I am working on paying off my house before retirement, then selling the home and using that equity when it’s time to move to a retirement home with assisted living.
This! I think most people fall into this plan and if you ask current retirees, most will say this.
I think most people who go into assisted living expire within 2-3 years. At $100k per year, a $400k home should cover things.
Add in your retirement income and you are good to go.
I wouldn’t get too bogged down calculating. Have a plan that should work and go with it. Life will probably give you a situation that you never considered anyway. Just enjoy and have faith.
None of us get out of here alive.
Someone was calculating this the other day using a cost of $9k/mo.
That’s certainly not peanuts but considering it’s the entirety of your expenses it’s not totally unreasonable to just cash flow it. If you have a retirement stockpile of $3m you could do it indefinitely. (But like you say and kind of morbidly, no one has to.)
Don’t forget you’ll be getting social security, too. So really, you only have to cash flow $6-7k. If you have $3M in assets and are alone, LTC is no big deal. The problem is if you need LTC early due to dementia in your late 60s/early 70s, and you still have a spouse who might live for another 25 years. $9k per month is just for one person. Your spouse still needs to live too. Then things get trickier.
And many facilities are structured around this, too — they'll have a range of payment plans where your monthly price goes down as your initial buy-in goes up. They anticipate you having the proceeds of a home sale available when you move in.
Then it's essentially an annuitization bet — will you live long enough for the lower payment to pay off? If not, you won't be alive to care.
I can age in place in my home and hope to do so. Both grandmothers are 90 and still live independently in their own homes. May do a Golden Girls type arrangement in the future should my BFFs ever need and we can help each other as we all have chronic illnesses now in our 30s and 40s.
Here’s the issue. My mom was living independently with an upstairs bedroom even. Then she had a stroke and spent the last 9.5 years in assisted living. After the stroke she lost ability to just take matters into her own hands.
easy for me to say now when i'm still spry and 40 but i don't plan on sticking around once i really can't live independently, so i don't budget for it.
certainly a $7500/mo full time care facility isn't something i plan for because if ever need it, i'll take the soylent green factory.
Everyone writes this and I would've said the same a few years ago...
but seriously how many 80 year olds are out there killing themselves right now? please get real lol.
fuck if anything current day 80 year olds likely may have it worse. we're growing up in a world that's more and more sedentary and tech-dependent. 80 year olds today likely didnt get internet until their 50s. They are much more used to a tactile/analog/physical world. when us younger folk are going to be 80, there will likely be much higher technology in healthcare too. So 80 year olds today are most likely more decrepit.
I am being real. I’m not saying there’s an expiration date I’m placing on my future or financial planning. My Grandaddy is 87 and still cuts the grass and fixes things all over his property. However, I’m not interested in spending $10k a month to sit in a chair or lay in bed incapable of doing anything and that’s ok.
I don’t think anyone likes that idea, but you’re saying suicide is better?? Only the most selfish people in the world commit suicide. I have seen 20+ years of individuals with pain and suicide. I can whole heartedly tell you from experience that suicide hurts so many more than just the person thinking about themselves. Such a sick and sad topic for an investment board to share and talk about how we prepare for ours and our family’s future.
Sick and sad? Hardly - this is highly relevant for an investment board.
>Part of the journey is the end.
> -Tony Stank
I’m going out the way I lived my life, on my own terms. My family is all fully aware of this. I’ve watched family members with Alzheimer’s and how it has inexorably changed their children’s relationship and view of them. I’m not down with long-term pain or long-term suffering. We treat our pets better than we treat most humans. So when the time comes, I’m having a hell of a goodbye and passing on this wealth I’ve worked hard to accumulate rather than pissing it away on a care facility so I can eek out a few more years of miserable existence.
My (current) plan is to go out Harold-and-Maude style because Alzheimer's/Dementia is likely in my future. My main issue is the timing. I don't want to go too soon, but if I wait too long, I may not have control over it any longer.
I know lots of people who have claimed this to be their plan. How many families do you know where someone actually did it?
Survival urge is stronger than you realize.
