Unexpected expenses after retirement (everything breaks!)

[martyp]

As soon as I ER'd we replaced the roof and had the house painted as preventative measures. 2.5 yrs into ER nothing has broken. We have household repairs funds when needed.

[RetiringAt55]

Quote:

Originally Posted by Midpack We've budgeted $10K/yr for infrequent (more than annual) large expenses such as cars, home repairs/replacements (roofs, utilities, appliances, consumer electronics, furniture, landscaping, remodel/updating, etc.) and whatever else comes up. They're going to happen, might as well budget for it, though what we spend each year varies from almost nothing to more than double the budget.

This is what we do as well. We used Quicken and several years of expenses to calculate:

House Repairs: $500/month
Vehicle Replacement: $200/month
General Household: $500/month (furniture, redecorating,etc.)

So our ongoing monthly budget includes all of these costs. I think this is better than fixing things before retirement or anticipating what will break soon or depending on an emergency fund. We also have lowered values for these items in different scenarios we run. For example, we have a smaller budget assuming only one car in retirement or assuming we are in a smaller home, and we run planners with these values.

[ShokWaveRider]

Most things that go wrong (No, cost money) here now are definitely my fault. I create things to do. Like remodel my guest bath, the old one went wrong. Everything worked was just wrong so it just HAD to be replaced. And then the was the trim around the house, that was just wrong... so it had to be updated.

Here is the new Bathroom. It is just RIGHT now. I wonder what else is wrong, I certainly have time to find out.

[GoodWishes]

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Originally Posted by chas57006 My mother always told me "if money can fix it, it's not a problem".

I have a similar saying "If money can fix it, it's not a problem when you have money."

[martyb]

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Originally Posted by chas57006 The motor in my pontoon went bad a couple of weeks ago. Going to cost about $5000 to repair. But in happened in the middle of the week while we were tubing with our granddaughter's, so that's still better than being at w*rk! My mother always told me "if money can fix it, it's not a problem".

Sounds like a whole new powerhead! I had to replace one on a 150 hp Yamaha a few yrs ago, & it cost $4600. Sorry, I know it hurts to take a bite like that!

[foxfirev5]

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Originally Posted by chas57006 The motor in my pontoon went bad a couple of weeks ago. Going to cost about $5000 to repair. But in happened in the middle of the week while we were tubing with our granddaughter's, so that's still better than being at w*rk! My mother always told me "if money can fix it, it's not a problem".

Be careful. The motor was shot on my pontoon two years ago and I made the mistake to taking my wife to the dealer. Somehow the dealer and her convinced me it was a better deal to get a new boat. Hopefully it will last through the rest of my tooning years

[Walt34]

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Originally Posted by foxfirev5 Somehow the dealer and her convinced me it was a better deal to get a new boat. Hopefully it will last through the rest of my tooning years

That's a problem I've managed to avoid. DW still remembers 20+ years ago when after a trip to the college bookstore for books I wanted to stop in a boat store "just to look". Because we had just been buying books I had the checkbook in my pocket and found a nice one that I tried hard to convince her would be worthwhile.

Fortunately for us her common sense prevailed.

I knew there was a reason I married her.

[Kaufmanrider]

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Originally Posted by Brett_Cameron Right after I ER'd, most of the appliances in the house failed over a period of a couple of months. I attributed this to "bad luck". Rather than the more appropriate "poor planning".

Seems mine are going in the final 6 months to retirement. Just when we are trying to pay off some bills and bank some extra cash. But of course, the house is 10 years old so I should expect it. The pool remodel next year will be expensive, but will be worth it

[modhatter]

With the exception of cars, most appliances and other things made today like furniture, electronics, etc. are not built to last. New appliances today are the worst in longevity and repairs and the prices have really increased dramatically.

So I think repairs and replacement is considerably higher today with the new technology, and needs to be considered in retirement. It will always be something. A pipe underground breaks, your sprinkler system needs to be replaced, appliances, anything that moves or makes sounds, holds water, heats or cools your house etc. etc.

