# What would be your best advice...



## CrysMos

so, I am getting ready to jump. We have the property and the house. I think I have enough saved and my job will pay my health until 65. What am I missing, need to check etc. The plan is to retire in two years. Thanks


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## Alice In TX/MO

Do you have enough of a post retirement income stream to cover deductibles and 20% of catastophic medical expenses? Or to purchase a good Medicare supplement policy? 

Do you have long term care insurance? 

Have you drawn up a power of attorney for someone you trust to make decisions if you are incapacitated? Medical directive? DNR? Out of hospital DNR? Your will?


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## CrysMos

Alice In TX/MO said:


> Do you have enough of a post retirement income stream to cover deductibles and 20% of catastophic medical expenses? Or to purchase a good Medicare supplement policy?
> 
> Do you have long term care insurance?
> 
> Have you drawn up a power of attorney for someone you trust to make decisions if you are
> 
> 
> Alice In TX/MO said:
> 
> 
> 
> Do you have enough of a post retirement income stream to cover deductibles and 20% of catastophic medical expenses? Or to purchase a good Medicare supplement policy?
> 
> Do you have long term care insurance?
> 
> Have you drawn up a power of attorney for someone you trust to make decisions if you are incapacitated? Medical directive? DNR? Out of hospital DNR? Your will?
> 
> 
> 
> yes to the last paragraph, not as much thought to the first. I’m not a huge fan of the Drs. I think the income stream is adaquate and maybe as much as we have now once the house is paid off
Click to expand...


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## Alice In TX/MO

Unfortunately, not being a fan of doctors doesn’t really factor in after a cancer diagnosis, stroke, or heart attack.


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## Edgar Olson

Hello there! That was really an amazing plan until 65. But after the age of 65, Medicare plays a very important role in everyone's life. So, you should think about your health benefits after the age of 65, if you are planning to get retire soon. Medicare health insurance policy proves to be really beneficial after you turn 65. Different types of Medicare supplemental and advantage parts are covered under Medicare. Navigate here to know such Medicare supplemental and advantage plans.


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## In The Woods

CrysMos said:


> so, I am getting ready to jump. We have the property and the house. I think I have enough saved and my job will pay my health until 65. What am I missing, need to check etc. The plan is to retire in two years. Thanks


I don’t understand - ready to jump what?


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## doozie

Save more than you think you'll need while you can, it can't hurt to have more in savings.


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## CrysMos

The plan is to set aside $500 per month to cover extra medical insurance, etc. I’m not sure if that’s enough. We should have a small nest egg as well just in case. 

Ready to jump=ready to retire

My husband had to retire about 15 yrs ago due to medical issues so it’s been hard living in the city and working while we really just want to get back to the land. I garden, can and freeze. We have a couple chickens and I make our bread. All our kids are out of the house (total of seven between the two of us) and it’s just time. The hardest part is waiting and planning, hoping you didn’t forget something.


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## Fishindude

Pay off any debt before retiring, being debt free gives tremendous peace of mind.


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## GTX63

Being debt free is freedom from obligation, power over your financial choices and a good night's sleep.

You are guaranteed freedom, liberty and life in this country; how much and for how long is up to God and Uncle Sam.


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## hiddensprings

Most definitely pay off debt before retiring. we’ve been fortunate to be debt free for a few years now other then living expenses. Everything is paid for....makes life so much easier.


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## CrysMos

So, the only dept is my car just purchased and a few credit cards. Max with the car 20 grand. Hopefully with the profit from selling the house and paying off bills that’s taking care of. I want chickens and a pig and maybe goats or pigs. I hate having to be dependant in idiots


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## CrysMos

On idiots


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## Micheal

CrysMos said:


> What am I missing, need to check etc. The plan is to retire in two years. Thanks


My best advice.....
Better plan a whole lot farther into the future than just 2 years...... Maybe more like 30 or even longer. 
Take inflation into account. There will always be inflation of one sort or another - even if the gov denies it..... 
Remember nothing lasts forever, washers, driers, autos, roofs, farm machines, even shoes, etc will break or wear out and need to be repaired or replaced.
And finally read some of the other posts in this section as to the difficulties others have seen or felt during "retirement" to maybe get an idea or two for your own future life...

Need more???


