^^Kaiser can be a really option (particularly in California), but only when there is a Kaiser hospital within a reasonable drive. Of course, a “reasonable drive” may shrink the older we get. 
It is a business quandary that BCBS can operate profitably and pretty well in some states, and some plans are ‘umbrella’ under larger group (IL, TX, etc which we are part of under TX plan); BCBS of AL is strong/profitable. In our area, once one gets to MC, doctors don’t drop people that are current patients.
After retiring, we will see where the kids live and decide then where to live. The grandchild draw and family ties. We have friends that H had an apt in another state for a while for work. When they closed up that apt, they got an apt near their grandchildren, also in another state. That way they can stay, come in and out w/o family inconvenience, and see more of their family.
How does a 30 or 40 year old think that 1.2 million is enough saved to get them to age 90. In this article#13729, the guy currently making 6 figures says that they plan to live on 40,000.00/yr. BUT for now, the wife still works so all is good. I think if you are used to making a healthy income, this plan is silly.
Here is something fun to look forward to. Gentrification of 55+ communities. The older residents who have lived there for years, lost money in the crash, and have limited income dealing with the new Google retirees with big brokerage accounts and big plans for upgrading the community. Fun times at the HOA elections and meetings.
“the new Google retirees with big brokerage accounts and big plans for upgrading the community.”
I have a feeling a lot of these folks won’t be moving into 55+ communities.
Oh they will and are Not the “tippy top” (lol) Google types but folks from a slice below still loaded with cash. Like some of the retiring middle managers from Mr.'s former place of work who are buying properties in the South.
I am not intimately familiar with 55+ communities nationwide, but around these parts (Charlotte NC) there seem to be many new ones opening up almost daily. So I don’t see new wealthy retirees moving into established communities with older ageing existing residents. Rather, I see 55-65 year olds moving into new communities. I visited friends at a nearby 55+ community and enjoyed the clubhouse restaurant and was very impressed with the pool and common facilities. The whole place felt like a cruise ship (without the ship) (because the average age on the last river cruise we were on seemed like about 70)
That is a problem with HOA’s - you can have some that will spend countless hours working towards something financially unwise for self. So you have to go out and get the silent majority voting/informed.
My wife and I don’t have kids, and my work is extremely demanding, so I’m really hoping to retire before 55 (maybe as soon as 50). The goal, if all goes well, is to do so with ~$3 million in cash and real estate, and then basically be rentiers and downsize a little (although we’re on the frugal side already). Whether that happens is somewhat dependent on the whims of the Seoul real estate market, but I think we’re well positioned, and if things don’t go quite as well as we expect, it’ll just mean a few more years of work, probably part-time/seasonal. The good news is we have terrific socialized healthcare here. If the US gets its healthcare act together in the coming decade or so, we might even make a move, and if it doesn’t, we could swing a golden visa in, say, Portugal for eventual EU/Schengen permanent residency. But we’ll see…so many ifs…
How much to retire? Hmmm, well for us, we decided that we need our very expensive (but also relatively small) house in San Francisco fully paid off, for our kids to be fully launched with excellent education and good careers, that we had about $3 million saved, and that we had a government paid (medium to small) pension and excellent government health care insurance.
Yes, hubbie and I are comfortable and grateful for that gift, but we do not live large. It is shocking to us how much one needs to live without fear heading into old age in this country!
… also retiring relatively early, but not outrageously early. 60 -62 were our target retirement ages.
Agreed. And even more shocking (and heartbreaking) how few can do so.
Amen.
What’s the NPV of your gov’t pension and healthcare? $2 million or so?
So you have $6 million or so in assets (assuming your house is $1 mil) and less than that makes you afraid?
Virtually everyone would be afraid if you needed $6 million to retire.
What do you think your expenses will be in retirement? With that asset base you could get $200K+/year forever.
NPV?
I’d bet their house is worth perhaps double that, @notrichenough. If DH had excellent government healthcare. (or equivalent, available from a past or current employer) he’d probably have retired years ago.
@anxiousmom- am guessing net present value
Net present value. The lump sum in today’s $$ it would cost you to buy that annuity.
notrichenough:
Yes, this is my point. One needs either assets or a wonderful pension, or both, to feel fully comfortable in old age. Particularly if one lives in a high cost area.
Maybe off-topic and needs a separate thread, but parallel to this discussion: I’d like to hear everyone’s thoughts on what is likely to happen during our retirement years, when the majority discover they are not prepared? We’ve lived a very thrifty life, so have accumulated enough (we think) to retire in our 60’s. It assumes Social Security will be available, that inflation is kept in check, and that we continue to live our thrifty life, hopefully to our early 90’s. I’m always shocked when I read statistics on the ‘average’ amount soon-to-be retirees have saved. Not nearly enough to maintain their lifestyle. Some are lucky enough to own homes in areas with inflating real estate, but we’re not one of them, so need to rely on our savings. So what is the likely scenario for both those who have not saved, but also for those who have? Will SS become means tested? Taxes raised for those who have enough savings, to assist those who do not? I’ll admit I’m selfish. I try to contribute to those in need, or to causes I believe in, but I do get upset when I’m asked to contribute to those who failed to plan.