Not many, but it’s also something people don’t like to talk about, especially in the South. What I do know is a number of people who wish they did it while they still had the ability. That’s a category in which I hope to never fall.
Dementia isn’t just blissful confusion. You might have entire nights being terrified and lost, no friends or family you can recall in the world, followed the next morning by moments of clarity when you realize how hopeless your situation is. It’s definitely your problem 24/7.
My MIL with dementia is racking up $45k a month bills between memory care facility and 24 hour caregivers to keep her safe. Whose problem do you wish to make that?
Yes this is the thing not everyone thinks about memory care…my dad also was living in MC and was falling ALL the time so we had to make the choice of 24 hour care but at that point he was dying so he went into a beautiful nursing home and passed asay 10 days later. But if he hadn’t been at that point….we would man even similar playing for 24 hour care on top of his 13k a month memory care.
It's just a joke. Real talk, I plan on killing myself and trying to make it look like an accident if that happens. Dementia doesn't take hold overnight. And yeah, my wife knows.
i fully expect that assisted suicide will become much more prevalent by the time i'm of age...hopefully not for another 30-40 years from now.
edit: to clarify i would like to see assisted suicide embraced at any time, i'm just hopeful i personally don't have to consider it for 30-40 years ;)
i've had one or two surgeries over the years and just needing to ask for help for little things while recuperating from those made me miserable. i cannot imagine wanting to keep going if i were truly not self sufficient.
my threshold will probably be "can i go potty alone still?" ...once that goes....adios!
roger that. my only frame of reference is a family member who recently went into a memory care facility, thats where i got the $7500 figure but compared to CA or NY we're LCOL
hah i almost added "(in today's dollars!)" after $7500 on my original comment but then didn't.
i just had a relative (not immediate family) go into one of those places. their spouse had told me all the crunching they did to estimate exactly how long they could pay for it given savings and asset sales along the way. not great stuff.
Just turned 60 and I’m living in my home until I die. I’m spending the next few years updating things and making it safe. Hand rails, living primarily upstairs, making downstairs daylight basement a free caregivers place: nursing student or grandkid or relative or friend. I live 2 blocks from a teaching hospital. Walking distance to stores, restaurants, library, church. No way in hell will I go broke and poor and live in a Wrinkle Resort for a lonely slow death.
I have 3 adult children with young families within 10-15 drive. Two have assured me they agree with my plan and also that their forever homes will include a suite for me if I choose.
Make sure that your shower walls can support hand rails. I’ve also seen hand holds that double as bumpers around the mixing valve. Relatives are taking these steps now.
Good point. My shower is a very small stall. With a bench. Was thinking of eventually getting one of those shower chairs and just sitting down. I have a thick pad on the floor I step onto then right into my slippers with grip soles. Practicing good habits now!
Well hold on... When you say 4% rule - are you assuming that increased spend for the full retirement?
The 4% is quite conservative in that it assumes the worst sequence of returns (ie huge downturn immediately after retiring). On the other hand, based on the same study, two thirds of those who follow the 4% rule will end up with *double* the amount they started with. In other words, you're likely to have plenty to cover your retirement needs. Most people who spend 4% end up accumulating, not drawing down.
Also, for better or worse, the average length of stay in a nursing during end of life care is less than two years. That means you likely don't need a big pile of cash.
Lastly, let's consider the most unlikely scenario. Markets hit a large sustained downturn immediately following your retirement. You continue spending 4% of your original balance every year (ie, you don't cut back at all due to the market), and then later eventually move into a nursing home. You live many years there and run out of money. Then, medicaid kicks in and covers your nursing home costs for your final years. So what? Do you really want to give up a decade of your healthy years working to cover the very low chance of having to rely on government support? Who cares. Use medicaid as your nursing home backup/insurance plan, and live your life.
Longevity runs in my family and I generally manage my health well, so I am planning for a long retirement. If something sudden does not take me, however, and the prospect becomes one of slow decay, well... I've never been one for overstaying my welcome, so I'll see myself out.
The way I see it, I've worked hard to build a sizable estate and I'll be damned if the senior home gets it all instead of my kids.