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## emdeengee

Most people retire with the knowledge that their pensions will not be what their income was. So we decide that we will live on less - cutting back. This was our idea of retirement until we sat down and did the math. Most people who get a pension end up with 50 to 75% of their previous income. That means cutting down on expenses and paying off debt even before retirement. But this does not help with future increases in daily expenses (inflation) and unexpected bills.

My best advice is to consider that you will need 100% of your previous income for your retirement which will be made up of your pensions (work and government) and your savings. In other words if your pensions total 75% of your income your savings should equal the 25% difference and more so that you can maintain what you have as well as have funds for the increases in all expenses. And you should consider that you and your partner will live at least 25 years. 

So if your pensions fall short of your previous monthly income by $1000 a month then for 25 years you will need $300,000 in savings and assets. This is not an unusual amount as most retirement advisers suggest that you have 10 times your annual income saved for retirement. They also suggest you start saving for retirement with your first paycheque. Not something we did.


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## CrysMos

I have been doing the calculations and I come out like this...

My pension plus what my hubby contributes from his, should cover everything including the housing with no mortgage with a bit extra to spare. We have enough savings to cover another 3/4 of my pension maybe a bit more. We certainly won’t be rolling in it, but I think we will have enough. 

We are not big travelers, so that shouldn’t be a big expense. I hope to pay off all debt, and possibly add to savings when we sell the house we are in now. 

The biggest change in expenses will be loosing the house payment. Right now it’s over half my take home pay.


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## MoonRiver

My advice for anyone retiring without a lot of emergency money is to buy the smallest house that will work for you. If you live in that house for 20 years, there will be a fair amount of house expenses - electricity, taxes, insurance, maintenance, etc; so the smaller the house, hopefully the smaller the expense. Plus when you are 75 or 80, you may not be able to do the maintenance you can do now, so you will have to pay someone to do it for you.

Same thing with a yard and out buildings - Minimum that meets your needs. You also may want to get a 1 story house so stairs don't become an issue. Pretend you are 75 when you choose your new home, so that when you are 75 the house will still work for you.


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## Micheal

Couple of thoughts.....

MoonRiver - I have to chuckle bout your comment on having the minimum as to yards and out buildings. Two years ago I built another out building (a 12'x12' shed) just to keep the "toys" I'm buying to make my life easier as I age. Also I don't have to pretend I'll be 75 this year ..

CrysMos - Nice to see that you are going over the numbers and planning in advance. My concern is that after you ran the numbers you are using words like "should, maybe, possibly, I think" and not having a sure grasp on what you do or will have to carry you into retirement. The more numbers you can have confidence in the better you will be.


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## Forcast

Don't go nuts on animals. They take physical work and money. Think vet bills, shots, worming, feed,bedding.
fencing. housing. Ect. If you are building living space for critters think ahead for being old, winter freezing waters, water lines, electricity nearby for light heating ect. Location...is the critter area easy to get to, easy to load feed, store feed, winter is a bitcs. Start small once you have that down pat add. Pretend it's just you on your worst day. Can you handle 12 chickens, milk the goat, haul the water and feed muck out the stalls. deal with 10 inches of snow/ice/rain to get to the pens? What about unloading 50 pound bags of feed?


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## mnn2501

emdeengee said:


> They also suggest you start saving for retirement with your first paycheque. Not something we did.


Not something 99.999+% of people do. Unfortunately I didn't start until my mid 40's


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## mnn2501

Keep in mind that at some point one of you will die and the other will only have their income to live on. My brother thought he was fine until his wife passed, then he quickly lost everything because his income dropped in 1/2 but his expenses stayed almost the same.


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## newfieannie

same as Michael I don't have to pretend either and I'm still buying "toys" ~Georgia


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## emdeengee

I absolutely agree about being in the smallest home that is comfortable for you when you retire. And one that is preferably without stairs and with the possibility of alterations to suit lack of mobility or vision impairment. 

I don't know what it is like in the US but there are a lot of senior parks and retirement communities being built here in Canada providing you with your small owned home and services for reasonable prices. We have several friends who have downsized to these communities and they all love their lifestyle and are comfortable with the cost which is about half of what they were paying.

We will definitely be downsizing.


