Here in New York State, Covid-19 and the new variant, Omicron, are spreading like wildfire. Mask mandates are back in enforcement, people who are unvaccinated are being fired en masse, fear is back in play, businesses are shutting down again (this time permanently) and almost everyone is on edge.
Positivity rates are rising as the omicron variant spreads. According to CDC data released on Wednesday, New York and New Jersey are the two states with the most rapid spread of the variant. The data shows that 13.1% of cases in the CDC region that includes New York and New Jersey are omicron, compared to a national average of 2.9%.

DH and I looked at each other upon hearing this news and it was a unanimous decision that no amount of money was worth either one of us putting ourselves in any jeopardy. DH just saw his cardiologist this week as part of his annual physical exam. As you all know, he has an inherited congenital heart condition. Every time he goes to his cardiologist he hears something new that is wrong with him. This time, he was told that his heart is thickening…..ever so slightly……..but in any event, it’s not good news. Everything else is stable but now he has something new to be concerned with.
So, without batting an eyelid I told DH to immediately withdraw from his Big Box job (only 4 days in to it) because with the rise of covid in our area and his new diagnosis, nothing is worth jeopardizing his life for. Up until now, both he and I have been fortunate to not have contracted any virus. We’ve been super careful and neither one of us wants to rock our good fortune. So, DH quit instantly.
Our main reason why DH returned to work (part time) was to catch up on two zero-interest credit card advances and to sock more money away into our savings to cope with higher inflation costs. To heck with all of that! In two months DH goes onto the Medicare rosters and in turn that meant his Social Security monthly check, despite the 5.9% increase will see a $170 reduction for Part B, a $7.20 reduction for Part D and a $74.25 reduction for a supplement plan. Plus he will have to cough up 10% in co-pays. That’s a total reduction of $251.45 to his monthly income.
Rather than work part time to fill in the gap, we’re just going to finally withdraw one of our interest payments monthly ($265) to cover his new medical costs. The other thing we are going to do is withdraw from our savings accounts the amount needed to pay off the two zero interest loans ($2245.18) which will free up around $200 a month as per our budget. With the extra influx of approximately $500 in to our monthly budget, 2022 will work for us just fine. It’s disheartening that it took a coronavirus variant scare to jumpstart us into action, but no life is worth sacrificing just to balance out a monthly budget. There always is another way to get through the maze of life. We just had to think about it and calculate our options. Thank God we have options!
We’re fortunate that we don’t need a lot of money to live. Our expenses are low. It’s true what they say about debt and retirement. They really don’t mix. Plus no one expected the current high inflationary rates of 10% to 50% to be hitting any one’s pocket. I personally prepared for a 3% rate of inflation. As per a lot of other retirees, we weren’t prepared. Going forward, however, now that we know inflation is not transitory but more permanent, DH and I can prepare a bit better. We’ve cut so many things out of our budgetary spending that at times I think we are unrecognizable. Yet, here we are. And yes, I will admit that as we started cutting these things away out of our budget, I was livid. I was upset. I was mad and I was angry. I guess I had to go through the seven stages of remorse and grief before I could finally accept our new world. Many of the experiences, hopes and dreams we planned have been put on hold and when you’re in your 70s as I am, waiting is really not a welcome option. But I digress.

There really is no such thing as ‘retirement’ per se. I’d like to reclassify it to ‘survival’. I told hubby our vegetable garden and one peach tree are going to be more important to us this summer than ever before. Since we’re going to be home more, I’d like to set up a chicken coop, just like all my neighbors on our road have, and harvest chicken eggs. A few have added in goats and horses. Goats I can understand but horses are just a bigger expense. In any event, it’s nice to know we have options. We’re going to hold on to our RV and two vehicles for at least a year and see how our traveling adventures (if any) pan out. As we all know, however, plans are meant to be broken. Best not to plan and just take life as it comes. Thank God we still have options.
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Sounds like you have it figured out. Inflation is no joke. How does Nick currently have health insurance pre-Medicare? Health coverage was my only hesitation in retiring early. I retired from 30 years of teaching and still have coverage thru my school district, but now I pay the month premium ($644 for health, dental, vision). Expensive, but I figure at least I’m with a group, and group younger than I am.
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Kim, Nick is/was covered under NYS ACA (Obamacare). You’re right…inflation is no joke. It’s literally killing everything in its path. Throw in the pandemic and we’ve got a witch’s brew the likes none of us have ever seen before.
Stay safe.
Thank you for your comment.
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I would chose life too. It’s scary how quickly Omicron replicates and the Cornell University 900 cases in a 99% vaccinated population is even scarier!