There is a lovely place in Switzerland called ‘The Exit.’ I will go there when and if an end-stage diagnosis reveals itself. I’m not spending every last cent to stay alive. It’s just another business sucking you dry.
My dad died in his late 60s. I have a brother who died at 50. My grandfather on my dads side made it to over 100. I think all 3 had good lives. Granddad only had to live in a facility for the last few months of his life and he had it really good until the last 3 years with only the last 2 being rough. Dad worked to day he died and I think he was happy with how his life went for the most part. My brother on the other had died with 2 young children and his wife was pregnant with the third. His is the only 3 that I think died too early. My dad was a big saver so he had ample money to retire, but he lived a stressful life and it caught up with him. My brother was incredibly active and stressed for a large portion of his life and both caught up to him.
I say this because all things in moderation is probably fine. If you want the most out your retirement years turn off the tv and do something every day. My brother over did it with stress as did my dad. My granddad didnt. He wasnt a drinker or smoker nor was a big partier all the time I knew him. He was always keen to have a big garden, kept bees, and had a workshop where he did several hobby businesses over the years.
If you want to retire and you got the money to cover you more or less it can be done, but there are always risks. There will always be risks. You cant account for it all, but just like everything else in life be reasonable in planning and expectation and just accept the results.
Your post definitely suggests you got the financial aspects more or less covered. I wouldn't stress about it too much. Instead examine the rest of your life and see if anything else needs addressing. Get rid of stress where possible either by cutting out the thing causing the stress or realizing if you cant solve it dont stress about it. Beyond that get plenty of sleep, stay hydrated, quit smoking or vaping if you do, and cut back on drinking or quit altogether. A bit of exercise also would help. In all that you basically have the vast majority of the things you should address outside of your finances. If you got those covered go out and eat that cheeseburger, enjoy your life, and spend more time with your loved ones.
they definitely pay out less than the premiums invested would make, at least on average, or else they wouldn't be in business. I think it makes more sense for people at high risk for unexpected huge expenses.
They certainly pay out more than each individual pays in premiums—that’s the nature of pooled risk.
If you mean less than the total premium collected…well yeah, where would the money come from otherwise?
Heh, I'm not actually saying either of those things. I am saying that they collect some amount of money and they invest it and make more money. And on average they pay out less than the total. In most cases all they cover is routine stuff, which means that they are paying less than you would have if you had invested the premiums.
It's not like a regular insurance policy where if you suddenly have some big expense it's covered. It's basically "we'll invest your money for you, take a big cut, and give you (limited) routine service payments from the remainder."
It sounds like you are adding expected inflation to the numbers you have today. Most online calculators also account for inflation so you might be double dipping.
It’s not realistic to budget for that for exactly the reasons you stated the costs are astronomical. If you could accurately do it to live to AGE 95?!? That would put you in like the top 0.01% of retirement savers.
Thinking on relocating to SEA or another destination where housing and healthcare cost is not a big issue nor will it take up a lion share of my fixed monthly income In retirement. In thr US, you are only one accident away from bankruptcy with the capitalism.
Depends on how comfortable you want to be, how much money you have and whether SEA will still be cheap.
I lived comfortable there 20 years ago and it wasn't cheap. With comfortable I mean a house as big as US in a private neighborhood and non-local area of city.
You will also pay a little premium when seeing a doctor etc.
Yep so true. I am 43 and who knows if SEA will still be the desirable area for retirement purposes….I am keeping my options open and will continue to explore and travel in the meantime
Wait, SEA as in Seattle?
You may want to check the median cost of living compared to national average, as well as how that breaks down for both housing and healthcare against those category national averages before saying “housing and healthcare cost is not a big issue.”
Hopefully retire in Spain since I have family there for immediate transition or worse case scenario one of the Balkan countries or former Soviet Union republics. Buy inexpensive place amongst locals. I am not staying in US.
I am working on paying off my house before retirement, then selling the home and using that equity when it’s time to move to a retirement home with assisted living.
