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Getting back to the initial point of this thread, the question is really "Can you live off your Social Security check?"
If I quit working at age 62, I'd be receiving $24,108 per year in Social Security income. My property taxes, insurance, and utilities for my primary residence are about $5,000/year. I couldn't keep the ski condo and the boat would be iffy but I'd have a roof over my head, food on the table, a car to drive, adequate medical & dental care, and enough discretionary income to have a few beers at the bar with the other retirees most days. That's not the lifestyle I aspire to but if some disaster hit where my net worth other than my primary residence were wiped out, I'd be OK.
I aspire to a simpler lifestyle in retirement and I think with no mortgage I could swing it at 62 but barely, at FRA (66+8) I think I could be comfortable and at 70 I might sock some away or take a trip or two. I keep running numbers and wondering why the common savings targets are so high. I get that some people really like luxury and can afford it but I sometimes think those big numbers cause people to give up.
I aspire to a simpler lifestyle in retirement and I think with no mortgage I could swing it at 62 but barely, at FRA (66+8) I think I could be comfortable and at 70 I might sock some away or take a trip or two. I keep running numbers and wondering why the common savings targets are so high. I get that some people really like luxury and can afford it but I sometimes think those big numbers cause people to give up.
What do you have penciled in for long term care? Do you have a spouse to worry about?
As long as I can stay in my house, I should be able to chug along comfortably with my Social Security check. All the income and spending down I do on everything else is 100% discretionary spending. I've mentally penciled in the value of my primary residence as my "long term care insurance". If I remarried, I couldn't do that and I'd have to do the math on Social Security survivor benefits.
I look at what my mom costs in assisted living and wonder if I've planned this properly. I kind of have to assume that the late-Boomers and Gen Xers with no retirement savings will put so much stress on the safety net that government funded geriatric care if I run out of money to pay for private care will be really awful.
If the AC unit was 7 years old, that means either the house was 7 years old, or the AC unit was replaced 7 years ago. Someone paid for that AC unit and the extended warranty.
Homeowner's insurance is not required by realtors and agencies; it is required by mortgagors. Almost sounds like you are talking about renter's insurance, except that costs far less than $150 per month. Are you saying you have owned multiple properties with no mortgage and use realtors and agencies to handle the tenants? And you have never had to pay for any repairs or maintenance? And you carry no insurance on these properties?
The AC unit itself was purchased USED by the property owner, It was taken from a manufactured home.
So i was already aware that the unit had to be older than 7 years if that's how long its been on this home, If i'm not mistaken i believe there's still 2 years left on the warranty since this company adds a 10-yr service included warranty with all their products.
It would be a blatant lie to say that "I've NEVER had to pay for maintenance or repairs" because at one point we needed some electrical work and me not being capable enough, I hired an subcontractor to work on it - as expected when it comes to an investment property.
However i'm referring to MONTHLY/REGULAR maintenance as stated above, There's no reason for why you'd need to hire an ie; plumber, electrician, landscaping-guy, painter, etc. or anyone to "keep up maintenance".
But hey that's just me, Its worked out for me just fine and i plan to continue doing what i've been doing.
It's impossible to really determine the OP's needs since there's no way for us to tell what skils they possess, whether they're big into DIY or have carpentry/plumbing skills etc.
I know some folks personally can't do anything for themselves so they rely heavily on 'help' to assist them, but me i rather do things myself and learn along the way than to pay anyone - unless i'm positive i need an expert. Finally to answer your last question yes, I have (2) rehabbed properties that are paid off and (1) rent to own (which i live-in with my folks / side-by-side) and a 4BR SFH which i have a mortgage out on. No i choose not to carry any insurance on them, Its a waste of money imho and since the land where one of these properties is located is worth far more than the house itself; Whats the worst that can happen really?
The AC unit itself was purchased USED by the property owner, It was taken from a manufactured home.
So i was already aware that the unit had to be older than 7 years if that's how long its been on this home, If i'm not mistaken i believe there's still 2 years left on the warranty since this company adds a 10-yr service included warranty with all their products.
If you were not the property owner, you should not have had to pay for the repair, extended warranty or not.
Quote:
Originally Posted by Drkness
It would be a blatant lie to say that "I've NEVER had to pay for maintenance or repairs" because at one point we needed some electrical work and me not being capable enough, I hired an subcontractor to work on it - as expected when it comes to an investment property.
