Where do I go from here?

[MrBig1]

Hello All,
I just thought I would throw my plan out here just to have you guys see if I have some unknown fatal flaw.
Ok, I've already told you guys my status so I won't go over that again unless asked. Basically, My financial status is this, I will have $3542 a month coming in from various places as fixed income. After funding my lifestyle, eliminating all debt and setting up at least a $20k emergency fund, I will have $500,000 left in an IRA. In March my wife will be able to draw SSI in the amount of $900 monthly. That's my numbers and now here's my plan. We plan to basically full time RV and travel the US. I qualify for a couple of good deals with the Federal National Park system based on my status so parking costs will be limited. Healthcare will be taken care of by using COBRA the first year for both of us. I am also covered by the VA so extra costs on health care for me should be minimal. After the first year, I become eligible for Medicare and my wife will continue on either COBRA or AHC until she also reaches Medicare age. We will face a 3 year span where she will have to wait.
We plan to enjoy our great country and keep our cost low enough to live well and still invest at least 20% of our income monthly. We will also continue to maintain our home base so that we can stay in touch with our family. The money in our IRA will remain untouched and invested in my standard A/A with a 60/40 split equities/bonds well diversified. This will be my hedge toward future possible long term care.
That's it basically, comments are welcome, hole poking much appreciated. My origional plans have been changed and my timeline shifted by 5 years so I've had to redefine retirement based on what I have now.
Thanks for reading,
Ray

 

[pj.mask]

I was going to ask what your confidence level is on the fixed income but I would bet that is high based on how you wrote this. Question I still have is are there any blind spots there?

Are you planning on withdrawals from the 500k or just growth until you need it? (About $1500/mo available)

 

[MrBig1]

I was going to ask what your confidence level is on the fixed income but I would bet that is high based on how you wrote this. Question I still have is are there any blind spots there?

Are you planning on withdrawals from the 500k or just growth until you need it? (About $1500/mo available)

Confidence level high, insured by Federal Government. Plan to leave the IRA totally alone and remain active in its management.
As far as blind spots..This is why I posted so much information. Lots of eyes on subject.

 

[joeea]

We plan to enjoy our great country and keep our cost low enough to live well and still invest at least 20% of our income monthly. We will also continue to maintain our home base so that we can stay in touch with our family. The money in our IRA will remain untouched and invested in my standard A/A with a 60/40 split equities/bonds well diversified. This will be my hedge toward future possible long term care.
That's it basically, comments are welcome, hole poking much appreciated. My origional plans have been changed and my timeline shifted by 5 years so I've had to redefine retirement based on what I have now.
Thanks for reading,
Ray

Have you calculated a budget and compared it to your projected income?

How much will you spend on purchasing an RV? How much will it cost to maintain and fuel it?

You said "SSI" for your wife. SSI is Supplemental Security Income. Is she disabled? Or did you mean social security benefits? If the former, is she physically okay for RV living? Is her situation stable? I know some folks who lived in an RV until the husband got sick. Then they could no longer live a mobile life.

 

[MrBig1]

Have you calculated a budget and compared it to your projected income?

How much will you spend on purchasing an RV? How much will it cost to maintain and fuel it?

You said "SSI" for your wife. SSI is Supplemental Security Income. Is she disabled? Or did you mean social security benefits? If the former, is she physically okay for RV living? Is her situation stable? I know some folks who lived in an RV until the husband got sick. Then they could no longer live a mobile life.

Sorry incorrect terminology on DW income is Social Security paid at 62.

 

[MrBig1]

Have you calculated a budget and compared it to your projected income?

How much will you spend on purchasing an RV? How much will it cost to maintain and fuel it?

You said "SSI" for your wife. SSI is Supplemental Security Income. Is she disabled? Or did you mean social security benefits? If the former, is she physically okay for RV living? Is her situation stable? I know some folks who lived in an RV until the husband got sick. Then they could no longer live a mobile life.

DW is fairly stable, some limited mobility, purchase price for RV and Tow Vehicle already deducted. RV unit chosen for limited maintenance and durability.