That is why I sometimes question whether owning a home vs. renting is the cheaper alternative. I know it used to be, but sometimes I'm not so sure today. Of course I don't do any of these repairs, so I'm always having to hire people to do them which cost considerably more.

[Walt34]

Quote:

Originally Posted by modhatter That is why I sometimes question whether owning a home vs. renting is the cheaper alternative. I know it used to be, but sometimes I'm not so sure today. Of course I don't do any of these repairs, so I'm always having to hire people to do them which cost considerably more.

I'm starting to think that way too. We're semi-seriously kicking around the idea of a CCRC (continuous care retirement community) because of experiences with our respective parents. Mom made the move before she had to and that worked out very well, FIL stayed in his house far too long and created a lot of unnecessary drama for family.

So we're looking ahead, and thinking of one in southern PA, in parts because of proximity to family and that (for us) there would be little to no state income tax. An entrance fee of ~240k gets the monthly expense for a 2 bdrm/2 bath one-floor detached house with two-car garage down to $800/month plus utilities. That includes all interior and exterior maintenance and that sounds very attractive.

The $800/month is about what it costs to own and maintain the house we're in, and then all the maintenance headaches go away.

Roof leaks? Dishwasher broke? Furnace died? Just call the maintenance guys. And there is an attraction to looking out the window and thinking "Gee, it must be really hot out there. That guy cutting the grass sure is sweating a lot". Or "Damn, I'm sure glad I don't have to shovel all that snow!"

It is early yet for us to actually make such a move since I'm 63 and DW is 57, but we're starting to look in that direction. Unless my math is bad that means that in 20 years I'll be 83, and while I'd like to think that I can still cut the grass and shovel snow at that age, I probably won't and even if I could it's a good bet that I won't want to.

Another attraction is that they essentially promise that even if you run out of money they won't throw you out. Before we signed anything we'd go over the fine print with an attorney about that, but I kind of like the idea and what I've seen so far.

[MooreBonds]

Quote:

Originally Posted by Walt34 I'm starting to think that way too. We're semi-seriously kicking around the idea of a CCRC (continuous care retirement community) because of experiences with our respective parents. Mom made the move before she had to and that worked out very well, FIL stayed in his house far too long and created a lot of unnecessary drama for family.

I think as time goes on, the generational aversion to anything involving moving out of one's home when older will go away.

In the 1930s-1980s, moving out of one's house when old usually meant going to a 'nursing home', with all of the associated unpleasantries. So many who are currently in their late 70s/80s associate ANYTHING involving leaving their home as "moving to a [nursing] home" - even if they have 5 star service/food/activities.

There is also some aspect of the individual personality type (fierce independence vs more laid back, rational and reasonable), but I'd say that in the current elderly generation, it's more of a simple stigma of "the home" as being a place to avoid at all costs, no matter how great people spin it.

Of course, many elderly residents find that many facilities (assisted living/continuing care) are nowhere near as bad as they feared, and many enjoy it - but it's a huge hurdle of kicking and screaming to make them move to begin with that many children simply don't want/can't undertake until it's absolutely necessary.

[W2R]

Quote:

Originally Posted by Walt34 [...]there is an attraction to looking out the window and thinking "Gee, it must be really hot out there. That guy cutting the grass sure is sweating a lot". Or "Damn, I'm sure glad I don't have to shovel all that snow!"[...]in 20 years I'll be 83, and while I'd like to think that I can still cut the grass and shovel snow at that age, I probably won't and even if I could it's a good bet that I won't want to.

Sounds like you don't want to now! Me either, so when I was 58 or so I hired a lawn guy to do the mowing. Maybe you would want to do that at some point, too even before moving to the CCRC. My lawn guy only costs about $100/month average ($35/mow), but my lot is only 50'x100' so it might cost a little more for someone to mow your place. Still, it is SO worth it to sit inside in the AC while he mows. Best decision ever. I get my exercise at the gym, now, MUCH more fun.