However i'm referring to MONTHLY/REGULAR maintenance as stated above, There's no reason for why you'd need to hire an ie; plumber, electrician, landscaping-guy, painter, etc. or anyone to "keep up maintenance".
But hey that's just me, Its worked out for me just fine and i plan to continue doing what i've been doing.
It's impossible to really determine the OP's needs since there's no way for us to tell what skils they possess, whether they're big into DIY or have carpentry/plumbing skills etc.
I know some folks personally can't do anything for themselves so they rely heavily on 'help' to assist them, but me i rather do things myself and learn along the way than to pay anyone - unless i'm positive i need an expert. Finally to answer your last question yes, I have (2) rehabbed properties that are paid off and (1) rent to own (which i live-in with my folks / side-by-side) and a 4BR SFH which i have a mortgage out on. No i choose not to carry any insurance on them, Its a waste of money imho and since the land where one of these properties is located is worth far more than the house itself; Whats the worst that can happen really?
That's great. Best of luck to you with your strategy.
What do you have penciled in for long term care? Do you have a spouse to worry about?
As long as I can stay in my house, I should be able to chug along comfortably with my Social Security check. All the income and spending down I do on everything else is 100% discretionary spending. I've mentally penciled in the value of my primary residence as my "long term care insurance". If I remarried, I couldn't do that and I'd have to do the math on Social Security survivor benefits.
I look at what my mom costs in assisted living and wonder if I've planned this properly. I kind of have to assume that the late-Boomers and Gen Xers with no retirement savings will put so much stress on the safety net that government funded geriatric care if I run out of money to pay for private care will be really awful.
I have a spouse; sometimes I wonder if I still will at retirement. She has not always been working full time and makes less but still has enough good years to get an above average SS payment. I am not sure what makes sense are far as how she files goes. You hit one of the hardest estimates. It depends on what happens in the next few years (to costs) and when it gets locked in. If I started now I could get a policy for about $250 a person a month but closer to retirement it may be $350. I used an estimate of $700 per person/month for medical costs and insurance. The trouble with estimates is that the data is already old.
...I know some folks personally can't do anything for themselves so they rely heavily on 'help' to assist them, but me i rather do things myself and learn along the way than to pay anyone - unless i'm positive i need an expert. Finally to answer your last question yes, I have (2) rehabbed properties that are paid off and (1) rent to own (which i live-in with my folks / side-by-side) and a 4BR SFH which i have a mortgage out on. No i choose not to carry any insurance on them, Its a waste of money imho and since the land where one of these properties is located is worth far more than the house itself; Whats the worst that can happen really?
You seem to be a younger guy (how old are you?) - and the OP is a woman in her 50's. Now I realize all men aren't "handy" (my husband is a case in point ). But - overall - they tend to be handier than women. Also - the older you get - well you face physical issues. Ranging from a lack of stamina to being unsteady on ladders. My husband and I are older than the OP (68 and 70). There are things we could never do ourselves - like cleaning the gutters (which is why we've had a home handyman forever) and things that we used to be able to do that we can't do now - like most of our landscaping work (which is why we have a landscaping service now). OTOH - there are still lots of little things we can do (but often at a price - like a lot of back pain). I suppose it would make more sense for us to live in a condo than a single family house. But we've lived in condos and didn't care for them.
Hard to tell what's the worst that can happen without homeowners' insurance without more details. On the place with a mortgage - if having insurance is required by your mortgage company - worst would probably be foreclosure. On the places with/without a mortgage - worst would be having no money to rebuild - no place to live if the house was destroyed. Note that just because the land is worth more than the house - well that isn't enough IMO. Really depends on what the land is worth - especially vis-a-vis the house. If - for example - the land is worth $100k and the house is worth $80k but would cost $150k to replace - and the neighborhood won't support more than a $150k house - well that's one thing (and I think insurance would be prudent in that case). OTOH - my father dropped his homeowners' insurance when he was in his 80's. That made sense for him. Because his house was a tear down (small 40+ year old house on prime waterfront lot in south Florida where the land value was at least $750k and the house had a negative value - what it would cost to tear it down to be replaced by a much larger much more expensive house). Note that after my father sold his house - it was in fact torn down and replaced with a much larger much more expensive house. Robyn
Since I'm going to die anyway, I'm not all that concerned about 'long term care' insurance. It's probably nice to have for some, but not completely necessary. Especially since only about 5 percent of individuals end up staying in assisted-living or nursing homes.
