Living Comfortably on Social Security: A Real-Life Success Story
Many seniors are concerned about living solely on Social Security in their old age, especially if they have little or no savings. But as Thomas Gordon Steele proves, it is entirely possible to do so and enjoy a fulfilling life. In this article, we explore his remarkable story and provide valuable insights for others seeking to live solely on Social Security.
Introduction to Thomas Gordon Steele
Thomas Gordon Steele, a 77-year-old retiree, has been living solely on Social Security for over 15 years. He managed to achieve this by carefully planning and utilizing resources strategically. From his move from Las Vegas to Conway, Missouri, to his financially savvy decision-making, Steele's story is a testament to the possibilities of living comfortably on Social Security.
The Move to Conway, Missouri
In 2018, Steele made the move from Las Vegas, Nevada to Conway, Missouri. His goal was to find a quality retirement home within his means. He found a two-story, five-bedroom, two-bathroom Victorian home on a beautiful three and a half acre plot of land. Despite the skepticism of his daughter, who whispered that he wouldn't be able to afford it on Social Security alone, Steele succeeded in obtaining a 30-year mortgage from Wells Fargo at a monthly payment of $391 on the strength of his Social Security income.
Financial Planning and Strategy
Steele's financial strategy was well-thought-out, and he tightly controlled his expenses. Housing expenses in Missouri were 10% lower than the national average, and utilities, taxes, and insurance were also lower. His monthly Social Security income of $1,524 covers his essential living costs. To ensure that his Social Security benefits cover his utilities, he uses a "Wellcare Spendables Debit VISA Card healthcare plan" that pays for his electricity, gas, phone, and Internet bills for $205 per month.
Investment and Real Estate Strategy
Over time, Steele sold 1.91 acres of his property for $45,000, which paid off the mortgage in full and resulted in the home being owned by him. The value of his home more than doubled in the past six years, from $56,200 to $130,000. This strategic approach not only ensured that he had a home without a mortgage but also provided a significant boost to his net worth.
Projected Future Savings
Within the next 6 to 12 months, Steele projects that his monthly bills will be reduced to just $54 for water and refuse. His total monthly benefits, including Social Security, cover all his living expenses, and he does not consider Social Security income as income for tax purposes.
Lessons Learned
Steele's experience highlights the importance of strategic spending and meticulous financial planning. He emphasizes that the amount of money one brings into retirement is important, but how one spends that money is even more critical. He advises not to take anything for granted and to do thorough research, perform due diligence, and plan ahead to achieve the best possible outcomes.
Conclusion
Living solely on Social Security in retirement is possible with careful planning and strategic financial decisions. Thomas Gordon Steele's story is an inspiring example of how to achieve a comfortable and fulfilling retirement without savings. By carefully selecting the right location, controlling expenses, and making smart investments, anyone can enjoy a fulfilling and secure retirement solely on Social Security.
For more information on retirement planning and living on a fixed income, visit the following resources:
Social Security Administration National Trend Study Budgeting and Living