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## emdeengee

mnn2501 said:


> Keep in mind that at some point one of you will die and the other will only have their income to live on. My brother thought he was fine until his wife passed, then he quickly lost everything because his income dropped in 1/2 but his expenses stayed almost the same.


This is very true and must be planned for. I remember how this preyed on my Dad's mind when he was ill - so worried about my Mom. We tried to assure him that they had planned well and besides we would all be taking care of her and not to worry but he was a mathematician and knew how much of an income financial change there was going to be and how much things cost and were likely to cost.


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## AmericanStand

I'm not so sure a minimum SIZE house is best Id think minimum Maintenance.


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## emdeengee

Once again I do not know what the rules are in the US but here you pay property taxes according to the size of your house, the facilities inside the house, outbuildings and property size. So big means more expensive and if you are not using the space then you are paying for nothing. Friends kept their 4000 square foot home for years after retirement because of the kids and grandkids coming to spend time with them. Never happened. They did all the travelling to be with family. Finally downsized and are much happier and with a lot less maintenance on the building and property. 

But it all depends on your lifestyle. If you want livestock you will not be moving into a retirement community so you will need land and buildings. Old age is not just one time of life. Age 65 is very different from age 75 or 85. Might as well compare a kindergarten child to a high school student to a young adult. Each stage will require changes so it is best to actually have a 5 and 10 year retirement plan.


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## Alice In TX/MO

I keep thinking I should start a retirement community that encourages gardening, has chicken coops, and a milk goat herd!


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## nehimama

Alice In TX/MO said:


> I keep thinking I should start a retirement community that encourages gardening, has chicken coops, and a milk goat herd!


You rock! Great idea!


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## GTX63

CrysMos said:


> so, I am getting ready to jump. We have the property and the house. I think I have enough saved and my job will pay my health until 65. What am I missing, need to check etc. The plan is to retire in two years. Thanks


If you wait until you have every i dotted and every t crossed, you'll regret every day you spent recrossing and redotting.
I learned a long time ago that the difference between a dream and a vision is only one becomes reality.
You only grow old once; you can do so in regret or in fulfillment. Now go get em!


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## Micheal

emdeengee said:


> Once again I do not know what the rules are in the US but here you pay property taxes according to the size of your house, the facilities inside the house, outbuildings and property size. So big means more expensive and if you are not using the space then you are paying for nothing.


It's the same around here we pay taxes on "Assessed Evaluation" which takes into account size of house, outbuildings, and size of property. Although you do not have to let them have an inside view of any of the buildings.
Living rural I only have 2 taxes; town & county and school and then being over 65 I do get a break on school taxes via the "Star Program" here in NY. In turn if I lived within a city limit there is usually another tax owed.


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## AmericanStand

Alice In TX/MO said:


> I keep thinking I should start a retirement community that encourages gardening, has chicken coops, and a milk goat herd!


I tried that idea out in my little town, the town didn't want it and shut down that Idea In a heart beat.


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## Micheal

Alice In TX/MO said:


> I keep thinking I should start a retirement community that encourages gardening, has chicken coops, and a milk goat herd!


Sure would be different!!!!!!
I subscribe to a couple of "retirement" type magazines and if'n you don't have at least a swimming pool, gym, hiking trails, community center and 57 golf courses you just don't fit what the +55 community wants - or so they say.........


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## AmericanStand

The reason I think a bit bigger house might be best is two fold. Room for a live in care giver or more and room to do activities inside.
At this point my nephew does some of the care giving for my parents he comes with 4 kids that have been pretty good but space for them to play and sleep has been a blessing (the basement that my folks lived in while we built the house).
Also Space for activities you can do indoors that you might not do if you had to go outside.


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## CrysMos

Sorry I haven’t responded, but I fell last week and broke my wrist in four places. I was by myself and definitely made me think. 

So, a couple of things...

I do feel pretty confident about money in the future. I have multiple plans in place to make up for loss of income if hubby were to die. Where our place is has a very strong rental market so one thought is to rent out the “in law” unit to someone in exchange for work. I certainly want my garden and chickens, and maybe a pig every other year. Not sure how I feel about milking. It seems such a huge commitment.


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## Micheal

CrysMos said:


> Sorry I haven’t responded, but I fell last week and broke my wrist in four places. .


