Retirement Targets

[aauummm]

Did she miss not working??????

Actually, no. I had some misgivings about retiring at that early age. It was my tendency to say, OK we can retire at this age but a couple more years of work would just add some more factor of safety against inflation. Both of us had positions that were secure and very enjoyable. So, she just offered going back to work as a backup plan to kind of ease my mind about it. That was very nice of her but I knew that it would be me going back to work if things didn't work out.

For the first year we were busy adjusting to the retirement lifestyle and seeing how things would work out financially. After that first year I took a look at things and said, OK that was fun and it works, let's buy a motorhome and travel and tailgate, etc. So we did (It's been a blast!).

As for the retirement lifestyle, we have always had lots of hobbies and interests and we both came from large families. The wife had her parents, siblings and two grown kids and a granddaughter in town as well as siblings all over the country and I had parents, a son and siblings scattered all over the US also. So retirement for us has been busier than when we worked. We both had attractive opportunities to return to work but really never gave it any consideration.

 

[SEIOWA CLONE]

I watch and read a lot on retirement. The long term care scare is over hyped. Yes, it MAY strike you and run you out of money but 1. the odds you need LTC is only like 30-35% 2. since you don't go into LTC until you need to, the average stay for males is around 12 months and women 20 months. (** These numbers are off my memory, I have them saved but on my PC at work**). So, if you can sock away 24 months of LTC expense and not have to utilize it during retirement (but it is there as emergency/backup) then you have a very high probability of being covered.
This has proven true for most of the people I know that went into nursing homes. They were there 2 years or less before passing away.

My wife and I looked into LTC insurance in May, got a couple of quotes from two different insurance groups. The average ran from $300 to $900 a month, which only was good for 10 years, from the time you purchased. There was one plan that allowed you to pay up front something like $93,000 and you would be covered for life.

After looking at the numbers, we passed, at least for now, we are both healthy, and figured we would be better off putting $500 a month into a bank account, and that way if we needed it for LTC it would be there if not we could get the money to our kids.

 

[BCClone]

My wife and I looked into LTC insurance in May, got a couple of quotes from two different insurance groups. The average ran from $300 to $900 a month, which only was good for 10 years, from the time you purchased. There was one plan that allowed you to pay up front something like $93,000 and you would be covered for life.

After looking at the numbers, we passed, at least for now, we are both healthy, and figured we would be better off putting $500 a month into a bank account, and that way if we needed it for LTC it would be there if not we could get the money to our kids.

93,000? So they are making you prepay one year upfront? That does seem nasty. My mom had it, it covered 6 years at about half cost with a one year deductible. Most will cover assisted living so that is one way to make it pay back some. She only ever paid 3 days of care, once you go on hospice, you have to pay. Hers was 2-3k a year. She had decent cash flow, it was to avoid a hard drain.

The biggest thing is that LTC insurance makes you really jump hoops to get it to start paying from what I found out.

 

[SEIOWA CLONE]

93,000? So they are making you prepay one year upfront? That does seem nasty. My mom had it, it covered 6 years at about half cost with a one year deductible. Most will cover assisted living so that is one way to make it pay back some. She only ever paid 3 days of care, once you go on hospice, you have to pay. Hers was 2-3k a year. She had decent cash flow, it was to avoid a hard drain.

The biggest thing is that LTC insurance makes you really jump hoops to get it to start paying from what I found out.

No, if you paid the whole premium up front, that covered you for life. The gal we spoke too said she only had one couple actually take the plan, but they seemed happy and could afford the one time charge.

The price of LTC varies greatly depending on the amount of time and resources that will be needed, it can be fairly reasonable if you just need some extra care to expansive as hell for those full time in a nursing home.
We took our daughter out to the local nursing home for day care while we were working before, she passed last October. The bill was $100 a day, from 7 to 5, five days week, that included 2 meals while she was there, when they raised the price up to $200 the second year, we started taking her only a couple days a week.

Health care for disabled and the aged get expensive very quickly, if it is full time care, when the patient needs help all the time.

 

[Stormin]

My wife and I looked into LTC insurance in May, got a couple of quotes from two different insurance groups. The average ran from $300 to $900 a month, which only was good for 10 years, from the time you purchased. There was one plan that allowed you to pay up front something like $93,000 and you would be covered for life.

After looking at the numbers, we passed, at least for now, we are both healthy, and figured we would be better off putting $500 a month into a bank account, and that way if we needed it for LTC it would be there if not we could get the money to our kids.

LTC policies overpriced right now IMO. Uncertainty whether some companies will even pay when you have a claim. It can be a battle. Some say a better strategy is to buy a Life Insurance Policy. Death is a certainty. Nursing Home is not. If Nursing Home eats up Assets, Life Insurance is still payable to heirs. Lots of strategies.

