The last one standing is a loaded old lady
I completely agree with a recent post by Jane. My current retirement target (from my income only) is 2.5 million, though I may raise it in the future. It's long been known that women usually outlive men, so I'm preparing on at least a few years without a husband. J and I aren’t planning to have children, and while I have a niece and two nephews, I certainly don’t want to be dependent on them. Therefore my strategy is to save like I’m going to be the last one left standing.
It’s not just the desire for self-sufficiency that’s driving me, though that’s the major reason. I admit without apology that I’d also like my retirement to be as comfortable as possible. I want to spend my time doing fun and intellectually stimulating things, including travel. I also anticipate having a long life, but if and when I can no longer live on my own I don’t want to end up in some state-run nursing home where the staff is indifferent to me.
Ultimately, 20% of each paycheck is a small price to pay to attain the level of freedom that I’m aiming for.
posted by SMB @ 12:16 PM
4 Comments:
The expectation that you outlive your spouse and leave no direct heirs/dependents, puts you in an interesting (and somewhat unique) position. For a person in your position, your goal should be to sustain your desired standard of living, however to die broke. To put it even more bluntly, when they find your rotting body, you want it to be in a rented home subject to an eviction proceeding, filled with expensive items bought on credit, with all of your credit cards maxxed out.
Of course, I'm being hyperbolic for a reason, and Im of course not advocating that you go crazy on spending. But as you approach retirement, you should think about certain things that may not be foremost in your mind today, for instance:
- estate planning, so your money is not taxable or reachable by creditors, yet you are nevertheless "taken care" of
- getting credit while you can, ie., have verifiable income. One thing I have done is to gradually expand the amount of revolving credit available to me, in the hope that if I ever wanted to put into place a "die broke" plan, I would have generous credit to fall back on. Qualifying for HELOCs while you are employed is another way you can prepare to use your equity.
An interesting problem.
I'm still fairly certain I'll live longer. Make sure your nest egg is in both of our names so that I can take those vacations!
Anonymous, you have a point, but I personally don't want the anxiety of watching that dwindling stash at the very end--assuming I'm still with-it enough to be able to read my bank statements. I think even if you don't have any heirs you should plan to have something left after you die, if only to decrease the risk that you'll live on beyond that eviction notice.
To J: Yes, brat, your name is on both of my nest eggs. :)
Anonymous, while the idea of leaving nothing to the state or my creditors is attractive, the habit of saving and the good feeling that comes with being solvent will probably be so ingrained in me by that time that I'd be psychologically incapable of pulling something like that off! (And if I have the mind about me to do that kind of planning, I'd hope that meant I had a few more years left.) :)
I do plan on making a heck of a dent in my nest egg, but I wouldn't mind if a little of it "went to the dogs"--to the Humane Society or something similar, that is.
Post a Comment
<< Home