Do hope things are healing and you gain use of your hand soon. Screwed up my wrist a few years back and it took better than a month before I could use that hand......


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## mekasmom

Edgar Olson said:


> Hello there! That was really an amazing plan until 65. But after the age of 65, Medicare plays a very important role in everyone's life. So, you should think about your health benefits after the age of 65, if you are planning to get retire soon. Medicare health insurance policy proves to be really beneficial after you turn 65. Different types of Medicare supplemental and advantage parts are covered under Medicare. Navigate here to know such Medicare supplemental and advantage plans.


I have to say the "new" health care plan has been a wonderful thing for us. I didn't think trump had anything good within his heart at all. But they pay one hundred percent of all our meds including dh insulins. He is working on getting new glasses now. And they will be free.


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## Shrek

CrysMos,
When I entered my field at the age of 23 my goal was to retire or semi retire by the time I was 45 or 50 provided that I could build my personal savings and investments to provide myself and my family (then yet to come) with worry free housing as my parents provided for me as I was going through high school and college and then pursue ventures related to my field of education or lifetime experiences to provide the basic head of household income for insurance, normal expenses, college funds for any children I might have, etc.

Over the next two decades, I saved and bought my property and instead of having my own family, I took on a single mother with son and she was happy with me having my dream as long as it was a dream and I remained in the rat race. When she saw me taking my steps towards my dream as I declined promotions based on my savings and investments to maintain our no frill lifestyle as it was for 30 to 40 years, she traded me in for a portion of my savings and a guy who planned to stay in the rat race forever.

I paid her off to follow her goals and she left me the house and ground. When my stepson turned 18 I gave him the prepaid college account.

A couple years later my employer bought out my contract shaving a few years off my goal and being only me and my dogs solidified the feel of living under a concern free roof as I did in my teens.

It isn't the dream I had when I started planning it at the age of 23 , however I have maintained 75% of my savings and investments , my ex leaving reduced my household expenses by at least 60% and my semi retirement tinkering and horse trading has added to my savings at the rate of net income I earned in my late 20s/early 30s.

My dream has changed but I still enjoy my simple mix of country life /industry field / various ventures I learned along the way and instead of having my own one house family to fight over whatever I have if I toe curl first, my parents, GF and daughter get small shares of my no frill lifestyle that is so no frill I only have my acreage, three 30 to 40 year old vehicles , low cost dial up internet and no cellphone with an I.Q. higher than mine.

Best part of retirement is yearly alarm clock use in single digits most years and the teens in schedule critical years, picking the chores or activities I want to do for the day and waking up and going to sleep whenever the dogs or I decide to after a lifetime of 24/7 "Zulu time" call duty.

Best part for me is my most recent dream has not only become an enjoyable no frill reality, almost 20 years into my semi retirement and 60 years old getting closer at my last yearly check up, my heart rate and blood pressure is in the same range as a healthy 15 year old according to my doctor.

The key to retirement is to keep your aspirations within the limits you can comfortably do without stressing yourself as a 30 to 50 year old still running the rat race regardless of what your twilight goals are.

Most of all, after you have your post rat race necessities and multiple streams of savings income plus a income stream to fill the clock punch income void, enjoy it as the younger rats race. As the old saying goes "Dream as you wish but when the dream becomes your reality, want for that which you have and you will always have what you want."

Enjoy your coming retirement.


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## CrysMos

Things are going better and I’m getting really good working with my left hand

Getting away from the rat race has been a dream for me most of my life so to see the end in sight is really exciting but also in a weird way kinda scary. I have been working towards this for so long, I don’t want to mess it up at the last minute. I also have a hard time believing it could be true which is why I keep doubting my numbers or think maybe I’m missing something. I didn’t really enter the work force until my early thirties and as a teacher knew I would really have to save to be able to retire. Only after meeting and marrying my hubby did I begin to believe that early retirement was a possibility. I am so excited and can’t wait. Even though I will be retired, I still plan to work, just at stuff that I really enjoy. Gardening, canning, quilting to name a few. I do some now, but just don’t have the time or energy to do as much as I want. Then there is the country and CA in particular going to hell in a hand basket and I hope it’s not too late. Waiting another 5 years just isn’t worth it.