 

[45th Birthday]

Are you planning to go right from the RV to long term care? If not, how will you acquire and/or fund some place to live when you aren't physically able to live in an RV but not ready for long term care?

 

[MrBig1]

Are you planning to go right from the RV to long term care? If not, how will you acquire and/or fund some place to live when you aren't physically able to live in an RV but not ready for long term care?

As I said in the OP we will be maintaining our Home Base contingency. We have a fall back position. My trigger for assisted living will be when I am no longer able to drive to town and purchase a gallon of milk. But seriously, no one can see the future we can only make best choices.

 

[erkevin]

As I said in the OP we will be maintaining our Home Base contingency. We have a fall back position. My trigger for assisted living will be when I am no longer able to drive to town and purchase a gallon of milk. But seriously, no one can see the future we can only make best choices.

Don't necessarily believe that because you cannot drive, that you need assisted living (if you are referring to an assisted living home). I volunteer for several elderly people in my neighborhood. Two of them can not drive but live fairly independently at home. They have groceries delivered or myself or another volunteer take them shopping. We also take them to Drs. appointments or they call a cab.
You may well need some assistance but not necessarily assisted living.

 

[MrBig1]

Don't necessarily believe that because you cannot drive, that you need assisted living (if you are referring to an assisted living home). I volunteer for several elderly people in my neighborhood. Two of them can not drive but live fairly independently at home. They have groceries delivered or myself or another volunteer take them shopping. We also take them to Drs. appointments or they call a cab.
You may well need some assistance but not necessarily assisted living.

Thank you, I hadn't thought of that option. Never crossed my mind and that is why I threw this out there. I don't know everything surrounding this retirement and options in old age. Very good information.

 

[joylesshusband]

...setting up at least a $20k emergency fund...

//snip

What is this emergency fund for?
Why does it need to be separated from the bulk growing in the IRA?

 

[candrew]

Congratulations! It sounds as though you've thought through your plans and there really is no way to account for every single what-if in life. Embarking on long term RV travel adventures around the U.S. sounds exciting! You and DW will no doubt have many new found experiences along with meeting lots of interesting people. One's adaptability to changing circumstances and environments is paramount, IMHO.

Enjoy and we wish you safe, fun and adventurous travels!

 

[MrBig1]

//snip

What is this emergency fund for?
Why does it need to be separated from the bulk growing in the IRA?

The emergency fund is set up for unexpected, dire situations where cash is needed immediately. Say I haul my RV way back in the woods and have an unexpected break down. In those situations the cost of retrieval can cost thousands. Now. Sure a low balance credit card also does the trick but I've experienced situations where there is no substitute for cash and a sizable checking account balance.
The reason to keep this fund separate is simply instant access to the money. Withdrawals from an IRA take time.

 

[Breedlove]

I think you will be fine , I meet people every day choosing your lifestyle. You will learn so many tricks of the lifestyle that I think you will be traveling fairly inexpensive. I have friends that work as campground workers at some of the nicest parks around . He does maintenance and his wife does admin. work . They do this for their campsites.
Enjoy !

 

[Carpediem]

I don’t believe you mentioned it but do you and DW have experience RVing? The only reason I ask is that the reality of RVing can be quite different from perception sometimes.

 

[MrBig1]

I don’t believe you mentioned it but do you and DW have experience RVing? The only reason I ask is that the reality of RVing can be quite different from perception sometimes.

Good point. This is my 4th RV and I have studied the full time life style as much as possible. I know that you don't eat S'mores every night. Our max length of stay was 3 weeks at a time. We regretted having to return home. The DW is the adventurous type. We rode a GL1800 Gold Wing on a 5 week cross country trip. She snapped over 2k pics from the back saddle. Best time of our lives until now.

 

[VanWinkle]

Good point. This is my 4th RV and I have studied the full time life style as much as possible. I know that you don't eat S'mores every night. Our max length of stay was 3 weeks at a time. We regretted having to return home. The DW is the adventurous type. We rode a GL1800 Gold Wing on a 5 week cross country trip. She snapped over 2k pics from the back saddle. Best time of our lives until now.

