carlislematthew]

[Alan]

[TJ_98370]

[carlislematthew]

[TJ_98370]

...When we get a tax deduction on the interest when buying a car from an American car company, that's when I know things have really gone to hell!

Did you know that credit card interest used to be tax dedcutible?

..Tax break on the IRS taxable "gain" when you default on your mortgage..

Wow! I was unaware of IRS tax changes upon mortgage default. I thought cancelled debt was still considered taxable income. Apparently these changes are very recent?

[carlislematthew]

[deejayoh]

[TJ_98370]

[Markor]

[faster]

[TJ_98370]