My wife and I are both healthy soon turning 65 and planning to work part time for the next 5 years and together earning a net worth of $40K. We own our $2 million home, and we collectively have approximately $2 million, $450,000 in cash and stock, a $750,000 vacation home, and a $10,000 profit annually. We expect to spend about $75,000 a year to live, plus up to $35,000 a year while we’re fit enough to travel for the next 20 years. Can we all do it all, hang on to the vacation home, and leave something to our kids?
At age 65, the average life expectancy of your spouse is around 23 years. That’s average, and being healthy, you can budget for 5 more, so a full 28 years.
If you were hoping to retire and travel the world, how much would you need to ensure that some of your inheritance survived?attributed to him:Michel Mossop
Assuming you spend $100,000 per year, capped at 2 percent inflation (a low estimate to allow spending to be reduced over time), $2.25 million will pass if your investments earn 5 percent per year after taxes, or $3.1 million if your money is an average 2.5 percent.
The real problem is that one of you will move into hospice care and the other will stay at home. You will likely end up selling the vacation home in a couple of decades.
I am a 67 year old single woman in good health. I’ve owned my home, in a popular inner suburb, for 32 years and hope to stay maybe for another 8-10 years. I receive super pensions totaling $6,900 a month, and it looks like I need all of that, given the costs of everything are so high. In 2017 with my retirement changes I had to adjust what I had in my retirement account and transfer $150,000 to a new account because I went over the new limit. I recently received an inheritance of $490,000. How can I preserve this legacy for the future?
It looks like in 2017, you had about $1.6 million in super, a paid home, and then $150,000 in a backlog.
Looking to the future, if you are moving into a retirement village and later into a nursing home, this should be financed by selling your home within your city, as you don’t mention that you need to worry about any dependents.
If you are able to sell your home for, say, $1 to $2 million, that may cover your total recoverable entry cost, although this can rise to well over $2 million if you decide to actually go to market.
Originally published at Melbourne News Vine
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