<p>@SOSconcern, sometimes I’m superstitious about these things, so I didn’t want to say anything. I am very happy about your great news </p>
<p>I have friends that have AL coastal property. They had a really escalating prices for a while; the 2008/2009 drop hurt them sharply, and now climbing back up. Their insurance premiums and ability to get insurance has moved ins to be high. However they love it there - sold H’s airplane, so it all is what you want to spend your money on. They have had a lot of stress with HOA…</p>
<p>There are a lot of strategies to live where you want. A friend sold a good house in Denver to work in a really high priced area - thinking she could find something to fix up. Everything was high, so eventually moved back to Denver.</p>
<p>If one truly wants to live in an area and is willing to rent and scour the area continually until finding something affordable. Most realtors are looking for quick sale, quick purchase IMHO - they often worry about someone using their time and then not buying/selling with them.</p>
<p>There is a big downsize to having a tenant right next door to you, and trusting someone in your residence is really risky. Being a landlord is certainly not for everyone. H is very handy and I am very good and can do ‘property mgmt’ but H has no desire for owning anything but our own place.</p>
<p>I would vacation in an area, talk to locals a lot, etc. Uncover all the cons to go with the pros.</p>
<p>my FL property insurance is more in the $2000 range, with $1000 deductible. If I move, new insurance, even from same company, will be 3-4x as much. Its another good reason for staying in my house, in a friendly neighborhood, with an incredibly modest HOA. If someone comes to meetings over a year, they will probably be asked to join the Board. When I was painting my house, I knocked on door of 2 members of Architecture review board, they came over, and approved on spot. (My painter happened to be working on house across street, and had a few days free.)</p>
<p>ALF=assisted care facility SNF= skilled nursing home</p>
<p>I’ve done consults at most places, and have a feeling for levels of care and quality of food, and the extent of activities offered. I’d rather be in an independent/ALF than trust my future to one private companion. On the other hand, I would be a good caretaker, and would not mind having someone like dstark’s daughter living with me. I have thought seriously about having a foster child live here.</p>
<p>Thanks to dstark for his explanaton.</p>
<p>Assuming that the sale price of a house is $343,990 (let’s round it up to $350,000), how much does the seller pay the real estate agent if hiring him/her to sell the house? Is it still 6% or $21,000 today? Will there be any other cost so that the total cost will be around $30,000 when every seller’s cost is included?</p>
<p>If I have a property worth, say, $350,000 and I still owe $120,000, is it reasonable to assume that I could get $350,000 - $30,000 - $120,000 = $200,000 back when the sale transaction is completed?</p>
<p>(I guess our house may be worth $300,000 to $350,000. And we owe less than $120,000, I think.)</p>
<p>One thing that still confuses me: When people say that they need, say, $750,000 (in addition to SS income) in order to be able to retire, is the $750,000 before tax or after tax? Most retirement accounts for many people are in tax deferred accounts (say, 401K), unless they planned it well in their life time (using Roth IRA instead of deductible IRA.)</p>
<p>I recently sold a house. There was a state tax, a city conveyance tax and various adjustments based on property taxes, lawyer’s fees etc. The realtor took 5%. Perhaps she was desperate as the market here is a disaster.</p>
<p>Mcat2, have you tried calculators? Don’t freak out. It is easy.</p>
<p><a href=“Best Retirement Calculator: Simple, Free, Powerful”>http://financialmentor.com/calculator/best-retirement-calculator</a></p>
<p>You don’t have to fill in every line.</p>
<p>You can try different scenarios. Put your monthly pension in the last section. If there is no inflation adjustment enter 0. </p>
<p>Social security also goes in the last section.</p>
<p>You can start out with an inflation number of 2.75. There is a box to enter your average tax rate.</p>
<p>Any questions… Just ask them here. </p>
<p>Doct, with wall street bouncing, why does the real estate market suck ?</p>
<p>Bookworm, another option is to put my daughter in an independent-assisted living facility when she is 60. I like these better than places for the disabled. My daughter would be much easier to handle than my father in law and he lives in one of these facilities now. </p>
<p>My daughter is physically healthy and psychologically in good shape. She gets alng with people very well. She has a low iq. She needs very little help. She can’t do her finances. She can’t drive. </p>
<p>I like the security of the assisted living places. </p>
<p>My folks lived in an assisted living place for awhile and there were people thst needed a lot more help than my daughter. Many of the aged are disabled. </p>
