Retirement ,,, why is this not enough ?

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Re: Retirement ,,, why is this not enough ?

Postby Bsuds » Jan 10th, 2018, 8:07 pm

vegas1500 wrote:
Been exploring this idea for a few years now. I plan to work another 5 years or so and have explored moving overseas but maintaining a small condo in Kelowna. Would like to come back for the summers and to keep ties in canada. Have a friend retired in PV and he loves it!


Medical coverage is a concern as well and can be quite expensive the longer you are away and the older you get.
I belong to an RV group and several members no longer go South for the Winters as they just can't afford it any more.
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Re: Retirement ,,, why is this not enough ?

Postby PocoGirl » Jan 10th, 2018, 9:28 pm

TylerM4 wrote:Not a lot to add other than what my advisor told me when I asked the "How much do I need?" question. His answer was appropriately vague as everyone's idea of "need" is different.

He did tell me: We recommend a minimum of $30,000/year ($2,500/month) of post-tax income for a couple with a modest home and little/no outstanding debt (Mortgage is paid). This would be living "comfortably frugal". Little/no travel, single modest vehicle, rarely eating out, etc. Their opinion is that $50,000/year was ideal as it allowed some extra dollars for hobbies, travel, and "fun". They also said that the younger you retire the more income they recommend simply because when you're 70yo people are pretty content to sit around the house all day. But at 55yo you're going to want to get out and do things - doing things costs money ;)


My financial advisor was $3,000 per month so similar for living ‘comfortably’. With $500,000 investments & cash secured, I’m thinking retirement in 2019 and working casually for more of a ‘work less, live more’ lifestyle at age 56 to afford going out and enjoying life. Life’s too frickin short! My plan includes working casually hitting the $45,000 with retirement income while working less hours and more flexibility. It will include an upgrade at some point for my 2010 Lexus RX350 but not anytime for a long while :smt045
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Re: Retirement ,,, why is this not enough ?

Postby Silverstarqueen » Jan 11th, 2018, 7:52 am

I think your plan will work as long as the cost of nothing goes up in the next 25 years. The chance of that happening is very low. If your pension is indexed to the cost of living, then that could make all the difference. If your investments are making (lets say 8%, and your mortgage rate is at 4%, then it doesn't make much sense to pay off the mortgage (as someone suggested above). If your rates go up, that is different. But for my own piece of mind I would rather have mortgage paid by retirement.
Something to consider, if one of you had a serious health problem (heart attack, cancer,diabetes, mobility problems) do you have a plan as to how to pay for extra health costs, or even care for that person? If both of you had a health problem, you would be hooped.
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Re: Retirement ,,, why is this not enough ?

Postby Ka-El » Jan 11th, 2018, 8:00 am

vegas1500 wrote: Been exploring this idea for a few years now. I plan to work another 5 years or so and have explored moving overseas but maintaining a small condo in Kelowna. Would like to come back for the summers and to keep ties in canada. Have a friend retired in PV and he loves it!

We've also been considering PV (honeymooned at Nuevo Vallarta). Belong to a PV Facebook group and have discovered that despite the fact it is a tourist destination (plus is you will find lots of people speak English), you can still find very affordable digs for rent in downtown PV ($600/mo range). I understand the same can be said for Cabo. The golf is expensive though :o(

for golfers - there is a beautiful public course in Montecristi, Ecuador. My expat contacts there tell me expats can play on Tuesdays and Fridays for $35 including power carts (and club rentals if needed). We are definitely going to check that out. The coastal city of Manta is close by, and has everything you will need (banking, healthcare, etc.) and a large expat community.
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Re: Retirement ,,, why is this not enough ?

Postby Ka-El » Jan 11th, 2018, 9:52 am

Bsuds wrote: Medical coverage is a concern as well and can be quite expensive the longer you are away and the older you get. I belong to an RV group and several members no longer go South for the Winters as they just can't afford it any more.

This becomes a big part of the mix in things to consider, and will definitely be an issue for snowbirds. The option is to look into global health insurance products (still expensive but will cover you almost anywhere in the world), or even more affordable, becoming a permanent resident in the country you ultimately decide to settle down in and getting on to their health plans. Yes, it can be done. Follow the link I previously provided and start the research. Panama, for example, has some great benefits for senior expats (including discounts on everything from health to airfare) - but so do other Latin America countries.
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Re: Retirement ,,, why is this not enough ?

Postby seewood » Jan 11th, 2018, 10:12 am

Recently started collecting CPP(60 yrs.). House paid for, cars paid for, no Credit card debt ( I don't have one, wife does and pays it off every month), wife retired with two pensions and oap. Looking at current investment income of around $2500/month and now selling the business, going to retire while we have our health. Investing the proceeds at 5% will give us about $60,000/year. We think plenty to pay property taxes, income taxes, insurance and all other living expenses with enough left over to have a small trip every year and do some things around the house.
A friend who is a retired banker mentioned to us an income of $90,000 is what is needed to live comfortably in retirement. I'd agree, quite comfortably. $30,000 is pretty tight in my opinion. With house paid off and one car, $48,000/yr me thinks you can sleep at night for the time being until inflation really eats into the income.
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