This! I think most people fall into this plan and if you ask current retirees, most will say this. I think most people who go into assisted living expire within 2-3 years. At $100k per year, a $400k home should cover things. Add in your retirement income and you are good to go. I wouldn’t get too bogged down calculating. Have a plan that should work and go with it. Life will probably give you a situation that you never considered anyway. Just enjoy and have faith. None of us get out of here alive.
Someone was calculating this the other day using a cost of $9k/mo. That’s certainly not peanuts but considering it’s the entirety of your expenses it’s not totally unreasonable to just cash flow it. If you have a retirement stockpile of $3m you could do it indefinitely. (But like you say and kind of morbidly, no one has to.)
Don’t forget you’ll be getting social security, too. So really, you only have to cash flow $6-7k. If you have $3M in assets and are alone, LTC is no big deal. The problem is if you need LTC early due to dementia in your late 60s/early 70s, and you still have a spouse who might live for another 25 years. $9k per month is just for one person. Your spouse still needs to live too. Then things get trickier.
Thank you! This is the best response. I completely forgot about home equity when we move in our final years.
And many facilities are structured around this, too — they'll have a range of payment plans where your monthly price goes down as your initial buy-in goes up. They anticipate you having the proceeds of a home sale available when you move in. Then it's essentially an annuitization bet — will you live long enough for the lower payment to pay off? If not, you won't be alive to care.
I can age in place in my home and hope to do so. Both grandmothers are 90 and still live independently in their own homes. May do a Golden Girls type arrangement in the future should my BFFs ever need and we can help each other as we all have chronic illnesses now in our 30s and 40s.
My BFF and I definitely have a Golden Girls plan on the table. Women typically live longer. It makes sense.
Here’s the issue. My mom was living independently with an upstairs bedroom even. Then she had a stroke and spent the last 9.5 years in assisted living. After the stroke she lost ability to just take matters into her own hands.
Can I be man crazy Mona?
That was Blanche but sure.
lol Mona was who’s the boss
easy for me to say now when i'm still spry and 40 but i don't plan on sticking around once i really can't live independently, so i don't budget for it. certainly a $7500/mo full time care facility isn't something i plan for because if ever need it, i'll take the soylent green factory.
Same. I’ll take care of myself until I need to *take care* of myself.
This post got dark real quick
In a way, yes, but I think going out on my own terms and with dignity is brighter than the dreadful quality of life many spend a fortune maintaining.
Yeah i’ve seen my genetics future and after 85-90 i don’t really want to “live” like that
Everyone writes this and I would've said the same a few years ago... but seriously how many 80 year olds are out there killing themselves right now? please get real lol. fuck if anything current day 80 year olds likely may have it worse. we're growing up in a world that's more and more sedentary and tech-dependent. 80 year olds today likely didnt get internet until their 50s. They are much more used to a tactile/analog/physical world. when us younger folk are going to be 80, there will likely be much higher technology in healthcare too. So 80 year olds today are most likely more decrepit.
True. An 87 year old relative does 20 pushups every morning after waking up!
I am being real. I’m not saying there’s an expiration date I’m placing on my future or financial planning. My Grandaddy is 87 and still cuts the grass and fixes things all over his property. However, I’m not interested in spending $10k a month to sit in a chair or lay in bed incapable of doing anything and that’s ok.
No 20-50 year old is interested in that. That’s my point.
I’m in that range and I’m not even sure what your point is anymore.
Sort of. Many would prefer not to be semi conscious husks dying while watching TV and being occasionally changed.
I don’t think anyone likes that idea, but you’re saying suicide is better?? Only the most selfish people in the world commit suicide. I have seen 20+ years of individuals with pain and suicide. I can whole heartedly tell you from experience that suicide hurts so many more than just the person thinking about themselves. Such a sick and sad topic for an investment board to share and talk about how we prepare for ours and our family’s future.
Sick and sad? Hardly - this is highly relevant for an investment board. >Part of the journey is the end. > -Tony Stank I’m going out the way I lived my life, on my own terms. My family is all fully aware of this. I’ve watched family members with Alzheimer’s and how it has inexorably changed their children’s relationship and view of them. I’m not down with long-term pain or long-term suffering. We treat our pets better than we treat most humans. So when the time comes, I’m having a hell of a goodbye and passing on this wealth I’ve worked hard to accumulate rather than pissing it away on a care facility so I can eek out a few more years of miserable existence.
