NYEXPAT
Thinks s/he gets paid by the post
Get yourself a young Wife while you still can!
what would happen to someone who literally ran out of money before they died?
My mom is facing this situation in the coming years. Living at home she received a disability SS income, had a decent savings, and could probably have lived the rest of her life comfortably.
Then last year she had a stroke. She had to move to an assisted living home, we sold her house, her car, and the majority of her personal belongings. She now has about 240K in savings and receives about $1700 per month disability income. Unfortunately, her assisted living costs about $3600 per month, and she still has medical insurance, prescription drug plans, cable, telephone, internet, groceries and other personal items. At her current spending rate, she has about eight years before her personal funds run out and she'll basically be penniless. She'll still receive the $1700 disability income, but that will barely pay half of her assisted living, let alone any of her other expenses.
She's 72 now. Assuming she lives past 80, the only real option she'll have is Medicaid from the state, and I (her only child) will have to pay for her remaining personal expenses (which threw a wrench into our own retirement plans).
If you were to see that money is running low you should have years to respond to that by cutting back and adjusting. What kind of fool would keep his spending quo when he knows he'll be broke in 10 years? How many of us here RE'd unexpectedly and found ways to cut our expenses quickly and dramatically.
Some retirees know how to adapt. Quite a few cut the cost of living by moving into an RV, and also doing part-time work at a campground or RV park for additional income. RV life can be cheap if you do not drive the 6-to-8-mpg monster around the country, and pay monthly space rental instead of the daily fee.
Recently, there was a thread about a woman who did the above and got some media coverage. She passed away some time later due to an illness.
Yes.Does anybody actually know anybody who ran out of money after they retired because they didn't save enough?
Don't expect housing to be available once you need it.Most communities have subsidized elderly housing.
One can wake up one day, find one's spouse dead, and find that his pension has now disappeared, and your family social security benefits are now drastically cut.But...one doesn't simply wake up one day and discover that all the money is completely gone!
As an amateur landlord, I am intrigued by the concept. The government portion of the rent comes in like clockwork and the tenants are often very happy to live in a nice place where they only pay a small fraction of the market rent, based on their ability to pay (ie 30% of income). Many younger disabled folks would also qualify.Don't expect housing to be available once you need it.
In my community, the waiting list is several years long. The person I know who applied waited just under 3 years.
I wonder if there is community resistance to expanding the pool of privately owned Section 8 qualified housing where you are.
MS, won’t Medicaid kick in once she runs out of money?
Nursing Home Compare has detailed information about every Medicare and Medicaid - certified nursing home in the country. A nursing home is a place for people who can’t be cared for at home and need 24-hour nursing care.
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So if we wouldn't die if we ran out of money when we were, say, 87 (which is what FireCalc is currently showing for me, for example), why do we worry so much about those last few years? Is it worth taking a couple more years off THIS end of my life (by continuing to work, I mean) to make sure I have money at THAT end? (<--I know that's COMPLETELY subjective. But doesn't anyone else think about that?)
Well, if one continues to run forward and not make any adjustments to their spending then perhaps. But if that person has any pension, social security, annuities they are never really penniless, just overspending.Well, all these calculations we go through before retiring tell us when we'll "run out of money". That's what I'm referring to.