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Old Yesterday, 10:22 AM
 
Location: Ohio
4,989 posts, read 1,800,974 times
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Quote:
Originally Posted by Serious Conversation View Post
The needs and expectations of someone in coastal California will be greatly different than my rural neck of the woods in Tennessee. $1.7 million, debt-free, may not be enough in CA for that person. That's a princely sum here.
This is true, but the wild card is health care. Sure, Medicare will cover the bulk of your hospitalization and medical costs but let's say you have to be in a skilled nursing facility for a decade or more. A decent one costs $10,000 a month these days, and Medicare does NOT pay for it.

So if you are in one for 10 years, that is $1.2M.
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Old Yesterday, 10:27 AM
 
Location: Rust'n in Tustin
2,176 posts, read 2,375,015 times
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I would never spend $10,000 a month on my healthcare, and bankrupt my wife. I'll blow my brains out first.
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Old Yesterday, 10:31 AM
 
Location: equator
3,427 posts, read 1,524,633 times
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Quote:
Originally Posted by Travelassie View Post
Yeah. Either way, we're retired, living well and have nowhere close to that either in cash or dividends.
Same here. Fortunately, we didn't have any of this info when we retired in blissful ignorance.
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Old Yesterday, 10:51 AM
Status: "Loving life, wife and job!" (set 6 days ago)
 
Location: USA
994 posts, read 380,928 times
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Quote:
Originally Posted by GearHeadDave View Post
This is true, but the wild card is health care. Sure, Medicare will cover the bulk of your hospitalization and medical costs but let's say you have to be in a skilled nursing facility for a decade or more. A decent one costs $10,000 a month these days, and Medicare does NOT pay for it.

So if you are in one for 10 years, that is $1.2M.
I've only seen a few people who staying in a nursing home that long and I am 100% certain that Medicare or some other government entity paid for their stays. Obviously, it wasn't a white-table cloth facility but the care is decent.

I google around and several articles quote this study. Since this was performed in 2009, I can imagine that the time has increased a bit

From another article which pointed to the one above:
The Average Stay in Assisted Living
According to a 2009 report jointly prepared by a group of advocacy and research organizations within the assisted living industry, the average length of stay for residents in an assisted living facility is about 28 months. (The median is 21 months.) A separate statistic provided by the National Investment Center (NIC) in their 2010 Investment Guide cited the average length of stay in assisted living as 29 months.

The majority of older adults who require assisted living receive such care in their home, either by a paid caregiver or a family member. For those who are receiving care in a community-based setting, they likely received care at home for some period of time prior to moving to the facility. Therefore, in this case the care could easily be required for 2-3 years total.
There outliers but I'm not certain that planning for every situation using the worst case scenario is prudent or even necessary.
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Old Yesterday, 11:58 AM
 
261 posts, read 67,465 times
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Geoff, there wasn’t assisted living when my grandparents went to a nursing home. My friend that went ran out of money within a year so we picked a facility that took Medicaid. To my knowledge assisted living places don’t take Medicaid so people stay at home as long as they can and then end up in a home.
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Old Yesterday, 11:58 AM
 
7,899 posts, read 5,031,079 times
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Quote:
Originally Posted by Returning2USA View Post
When I see articles like this I read them - and I know - like this article in the OP is often oversimplified and for many not relevant.

But for some it is.

I will not even have 1 Mill. ...
To interject... these sorts of article bear relevance to people who've led relatively comfortable lives, who have perhaps amassed nearly $1M or maybe beyond that, who after decades of comparative success are wondering whether or not it makes sense to retire (or to semi-retire). The prevailing message is that even a substantial sum may be inadequate, and so, even decades of dedicated and sedulous savings don't buy one the freedom to "chuck it all".

In other words, having attained some amount of material wherewithal, carries its own expenses. And I don't mean "lifestyle creep". I mean mainly things like high taxes on capital gains/dividends, or ineligibility for health-insurance subsidies. The message is that the fellow or gal who's turned 55 and has been piling maximally into the company 401K since the early 1980s, well, sorry, you're going to have to keep working, retiring no earlier than your spendthrift buddies who infamously can't find a spare $400 for emergencies. There's a convergence, a leveling-effect, so that the fast and the slow seemingly all finish at around the same time.