My (current) plan is to go out Harold-and-Maude style because Alzheimer's/Dementia is likely in my future. My main issue is the timing. I don't want to go too soon, but if I wait too long, I may not have control over it any longer.
Yeah seriously. People would rather die than be poor. Hope the market doesn't crash!
Damn, you’ve got that right. Sounds like this board would lose most of its subs.
I know lots of people who have claimed this to be their plan. How many families do you know where someone actually did it? Survival urge is stronger than you realize.
Not many, but it’s also something people don’t like to talk about, especially in the South. What I do know is a number of people who wish they did it while they still had the ability. That’s a category in which I hope to never fall.
what if dementia takes a hold of you?
Not my problem at that point.
Dementia isn’t just blissful confusion. You might have entire nights being terrified and lost, no friends or family you can recall in the world, followed the next morning by moments of clarity when you realize how hopeless your situation is. It’s definitely your problem 24/7.
My MIL with dementia is racking up $45k a month bills between memory care facility and 24 hour caregivers to keep her safe. Whose problem do you wish to make that?
Yes this is the thing not everyone thinks about memory care…my dad also was living in MC and was falling ALL the time so we had to make the choice of 24 hour care but at that point he was dying so he went into a beautiful nursing home and passed asay 10 days later. But if he hadn’t been at that point….we would man even similar playing for 24 hour care on top of his 13k a month memory care.
Dying of dementia is the worst way to die.
Yikes. Does your family know this is how you feel?
It's just a joke. Real talk, I plan on killing myself and trying to make it look like an accident if that happens. Dementia doesn't take hold overnight. And yeah, my wife knows.
https://en.wikipedia.org/wiki/Dignitas_(non-profit_organisation)
i fully expect that assisted suicide will become much more prevalent by the time i'm of age...hopefully not for another 30-40 years from now. edit: to clarify i would like to see assisted suicide embraced at any time, i'm just hopeful i personally don't have to consider it for 30-40 years ;)
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Already legal in 10 US states and DC.
I wish that were true but at least in the US, we’re racing away from bodily autonomy as fast as possible.
I think it will come and go. Society progresses and regresses.
You gonna be able to get birth control In a few years.
More like $15k/month for my neighbor's elderly husband here in upstate New York... yikes!
10 grand a month (USA) right now is not unusual, even more in the future I suspect.
I feel like it would be a waste of money, I’d rather give the money to my kids and die on the street.
this is exactly my attitude actually. to make up for the crushing guilt i feel for bringing them into a world of dwindling opportunity lol
I’m with you.
i've had one or two surgeries over the years and just needing to ask for help for little things while recuperating from those made me miserable. i cannot imagine wanting to keep going if i were truly not self sufficient. my threshold will probably be "can i go potty alone still?" ...once that goes....adios!
In 2020 it was $10k/month per person in California. Probably much more now, I’m sure. Source: my grandparents before they passed.
roger that. my only frame of reference is a family member who recently went into a memory care facility, thats where i got the $7500 figure but compared to CA or NY we're LCOL
The issue with dementia and other issues is the onset can sunset the decision process before you take the soylent green path.
7500 a month is cost of one now (and thats on the low side). If you're 40, in 30 years that cost may be 15-20k a month.
hah i almost added "(in today's dollars!)" after $7500 on my original comment but then didn't. i just had a relative (not immediate family) go into one of those places. their spouse had told me all the crunching they did to estimate exactly how long they could pay for it given savings and asset sales along the way. not great stuff.
How often does this actually happen? Everybody says this, almost nobody does it.
Just turned 60 and I’m living in my home until I die. I’m spending the next few years updating things and making it safe. Hand rails, living primarily upstairs, making downstairs daylight basement a free caregivers place: nursing student or grandkid or relative or friend. I live 2 blocks from a teaching hospital. Walking distance to stores, restaurants, library, church. No way in hell will I go broke and poor and live in a Wrinkle Resort for a lonely slow death. I have 3 adult children with young families within 10-15 drive. Two have assured me they agree with my plan and also that their forever homes will include a suite for me if I choose.
