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7 Unexpected Expenses That Are Quietly Killing Your Retirement Fund

July 3, 2025 By Teri Monroe Leave a Comment

Unexpected expenses that are draining your retirement fund — Image Source: Pexels

You’ve saved, planned, and dreamed of a stress-free retirement—but what if your nest egg is being drained without you even realizing it? Unexpected expenses can quietly chip away at your hard-earned savings, leaving you financially vulnerable in your golden years. From overlooked healthcare costs to inflation, these hidden budget busters can derail even the most careful retirement plan. Here are seven sneaky expenses that could be slowly killing your retirement fund.

1. Healthcare Costs

Even with Medicare, retirees face substantial out-of-pocket expenses. Premiums, co-pays, prescription drugs, dental, vision, and hearing needs all add up. Long-term care can cost tens of thousands annually and catch many off guard. As your health may decline, healthcare expenses, even before retirement, can erode your savings. It may be worth it to invest in a more robust healthcare plan if offered by your employer. You can also look into secondary insurance if your coverage isn’t adequate.

2. Helping Adult Children or Grandkids

Since the cost of living has increased and the job market has its ups and downs, many adult children need more support. Many retirees provide financial help to adult children or grandchildren. In fact, as many as 50% of Boomers are helping their adult Millennial and Gen Z children. Whether it’s paying for college, helping with rent, or covering emergencies, this generosity can significantly drain retirement savings, especially if it becomes ongoing. While many Boomers have felt the need to help Millennial children, it may ruin retirement funds.

3. Home Repairs and Maintenance

Owning a home during retirement comes with hidden costs. Aging roofs, broken furnaces, plumbing issues, or necessary upgrades can result in sudden, high expenses. Without a maintenance budget, these costs can derail financial plans. It may be more beneficial to find a condo where the HOA pays for some maintenance.

4. Inflation and Lifestyle Creep

Even modest inflation erodes purchasing power over time. A 3% annual increase may seem small, but it compounds. Pair that with lifestyle creep, like dining out more or traveling, and your retirement fund might not stretch as far as planned. Some people end up taking out personal loans or dipping into retirement funds early to cover these expenses. At some point, it becomes too late to save enough to retire on if overspending continues. A solid budget, where you don’t deviate, is imperative.

5. Taxes on Retirement Income

Retirees often forget that income from traditional 401(k)s, IRAs, and even Social Security may be taxable. Without tax-efficient withdrawal strategies, a significant portion of your income could be lost to the IRS each year. Make sure that you consult a tax professional so that you account for any tax implications.

6. Divorce or Separation Later in Life

“Gray divorce” is on the rise and can split retirement assets, increase living expenses, and lead to legal costs. Starting over financially in your 60s or 70s can drastically change retirement expectations. Many couples end up staying together, despite unhappiness, to be able to afford retirement. While this isn’t ideal, many couples just don’t have enough saved to weather a divorce later in life.

7. Scams and Elder Financial Abuse

Older adults are frequently targeted by scams, from phishing emails to fake investment schemes. In some cases, financial abuse comes from family members. These losses are often unrecoverable and emotionally devastating. Make sure that any trustees or anyone who has power of attorney is trustworthy. You may even appoint a third party, instead of family members, to avoid any elder abuse.

Managing Unexpected Expenses That Drain Retirement Funds

When preparing for retirement, it’s best to expect the unexpected. Having a solid plan, budgeting, and saving for the future is essential. Give yourself a healthy cushion, so that when expenses hit, you’re prepared for any unexpected expenses.

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Why Some Condo Floors Are Never Rented—Even in Booming Cities

June 24, 2025 By Teri Monroe Leave a Comment

Have you ever wondered why some condo floors are never rented? You’re not imagining things! Some condo floors remain unrented, even in high-demand, booming cities. This is usually for a mix of economic, regulatory, and psychological reasons. Here’s a breakdown of the key factors.

1. Developer-Owned Inventory

Have you heard of shadow holding? In this speculative holding, developers or investors may hold onto certain units, especially on premium floors, waiting for prices to rise. This shadow inventory is not listed for sale or rent. So, units could remain vacant for a while, until the market is right. Especially in volatile markets, holding high-value units can be a strategic move to avoid flooding the market and lowering prices.

2. Luxury Floors

Sometimes luxury floors are just too expensive. This can price out many tenants. Top floors often command luxury premiums because of views and amenities. Consequently, they may be too expensive to rent. Owners may prefer to sell them as luxury residences rather than rent at a discount. Plus, wealthy owners may not need rental income and are more interested in long-term capital gains.

