Join Date: Sep 2013
Thanked 8 Times in 6 Posts
Rep Power: 3
Re: Real Cost
unimacs, I think planning out 20-25 years is good enough right now, I can wait on figuring out what to do at 90.
My point is that when you're trying to figure out what your burn rate is going to be, you can't assume it's going to be the same when you're 50 to 70 as when you're 70 to 90.
Our financial manager told us that we can expect to not be traveling much in our 80s and 90s so that saves some money. That's the financial upside. The downside is that you will most likely become increasingly reliant on other people for your care. Maybe family members and friends can do that, maybe not. You have to plan for the maybe not contingency and that can get expensive. Lots of people are buying long term care policies once they reach a certain age. That may be difficult for you to do at 60 if you're on a fixed income. You could purchase a policy right before you're about to retire and it probably would't be that expensive. You just need to allow for it.
Note: You have to think about your family health history. If all of your relatives are basically healthy until 70 and then drop dead, a long term health care policy is a waste of money. And in your case if you remain a bachelor you don't really need to worry about one spouse's health care costs decimating the amount of savings available to the other spouse.
Last edited by unimacs; 10-08-2013 at 11:38 AM.