For those who have been to this thread in the past... nothing new. Just bumping because
some friends with whom I've shared this thread, have asked about parts of our retirement that are on some other discussions... In particular, in the the area of "what are your plans, now that you're older.?", and the part about CCRC.
I have referred to Phase II... as a part of the retirement continuum that is indeed different
from the heady early retirement days. Perhaps it could be "The Final Ten Years"...
Different... everyone is different... A dear friend is a world traveller... alone... no tours, no companion... Traveling to many many dozens of countries by himself, living with the natives and corresponding with hundreds of friends all over the world. ...and he's now into his eighties. Not so for us...
And so the purpose of this post is to tell our own plans, and how things have worked out
for us, in retiring early at 53, with quite a bit less money than even we can hardly believe.
It worked out by accident, as we didn't plan it this way in the beginning. The part that is looking to be good... is the idea of splitting retirement into two parts...
The active, and the slow down, wherein the latter years can be calculated for a spending
rate, far less than what one usually uses in planning a 20, 30, or 40 year horizon. If I were to do it again, I would split my planning into two different expense structures, and that would have allowed us to retire even earlier.
I'll try to cite some actual dollars, but must note that phase II is as much physical and
psychological as it is having to deal with dollars. We DO slow down. More content to laze around in the AM... to take naps... to accept less of a leadership role in activities of the family or the neighborhood. Much, much less desire to travel or seek new vistas. More content to accept friendship, than to promulgate it. Less interest in decorating, upgrading, rehabbing, or even things like new appliances, clothes, or other household goods. Reducing the "obligations"... cards, phone calls, gifts, emails... and we have not joined the on-line social life of facebook, twitter, circles and the like. We haven't "withdrawn" in the sense of being hermits, but manage to maintain the freedom that comes from not being the "organizers"... our position for the past 20+ years. In short, life has become simpler than ever.
Now, here are the details, and the money planning part... obviously every one is different here... no suggestions or recommendations intended... just what IS, for us.
In 2004, at age 68, we moved into a Continuing Care Retirement Community, buying a new single family home 1600 sf, designed for seniors. The community has 65 single homes, 65 apartments, 44 assisted living units, 65 nursing home units, a fitness center, a rehabilitation center, and numerous function rooms, dining rooms, library, hairdresser etc.
For the apartments etc, no "buy in" fee. (usually 1/4 million dollars according to Forbes). No contract... only a $1500 refundable downpayment. Here's are the apartment rental details for one person. 2BR, 2BA... 750sf...
2 meals/day in an elegant dining room. free transportation to malls, supermarkets, and dinners, shows, functions etc and to doctors or hospital any time all utilities paid: water, sewer, heat, electricity, cable TV and internet service, weekly simple housekeeping, free access to all facilities in the complex first option to transfer to other parts of the CCRC.
Now the costs, and our 10 year plan to pay for this and our (explained earlier) "de minimus" expenses. Apartment (built 2000) 1 person $2000/month, second person $500/month... Total increase since the year 2000 about 10%.
Cost:
$30,000 Room, Board and most other costs and activities.
$10,000 Healthcare
$ 3,000 Misc.
Tot. $43,000yr.
Paid for by:
$18,000 yr sale of house $180,000/10 years
$25,000yr Social Security
Tot. $43,000yr.
In effect, that leaves our nest egg intact.
........................................................................................................
The important part of this simple exercise is to point out that separating the final, less active 10 years... whenever they may be planned, could be expected to be much less costly than the earlier years... and that those who could be looking at a fixed formula may be over planning.
Still working on the memory thing... Explains a lot of factual lapses between postings...
BTW... Our CCRC is one of a number of similar communities... 19 in Illinois, 2 in Iowa and 3 in Nevada.
Look at that great, er, posture.
