Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Re: Question on ESRBob's withdrawal method
Old 01-09-2006, 08:11 AM   #21
Thinks s/he gets paid by the post
SteveR's Avatar
Join Date: Jul 2005
Posts: 2,803
Re: Question on ESRBob's withdrawal method

My mother is in an Assisted Living center. She is blind and needs help with some of her day to day activities. Her meals and small room are covered in her annual costs of $36k. If she needs more help the rate increases step-wise until she reaches full nursin home care levels. Her LTC policy only pays $60k which would be supplemental to her other income when she needs full nursing care.

A family friend who sells Life Ins. told me the LTC policies are the worst package for the consumer of any of the insurance products out there. The cost-benefit ratios according to him, are outrageous. But, in cases were there are few assets and long term care is highly possible, there are few choices if you want to protect some assets before you have to dump them down to the Medicare levels of poverty.

Family history will be somewhat of an indicator of what you might expect in later life. I choose to let my estate pay my LTC costs rather than help fund some insurance agent's own plans to FIRE.

As for personal spending later in life. Most people will slow down so their spending also slows down too. They can't travel much anymore because of physical issues or just plain would rather not deal with crowds or the other negative aspects of traveling. Many don't live in their own homes anymore or if they do it might be a condo or smaller home that requires fewer repairs. How much you can and will do that is expensive in later life is dependent on your health and your desire.

It is interesting to see the retirement calculators potential spending or distribution numbers for when I am in my 80s and 90s. Even with inflation, it is going to be pretty tough to spend $200,000+ a year at that age. I guess I will be gifting like crazy to keep the estate taxes down for my heirs.

Work? I don't have time to work....I'm retired.
SteveR is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Another safe withdrawal rate question arandomwalk07 FIRE and Money 52 04-04-2007 09:46 AM
A simple withdrawal rate question Roger_R FIRE and Money 7 03-07-2007 03:30 AM
safe withdrawal question Carol Morgan FIRE and Money 2 07-17-2004 11:33 AM
Withdrawal Rate Increases with Time? mccl FIRE and Money 26 05-22-2004 03:51 AM
Question for Dory36 on FIRECalc moguls FIRE and Money 24 03-06-2004 05:03 AM


All times are GMT -6. The time now is 06:47 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.