I am keeping my zero interest loans for at least three months with my $2400 property tax bill in January. I switch my plans and decided to use one of my quarterly dividend checks to pay it and then do the same with the zero interest loans. I hate debt too. Sincerely, Lara
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Lara that’s a good idea! I’m gonna wait till our taxes are paid also. Then pay off the zero interest loans in full. Thx.
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Christmas came Early for me! In my mail came my $100 gift card in three weeks instead of 10-12 weeks from joining Xfinity rewards and a letter from the IRS saying that after further reviewing my 2019 taxes they shouldn’t had reduced my refund received after 18 months and I was getting another check for what they withheld! $361! Now I am wondering how long this will take? Sincerely, Lara
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I got a letter from the IRS as well stating that they owe us…from last year. Really?OK this is strange.
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Very strange. Hmmmmmm?
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This makes total sense. To me- this is what savings are for.
This is the third (or fourth) time you have sworn off 0 interest credit…..
You can do it!
Here is the math: $250K(assumed) in savings at 1% interest. Take out 10K a year for 30 years =0 it is gone. You still have your house and you are now 100 years old! You have stated in the past that you take your property taxes out of savings. The amount you stated in the past + Nick’s upped medicare + these two loans =about 10K. Next year- without the loans- you have 2200 more to put into property taxes or what ever. The house can be sold for your 100+ year care.
Yup- you want to keep Nick alive. Between his SS and pension- your life is livable for a long time 😉 You know I say it in a silly way—you want Nick around for much more then his assets.
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Janette, when I realized Nick was putting his life in danger I was sick to my stomach. It’s not worth it. He is very relieved he doesn’t have to go back there ever again. We’ll make the cuts and adjustments to our budget. I told him ‘when I tell you it’s tight and we can’t buy this or that, hear what I am saying and do it’.
We’re bringing in about $39K a year now and our budget looks doable….on paper….! We have to stop that impulse buying. I’m back to the thrift stores, the Dollar stores and Goodwill. Nick is just happy with stuff (new) being on sale at Walmart.
We do have one big ticket item coming up in the spring. After 21 years, we need a new grass mower. Our John Deere has been patched up so many times, I’m astounded that the wheels even turn. A new riding mower (we have 3.5 acres) costs around $1800. We were going to put that on a zero interest loan but I doubt that happening now. We’re going to try to save up whatever we can for it by April. Hopefully, we can buy a used one which is what we have now and it lasted 21 more years!
Thanks for your comment.
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Hi Cindi! I’ve decided to ‘beat’ this inflation crap with a low buy/no-buy year. I’m so sick of ads bombarding me with things to entice me to buy. I’ve gotten in a very bad habit of buying ‘whatever’ I want and then decluttering it 6 mos later. Dumb.
I want my husband to retire asap (or at least in a year or two) so I want to have a big pot of cash ready. We have substantial retirement savings but he doesn’t seem comfortable with that. We have a large sum of equity in our home. I think we’ll be okay, even with inflation. But since he is still in his 50’s (albeit close to 60), I want to accumulate more cash.
I agree with Janette, spend your savings! That’s what it’s for!!
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Sharon, we’re not spending our savings because we have it ear marked for open heart surgery on Nick. Maybe. One day. We try not to think of it but Nick’s dr is certain one day he will need invasive surgery. Till then, apparently Nick is doing all the right things because his health is steady.
I am al ready to fight back and beat this inflation crap too that the government has wrongly levied on all of us. I was just getting started with my retirement living, now that Nick is retired and RVing around America. Even going to Montreal and Alaska (sticking to the east coast) Now? We’re stuck home again.
There are no presents under my Xmas tree. Inflation has wiped us out and I am furious!!! I’m hoping after the 21st (new billing cycle) I can sneak out and gt Nick some much needed things. I never would have thunk retirement could be so scary. I think EVERY retiree silently says to themselves: “I should have saved more money for retirement.”
I’m hopeful your husband can find his own retirement whenever he feels he’s ready!
Thanks for you comment.
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When my DH and I started retirement over 22 years ago, there was no FIRE community and very little written on deaccumulation of your savings. We thought maybe one of us would live into our late eighties but Fidelity advised plan for 95. So we divided our savings by 40 and that was what we added to his pension for our first year budget. CDs were paying 6%, inflation was 2.5%. Life happens -DH got leukemia six months into the second year battled for ten months. All the retirement plans decimated. Fifteen years later and the two lesson I have learned are: try to economize where you can and keep your savings growing, and plan on daily flexibility when it comes to finances in retirement- emergencies happen. Sincerely, Lara
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