 

[BCClone]

No, if you paid the whole premium up front, that covered you for life. The gal we spoke too said she only had one couple actually take the plan, but they seemed happy and could afford the one time charge.

The price of LTC varies greatly depending on the amount of time and resources that will be needed, it can be fairly reasonable if you just need some extra care to expansive as hell for those full time in a nursing home.
We took my daughter out to the local nursing home for day care while we were working before, she passed last October. The bill was $100 a day, from 7 to 5, five days week, that included 2 meals while she was there, when they raised the price up to $200 the second year, we started taking her only a couple days a week.

Health care for disabled and the aged get expensive very quickly, if it is full time care, when the patient needs help all the time.

I know, just saying that that 93k is basically one years stay in the care center. The average is 2 years I think? My wife’s and my dads both passed before any care. My mom spent a few months in one, my MIL is in assisted living and has old age Parkinson’s. She will require LTC. She should have enough to take care of herself if her son doesn’t decide he needs some more (statements passed to me by friends of my FIL say this type of thing has happened a few times). In-laws are also a family of poor financial decisions. If there are boneheaded things to do, and wasted things to try to bolster your image, they have done it. She does have a LTC policy for a few years, but has been in assisted living for two years so it could be being eaten up there.

 

[ruxCYtable]

Curious what you will have as your asset allocation at that point? Could live a long time, so stay aggressive and adjust if a big downturn in any year or couple years?

Haven't really settled on that yet. I understand 60/40 is now considered by some to be obsolete. Warren Buffett recommends 90/10. Maybe I'll split the difference and go 75/25.

How many use a financial advisor to manage versus just do it yourself kind of deal?

Myself for now. My degree is finance so I'm pretty comfortable with it. May look into an advisor when it comes time to start pulling it out (TWSS.)

 

[yowza]

My wife and I looked into LTC insurance in May, got a couple of quotes from two different insurance groups. The average ran from $300 to $900 a month, which only was good for 10 years, from the time you purchased. There was one plan that allowed you to pay up front something like $93,000 and you would be covered for life.

After looking at the numbers, we passed, at least for now, we are both healthy, and figured we would be better off putting $500 a month into a bank account, and that way if we needed it for LTC it would be there if not we could get the money to our kids.

I think the average span in a assisted living care center is like 3 years? At least that is what I have heard. I think cost is about $8k per month, maybe $9k. Not sure if a memory care place is higher than that or not.

 

[yowza]

Haven't really settled on that yet. I understand 60/40 is now considered by some to be obsolete. Warren Buffett recommends 90/10. Maybe I'll split the difference and go 75/25.

Myself for now. My degree is finance so I'm pretty comfortable with it. May look into an advisor when it comes time to start pulling it out (TWSS.)

Agreed. I may use a tax advisor when the time comes. I am savvy financially but not so much with tax code.

 

[SEIOWA CLONE]

I think the average span in a assisted living care center is like 3 years? At least that is what I have heard. I think cost is about $8k per month, maybe $9k. Not sure if a memory care place is higher than that or not.

Average stay in a care center is really hard to gauge, the people living there fall into two groups,

1. the aged group of people that have nowhere else to live or can no longer live on their own. That group of people tend to be in failing health and their stay is measured in months not years. Basically end of life staying.

The 2nd group the mentally and physically ill people may be there for years to decades in some cases. Their bodies generally are not worn out from living, they just have problems that do not allow them to live on their own. A 62 year old stoke victim tends to live a lot longer than the 90 year old.

 

[qwerty]

Average stay in a care center is really hard to gauge, the people living there fall into two groups,

1. the aged group of people that have nowhere else to live or can no longer live on their own. That group of people tend to be in failing health and their stay is measured in months not years. Basically end of life staying.

The 2nd group the mentally and physically ill people may be there for years to decades in some cases. Their bodies generally are not worn out from living, they just have problems that do not allow them to live on their own. A 62 year old stoke victim tends to live a lot longer than the 90 year old.

Good way to put it. As with all aspects of life, no one knows what the future brings, but the statistical probability that you will require LTC for more than months doesn't justify getting too worked up over that small chance. We have been approached about LTC insurance/accounts many times but have declined as personal family history is less than 6 months required. Past performance is no guarantee of future results.

 

[Stormin]

Average stay in a care center is really hard to gauge, the people living there fall into two groups,

1. the aged group of people that have nowhere else to live or can no longer live on their own. That group of people tend to be in failing health and their stay is measured in months not years. Basically end of life staying.

