In addition to our pensions etc, and assuming a 4% withdrawal rate for the next 20 years, exactly how much capital do we need in our IRA etc to add another $45,000 a year to what we will be getting? Isn't it weird...I am not a complete dummy..Mensa and all that...but I can't do Math for nuts..BTW DH originally told me he thought we are fine until we are 93, but I can't find that budget on this computer and don't remember his exact calculations. ( Done a couple of years ago) I do remember he has $20,000 a year in his calculations for travel, and only stops that at 85 yrs old in the budget. How did he choose that random age I wonder? Is he going to push my wheelchair? Or am I pushing his?Thanks in advance for the Math.Big Momma
In addition to our pensions etc, and assuming a 4% withdrawal rate for the next 20 years, exactly how much capital do we need in our IRA etc to add another $45,000 a year to what we will be getting?$1.125 million. (45,000 / .04) I do remember he has $20,000 a year in his calculations for travel, and only stops that at 85 yrs old in the budget. How did he choose that random age I wonder? Is he going to push my wheelchair? Or am I pushing his?My parents' last independent trip was when they came to my place for Christmas when they were 85. The KC airport was no problem. They drove up to the skycaps, got rid of the luggage, then parked the car and got the shuttle to the terminal. Changing planes in Chicago was no problem with pre-arranged wheelchair assists. I met them at the gate in Baltimore and, with the help of two skycaps and two wheelchairs, got their luggage and them to my car. It was pre-9/11 days, so when they left the gate agent wheeled one and I the other onto the plane. I still remember saying to myself as I watched the plane take off, "It's United Airlines's problem now." The big tripping point was when they got back to KC and couldn't find anyone to help them with their luggage. They still traveled a lot after that, but always with someone who could handle the mechanics.PhilRule Your Retirement Home Fool
Thanks Phil..Did we tell you you are a Good Guy? (Also a good son, a good nephew and a good cousin from the sound of it...)So glad your parents were happy traveling at 85...good role models for us all.My sister is whoopsing it up on the Silk Road in China going westwards as we speak...and she'll be 75 soon. She was camping in Western Australia two months ago. She's very adventurous, but eschews the comfortable cruises we lazy folks enjoy....Waving to you from our deck on a nice sunny day, Phil...Warmly,Big Momma
All the responses have been good and to the point. Like everything, there are CCRCs and then there are CCRCs. The first thing we did was to check out the financial soundness of the one we looked at yesterday. There are only about 50 CCRCs in the entire country that have a "A" rating from Fitch. The second point is to only go with non-profits that have an "A" rating from Fitch. Most if not all of these are associated with a university, college, or major church denomination. The one we looked at is associated with Davidson College and the Pres Church (although religion plays no role in the place). Davidson is one of the top undergrad schools in America, and the Pres USA is one of the largest demoniations in America. Yes, it's possible they could default on their guarantee of lifetime care, but it's about 99% unlikely. Their yearly audited finacials are open to the world to see. If they were to default, you can bet that the rest of America had already defaulted. The next is to make sure that assisted care and skilled nursing are on the same premises and operated by the same facility as the independent living part. Look, I'm not pushing these places. I never thought I would consider one, but when I looked at the finances, the monthly fees (which range from around $2K to $4.5K depending on whether you're in a 450 sqft studio or a 1800 sqft cottage or condo, and everything in between), I concluded that it was a good deal. Meals included, and everything else included as well, including virtually free access to a nearby country club and a huge YMCA wellness center. They also have a massive wellness complex on the premises of the CCRC itself. Anyway, when I looked at what we currently pay for property taxes, insurance, utilities, maintenance and upkeep, it looked to be a more than a good deal. On top of everything else, a significant portion of the enrollment fee and the monthly rent/fees are deductible as medical expenses on your federal taxes. We can sell our current house and pay the entrance fee, and we'll still have a load of money left over to cover the rent for many years. Our SS alone will cover the entire monthly fees for the largest unit on the premises. All we will need to withdraw from our portfolio will be somewhere around 1% each year to pay taxes and extra living/travel expenses. The only real downside I saw was the fact that the inmate population was heavily tilted towards folks in their mid to upper 70s, 80s, and 90s. The oldest person there is 108. There are a nice number of folks under 70, so that helped some. For us, we need to move anyway, because I need to be much closer to a certain Medical Center due to reasons somewhat unique to me. Additionally, since I probably won't be around 10 years from now, it's nice to know that my wife would be taken care of for the rest of her life, without having to make these types of decisions on her own. We still haven't decided for sure yet, other than to put down a $1K deposit to get on what is a very long waiting list, although most of the folks currently on the list won't be activiely seeking to move into the place for many years yet, so the waiting list is somewhat deceptive in that regard. Regardless, we wouldn't even consider moving there for at least 4-6 years. All I can say is that it's worth keeping an open mind about things like this, because some of these types of options are really good, while some aren't so good. I watched my parents and my wife's parents stay in their respective homes too long, and they got to the point that they couldn't or wouldn't make good decisions, then when there was no choice at all left, they got left with what was available, not necessarily what they might have wanted. By the way, there was no "hard sell" at all. The place has been 99-100% occupied for many years, even with the bad economy, plus they have a huge waiting list, so a "hard sell" was hardly needed. Staying in your normal home is much to be preferred, no doubt about it, but times change and circumstances change, so it's best to be prepared as they used to say in Boy Scouts.
Sorry, I meant for my last post to go under the CCRC thread, but I guess most of you figured that out for yourselves.
Sounds like you are doing your homework, ResNullius. Good for you.Don't forget networking. You usually will find people in your community who have relatives who have lived in the retirement choices in your area. You can network to find what they liked or disliked about each one.It is very clear that some are much better than others. Usually that means dedicated staff without much turnover.Things change. Keeping up to date can be a challenge. But comments of others gives you more to consider as you try to make the right choices.
I have bookmarked this post and printed it out.The information is very helpful. Thank you.Chili
Montecito (a small town adjacent to Santa Barbara) has an interesting varient of the retirement community, derived from what at one time was a large estate. Some folks buy multiple units and combine them, others use their unit as a pied-a-terre. You can walk to the beach. Julia Child spent her final years there. You need to pass a medical exam to buy-in, but once in everything is covered from independent living to skilled nursing. There is a long waiting list, though. On a recent visit, we enjoyed an excellent lunch, and visited a unit with high-end appliances and a view of a beautiful little garden. For us, a major attraction is it's less than a mile form where we live now.db
In this area, Bethesda has a series of sites covering an array of needs. Some of theirs have on-site duplexes. I presume that means they provide on-site assistance as needed or meals, etc., but you have more space to call your own.I am not aware of any in resort communities, but that is an interesting idea.
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