"Walking a tightrope" from now to retirement

This is the latest in a series of monthly "financial makeovers."

When Leslie Seeche receives her annual Social Security benefits statement in the mail she thinks about making a paper airplane with it or shredding it for confetti. At least then she'd be momentarily entertained and wouldn't feel like crying.

"If I make it to a normal retirement age, the grand total of what I'll see from Social Security is a lovely $700 a month," said Seeche. "Gee, I don't need to do the math to know I'm in trouble."

Seeche, 53, works for a nonprofit company in Lynnwood, helping people with disabilities find employment.

She said her job is personally rewarding because she likes helping people, but it doesn't pay a lot. She earns $27,000 a year and considers herself among the "working poor."

"Even though I work full time and cut expenses as much as possible, I'm at a loss to know how I can get ahead and save for retirement," she said.

What she wants

Her immediate goal is getting out of debt. She owes about $3,000 total on a couple of credit cards and is making only minimum payments each month.

Seeche isn't extravagant with her purchases but occasionally treats herself to something of quality.

She likes to hike, bike and ski, and after years of hiking while wearing little boy's rubber boots from Sears that cost $12.95, she finally bought a sturdy pair of hiking boots from REI.

"That was a pivotal moment, at the age of 32 when I realized 'I'm worth it' and wrote a $200 check for the boots," she said, adding that the debt she has accumulated to help her lead a full life has been "minuscule."

What she has

The amount she's saved for retirement — technically 13 years from now — could also be described as minuscule.

She has a Roth IRA worth $10,000 and $9,300 in a profit-sharing account from her employer. She doesn't have access to funds in the profit-sharing plan until she leaves her company.

Seeche lives in a two-bedroom condominium in the Bothell area that is worth about $255,000. About $68,000 remains on her mortgage.

"Unless you're married, have an inheritance, or do well on the Lotto, I don't know where retirement assets are supposed to come from," she said. Seeche, who is "single by choice not by chance," won't have a spouse's retirement to rely on.

And while she doesn't have an inheritance coming her way, she might have an inherited medical condition to deal with. Her father and siblings all have a genetic disorder that led to deafness in their mid- to late-50s. They had to buy hearing aids that cost around $4,000 and aren't covered by insurance.

She knows she needs to start saving "in case the genetic wheel of misfortune is applicable," Seeche said.

"I don't want to say my situation is hopeless, but it's not good."

What she needs

Bhaj Townsend, founder and president of Kirkland-based financial-services firm Legacy Plus, said there's always hope.

"The numbers speak for themselves," she said, "but it is possible to make adjustments that will make life more manageable."

Townsend, a member of the Financial Planning Association, analyzed a budget Seeche kept for two months.

She found that Seeche's $500 mortgage and $300 condo dues consumed almost 50 percent of her monthly income. They discussed two options to reduce living expenses: find a roommate, or sell the unit and move to a smaller, one-bedroom condo. Seeche should be able to sell her condo and purchase a unit that's closer to her job and a bus line. Taking the bus or biking to work would reduce the $125 she spends on gas each month.

Townsend also suggested finding an agent who might work for a reduced commission. With earnings from the condo sale, Seeche should pay off most of her credit-card debt and begin a habit of saving. She advised Seeche to start with a goal of putting $95 in her savings account every month.

"If people pay off their debt exclusively, it's not an emotional payoff. They need to see something on the positive side too," said Townsend. "Getting rid of a negative alone doesn't make you happy."

Another suggestion is to get a second job or talk with her employer about the value she brings to the workplace and how she could earn more. In other words, ask for a raise.

"Leslie's income is static, she doesn't have enough saved for retirement, and Social Security won't save her," Townsend said. "Without changes she will be working into her 70s."

What she thinks

Seeche said she is "not interested" in getting a second job or a roommate. "Those options don't work for me."

But she has considered selling her condo and moving to a smaller place in the Shoreline area north of Seattle.

"The advice seems to lead to a dead end," said Seeche. "Instead of feeling better, I feel like I'm being told, 'you're on a tightrope and you get to keep on walking.' "

Townsend said that while the situation is "tough," Seeche has the creativity and ability to improve her circumstances. It's a matter of being willing to make some changes.

"Each destination is reached not by looking at the end, but by focusing on each step to get there," added Townsend. "No path is straight or easy when new decisions have to be made."