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.