Skip to main content
No. of Recommendations: 2
joelcorley:

SP: <<<You wrote, My general plan is to sell off my home and rental property by the time I'm 75 (should I live another ten years)>>>

"According to the social security administration, if you were 75 today you should expect to live to 86 ... on average. So if you live another 11 years, only half of your peers (that were still alive today) will have died."

I believe that SP is talking more about getting out of the ownership business with respect to rental property and preferring to have a landlord responsible for maintenance and repairs rather than being a homeowner after age 75, not how long he expects his money to last.

"For financial planning purposes, I would recommend you plan for your money to survive until at least the first standard deviation, or until about 90% of your peers are dead. If you do that, you would want to try to have your money survive until you are about 94.5 or for about another 19.5 years."

Would not 90% be closer to 2 standard deviations then 1 std dev?

"(You may want to take it further, but I believe the first standard deviation is the minimum acceptable level of planning.)"

Absolutely, without exception? Would not suggest taking into account both family health history and longevity and personal health status and history?

Should a current 75 year old man, with stage IV prostate cancer and high blood pressure (not well controlled by medicine) and family history of heart attacks in between 75-80 really plan for another 19.5 years?

"BTW, based on the 2010 SSA actuarial tables, a man retiring at an age of 65 should plan for his money to survive until he is at least 93.5 years of age ... so it's not like the target moves all that much."

If I am reading you correctly, are you suggesting that the data supports the proposition that 10% of all current 65 year old men will live to 93.5?

Regards, JAFO
Print the post  

Announcements

UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.