Worrying about the supposed 'horror' of being in a publicly funded dwelling or using publicly funded care is not really necessary.
It's one way to divert one's attention away from the fact & fear of death.
Last edited by matisse12; 05-04-2016 at 03:33 PM..
Oh gurl tree roots? OMG same thing happened with me!
After The STRAND FLOODED all 38 floors, (ahem)..., I moved to Avondale but was staying temporarily in my client's 1935 Million Dollar historic house while she was away, watching her dog. The 1st flr powder room spewed sewage all over her first floor when I let water out of the sink in the kitchen. Not just the powder room. The entire living room, too! With white upholstered furniture Persian rugs and antique wood pieces.
Ironically, I had made a spaghetti dinner because she was coming into town for two days then leaving again.
The MOMENT it flooded she rang the bell and walked in! She turned around and went to at hotel on the South Bank. LOL.
The DRAMA with Avondale antiquated sewars and trees. I later found out about it - apparently infamous. The plumber was there for hours isolating the trouble then he hooked me up with some toxic waste cleaners and they had to come and clean it up. Black disgusting sewage all over her original and preserved hardwood! I believe she actually had to do major digging in her yard to fix it later on. Apparently complicated by a previous RENTER who FLUSHED baby wipes and paper towels.
Luckily my place was right around the corner so the dog and I went there.
I saw senior HUD housing in downtown Jax, too. I think high-rise but I forget. Somewhere near the Winn Dixie where I think there's a SS office maybe?
I live in Vero Beach- Indian River County. The community has a range up to $650 per month. In income tiers. I think you can have assets too, they just up your rent a bit and those higher ones are only a 1.5 to 2 year wait.
It's very cute. Villa style on the Intracoastal but not with a view because there's nature trails and stuff in between.
Pretty sure HUD has fixed income standards but I'm not familiar. My friend who owns some Section 8 properties said something about $25K per year? So lots of people on SS could potentially be within the guidelines.
The only reason I even found out about this place is after replacing my AC, hot water heater and hearing about 2 neighbors having in-the-wall-floods from pipes leaking I was evaluating did I really want to keep owning a condo or just rent. THEN when I saw the prices I was like WHAT?
Like the caps on my teeth these things all require 10 year replacements - I guess planned obsolescence.
I work for a couple of seniors in a corporate continuing care community. ACTS. One man age 90 is still in Independent but can't do the dog thing. He actually can't do much but REFUSES to go to Skilled because of his dog! But she was biting the caregivers so they made him hire someone or he'd have to leave.
So I go 3x day. His wife has moved from their Independent Living unit to Assisted, then to to Skilled Nursing with advanced Alzheimers. He zips over to the next building every day to sit with her on his motorized chair!
VB has the largest number of retired CEOS in the country so it figures they'd put one here. We have an airport (Piper manufacturing since WW II) and there's alot of pilots but we have lower income housing, too like above.
It's a beautiful place and while the equity fee isn't bad it's pricey monthly. It's a great situation with a few different options. One is you can try it out for a year before paying any entrance fee. But ONLY the residents get to go to the ALF and SNF no outsiders.
It's very cute there. So many couples still in love holding hands walking around. And BUSY. One couple dresses alike every evening for dinner in the dining room! Like they both wear same color bottoms and tops etc. They even hold hands and walk their little tiny bag of personal trash and recycling newspaper to the trash shoot together after dinner! LOL
The multipurpose room was FILLED one night with the residents watching a live broadcast town hall by Ben Carson to the ACTS communities when he was still in the race.
But MY client is ALL IN for Trump! It's really funny seeing him thumbs up every time I give him a status on the race and the hell raising. So tonight will be another exciting night for him when I see him in about an hour.
I'm familiar with Vero Beach. And it sounds like a good place for you to ply your trade . At least in the winter. When we explored Vero Beach when we were relocating from Miami - it had a ton of snowbirds (we wanted a more "full time" community). Of course - that was 20 years ago. And perhaps things have changed. Also - if you have CCRC and similar clients - doubt many/most of those would be snowbirds.