I think you are both mentally and financially prepared for this chapter in your lives. You have enough income to get back into full time housing later if needed. The cobra is normally only good for 18 months so you may have to get alternate Insurance for your wife after 18 months. Remember that when you designate your state of residence as it can make a difference.

Best of luck to both of you,

VW

 

[cnocmmz]

Congrats on the moving forward with your lives. Not sure if you've owned an RV or not; however, the expense with these are somewhat taxing. For instance, mine is expensive to travel in and fuel for long travel was over 1.5K a month, plus food and maintenance was almost 3K.
-You did not mention your ages, or maybe I missed that part?
-You seems to have the medical part in check; however, you may have to dip in your investments unless the figures you posted are all after tax? In any case, I wish you and the Mrs. the best of luck... and enjoy. I am almost there as well

 

[brucethebroker]

Thank you, I hadn't thought of that option. Never crossed my mind and that is why I threw this out there. I don't know everything surrounding this retirement and options in old age. Very good information.

Have a family member who no longer drives and does not like the bus. Has groceries delivered by PeaPod (online grocer). Uses Uber and Lyft for Dr. Appointments. Uses the county van for the elderly/disabled for trips to library, shopping, etc. ($1-2 each way). Still can walk, but refuses to walk anywhere but to Starbucks (1 block away). Banks online. Lives in a small apartment. It works for her.

I figure she saves $200-$300 in transportation costs a month AFTER paying Uber. Lots of options with the new technology.

 

[pb4uski]

Are you looking for heirs? If so, put me at the top of your list.

 

[UtahSkier]

>> you guys see if I have some unknown fatal flaw.

Full time RVing on your stated budget is doable. The problem is the unused home that will be a part time base camp. Expenses... including taxes, insurance, utilities, maintenance and repairs will be a full time expense. This home seems to be pure overhead. When you are in it, you will be paying to store your RV.

Also, the health care plan may be problematic. AHC is almost entirely HMO and will be based on your resident zip code. It could be difficult to get proper care in Tucson in the winter when your healthcare is in NY state (don't know your location).

 

[Hermit]

Good point. This is my 4th RV and I have studied the full time life style as much as possible. I know that you don't eat S'mores every night. Our max length of stay was 3 weeks at a time. We regretted having to return home. The DW is the adventurous type. We rode a GL1800 Gold Wing on a 5 week cross country trip. She snapped over 2k pics from the back saddle. Best time of our lives until now.

I have been living in a motor home for most of the last four years. So what is wrong with Smores every night?? BTW the late DW and I rode a Yamaha Venture across the country many years ago. We also had a great time.

 

[MrBig1]

I have been living in a motor home for most of the last four years. So what is wrong with Smores every night?? BTW the late DW and I rode a Yamaha Venture across the country many years ago. We also had a great time.

Not a thing wrong with it except the cost of new britches when you can no longer fit in the ones you own. I guess I should have said that it ain't always flowers and sunshine. The Yamaha Venture is a great long distance bike. A very good friend of mine had one. He has since gone on. Very sorry to hear that DW is no longer with you. It takes more commitment to share a motorcycle seat then it does to share a bed. Especially on a long road trip.

 

[MrBig1]

>> you guys see if I have some unknown fatal flaw.

Full time RVing on your stated budget is doable. The problem is the unused home that will be a part time base camp. Expenses... including taxes, insurance, utilities, maintenance and repairs will be a full time expense. This home seems to be pure overhead. When you are in it, you will be paying to store your RV.

Also, the health care plan may be problematic. AHC is almost entirely HMO and will be based on your resident zip code. It could be difficult to get proper care in Tucson in the winter when your healthcare is in NY state (don't know your location).

We have considered the HMO aspect and it seem our only recourse is to return home for standard Dr. appointments and routine medical care. AHC does cover emergency room and acute care out of network. So if the situation is dire, we simply beat feet home. The home base is a complicated issue. Hard to explain. Just know that it remains under care when we are not home and that care costs me nothing.

 

[daylatedollarshort]

Assuming you've created a detailed budget, accounted for nonrecurring expenses like a new roof, and factored in inflation, it sounds like a well thought out plan. Enjoy!