Author Topic: Early Retirement  (Read 5379 times)

Robert Johnson

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Re: Early Retirement
« Reply #60 on: October 19, 2021, 07:26:46 PM »
Part of retirement math is hard to quantifyó how does a year in oneís 60ís compare to a year in oneís 80ís? Whether we view retirement as a change in service vocations or as a mere vacation, maximizing the total dollars only works if all years of life are comparable. More time in retirement in oneís 60ís may be far more valuable than more monthly income later on. Hard to calculate that kind of thing.

Yes. If you have no use for the money at age 62 or 66, then waiting seems to be a better deal. But part of my decision was that I could use that money now to put me in a position where I would have no mortgage, and I thought that was valuable.

But there is no ideal obvious solution. We donít know if a stroke or heart attack will carry us off suddenly. So itís all about what your priorities are and becoming comfortable with your decision.

It reminds me of every interaction Iíve ever had with a financial planner. They ask me how much I need per month in my future retirement. My answer always was ďI have no idea what I will need.Ē Because I never know if we are going to elect an idiot who will devalue the currency and inflate what it takes to live. Which we have done.

My father died in 1968, and his death benefit was a fixed sum that was intended to fund my motherís life. By the time the stagflation of the 1970s bloomed, the total amount she had been given at his death looked like chump change. Luckily she got full time work with benefits that carried her to retirement, but it was a dicey thing.

Iím looking at my 401 and 403 money now and wondering if it is going to turn into chump change before I need it.

Michael Slusser

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Re: Early Retirement
« Reply #61 on: October 19, 2021, 07:55:19 PM »
More time in retirement in oneís 60ís may be far more valuable than more monthly income later on. Hard to calculate that kind of thing.

Yup. I like practicing law. I like working. God willing, health-wise I can continue working into my 70s.

Two nice things about practicing law. One can tailor oneís hours. My partner, several years older than I,  probably works half-time now. Weíre taking next Feb, the most brutal month up here, and rented a plce west of Ocala, FL. Due to COVID, all hearings except trials are via Zoom. So, Iíll work from Florida. Wonít have to continue any hearings unless a trial comes up.

Lots of flexibility. And I donít golf.
Sounds ideal!  8)

Peace,
Michael
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Charles Austin

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Re: Early Retirement
« Reply #62 on: October 20, 2021, 04:31:37 AM »
This is a long post on a relatively new factor in retirement concerns, namely long-term care planning and insurance. If you or your partner become infirm and require more treatment and care than can be given by a home health aide, you may need to be in a long-term care facility. That is costly. Very costly. Insurances and Social Security are inadequate and savings can disappear rapidly.
    I don't know what long-term health care insurance costs, but I suspect it is costly.
    Another type of "insurance" is a Continuing Care Community, that is a facility where you and your spouse may live independently, but should either of you require nursing home care, it is provided, usually there, perhaps in another part of the facility or occasionally in a different facility under the same management. Around Minneapolis, the Presbyterians run a number of such facilities. We live in one managed by a company with about 180 continuing care places around the country.
   In a facility like this, you "buy in" - a somewhat costly prospect - and pay a monthly fee that some might consider it "up there" (I did), but it includes food services, activities, and a some other things. And you are free of "house costs," appliance repair, home insurance, the need for a new roof and related matters. When our dishwasher or washing machine need replacement or repair it is done, and I do not pay for it.
    In deciding on such a facility, you analyze what you are currently paying for mortgage, food, insurance, property taxes, transportation, lawn care, home maintenance, etc., and consider your continuing ability to do lawn care, home maintenance, and whether your home will need "senior up-dating" (stair elevators, etc.) to be safe. Then you make your decision. You also consider how long you are likely to live and the ability of the surviving spouse to live comfortably. That, of course, is a complex and not totally predictable consideration.
   In a continuing care place like where I live should either of us need nursing care, an attached facility provides it. The one needing care gets it there, and the one not needing care remains in the independent living facility. The plus is that the need for nursing care does not increase our monthly fee. And that fee drops, should one partner die.
  Furthermore, should I need hospital-type care following my knee replacement (hopefully in early December), I get it in our facility, which also has a full physical therapy operation available to me.
  Most people use the money gained from selling a house for the initial costs. And Beloved Spouse and I found it felt "comfortable" to know we had a reasonably healthy savings for a "cushion" and some extras like travel or if we need a new car.
   In some arrangements with continuing care facilities, your heirs will receive as an inheritance a portion - maybe 10 percent or even 50 percent - of your "buy in costs." This, of course, increases your monthly fee and perhaps you have determined that your children can care for themselves and do not need an "inheritance."
   I am content with how this arrangement frees us from the concern of paying long-term care costs and struggling with a house and related matters should we become infirm or incapacitated.
  And any of us who are pastors have seen the very elderly who struggle with living in the the old family homestead or must buy lodging and care in a nursing home where the chief benefit is low cost.
Retired ELCA Pastor. Iowa native. Now in Minneapolis. It is now clear that the election of 2020 was not stolen. But we see now how it was nearly stolen after the balloting. Some of our top officials assisted by corrupt lawyers, attempted to steal the electoral college. Some true patriots saved us.