[bjorn2bwild]

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Originally Posted by modhatter With the exception of cars, most appliances and other things made today like furniture, electronics, etc. are not built to last. New appliances today are the worst in longevity and repairs and the prices have really increased dramatically.

This is so true in my case -
I am renting a brand new up-scale house. In the past 5 years both AC units have gone down twice, the tankless water heater has failed three times (not a cheap unit), and one of the garage door openers managed to self destruct. All very inconvenient but thankfully no $ cost to me

[mickeyd]

I was unaware that DW had plans to spend a bunch on upgrades to our home. It started with an innocent Q like this~ "Do you think we will ever move to a smaller place now that the kids have moved out?" Me~ "No, this place is just fine with me."

Current expendeture about $25K. Future expendetures~ TBD.

[siamond]

Well, sounds to me that:

a) Tough luck, sorry about that

b) Come on, you flushing the toilet is the root cause of all issues? Maybe DW is actually saying something else... Maybe she is not quite comfortable with your new life as a retiree... I don't know, maybe you should give her some space, or take her out every now & then, or do something else to make her happier...

Just hazarding a guess here!

[bamsphd]

I originally posted:

Quote:

Originally Posted by bamsphd Since I retired in June, it seems like everything has suddenly been breaking around the house.

I think I accidentally gave the impression that everything breaking was expensive. In truth, many of the things that have broken have cost little or nothing to fix myself, have been near the end of their expected life, or with a little patience have fixed themselves. Some examples include a garage spring broke, I ended up replacing springs, pulleys, and cables myself for about $50. Two old CRT based TVs have failed, but we decided they don't even need to be replaced. A grocery bag broke, smashing a glass jar of olive oil. Cleaning up the oil got water on the garage door opener sensors which stopped working. However, after a few days of drying out, the sensors worked fine. The washer leak I mentioned in my original post seems to have been caused by the low pressure incident, perhaps the associated high silt. However, it seems to have solved itself. A month ago I damaged a kayak I had built myself, and it was in the garage being repaired instead of my car when the ceiling started leaking. Repairing the kayak and repairing the ceiling will both take some time, but should not cost a significant amount of money since I expect to do the work myself.

Resolving our water supply issues may still cost real money, but even the worst case total replacement estimate is only about 1% of our investment portfolio. In the mean time, the system is back to functioning normally since we eliminated all irrigation, and have become very conservative with indoor water usage. So we have both the time and the money needed to carefully consider our options before deciding which approach is the most desirable.

Quote:

Originally Posted by Walt34 Well, it's a good thing you have all that free time. Now you'll have an answer for all those people who ask "What do you do all day?" "I fix things that broke because I retired."

Yes, I definitely don't have as much free time as I expected!

Quote:

Originally Posted by GoodWishes I have a similar saying "If money can fix it, it's not a problem when you have money."

+1

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Originally Posted by siamond b) Come on, you flushing the toilet is the root cause of all issues?

She was teasing, but like most good jokes there was a kernel of truth. The root cause is that our well seems to be refreshing at about 0.1 gallons/minute at the moment, instead of the already borderline 0.75 gallons/minute it was producing when we bought the house 9 years ago.

The EPA says http://www.epa.gov/WaterSense/pubs/indoor.html

Quote:

The average family of four can use 400 gallons of water every day

While 144 gallons/day (0.1 gallon/minute * 60 minutes * 24 hours) may be enough for one person, 4 cats, and a dog leading an American lifestyle, it is a bit tight when you increase that to two people, and definitely does not leave much water for irrigation. So had I not retired, we might not have noticed any water issues this year.

Quote:

Originally Posted by siamond Maybe she is not quite comfortable with your new life as a retiree... I don't know, maybe you should give her some space, or take her out every now & then, or do something else to make her happier...

