At age 80

[imoldernu]

With so much interest about planning for the future in terms of dollar needs, here's a simple exercise that looks into the future... not with calculators that project what you'll need, but with simple logic.

So here's the challenge...
Look ahead to yourself at my age... 80. What do you see yourself spending... for one year? At today's money value, not projecting inflation.

Make some reasonable assumptions.
-Reasonable health
-With housing that you may live in at that age
-With travel and entertainment you think you'll be enjoying
-Consider other current expenses that may be less::
---Clothing
---Automobile expenses (miles driven, replacement)
---Housing
---Entertainment
---Home upkeep expenses.. remodeling, furniture, decor,
---Taxes.. Federal, state, homestead exemptions, tax freezes etc.

No right or wrong answers. When I look around at my age peers, there are some in their original homestead, in Florida Condo's, in CCRC villas (like us), in assisted living, in nursing homes, and some doing world traveling... while about half of those who were born when I was... are dead.

While we were planning our retirement back in 1989, with spread sheets (not calcuators) we projected decreased spending as we aged. It's what I now call Phase II, though didn't look at it that way back then.

So here are some current numbers for DW and I, living in our Liberty Village Villa, still owning in our FL over 55 community at Lake Griffin Harbor, and our lakeside Park Model at Woodhaven Lakes... both of which we'll sell within the next year or two.

Current expenses $40K
After divesting Woodhaven and Florida $30K

If you have a mom , dad or other relatives today you might look at their status... where they live, what they do, where they go, what they spend.

One of the nicest parts of getting older, is that there is less need for planning... less anxiety about whether we'll have enough, wondering whether we'll die before being able to enjoy our retirement . It's much easier getting up in the morning without the overhang of worries about the future. We're very happy and grateful to be where we are, and we DO look forward to many more years, while accepting whatever the future may bring.

The regulars here at ER have already dragged themselves thru our story, but for newcomers, maybe a peek at what is now 28 years of being unemployed.


http://www.early-retirement.org/forums/f27/sharing-23-years-of-frugal-retirement-62251.html

 

[2017ish]

With so much interest about planning for the future in terms of dollar needs, here's a simple exercise that looks into the future... not with calculators that project what you'll need, but with simple logic.

So here's the challenge...
Look ahead to yourself at my age... 80. What do you see yourself spending... for one year? At today's money value, not projecting inflation.

Make some reasonable assumptions.
...

We've talked about this as part of our planning (that's 23/24 years out). Problem is the unknowns, even making the reasonable assumptions that you mention. Big ones: What City/Country will our kids be living in? Will we have grandchildren--if so where? (And, will we want to spend much time with each other?)

But, we presume that we will be traveling substantially less, regardless of portfolio value. We also will have sold our 25 acres and big house to move into the city.

 

[aja8888]

I'm almost 74, DW 72:

Make some reasonable assumptions.
-Reasonable health (not DW)
-With housing that you may live in at that age
-With travel and entertainment you think you'll be enjoying
-Consider other current expenses that may be less::
---Clothing = very little, say $500
---Automobile expenses (miles driven, replacement) - Ins, upkeep, my hobby car - $5,000
---Housing - Inc all spending + prop tax - $20,000
---Entertainment - WAG @ $5,000
---Home upkeep expenses.. remodeling, furniture, decor, - $2,000 (est - new water heater
---Taxes.. Federal, state, homestead exemptions, tax freezes etc. - $3500

Adding medical ins, presc. etc - $14,000

$50,000 total

Add contingencies - $10,000

Total = $60,000

 

[street]

imoldernu >>> I always enjoy your posts and have followed your history. I like your input because it does give us early retiring people a chance to hear from some that has been retired for awhile. You have brought a lot of encouragement for me and you talked about things that I haven't yet experienced. Thanks

The thread you have just started (above) is another great way to look down the road for some answers. Even if everyone has a different life and we don't know the future it is some great advise.

Thanks Sir

 

[Carpediem]

imoldernu >>> I always enjoy your posts and have followed your history. I like your input because it does give us early retiring people a chance to hear from some that has been retired for awhile. You have brought a lot of encouragement for me and you talked about things that I haven't yet experienced. Thanks

I agree! Thank you for sharing your life's experiences with us. I can't tell you how much I appreciate and value it.

 

[Camellia]

I agree! Thank you for sharing your life's experiences with us. I can't tell you how much I appreciate and value it.

+1

I lurk all the time and rarely post, but have learned so much from your experience, common sense, and still-curious-at-80 attitude.

 

[braumeister]

Too hard for me to estimate.

When my mom was 80, she was in fairly good health and her expenses were about $1,500 a month.

When she died at 96, they were well over $6,000 a month living in an assisted living/memory care place.

 

[evilanne]

Thank you for sharing! Only one year into retirement now but hope to be where you are one day

 

[Cobra9777]

I have a spreadsheet that projects our spending to age 100. At 80, in today's dollars, the projected spend is $61K, down from about $95K today. With inflation it's $148K, mainly driven by medical and energy. We're both 56 today.

As a comparison point, my-in-laws are 83 and 84. I do their taxes and other financial stuff, so I know that their spending is right around $45-50K. They have a modest house which is fairly new so minimal maintenance... One car which gets little use, minimal entertainment unless DW and I drag them out of the house, travel maybe once per year to see their son's family in another state, some clothes, gifts for grand-kids and great grand kids, and zero federal taxes.

They retired in the early 90s with a little more than $1M nestegg. It's now down to about $130K. They traveled extensively until health problems slowed them down 7 or 8 years ago. They also sold their beach house in Florida and moved close to us here in Texas.

 

[pj.mask]

Good post. Yes, lots of variables. When my grandma was late 70s she moved to assisted living because grandpa was mid 80s and needed help she could not provide. Their housing cost several thousand a month (I believe ~$6k) exclusive of activities and outings.

