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Not a pipe dream at all Robyn. I'm in my 4th year of doing the research. I have visited Johnson City, TN 3 times and Roanoke, VA twice. These are the 2 finalists and hardly in the middle of nowhere, their sizes vary but both are the city size we are searchng for.
I have met with a real estate agent, researched homes and COL prices. A $150,000 downsize is very doable in both cities, our property taxes will drop from $3,600 to around $1,200. Heating costs will be lower and a yearly golf course membership is all of $800. We have also had 2 agents visit our house and with upgrades that $400,000 figure may be conservative providing the housing market does not tank. We live in a desireable area however a farmhouse built in 1900 will take longer to sell, obviously.
As for another post I totally agree plans can change. That doesn't mean you shouldn't have a plan for one of the most important set of decisions we will ever face.
Real estate is one area where you can shop hard and make what may be small compromises for big differences in price; it's all about what your priorities are IMO. In my area, suburban homes a few decades old with car ports instead of garages, master bathrooms that aren't all that different than others (no big walk in and possibly sharing a bathroom) on curbless streets in neigborhoods that aren't all that strict about appearances can cost half of what a similar home in a newer neighborhood nearby would. That is just an example; lots of other tradeoffs can be made. I think being very picky about every detail of your life ends up costing a lot of money. It is worth it to some people and that's fine.
Location: Was Midvalley Oregon; Now Eastside Seattle area
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As everyone knows, We have GLWB deferred annuities purchased in 2008, at then ages 58/61. Purchased for Insurance purposes followed by guaranteed increasing Income then for Investment. I looked at many plans and offerings. I looked at SPIA's but quickly decided that they were not correct for us even though the "rate" was attractive and even more so than today's rate. The deferred GLWBs give us the option (non contractual but a 1035) to move to SPIA when we so chose in whole or in part. The GLWB also had a optional death benefit for a ~1% fee for which allowed us to chose a single payout rather than a survivorship plan. We are in year 7, the surrender fee is now negligible and may take the Income in year 8 or wait until year 10 at RMD or hold until we want to do an SPIA at a more advanced age. We could do partials. We are laddered.
I have a close relative who is an officer in a life/annuity insurance company. He said that they are willing to buy your lump sum purchase for the SPIA payment at anytime. However, for deferred VA or GLWB's they are much more hesitant.
Disclaimer: We have 4 retirement buckets. We can live well on any 2 buckets. About 20% is directly exposed to the markets and that bucket is currently ~85% cash. Have LTCi. No debts.
First - the notion of selling a house (presumably up north) for say $400-600k and finding a wonderful cheap ($100-150k) place (somewhere) in the south is pretty much a pipe dream. Unless you're content to live in a smaller cheaply built place in "the middle of nowhere" (or in a lower end senior community in the middle of nowhere). Because our property values have been going up. Take this house:
Heed this and here is a real life example:
2000, sold a home in the Boston area for $475K and paid off a $180K mortgage.
2000, bought a new build home in the Charleston SC area for $200K.
2006, the home in Charleston reached a high of $350K and prices started dropping.
2006, the home in Boston reached a high of $525K and prices started dropping.
2010, sold the Charleston home for $280K.
2010, the house in Boston fell to $425K.
2015, the house in Charleston now selling for about $310K.
2015, the house in Boston now selling for about $450K.
The Boston house was a 1200sq ft, two levels, two bedroom, 2.5 baths, one car garage, townhouse.
The Charleston house was 2400sq ft, one level, 4 bedroom, 3.5 baths, two car garage, single house.
In many parts of SC one can easily find new construction, 1800sq ft, for $180K but gone are the days it will be on/near the beach, a lake, river, etc. For homes, the south is not nearly as cheap as many think it is.
Location: When things get hot they expand. Im not fat. Im hot.
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This has been a very informative thread. Im 66 and in the no heirs group too. I will probably outlive my husband. He has SSDI. I took spousal and Im waiting till 70 for my SS.
Ive been gathering info for later when I get old and we sell the big house and buy something smaller. One option would be to buy the new house with a reverse mortgage. You don't get 100 percent but having some money back is better than nothing. Another option Im considering is selling and getting a 30 yr mortgage {low payment} on the new house or maybe renting. Might invest all of the sale proceeds in an annuity. Might not. For me its all about the monthly costs. Feel free to pick at my options.
Op have you considered a less than life time annuity? I have a 10 yr deferred annuity that I can access this year. There are 3 payout options. 10 yrs ,20 yrs, or life time. Im considering the 20 yr option instead of the life option. 20 yrs will take me till 86 right now.
I looked at all the annuities but didn't see any reason to get excited about an annuity that could stop before my heart does. I also did not understand the annuities that were tied to indexes. If you are going to play that game then why would you forfeit your lump sum, just go into the market.
stay away from any variable or indexed annuity's . they are expensive and can be mine fields . what you think you are getting and what the details say can be very different
Location: When things get hot they expand. Im not fat. Im hot.
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Quote:
Originally Posted by DaveinMtAiry
I looked at all the annuities but didn't see any reason to get excited about an annuity that could stop before my heart does. I also did not understand the annuities that were tied to indexes. If you are going to play that game then why would you forfeit your lump sum, just go into the market.
My reasoning for taking the 20 yr over the lifetime option is because with my annuity I get twice as much money on the month. I will have other money in reserve just in case I do live to be 100.
I hate the market. To be honest I just want to put my money someplace reasonably safe and get a monthly check. I know. I do have some investments though.
Quote:
Originally Posted by mathjak107
stay away from any variable or indexed annuity's . they are expensive and can be mine fields . what you think you are getting and what the details say can be very different
I totally agree. Nothing variable. I have a fixed annuity. If I were to get another I would get a fixed with no survivor benefit.
I plan to purchase an immediate annuity with $200k, which will give me somewhere around $1,100-$1,300 per month, (depending on the rates at the time of the purchase). Haven't decided if I want a guarantee period or not. As with you, I have no heirs to consider.
Big mistake. Dumping money into a SPIA is like deciding that taking a vacation at age 65 is more important than having food and shelter at age 85.
Beware that there are sock puppets from the insurance industry posting on this board. They will defend annuities until the cows come in because their income depends on puffing up annuities. They never provide any statistical data to back up their hot air.
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I do have some investments though. 