I think it is true we need to make more time for interesting activities together, but I've been so busy fixing everything!

[Walt34]

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Originally Posted by W2R Sounds like you don't want to now! Me either, so when I was 58 or so I hired a lawn guy to do the mowing. Maybe you would want to do that at some point, too even before moving to the CCRC.

I probably will at some point, but it's really not that bad - takes about an hour & 20 minutes if I do all of it at once complete with full trimming and the "guy" in me has a problem paying someone to do what I'm capable of doing myself. But I'm not dealing with Louisiana heat & humidity either. High is going to be 83° F today.

[Walt34]

Quote:

Originally Posted by MooreBonds In the 1930s-1980s, moving out of one's house when old usually meant going to a 'nursing home', with all of the associated unpleasantries. So many who are currently in their late 70s/80s associate ANYTHING involving leaving their home as "moving to a [nursing] home" - even if they have 5 star service/food/activities.

That was exactly the issue we had with FIL. He had to take his father to a nursing home in the 1960s, when that consisted pretty much of putting them to bed, giving them a wall-mounted TV and wait to die. He never said as much but it was clear he was terrified of the idea. Of course - who wouldn't be if that's where one was going?

Despite several visits to the place, which he agreed seemed very nice, would be a good place to live, and was nothing like the nursing home his father had been in, he just couldn't bring himself to make the move voluntarily.

[bmcgonig]

Quote:

Originally Posted by Walt34 I'm starting to think that way too. We're semi-seriously kicking around the idea of a CCRC (continuous care retirement community) because of experiences with our respective parents. Mom made the move before she had to and that worked out very well, FIL stayed in his house far too long and created a lot of unnecessary drama for family. So we're looking ahead, and thinking of one in southern PA, in parts because of proximity to family and that (for us) there would be little to no state income tax. An entrance fee of ~240k gets the monthly expense for a 2 bdrm/2 bath one-floor detached house with two-car garage down to $800/month plus utilities. That includes all interior and exterior maintenance and that sounds very attractive. The $800/month is about what it costs to own and maintain the house we're in, and then all the maintenance headaches go away. Roof leaks? Dishwasher broke? Furnace died? Just call the maintenance guys. And there is an attraction to looking out the window and thinking "Gee, it must be really hot out there. That guy cutting the grass sure is sweating a lot". Or "Damn, I'm sure glad I don't have to shovel all that snow!" It is early yet for us to actually make such a move since I'm 63 and DW is 57, but we're starting to look in that direction. Unless my math is bad that means that in 20 years I'll be 83, and while I'd like to think that I can still cut the grass and shovel snow at that age, I probably won't and even if I could it's a good bet that I won't want to. Another attraction is that they essentially promise that even if you run out of money they won't throw you out. Before we signed anything we'd go over the fine print with an attorney about that, but I kind of like the idea and what I've seen so far.

Walt

How do those CCRCs work with respect to the 240k? Do u get that back at some stage, or part of it?

[Walt34]

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Originally Posted by bmcgonig Walt How do those CCRCs work with respect to the 240k? Do u get that back at some stage, or part of it?

It depends on the CCRC, but it seems most are trending toward a prorated refund of it over a span of 10 years or so. So if one moved in, decided after two years they didn't like it and moved out, they'd get 80% of that $240k back. After 10 years one gets zero back. This could be an issue for those desiring to leave an inheritance.

They also have a straight monthly rental of about $2,200/month, and then one can convert, pay the entrance fee and then get the lower rental rate. We'll consider that route as well since it greatly simplifies a change if we decide that place is not for us.

Again, this is by no means universal across all CCRCs. Some are "entrance fee only" and others are straight rental only, some offer a hybrid of a lower entrance fee and higher rent than the full entrance fee, etc. Lots of ways to mix 'n match.

Here's a site to look around and have some of this stuff explained - their hard copy magazine was in the elder law attorney's office. Seems legit. Retirement Communities & Senior Housing :: Retirement Living Information Center