Well, in our case, at age 54, our house is worth about $1M, owned free and clear.For a mathematician, where did you pull that figure from?That's what selling your paid-off house is for.$55k per year is nothing if you have to go into assisted living or nursing facility. At least with a SPIA, you will guaranteed income, hopefully keeping you out of the Medicaid ward.Instead of a SPIA the 80 year old could just draw down the $498K at the rate of $55K a year and survive at least 9 years; I realize that's not a lifetime, but one keeps control of their cash.
If we assume it keeps up with inflation, i.e. maintains its value in real terms, by the time we get too old to live on our own (say age 80-something), that gives us $1M real to pay for assisted living for remaining years.
Alternatively, one can always manage one's death date, instead.
Statistics: Posted by watchnerd — Thu May 16, 2024 10:46 pm — Replies 267 — Views 21194