Hadn't heard about The Strand flood. WTF? Our condo in Miami flooded. But that was after Hurricane Andrew ripped off most of our roof. No hurricanes here in JAX for a long time last time I looked. When it came to our sewer back-up - our house is relatively new. Turns out we had an almost microscopic crack in our sewer line. And that's where the oak tree roots went - to get to the water. And - after about 10 years - the roots clogged up the whole pipe. It's been about 10 years since that happened. No additional problems.
I agree with you that many many things have to be replaced about every 10 years. Which is why you can't go on autopilot if you retire at age 65 or similar - and assume that everything you have/own will last until you die.
Finally - my husband and I - like your client - are Trump people too. Two of the many who voted for him in the Florida Republican primary (where he won). Haven't been as excited about a Presidential election in a very long time. Take it you're not a fan - but we should leave that to the POC forum. Robyn
Palm Bay is actually in Brevard County - not Broward County. Although I don't doubt you'll pay peanuts in property on any place in Florida that's assessed at $80k (because of the $50k homestead exemption).
OTOH - Palm Bay/Brevard County is pretty much in the middle of nowhere in Florida (unlike Broward County - which is part of the Miami to Palm Beach metro area). Not close to much of anything - if anything. There's a lot of Florida that's like that. Where you will also pay peanuts in property taxes on low priced housing. I think I'd go nuts in Palm Bay in a couple of days. YMMV. Robyn
P.S. This is the most exciting thing that ever happened in Palm Bay best I can recall:
Yeah your correct Palm bay is in Brevard. If you reread my post you responded to; you will see the reason why I linked to Broward, it was done purposely.
Quote:
Originally Posted by ChessieMom
You responded to MY post with "it's your views/opinion".
Move along.
Ok lady what is your problem? I NEVER responded to anything you said until you quoted my post or did you forget that?? So I'm supposed to ignore your posts directed at me even when its clearly wrong? Get a grip. Again just so you can stop being crazy this is what happened:
1. I responded to one of the OP's posts regarding affordability of her living on 1K in FL.
2. YOU decided to butt into that conversation. Talking about your own property tax and insurance which was completely irrelevant to what I was talking about. And to be fair I even pointed out my own situation was irrelevant to the OP as well. All that mattered was if her expected lifestyle could be sustained on 1K.
3. And when I pointed out that it was irrelevant (without any of the attitude you included in your posts) you decided to flip out and post another irrelevant/inaccurate post like the one above.
Just stop, your embarrassing yourself.
Last edited by griffon652; 05-04-2016 at 03:25 PM..
Brevard is on my short list, not just Palm Bay specifically but from that area to go to the Orlando area resorts you don't go through Orlando. Palm Bay is only 55 miles from Kissimmee. Yeah, there are different thoughts on exactly where the climate line is. What I said is banana palms grow there (and they do even in northern Brevard). I have relatives in JAX and the panhandle; those areas don't have a lot of winter but they have some raw days and nearly every year they will have at least one stretch of a few days of cold. Around the Space Coast is where it starts getting rare enough to suit me; the bananas are just an easy way to illustrate that.
We have those banana plants here in NE Florida (haven't planted any - don't care for the way they look).
I am not sure why it's important to be near Orlando area resorts - especially as a senior.
I would rather have a stretch of relatively cooler days in the winter in a more populated area with more stuff to do/more services than some relatively warmer days in the winter in a less populated area. YMMV. Of course - there is always the possibility of living in a place that has lots of stuff/services that's warm in the winter. But that would be SE/SW Florida (when it comes to Florida). The traffic in SE Florida is apparently quite ridiculous these days. My brother - who lives in Miami Beach - does a ton of shopping at our local Costco here when he comes to visit my father. Apparently - he can't stand driving from Miami Beach to his local Costco in the Miami area. Robyn
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). But - overall - they tend to be handier than women. Also - the older you get - well you face physical issues. Ranging from a lack of stamina to being unsteady on ladders. My husband and I are older than the OP (68 and 70). There are things we could never do ourselves - like cleaning the gutters (which is why we've had a home handyman forever) and things that we used to be able to do that we can't do now - like most of our landscaping work (which is why we have a landscaping service now). OTOH - there are still lots of little things we can do (but often at a price - like a lot of back pain). I suppose it would make more sense for us to live in a condo than a single family house. But we've lived in condos and didn't care for them.