3. Foreign Ownership & Vacant Units

Sometimes, foreign owners invest in a park. This means that foreign investors sometimes buy condos as a store of wealth and leave them empty. It’s especially common in global cities like Vancouver, London, and New York. It’s also important to consider that some units are used only a few weeks per year as second homes or vacation properties. That doesn’t mean that they are completely vacant.

4. HOA or Condo Board Restrictions

Some owners aren’t able to rent out their units due to homeowner’s associations or condo board restrictions. Many condo associations limit how many units can be rented at a time to maintain a certain owner-to-renter ratio, preserve property values, or comply with mortgage insurance requirements. Even if owners want to rent, they may be placed on a waiting list due to these caps.

5. Market Perception and Stigma

Some floors may be seen as unlucky. In some cultures, like East Asian, certain floors are avoided due to superstitions, like the 4th floor or 13th floor. Because of this stigma, tenants may be hesitant to rent on these floors. Some buildings even skip the 13th floor for this reason! Some other reasons that some units don’t get rented are for practical or aesthetic reasons. Noisy or unattractive units are much harder to rent. There also may be some units near HVAC systems, have low-light or are awkwardly shaped. All of these factors can make a unit less appealing and make it sit empty longer.

6. Construction Defects or Legal Issues

There may be other factors that are leading to vacancies. Some buildings are involved in legal disputes that deter potential renters or buyers. Plus, some buildings may not be completely finished. Top floors may remain incomplete due to budget overruns or changes in project scope.

7. Tax and Accounting Strategies

Sometimes, depreciation and write-offs play a role in units not being rented. Wealthy owners might leave units unrented for tax reasons, like using depreciation or capital loss strategies in complex real estate portfolios. By not renting, they can also avoid triggering certain tax events or reclassification of the property. These strategies are often used to optimize long-term financial positioning rather than maximize short-term rental income.

Understanding Why Some Condo Units Are Never Rented

While it might seem puzzling to see empty condo units in bustling cities, there are often strategic, financial, or cultural reasons behind the vacancies. From investor tactics and HOA restrictions to superstition and tax planning, these unrented spaces reflect a complex mix of motivations beyond simple supply and demand. So next time you pass by a seemingly vacant building, remember, there’s likely more going on behind those dark windows than meets the eye.

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Does Anyone Have Privilege Any More? The Answer No One Is Ready To Hear

June 5, 2025 By Teri Monroe 1 Comment

What is privilege? — Image Source: Pexels

When you think of privilege, you probably think of someone who has been fed with a silver spoon. We use it to describe everything from race and gender to wealth and education. If you have invisible advantages, you’re privileged. But does privilege really exist anymore, or are we all just trying to get by? Has privilege disappeared among economic instability, political polarization, and cultural fragmentation? The answer is yes, but not in the way we are accustomed to.

Is Privilege a Thing of The Past?

In 2025, as inflation eats away at middle-class stability, job markets are reshaped by AI, and even the wealthy grapple with climate anxiety and social unrest, some ask: Does anyone actually have privilege? The uncomfortable answer is that privilege hasn’t disappeared. It’s just become more layered, more hidden, and more complex than the culture wars allow us to admit.

Thinking about privilege is often ignored today. Many of us don’t have this conversation because of fatigue. We’re so tired of hearing about privilege when we are struggling. But it’s important to get to the truth and not look at privilege as a dirty word for someone who has never struggled in life.

In fact, the very idea of privilege has been politicized, weaponized, and oversimplified. People hear the word and shut down because they associate it with blame or guilt. But privilege isn’t always something you choose — it’s often just something you were born into. And acknowledging it doesn’t mean you haven’t worked hard.

The New Privileged Class

So who is the privileged class? Maybe it’s just people who haven’t endured as much hardship. It’s not to say that they have avoided the chaos of life altogether, but have struggled less than some. Privilege today can look like having access to private insurance and good health. It can be a college degree with no student debt. It may even be citizenship in a country that has a strong democracy and no war. Maybe for others, it looks like having a stable job where you can afford childcare.

It could even mean something as simple as generational wealth, like having parents who could help with a down payment on a home, or who didn’t pass down debt. In today’s world, even time and mental space are privileges. The ability to plan ahead, rest, or pursue personal growth is not universal.

Respecting Each Other’s Experiences

We shouldn’t write off each other’s experiences and situations. Just because someone is privileged in one area of their life doesn’t mean that their experiences aren’t valid. No one today is privileged in the same way we once thought about it. Maybe only the ultra-wealthy are truly privileged. In reality, the middle class has all but disappeared in the US, and we all struggle to some extent. Ignoring privilege doesn’t eliminate inequality. But reframing the conversation may help. When we truly walk in each other’s shoes, we can find common ground and understanding.

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