Dave Benke

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Re: Early Retirement
« Reply #63 on: October 20, 2021, 11:23:05 AM »
More time in retirement in oneís 60ís may be far more valuable than more monthly income later on. Hard to calculate that kind of thing.

Yup. I like practicing law. I like working. God willing, health-wise I can continue working into my 70s.

Two nice things about practicing law. One can tailor oneís hours. My partner, several years older than I,  probably works half-time now. Weíre taking next Feb, the most brutal month up here, and rented a plce west of Ocala, FL. Due to COVID, all hearings except trials are via Zoom. So, Iíll work from Florida. Wonít have to continue any hearings unless a trial comes up.

Lots of flexibility. And I donít golf.

Do people need attorneys in northern Minnesota?  From what I hear Lake Woebegone is real.  No crime, no controversy, nice people who are nice all the time, folks working out their various choices in life in the family without need for outside assistance.  Or is there more to the story?

Dave Benke

Donald_Kirchner

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Re: Early Retirement
« Reply #64 on: October 20, 2021, 12:49:26 PM »
More time in retirement in oneís 60ís may be far more valuable than more monthly income later on. Hard to calculate that kind of thing.

Yup. I like practicing law. I like working. God willing, health-wise I can continue working into my 70s.

Two nice things about practicing law. One can tailor oneís hours. My partner, several years older than I,  probably works half-time now. Weíre taking next Feb, the most brutal month up here, and rented a plce west of Ocala, FL. Due to COVID, all hearings except trials are via Zoom. So, Iíll work from Florida. Wonít have to continue any hearings unless a trial comes up.

Lots of flexibility. And I donít golf.

Do people need attorneys in northern Minnesota?  From what I hear Lake Woebegone is real.  No crime, no controversy, nice people who are nice all the time, folks working out their various choices in life in the family without need for outside assistance.  Or is there more to the story?

Dave Benke

Uh huh...
Don Kirchner

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Richard Johnson

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Re: Early Retirement
« Reply #65 on: October 20, 2021, 01:47:36 PM »

    I don't know what long-term health care insurance costs, but I suspect it is costly.
   

It costs a lot, especially if you are already old.

My mother had long-term care insurance. I think she got one month out of it before she died.

My secretary, when asked if she had long-term care insurance, always replied, "Yes, I have three daughters."
The Rev. Richard O. Johnson, STS

Dave Benke

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Re: Early Retirement
« Reply #66 on: October 20, 2021, 04:29:00 PM »

    I don't know what long-term health care insurance costs, but I suspect it is costly.
   

It costs a lot, especially if you are already old.

My mother had long-term care insurance. I think she got one month out of it before she died.

My secretary, when asked if she had long-term care insurance, always replied, "Yes, I have three daughters."

Great line! ;D

We have long term and got it in our 50s, so not too expensive.  It's really about the spouse/family.  Otherwise, the nursing home level means goodby house, goodby savings, goodby much of anything that was shared with the spouse after a couple of years.

