<p>Rental properties can really help…The more returns exceed inflation, the less principal is needed. Usually rents go up over time…</p>
<p>Adding 6k to 7k a month would be sweet.</p>
<p>Healthcare is a very big issue. The fact that preconditions cant be used against a person is very big. </p>
<p>Collage1, I do the same thing with regards to cash as you do. Financially, this wasn’t the best decision. Psychologically…it is what worked for me. Maybe I should have gone with the better financial decision. :)</p>
<p>Must admit I’m frankly surprised that companies take on the risk by self-insuring. It exposes them to potentially huge losses if several of the employees or family members get expensive medical issues like cancer, paralysis or other. Both H and S are insured by federal plans as federal workers (H retired and S current). I had insurance when I worked for a private firm and later when I worked for the state government. Have never had an employer who self-insured.</p>
<p>@collage1, How big is a “fair amount”? $10K? $50K?</p>
<p>Instead of keeping a big pile of cash in the bank making nothing, we got a HELOC on our house. It cost nothing to set up, it costs nothing to keep it open, and if you need money you just write a check. The interest rate for mine is under 3%.</p>
<p>Then the big pile can be used to pay down other debt or be invested in less liquid investments.</p>
<p>HImom, this is usually done by large companies, who can spread the risk around. Many of them are larger than the insurance companies that administer the plans. </p>
<p>OK, I guess that makes sense but really can be tough on the employee insureds, if they have problems getting their claims paid and don’t want to cause a fuss and risk their jobs. Am glad we have not had employers who self-insured.</p>
<p>I havent heard of too many problems with people not getting their claims paid.</p>
<p>I do wonder if one reason older people have trouble getting jobs is their health care costs are higher. I am just wondering. I dont have any facts on this.</p>
<p>Yea, H & I are both older than 53. My folks are WAY older than 53. Fortunately, my mom has my brother who is VERY sharp but older than 53 handling her money and growing it nicely. </p>
<p>I think dstark is right about the estate tax and california. Plus the climate helps to retain people. Oregon wants 16% of what you die with over $1MM, which is the price of a modest house in some places. Its usually only the aging wealthy who make those moves, though. </p>
<p>I wonder if anyone moves from Oregon and Washington to California as they age to avoid the state estate tax. I know someone who did that moving from Massachusetts to Florida, but he was wealthy enough so that it made a very large difference in absolute terms in his estate. And I think he like being in Florida in the winters anyway, so it worked out for him to shift his domicile. </p>
<p>I think there are a LOT of things to consider in moving, particularly as we age. For us, living near family and loved ones is important. As we age, access to quality medical care is also VERY important, as is access to airports so we can travel and be visited. I wouldn’t say estate taxes are high on my list of things to consider in relocating, but for folks with an estate above $1MM, it does sound like something to add to the list of factors.</p>
<p>H will NOT consider moving from HI. We hope to convince both our kids to move back to HI, but time will tell what happens. If the kids both settle away from HI & near one another, I may buy a small place near them so I can have prolonged visits. We shall have to wait and see, as currently both say they want to move back to HI once they have gained experience and can get good jobs in HI.</p>
<p>My wife’s aunt owns a place in the SF Bay Area. She has a son that lives in NYC. She does a house swap every year. 4 to 6 weeks at a time. I think with the same person. Not sure. There are companies and web sites out there for people that want to swap for a period of time. I think Hawaii would be a desirable destination swap. :)</p>
<p>H would never want anyone living in our home. We’d be more likely to stay at a Residence Inn or Staybridge type place or rent an apartment or similar for a month or longer. I think swapping could be cool if you don’t mind if folks might go through your things or potentially do some damage to your home–H isn’t comfortable with either, and it’s unlikely we could get everything out of sight while swapping.</p>
<p>I bet swapping a local-ish vacation home (with less “stuff”) would be easier that swapping your base home. I think folks here in CO with ski condos sometimes swap for warmer climate. </p>
<p>Yes, definitely something to consider, or rent out your vacation home and use the money to stay wherever you want. Would consider swapping with GREAT friends and family only.</p>
Would consider swapping with GREAT friends and family only.</p>