Fixed Income | Just Orb

I was just contemplating how people use the term “living on a fixed income” when referring to someone living on Social Security (or some other retirement pension). My mother is fond of the term herself, and in fact, it’s her favorite thing to say when someone comes around asking for donations or is selling something. “I live on a fixed income, so I really have to be careful with my money,” she says.

So how exactly is it that the rest of us don’t live on a fixed income? Lin’s income is pretty fixed. It hasn’t changed dramatically one way or the other for years. Sure, he gets the yearly raise, but interestingly so do people on Social Security (and some pensions). I think it’s pretty safe to say that most people’s income is fairly “fixed” in one way or another.

Anyway, just something I was thinking about while I waited for the hot water to reach the shower. Time to go enjoy a nice long stand under some nice hot water and stop thinking for a little while. My brain hurts.

3 thoughts on “Fixed Income”

Lin can work OT, or get a part time job, you could seek employment to add to your family’s income. Your mother income is pretty much fixed, her only chance to see additional income will happen if she wins the lottery, her Social Security gets a bump-up (didn’t happen this year), if she is receiving a pension from a previous employer or your late father’s employer that is fixed and will never go up, if she has investments at her age, they are more than likely tied to bonds or CDs, more fix income. If interest rates go up, they hurt bonds but help CDs, and vice versa. So your mother’s income as you can see is pretty much fixed. Yours on the other hand doesn’t have to be.

Mom can also get a job and earn unlimited money and not forfeit a penny of her Social Security benefit.

Her Social Security is not a fixed amount because under current law it is subject to a cost of living adjustment, usually upward, though not in 2010 or 2011. A fixed income would be a pension or alimony or annuity where the monthly amount is not subject to modification under any circumstances, though there seems to be some concern lately on the part of payers about continuing asset deflation upsetting their best laid plans.

It is true that most Americans don’t live on fixed incomes, because a declining income is by definition not fixed, and incomes per individual have indeed fallen for decades, as the government itself admits in its BLS reports.

Mom is just using a cliched euphemism for “No.”

There was no Social Security COLA this year, I know because I receive SS. Stayed the same as last year, not a penny more. Now mom could get a job, and earn unlimited income that would not affect her SS, this is true, but who is hiring. Other than her age going against her, mom has been out of the workforce how long. and other than being a Wal-Mart greeter type, she would probably need re-training. Oh and lets not forget where the unemployment figures stand. nationally 9.7% and rising so to go back over 10%, unless Obama creates more government jobs.

Orb’s mother may have been lucky and got one of those 43,000 Census taker jobs the WH is adding into the latest new jobs created figures, but those jobs disappear in October. Oh well, loving that change.

Jocko on April 19, 2010 at 7:12 am said:

Lin can work OT, or get a part time job, you could seek employment to add to your family’s income. Your mother income is pretty much fixed, her only chance to see additional income will happen if she wins the lottery, her Social Security gets a bump-up (didn’t happen this year), if she is receiving a pension from a previous employer or your late father’s employer that is fixed and will never go up, if she has investments at her age, they are more than likely tied to bonds or CDs, more fix income. If interest rates go up, they hurt bonds but help CDs, and vice versa. So your mother’s income as you can see is pretty much fixed. Yours on the other hand doesn’t have to be.
John on April 19, 2010 at 5:35 pm said:

Mom can also get a job and earn unlimited money and not forfeit a penny of her Social Security benefit.

Her Social Security is not a fixed amount because under current law it is subject to a cost of living adjustment, usually upward, though not in 2010 or 2011. A fixed income would be a pension or alimony or annuity where the monthly amount is not subject to modification under any circumstances, though there seems to be some concern lately on the part of payers about continuing asset deflation upsetting their best laid plans.

It is true that most Americans don’t live on fixed incomes, because a declining income is by definition not fixed, and incomes per individual have indeed fallen for decades, as the government itself admits in its BLS reports.

Mom is just using a cliched euphemism for “No.”
Jocko on April 19, 2010 at 7:15 pm said:

There was no Social Security COLA this year, I know because I receive SS. Stayed the same as last year, not a penny more. Now mom could get a job, and earn unlimited income that would not affect her SS, this is true, but who is hiring. Other than her age going against her, mom has been out of the workforce how long. and other than being a Wal-Mart greeter type, she would probably need re-training. Oh and lets not forget where the unemployment figures stand. nationally 9.7% and rising so to go back over 10%, unless Obama creates more government jobs.

Orb’s mother may have been lucky and got one of those 43,000 Census taker jobs the WH is adding into the latest new jobs created figures, but those jobs disappear in October. Oh well, loving that change.