How do you plan for possibility of early death of a spouse in FIRE

[RetiredHappy]

Well those maintenance fees won't disappear...and if you don't golf as much maybe you will take up a different hobby with some friends...my comment was maybe some couples want to leave travel costs in their budgets even for a single.

With our timeshare, it is a fairly easy deedback or brokered resale through the developer. We belong to a country club where we golf 4 to 5 days a week when we are not travelling. I am not eliminating country club membership dues from our "widowed" budget as it is a huge part of our lives.

 

[ncbill]

Yep, I told a widow once she qualifies as administrator/executor to tell the company no one is willing to take the deceased's stinkin' timeshare.

 

[rayvt]

Are you certain that the surviving spouse won't wish to travel? That depends on a lot of things doesn't it? Now if a couple it looking at how much they could spend as a single, it's fine to say, well I can cut travel.

A large part of the enjoyment of travel is having someone to share it with. I would think that traveling alone would be very boring.

 

[rayvt]

Well those maintenance fees won't disappear...

Yes they will. Just stop paying them. You'll get dunning letters for a couple of years, just toss them in the trash.

 

[Finance Dave]

A large part of the enjoyment of travel is having someone to share it with. I would think that traveling alone would be very boring.

I agree with you, but there was a story on NBC TV today about a new trend of solo travel.

 

[GravitySucks]

A large part of the enjoyment of travel is having someone to share it with. I would think that traveling alone would be very boring.

I agree but I’ve done a few solo trips just me and the dog. Sometimes it was lonelier than staying home alone but for the most part it’s enjoyable.

 

[LateToFIRE]

A large part of the enjoyment of travel is having someone to share it with. I would think that traveling alone would be very boring.

To each his/her own. I actually quite enjoyed traveling solo, both in the U.S. and internationally, as I have done quite often for work. Of course, given a choice, I vastly prefer leisure travel with DW. But, if I did not have her, my approach would be very different - I'd do more of the things she wouldn't be interested in - more adventure travel, less pampered, relaxing spa/resort stuff. And actually, I'd probably do longer, more frequent, immersion trips to farther flung destinations for months at a time if I were on my own (and able-bodied). The very last thing I'd want would be hang around home.

 

[Koolau]

Interesting thread. I cranked the handle and accounted for pension survivor levels, loss of my SS, higher taxes, etc. and assumed non-tax expenses would stay the same. All in, if I predecease DW, her WR would be approximately 1.0%. While I'm alive our WR is 0.46%. I think things are covered OK.

Heh, heh, sounds like it's time to BTD - Big Time!

 

[brett]

I cannot see into the future. I have no idea what my spouse might do with her life after my demise should that occur prior to hers.

The one thing that I can do is ensure that my, our affairs are in order from a legal and financial perspective, and that the financial path forward is clear. That any future financial needs are secured. After that...who knows. A move, travel, a new partner? It certainly will not be within my purview.

I have no desire to speak from the grave other than go and live the very best life for you that you can possibly achieve.

My ultimate goal would be to remove as many artificial and financial barriers as possible in order that my spouse could move forward with life in any way that she desired.

 

[Koolau]

I cannot see into the future. I have no idea what my spouse might do with her life after my demise should that occur prior to hers.

The one thing that I can do is ensure that my, our affairs are in order from a legal and financial perspective, and that the financial path forward is clear. That any future financial needs are secured. After that...who knows. A move, travel, a new partner? It certainly will not be within my purview.

I have no desire to speak from the grave other than go and live the very best life for you that you can possibly achieve.

My ultimate goal would be to remove as many artificial and financial barriers as possible in order that my spouse could move forward with life in any way that she desired.

Very well stated.

 

[Sunset]

When my Uncle's first wife was young and dying too soon, she told her husband and her best friend that they should get married once she was gone.

They did within a year, and had a long happy marriage.

 

[FI_RElater]

mostly arranged for us

In my planning, up to age 92 for me and age 95 for younger spouse, we considered:

• neither EVER having to return to w@rk

• at least one will potentially require LTC, expect five years in planning with surviving spouse, if needing care, to sell house and go into LTC facility with those funds in addition to any unused funds from first-to-pass and any IRA (both tIRA and Roth) from them. Hence, I have left funds to cover this (currently over $600 k, but plan for only about $400-500 k).

• getting as much COLA'd funding as reasonable.
Spouse had somewhat higher pay (HCE) but due to HCE rules could only get 10% into 401k and salary didn't quite get to the max; I generally maxed mine out. Total comp didn't allow for Roth and didn't exist in earlier years; in later years were in thirty-whatever fed tax plus state tax so used traditional as we knew we'd be in lower bracket in retirement.

• Spouse only had a cash balance plan while I had a COLA'd pension, but it had a 50% max survivor (would have preferred 75%, took at 50% survivor).

• With age difference, and with the change in FRA's, with my slightly lower PIA the plan was spouse to delay to 70 (for max survivor benefit) and then for me to claim at somewhere between FRA and 70.

If I pass earlier, as would be expected, then spouse claims my SS as survivor and delays their own until 70. My 50% pension plus both Roth, tIRA, and taxable should very easily cover any needs.

While I delayed, the 2022 downturn in both equities and bonds triggered the clause in the IPS that allowed claiming at FRA, which then was started. This was also to help maintain a very large cushion in taxable that would be usable between spouse claiming survivor and the age 70 benefit, rather than potentially deplete a portfolio that was down. If we both are claiming (her age 70+ and my FRA in increased by COLA) part of those funds would be added to taxable to further bolster handling any situation.

AFA housing, the house is paid off (we paid cash) but is probably too far away and too large for either (we were DINKs so no need for large house with only one).
It's likely that either survivor would sell and then decide what they do for housing; if I happen to be survivor then I would almost certainly relocate since this location was for proximity to spouse's siblings.

AFA doc's we've got wills, POA's, trust already set up but have various siblings as backup trustees; if one of them passes we'll have to revisit potential nieces that might be good fit.

 

[1242Vintage]

We covered the possibility of early death when I retired. Primarily setting up my pension with continuing survivor benefits.

My Dad died an early death (heart attack at age 56) and I don’t want my wife to struggle to get a handle on finances like my Mom had to.

I sat down with wife and went over how our pensions, future social security, IRAs, rental assets held in our Real Estate LLC, how a couple small equity and bond accounts are structured, and how all these work together to provide income we need in retirement. And most important how to access funds.

I manage all the finances and keep extremely clear and concise notes. And come tax time we both jointly prep and review all the documents needed by our tax accountant. She knows exactly what we have and how to access funds.

No male relative on either Moms or Dads side of the family lived past 60. Genetics are not in my favor. I live an active and healthy lifestyle but likely I’ll pass first and I want her to continue her retirement years without financial worries.