The 2nd group the mentally and physically ill people may be there for years to decades in some cases. Their bodies generally are not worn out from living, they just have problems that do not allow them to live on their own. A 62 year old stoke victim tends to live a lot longer than the 90 year old.

There is a third group as well in nursing home. Some could stay at home physically. But financially it is better to go on Title 19 and get their needs met. They can not afford to live on their SS. They are broke.

 

[brianhos]

My wife and I looked into LTC insurance in May, got a couple of quotes from two different insurance groups. The average ran from $300 to $900 a month, which only was good for 10 years, from the time you purchased. There was one plan that allowed you to pay up front something like $93,000 and you would be covered for life.

After looking at the numbers, we passed, at least for now, we are both healthy, and figured we would be better off putting $500 a month into a bank account, and that way if we needed it for LTC it would be there if not we could get the money to our kids.

LTC insurance seemed like a scam, there was a cap on spending, and if you calculate out how much you pay vs just investing that, you would be silly to buy it. Now, you have to have discipline to actually invest it.

 

[BCClone]

Average stay in a care center is really hard to gauge, the people living there fall into two groups,

1. the aged group of people that have nowhere else to live or can no longer live on their own. That group of people tend to be in failing health and their stay is measured in months not years. Basically end of life staying.

The 2nd group the mentally and physically ill people may be there for years to decades in some cases. Their bodies generally are not worn out from living, they just have problems that do not allow them to live on their own. A 62 year old stoke victim tends to live a lot longer than the 90 year old.

The others are ones that don’t have family to help them with a few basic things

 

[SEIOWA CLONE]

LTC insurance seemed like a scam, there was a cap on spending, and if you calculate out how much you pay vs just investing that, you would be silly to buy it. Now, you have to have discipline to actually invest it.

That is the reason my wife and I decided against purchasing it. We are both in our early 60's. with premiums on average around $500 to $600 a month, and our family history says we will live, barring an accident into our mid 80's, that is a lot of money to invest into a program that will only pay for 10 years max in a care unit. We just take that money an invest it, figure if we need it down the road, it will be there, and if not, we can leave it to our estate.

 

[SEIOWA CLONE]

The others are ones that don’t have family to help them with a few basic things

True, but it's not always possible because of distance and other things as people age, children move away, other family members die off or are in just as bad as shape. It's also not easy being a primary care giver, I did it for 41 years with our daughter, and it's not easy or quick.

I work with a gal that her husband was caring for her FIL, the guy lived with his other son, who is a truck driver for Hy Vee, and worked nights, The husband had to go down and get his father up, cook him breakfast every morning, get his meds ready and make sure he took them and then drive an hour to work. They finally took his car keys away from him earlier this year, and then had to put him into a nursing home at the beginning of summer. He passed away last month, and I am sure it was a relief for everyone, the guy was 95 years old, and overall had a good life and only spent the last couple of months out of the home.

 

[BCClone]

True, but it's not always possible because of distance and other things as people age, children move away, other family members die off or are in just as bad as shape. It's also not easy being a primary care giver, I did it for 41 years with our daughter, and it's not easy or quick.

I work with a gal that her husband was caring for her FIL, the guy lived with his other son, who is a truck driver for Hy Vee, and worked nights, The husband had to go down and get his father up, cook him breakfast every morning, get his meds ready and make sure he took them and then drive an hour to work. They finally took his car keys away from him earlier this year, and then had to put him into a nursing home at the beginning of summer. He passed away last month, and I am sure it was a relief for everyone, the guy was 95 years old, and overall had a good life and only spent the last couple of months out of the home.

I am similar to the last paragraph, took care of my mom the last five years or so. Sisters not too far away but no help. Oldest sister passed a year before mom. Her best friend said mom never recovered. She hid it from me mostly.

 

[dmclone]

The tricky part about LTC is if both husband and wife are alive and one ends up in one of these places long term. This can quickly drain savings. My work has seminars for people over 50 and this was one of the topics. They gave three different options and the best option that they mentioned was a special kind of annuity(immediate) that the government couldn't come after. I don't remember all the details.

 

[BCClone]

Dealt with ABCM for my mom. They refused to admit her without financial statements and past tax forms. I told them the checks will be good as her rent is this much with a LTC policy and a house free and clear. Wasn’t good enough, told them To forget it and I’d go to this other one. They backed off on those finally. That place is 100% about the money. They have many care centers in North Iowa.

 

[cyfan92]

If anyone has a positive experience with a financial advisor. I'd love to hear it. Feel free to DM me if you aren't comfortable with a public comment.

From everyone I talk to about them. They are usually a waste of money unless you are not money savy, have a lot of wealth, or are just wanting to go completely hands off on the experience.

I'd consider a CPA/Tax advisor different to a financial advisor. I will always seek out tax advise when warranted