 

[Richard4444]

As braumeister alluded to above: we can plan within reason ... however, what may throw the whole thing off is if the 'last man standing' (the phrase DSO and I use) requires extensive care with ADLs. We may or we may not, and that is the biggest variable. It would be a lot easier to plan if we knew (and we have not purchased long term care insurance nor is it in our plan now).

Rich

 

[ejman]

Currently 67 and I'm assuming that expenses will remain roughly at the present level (60 - 70k a year) until 80 as I have seen several examples of people of that age living in the same rural environment with acreage as we do. Beyond that however it gets really hard to estimate as health requirements vary so widely with the aging process and the big elephant in the room is how technology will evolve. Will we have robot assistants 20 years from now and self driving cars that would allow one to remain in place even as infirmities take hold? I'm not sure that assisted living/nursing homes will be as we see them today 20-30 years from now.

 

[Blue Collar Guy]

my spending will be zero. Im positive ill be dead before 65

 

[Danmar]

I'm currently almost 67 DW almost 60. My plan is to spend the same amount (adjusted for inflation) until my demise. What the DW does thereafter not sure but probably will be less. Our income, dividends and pensions will continue until the second of us us gone.

The components will certainly change though. We will likely have sold one or maybe two of our homes. Travel? Not sure but less active for sure more cruising and less biking. End of life health care expenses can be pretty well covered by our current travel budget, so not really an issue. The bottom line is there is plenty of cash flow available to us. How we spend/gift it will almost certainly change. Have no intention of building up a huge legacy so will either spend it or give it away, me thinks.

 

[Danmar]

my spending will be zero. Im positive ill be dead before 65

How can you be positive about something like this?

 

[Fedup]

Come'on, he 's always kidding.

 

[Blue Collar Guy]

How can you be positive about something like this?

OK, as fed said i like to keep it light, but dad passed at 57, and im slightly chubby.

 

[ejman]

How can you be positive about something like this?

The Judge told him so?

 

[Richard4444]

Will we have robot assistants 20 years from now that would allow one to remain in place even as infirmities take hold?

Now that sounds both interesting and becoming to sound very possible !

Rich

 

[braumeister]

My plan is to spend the same amount (adjusted for inflation) until my demise.
…
The components will certainly change though.

This is it in a nutshell for us, too.
At some point the interest in travel and hobbies will begin to diminish, freeing up a substantial chunk of our budget.

At another point, the possibility of assisted living, etc. may rear its ugly head, and that will take the place of the travel and hobby spending.

 

[aja8888]

This is it in a nutshell for us, too.
At some point the interest in travel and hobbies will begin to diminish, freeing up a substantial chunk of our budget.

At another point, the possibility of assisted living, etc. may rear its ugly head, and that will take the place of the travel and hobby spending.

What we are seeing is the travel and hobby spending is declining at a similar rate that the medical spending (prior to assisted living spending) is increasing. Of course, some people make it quite far along in age before this trend occurs.

 

[JOHNNIE36]

Imoldernu, thanks so much for the post. I think of you often as we are in the same boat age wise. I'll be 81 in September. Is that the November of my life?

Like you, DW (79) and I are winding down. Trying to make sure we have enough to last without becoming a burden to our children. Both in fair health (we think) although we have our problems. I survived a heart attack in 2004 and my wife is a cancer survivor.

We are down to one home, mortgage free. I have been retired for 29 years and living comfortably on my pension plus our SS plus some investments. All of our investments now are in Vanguard Wellesley thanks to recommendations from folks on this forum. I'll never be a millionaire but I've felt like one thanks to my wife.

Best wishes, imoldernu, and to your family and to all members of the forum.

 

[kcowan]

Thanks moldy. What I think is great is that you are just now considering ratcheting back in housing. That probably means another 5 years before you have to consider one place. We could not consider that but in 15 years, we might think differently. Thanks for you return to our forum and active contributions.

 

[imoldernu]

Imoldernu, thanks so much for the post. I think of you often as we are in the same boat age wise. I'll be 81 in September. Is that the November of my life?

Like you, DW (79) and I are winding down. Trying to make sure we have enough to last without becoming a burden to our children. Both in fair health (we think) although we have our problems. I survived a heart attack in 2004 and my wife is a cancer survivor.

We are down to one home, mortgage free. I have been retired for 29 years and living comfortably on my pension plus our SS plus some investments. All of our investments now are in Vanguard Wellesley thanks to recommendations from folks on this forum. I'll never be a millionaire but I've felt like one thanks to my wife.

Best wishes, imoldernu, and to your family and to all members of the forum.

Thank you, Johnnie... and best wishes, back to you and yours. FWIW, uroldernme, by one month, and have one more year of retirement under your belt. I'm still learning, so will listen for advice from an oldertimer.

A chance here to reflect on happiness... Life doesn't need to be perfect. I'm sure you face the same blips and downsides as do we all but they pale into insignificance when we appreciate what we've had, and how fortunate we are to be where we are, and able to do what we can, knowing that we've been blessed to still be around.

And, yes, the best to all of the members with whom we share our plans, thoughts and experiences. A great place for mental exercise.

 

[Souschef]

I just turned 79. My plan next year is to join OFO (United Flying Octogenarians). As long as I am in good health, I have no problems. My Dad lived to 92, and my Mom just died at 102.
When we first retired, we were spending $40K a year on travel. Now with our buckets pretty much filled, we are down to about 10K per year.
Between our SS and pensions, it pretty much covers our expenses. I have allocated a certain amount of mad money for me out of my RMD. The balance of the RMD is divided 4 ways between each of our sons (2 mine, 2 hers).