Dave Benke

Brian Stoffregen

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Re: Early Retirement
« Reply #67 on: October 21, 2021, 02:01:39 AM »

    I don't know what long-term health care insurance costs, but I suspect it is costly.
   

It costs a lot, especially if you are already old.

My mother had long-term care insurance. I think she got one month out of it before she died.

My secretary, when asked if she had long-term care insurance, always replied, "Yes, I have three daughters."

Great line! ;D

We have long term and got it in our 50s, so not too expensive.  It's really about the spouse/family.  Otherwise, the nursing home level means goodby house, goodby savings, goodby much of anything that was shared with the spouse after a couple of years.


At least in Kansas (and probably some other states,) a couple could have a division of assets. With this, if one went into a nursing home or long-term hospitalization; that one would only deplete his/her part of the assets, rather than everything that the family owned.

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DeHall1

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Re: Early Retirement
« Reply #68 on: October 21, 2021, 08:38:39 AM »

    I don't know what long-term health care insurance costs, but I suspect it is costly.
   

It costs a lot, especially if you are already old.

My mother had long-term care insurance. I think she got one month out of it before she died.

My secretary, when asked if she had long-term care insurance, always replied, "Yes, I have three daughters."

Great line! ;D

We have long term and got it in our 50s, so not too expensive.  It's really about the spouse/family.  Otherwise, the nursing home level means goodby house, goodby savings, goodby much of anything that was shared with the spouse after a couple of years.


At least in Kansas (and probably some other states,) a couple could have a division of assets. With this, if one went into a nursing home or long-term hospitalization; that one would only deplete his/her part of the assets, rather than everything that the family owned.

In Kansas this only applies if the spouse in the nursing home or long-term hospitalization qualifies for Medicaid.

Dave Benke

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Re: Early Retirement
« Reply #69 on: October 21, 2021, 08:51:01 AM »

    I don't know what long-term health care insurance costs, but I suspect it is costly.
   

It costs a lot, especially if you are already old.

My mother had long-term care insurance. I think she got one month out of it before she died.

My secretary, when asked if she had long-term care insurance, always replied, "Yes, I have three daughters."

Great line! ;D

We have long term and got it in our 50s, so not too expensive.  It's really about the spouse/family.  Otherwise, the nursing home level means goodby house, goodby savings, goodby much of anything that was shared with the spouse after a couple of years.


At least in Kansas (and probably some other states,) a couple could have a division of assets. With this, if one went into a nursing home or long-term hospitalization; that one would only deplete his/her part of the assets, rather than everything that the family owned.

In Kansas this only applies if the spouse in the nursing home or long-term hospitalization qualifies for Medicaid.

Exactly.  Meaning, there weren't that many assets to take.  Like a house, or savings.

Dave Benke

Dan Fienen

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Re: Early Retirement
« Reply #70 on: October 21, 2021, 09:21:41 AM »
I found this article from an Estate Planing and Elder Law Attorney web site. https://spgasior.comision-assets-medicaid-planning-married-couples-2/ It gives a general overview of the division of assets when a spouse enters a nursing home. For a couple their assets are pooled (excluding principle residence and vehicle) and one half of the assets or $115,000, whichever is less, is set aside for the spouse that remains in the community. The rest must go to pay for nursing home until that spouse is eligible for Medicaid. YMMV and an attorney or estate planner should probably be consulted.
Pr. Daniel Fienen
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Charles Austin

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Re: Early Retirement
« Reply #71 on: October 21, 2021, 09:43:52 AM »
One bottom line of this suggests that those without long-term planning or savings or assets like a house may end up in their later years with virtually no choices as to how and where they will live and in what condition.
I think it would be a good idea if congregations ran long-term care and retirement planning workshops for their people. And within that, one could include the topic of bequests to the church.
Retired ELCA Pastor. Iowa native. Now in Minneapolis. It is now clear that the election of 2020 was not stolen. But we see now how it was nearly stolen after the balloting. Some of our top officials assisted by corrupt lawyers, attempted to steal the electoral college. Some true patriots saved us.