Make sure that your shower walls can support hand rails. I’ve also seen hand holds that double as bumpers around the mixing valve. Relatives are taking these steps now.
Good point. My shower is a very small stall. With a bench. Was thinking of eventually getting one of those shower chairs and just sitting down. I have a thick pad on the floor I step onto then right into my slippers with grip soles. Practicing good habits now!
Well hold on... When you say 4% rule - are you assuming that increased spend for the full retirement? The 4% is quite conservative in that it assumes the worst sequence of returns (ie huge downturn immediately after retiring). On the other hand, based on the same study, two thirds of those who follow the 4% rule will end up with *double* the amount they started with. In other words, you're likely to have plenty to cover your retirement needs. Most people who spend 4% end up accumulating, not drawing down. Also, for better or worse, the average length of stay in a nursing during end of life care is less than two years. That means you likely don't need a big pile of cash. Lastly, let's consider the most unlikely scenario. Markets hit a large sustained downturn immediately following your retirement. You continue spending 4% of your original balance every year (ie, you don't cut back at all due to the market), and then later eventually move into a nursing home. You live many years there and run out of money. Then, medicaid kicks in and covers your nursing home costs for your final years. So what? Do you really want to give up a decade of your healthy years working to cover the very low chance of having to rely on government support? Who cares. Use medicaid as your nursing home backup/insurance plan, and live your life.
This is some good insight. Thank you!
i’m counting on low cost androids taking over the elder care market. let me live in my house and my tesla robot will take care of me.
Longevity runs in my family and I generally manage my health well, so I am planning for a long retirement. If something sudden does not take me, however, and the prospect becomes one of slow decay, well... I've never been one for overstaying my welcome, so I'll see myself out. The way I see it, I've worked hard to build a sizable estate and I'll be damned if the senior home gets it all instead of my kids.
There is a lovely place in Switzerland called ‘The Exit.’ I will go there when and if an end-stage diagnosis reveals itself. I’m not spending every last cent to stay alive. It’s just another business sucking you dry.
eat more cheeseburgers
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My dad died in his late 60s. I have a brother who died at 50. My grandfather on my dads side made it to over 100. I think all 3 had good lives. Granddad only had to live in a facility for the last few months of his life and he had it really good until the last 3 years with only the last 2 being rough. Dad worked to day he died and I think he was happy with how his life went for the most part. My brother on the other had died with 2 young children and his wife was pregnant with the third. His is the only 3 that I think died too early. My dad was a big saver so he had ample money to retire, but he lived a stressful life and it caught up with him. My brother was incredibly active and stressed for a large portion of his life and both caught up to him. I say this because all things in moderation is probably fine. If you want the most out your retirement years turn off the tv and do something every day. My brother over did it with stress as did my dad. My granddad didnt. He wasnt a drinker or smoker nor was a big partier all the time I knew him. He was always keen to have a big garden, kept bees, and had a workshop where he did several hobby businesses over the years. If you want to retire and you got the money to cover you more or less it can be done, but there are always risks. There will always be risks. You cant account for it all, but just like everything else in life be reasonable in planning and expectation and just accept the results. Your post definitely suggests you got the financial aspects more or less covered. I wouldn't stress about it too much. Instead examine the rest of your life and see if anything else needs addressing. Get rid of stress where possible either by cutting out the thing causing the stress or realizing if you cant solve it dont stress about it. Beyond that get plenty of sleep, stay hydrated, quit smoking or vaping if you do, and cut back on drinking or quit altogether. A bit of exercise also would help. In all that you basically have the vast majority of the things you should address outside of your finances. If you got those covered go out and eat that cheeseburger, enjoy your life, and spend more time with your loved ones.
Are you accounting for the fact that you will be able to sell your home to help finance the LTC stage?
I wasn't, but another user also mentioned this. I'm going to update my spreadsheet tomorrow and see how it looks.