Is this bunk? Maybe. But I take it mean, not that retirement is a hopeless quest for any but the most agile or gifted, but rather, that those who are smug in self-congratulation that they've done well, saved aggressively, invested with fortitude and patience and so forth, ought maybe to reconsider, and to keep working and saving.

Short version: don't even think of early-retirement even if you're a healthy child-free multi-millionaire.
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Old Yesterday, 12:08 PM
 
Location: Rust'n in Tustin
2,176 posts, read 2,375,015 times
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I think the reality is, some people can retire comfortably on 50k plus social security, some people on 500k, some people on 5mil.

I don't think there's a one size fits all number. A lot of it has to do with your health, is your home paid off, and where you live.

A house near the coast in North Carolina can be 300,000k, a house near the coast in California is probably a million dollars more, if not two.
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Old Yesterday, 12:32 PM
 
Location: Grove City, Ohio
10,129 posts, read 12,378,690 times
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Quote:
Originally Posted by Returning2USA View Post
I will not even have 1 Mill.

But I do plan on living in a part of the world with a much lower cost of living for housing and medical (and everything else).

Just my .02
I enjoy these articles immensely because it gives me an idea of where I stand.

We are all different living in different parts of the country with different wants and needs.

I don't even have $100K and I don't see how we will need it unless we end up in a long term nursing home at which point I just as soon not see my money go to it but let Medicaid take care of it.

To demonstrate how we are all different suppose I told you my wife have $3,000 saved in our retirement funds, we have more but I am just making a point, but together our social security and other pensions totaled $6,800/month after taxes, would you feel sorry for us then?

What if I told you we had $1 million in savings but our social security and other monthly bnefits totaled $1,200 monthly?

Personally I would rather have the $6,800 because that is $1.63 million over 20 years.

I would rather have the monthly because I'm built that way.... I don't want to mess with making money or picking the right investment I just want the money.

Home is paid for with zero debt but property tax for the exact same home is $12k in San Carlos, CA but $1,2k in Backwater, Georgia. Who is better off with savings when you need $1,000 every month just to pay property tax much less all the other taxes one has to pay to live in that area.

After we pay our monthly bills and have $3,000 left over for food, entertainment, hobbies and clothing we'll be perfectly happy but someone living in say New York might find that poverty level. Fact is with $3,000 we'd be able to live just fine while socking $1,000 a month into the bank for later.

There is no one plan for all of us and not even one plan for any two of us... we are all different but thank you OP for posting.
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Old Yesterday, 02:20 PM
 
78,808 posts, read 33,532,796 times
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Quote:
Originally Posted by nicet4 View Post
I enjoy these articles immensely because it gives me an idea of where I stand.

We are all different living in different parts of the country with different wants and needs.

I don't even have $100K and I don't see how we will need it unless we end up in a long term nursing home at which point I just as soon not see my money go to it but let Medicaid take care of it.

To demonstrate how we are all different suppose I told you my wife have $3,000 saved in our retirement funds, we have more but I am just making a point, but together our social security and other pensions totaled $6,800/month after taxes, would you feel sorry for us then?
In seven years the wife and I will have around $8k a month coming in. If we can't live on that, something will be wrong well beyond not having 1.7 million.

At 83, the amount would drop to around $6,600 a month. That's assuming I started drawing from what we have at the end of this year. That's assuming we spend every penny. I'm doubting we will. We don't spend that much now.

No house payments. No car payments. Very little in debt.
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Old Yesterday, 02:23 PM
 
71,495 posts, read 71,674,131 times
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Well all I know is last year we bought a new car and had 15k in dental for my wife ,,,this year my dental is 12k ..so money goes like water at times and big expenses do not fit within the yearly budget for us..

We typically live on between 130 -150k a year here in nyc pretax ,but last year clocked in at 180k
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