<p>I was wondering if there are any rules against people like my daughter living in one of these places some day. </p>
<p>This post is a retirement issue. Mine. :)</p>
1 Like
<p>I don’t like that retirement calculator. I put in the inflation number of 2.75%, and it said I needed to save an extra 36K a MONTH until retirement to reach my goal. Or maybe I screwed something up, but I don’t think I’ll be able to save an extra $432K/yr until retirement.</p>
<p>This is suburbia. Young people don’t want to live here. The growth of our economy has been lousy compared to the rest of the country for years. We’re near the bottom in job growth, near the top in taxes. The state finances are in terrible shape. The housing market hasn’t recovered and home prices are far below the peak levels. The governor’s race was between two incompetent boneheads. What more could you ask for?</p>
<p>Busdriver11, you have a typo somewhere. </p>
<p>Doct, hmmmmm…:)</p>
<p>Busdriver11, lower your desired estate number. You don’t need such a large estate when you are dead. The estate won’t do you any good. :)</p>
<p><a href=“Struggling Connecticut job market a key element of gubernatorial race”>http://www.nhregister.com/general-news/20140803/struggling-connecticut-job-market-a-key-element-of-gubernatorial-race</a></p>
<p>I halved what I needed at death (I would like to leave the kiddies something). Doing good for them is more important to me than doing good for myself, though I suspect they will be just fine. With rate of inflation at 2.75%, I still need to save an additional 16K/month. If I put an inflation rate of 0, I don’t need to save. I think I’ll just plan on zero, think that will happen? Or maybe I really won’t need large amounts of income when I’m 90. Maybe I’ll need to just die earlier to make the numbers work out. I think I’m planning on needing way too much money, which might be reasonable when we’re in our sixties and seventies and still traveling around, but not so much later on.</p>
<p>Are they perhaps looking for input as 0.0275 for 2.75% inflation?</p>
<p>Doct, I believed you. Very depressing article. What state is your daughter going to live in?</p>
<p>Busdriver11, 
.</p>
<p>Without giving me the numbers because they are none of my business…</p>
<p>Did you enter your net worth not including your house in your current retirement savings? Retirement savings are not just what you have in your retirement sccounts. They are your financial assets and your condos. </p>
<p>What percentage did you throw in for rate of return? </p>
<p>Did you use an average tax rate and not the marginal tax rate? Your average tax rate is lower than the top tax rates.</p>
<p>Did you put the pensions in there? </p>
<p>If you get SS, did you put that in there?</p>
<p>Do not have inflation at zero. 2.75 is a good number. Could be 2 percent. I would not go lower than that. </p>
<p>Yes…cut your spending down and that will help. Play with lower spending numbers. </p>
<p>Dstark, somebody here is sure to be much better able to help with this than I can, but here goes. Spouse mentioned ADLs and suggested contacting individual facilities to ask questions about level of care and to whom they provide it.</p>
<p>Here are a couple of links I found (only a quick search and, beware, I can’t tell you anything about the sources ). Maybe they’ll be of some minimal help if only to jog a thought of something else you wanted to check next?</p>
<p><a href=“http://www.ahcancal.org/ncal/resources/Pages/ResidentProfile.aspx”>http://www.ahcancal.org/ncal/resources/Pages/ResidentProfile.aspx</a></p>
<p><a href=“http://www.seniorhousingnet.com/assisted-living/adlsandiadls.aspx?source=web”>http://www.seniorhousingnet.com/assisted-living/adlsandiadls.aspx?source=web</a></p>
<p>I actually put our house in there too, along with the rental properties. I’m considering that it is an asset that we will eventually sell, no way will we live here till age 90. Maybe I should take it out. I put a 5% ROR, 25% tax rate, pension and SS. But I think I’m planning on needing too much money, though I didn’t think it would make that much of a difference. Problem is, after 30 years when you add in inflation, that number can become massive.</p>
<p>dstark, you got me all excited with your post pages ago that California had no estate/inheritance tax… maybe a rainbow in the thunderstorm of taxation! I looked it up and they do appear to have some estate tax… above 5 million, or 5.25 million, or thereabouts; and the rate is 40%. Granted, that level would exclude most people…</p>
<p>@1203southview, that’s the Federal estate tax, not the state.</p>
<p>That retirement calculator is a little wonky - it asks for a tax rate on your retirement income, then asks for post-retirement income net of taxes. This doesn’t give me confidence in their calculations.</p>
<p>In any case, what is more interesting to me than how short my savings are going to be based on some hypothetical desired income amount, would be how much income my assets and retirement will generate. I can more easily adjust my spending to match my income, IMO.</p>
<p>ahhh, thanks notrichenough. Good to know…</p>