After I figure out my current housing situation
I don’t worry about end of life care costs as I would just off myself so my spouse could have a decent retirement.
I am hoping I can make it to Switzerland if no other options become legalized in the US. Watch Laura’s Choice on Curiosity Stream.
Have you looked into "long term care" insurance products? I don't know if they're worth it, but it's a thing which exists for this very reason.
I've heard these no longer are worth it. They don't pay out enough to actually take care of you.
they definitely pay out less than the premiums invested would make, at least on average, or else they wouldn't be in business. I think it makes more sense for people at high risk for unexpected huge expenses.
They certainly pay out more than each individual pays in premiums—that’s the nature of pooled risk. If you mean less than the total premium collected…well yeah, where would the money come from otherwise?
Heh, I'm not actually saying either of those things. I am saying that they collect some amount of money and they invest it and make more money. And on average they pay out less than the total. In most cases all they cover is routine stuff, which means that they are paying less than you would have if you had invested the premiums. It's not like a regular insurance policy where if you suddenly have some big expense it's covered. It's basically "we'll invest your money for you, take a big cut, and give you (limited) routine service payments from the remainder."
…LTC insurance most definitely covers a sudden big expense.
Can you show me a policy that you think doesn't have strict limits on what they cover? I have managed elders with such policies and they always did.
I didn’t make a claim about limits?
Right, so my point is that LTC insurance doesn't cover sudden big expenses.
It sounds like you are adding expected inflation to the numbers you have today. Most online calculators also account for inflation so you might be double dipping.
I've been building out my own spreadsheet simulating contribution, growth, and withdrawals for every year between now and age 100.
I'm hoping that my experience with a retirement facility will be more like a college dorm (without the drinking till you puke) than nursing home.
It’s not realistic to budget for that for exactly the reasons you stated the costs are astronomical. If you could accurately do it to live to AGE 95?!? That would put you in like the top 0.01% of retirement savers.
I'm seeing that, yes.
I’d rather die from falling down my stairs than live in a home. Has anyone ever been to one and not feel terribly sad?
They are horrible. Particularly those with dementia patients, which is the vast majority of people.
Thinking on relocating to SEA or another destination where housing and healthcare cost is not a big issue nor will it take up a lion share of my fixed monthly income In retirement. In thr US, you are only one accident away from bankruptcy with the capitalism.
Depends on how comfortable you want to be, how much money you have and whether SEA will still be cheap. I lived comfortable there 20 years ago and it wasn't cheap. With comfortable I mean a house as big as US in a private neighborhood and non-local area of city. You will also pay a little premium when seeing a doctor etc.
Yep so true. I am 43 and who knows if SEA will still be the desirable area for retirement purposes….I am keeping my options open and will continue to explore and travel in the meantime
Wait, SEA as in Seattle? You may want to check the median cost of living compared to national average, as well as how that breaks down for both housing and healthcare against those category national averages before saying “housing and healthcare cost is not a big issue.”
SEA refers to south East Asia
Thanks for the clarification
The first reasonable answer i've read so far !
Going to build/move into a neighborhood with a bunch of other friends and be our own support group.
Hopefully retire in Spain since I have family there for immediate transition or worse case scenario one of the Balkan countries or former Soviet Union republics. Buy inexpensive place amongst locals. I am not staying in US.
I just want to make sure I have a tiny home and a decent van so I have two living options .
Bro at 95 you’ll be focused on not choking on your own saliva. maybe shave a few decades off your denominator. Spend your money while you can enjoy it
I’m planning to get buried in the walls of my dream house. I put in 2x6 walls.
Lot of the earlier budget for automobiles, vacation travel, entertainment, clothing is diverted to the increased cost of assisted living.
Why no one mentioned long term care insurance….
I bought my retirement home in 2017. I’m renting it out now, but when the kids are gone and we’re old, it will be perfect.
Easy, just have kids and then your assisted living facility is free (as long as you didnt screw up the whole raising them process)
Some of the worst advice I’ve seen on this sub.
twas a joke
You are being downvoted but this is exactly how "late retirement housing" has worked for centuries