What if you didn't plan for retirement? (pension, supplement, moving)
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My husband is 64, I'm 65. We got married later in life and neither one of us knew much throughout our lives about saving or investment. So here we are. If we're lucky we might end up with $250,000 in investments, $300,000 when we sell our home plus $3000 approx. from SS per month. We live in CA but are planning on moving to a small town in TN. I wonder if we can manage? I mean we have to manage but it is scary.
My mil does well on around $1400 a month in SS and a very small pension. With $3000 in income monthly, you are much farther ahead than minimum wage full time workers who earn less than $20,000 a year.
It all depends on your own costs and requirements. Set up you lifestyle simply and reduce outgoing monthly expenses. Do not overbuy or overrent. Minimize driving costs and find free or inexpensive entertainments.
Both spouses should be on board.
Dont buy/rent in too small a town that ends up not having the amenities/medical/shopping competition that you need to help keep costs down.
Seems to me you are a lot better off than most people retiring. You can move to Tennessee and probably buy a house for cash, so no mortgage payment. $36,000 a year, plus, if you believe the retirement gurus, you can use 4% of your investment account per year, so thats another $10,000. I think most people could retire comfortably on $46,000 a year.
Well, first and foremost, I wouldn't panic. As many people on this board are fond of pointing out, expenses play a big part in the equation. So, you should probably do a little homework which will go a long way toward answering your questions.
1. Figure out how much income your investments generate each year.
2. Figure out how much you spend on your needs. This includes things like food, shelter, utilities, medicine.
3. Figure out how much you spend on wants. This includes things like entertainment, and travel.
4. Add #1 above to your social security income and subtract #2 above. How much do you have left for #3 above and emergencies?
If you won't have enough to cover your living expenses, now would be a great time to start planning. Maybe you can work a little longer. Maybe you only need a part-time job. Maybe you want to investigate moving out of the country and living as an expat. Maybe you can take on a tenant. Maybe you can talk to a financial planner about buying an annuity to help protect you from running out of money. There are a lot of choices. There is also a lot of information available in books and on the Internet.
You have not really given us enough information to answer your question, but I bet you will be able to start finding answers for yourself now.
So, are you getting $50K out of your home, which when added to your investments will give you a total of $300K ... or are you getting $300K out of your home, in addition to $250K in investments? There is a big difference!
$3000 per month steady, monthly SS income, plus Medicare will keep you from starving and probably keep a roof over your head. If you actually own a home (Tennessee or other), the picture is certainly better. Otherwise, you can likely pull another $10-$20K out of your investments (if you have to).
You have been managing this far and are unlikely to suddenly fall into a scary financial hole with no food, water or light ... tomorrow. Nobody has any guarantees regarding the next 20-years.
My husband is 64, I'm 65. We got married later in life and neither one of us knew much throughout our lives about saving or investment. So here we are. If we're lucky we might end up with $250,000 in investments, $300,000 when we sell our home plus $3000 approx. from SS per month. We live in CA but are planning on moving to a small town in TN. I wonder if we can manage? I mean we have to manage but it is scary.
You will have 36k in SS plus investment income. Let's say in the low 40's annual income. Could you live on that in Tennessee? Yes millions already do but and this is a big but. How much were you living on before? My guess is a lot more so it boils down to how adaptive are you and how quickly will you if you can.
Congratulations on your upcoming retirements! I know California is expensive, but Tennessee is MUCH cheaper. Just be sensible about life and you should be fine. Buy a home in a walkable location, learn the fine art of enjoying cheap entertainment, and try to limit travel. Keep only one car, if possible. Be mindful of medical expenses and don't skimp on a Medicare Supplement policy. Try to buy in a community with a hospital. Think about future home and yard maintenance 20 years from now and be careful what you buy. A three story Victorian with gingerbread might not be the choice now. It is easier/cheaper to buy now with a first floor bedroom and bathroom, or in an elevator condo, than to have to move twice! Will you be having a Boomerang kid and grandchild move back in? Visitors? Get a 3 bedroom home. Plan ahead and don't buy in an adult only community. Just buy an ordinary home in a regular neighborhood and stay put. Live modestly, make friends, and have fun.
You will be fine!
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$3,000 a month? Be thankful !
Congratulations on your upcoming retirements! I know California is expensive, but Tennessee is MUCH cheaper. Just be sensible about life and you should be fine. Buy a home in a walkable location, learn the fine art of enjoying cheap entertainment, and try to limit travel. Keep only one car, if possible. Be mindful of medical expenses and don't skimp on a Medicare Supplement policy. Try to buy in a community with a hospital. Think about future home and yard maintenance 20 years from now and be careful what you buy. A three story Victorian with gingerbread might not be the choice now. It is easier/cheaper to buy now with a first floor bedroom and bathroom, or in an elevator condo, than to have to move twice! Will you be having a Boomerang kid and grandchild move back in? Visitors? Get a 3 bedroom home. Plan ahead and don't buy in an adult only community. Just buy an ordinary home in a regular neighborhood and stay put. Live modestly, make friends, and have fun. 