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## Micheal

Ever consider that your broken wrist as a test as to what your retired life may be like it 10 - 15 years down the road?
As age creeps up so does the ability to do some of the things we use to do with ease.... 
Ask me how I know!


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## CrysMos

Michael, I have had a lot of the same thoughts the last few weeks. Even more when it actually happened. I was in the garden and fell hard on the asphalt drive. Our closest neighbors have moved out and my phone was in the house. No one would hear me yell and my wrist was hanging, ended up broken in three places. This is when you pick yourself up, get some frozen peas and carrots and get to the phone. So, as much as I am finding what I can’t do right now, I actually have more confidence knowing that I will do what I need to.


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## red1

Stay active and eat healthy...


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## GTX63

or eat activia and stay healthy...


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## muleskinner2

CrysMos said:


> so, I am getting ready to jump. We have the property and the house. I think I have enough saved and my job will pay my health until 65. What am I missing, need to check etc. The plan is to retire in two years. Thanks


First thing to do is fence the property line. Four strands of twisted wire, not barb wire, with a hot wire along the top.

Muleskinner2


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## Myrth

emdeengee said:


> I absolutely agree about being in the smallest home that is comfortable for you when you retire. And one that is preferably without stairs and with the possibility of alterations to suit lack of mobility or vision impairment.
> 
> I don't know what it is like in the US but there are a lot of senior parks and retirement communities being built here in Canada providing you with your small owned home and services for reasonable prices. We have several friends who have downsized to these communities and they all love their lifestyle and are comfortable with the cost which is about half of what they were paying.
> 
> We will definitely be downsizing.


When we moved last time, aging in place was definitely on our minds when we looked for a new homestead. This place has enough land for a modest homestead. But the house is half the size of our old house, and all on one level. I have an old knee injury that flares up on me sometimes and made stairs at the old house problematic. 

There are 2 steps to come into the house. Adding a ramp at some point in the future would be simple. Other universal type modifications would be easy to do.

Garden beds are raised. Fruit trees are dwarfs. Chicken house is built into a corner of the barn. I am working to make this place livable for us for as long as possible.


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## lmrose

MoonRiver said:


> My advice for anyone retiring without a lot of emergency money is to buy the smallest house that will work for you. If you live in that house for 20 years, there will be a fair amount of house expenses - electricity, taxes, insurance, maintenance, etc; so the smaller the house, hopefully the smaller the expense. Plus when you are 75 or 80, you may not be able to do the maintenance you can do now, so you will have to pay someone to do it for you.
> 
> Same thing with a yard and out buildings - Minimum that meets your needs. You also may want to get a 1 story house so stairs don't become an issue. Pretend you are 75 when you choose your new home, so that when you are 75 the house will still work for you.


This is exactly was our reasoning when we sold our old big home and bought this house trailer with a basement under half. The trailer is almost maintenance free and on one level. There are three steps up from the driveway to the yard and three steps to the door. The rest of the lot is level Taxes are less than on a stick house also. The place is only about 11 ft wide and 45 ft long on the inside so we are still downsizing getting rid of things not to be crowded. It is on a main road that gets plowed out in the winter. We prefer the farm land we kept where it is secluded and quiet but it is all hills and I use a walking stick to get up and down the hills. I have a crooked foot and orthodics that don't bend so there is only so much hill climbing I can do. Staying there in winter wouldn't be practical or possible as it is only 10ft x 12 ft with a 8ft x 12 ft sunporch. We are goat free after 40 years and only have four hens and a cat left which is easier to care for. The hens have a summer house at the farm a winter coop at the trailer. Biggest problem I have encountered is down sizing so we aren't crowded. I had to keep all the canning things, kettles etc as we will continue growing our garden food as long as we can. We also both are writers and have books, papers etc.I also have a music collection of tapes and cd's. Storage space is the problem I am tackling now. It is the small things I a have trouble finding space for. We plan for this and the cabin to be our final home in this life unless something unexpected happens to our health.


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## lmrose

doozie said:


> Save more than you think you'll need while you can, it can't hurt to have more in savings.


Saving to retire is important even if you start late like we did. Things always cost more than you planned on and it gets worse each year as prices rise. Being debt free is also important. Bill was 40 and me 38 yrs when we borrowed and bought the farm . We sacrificed and worked hard ten years to pay for it. It was our only savings plan. 32 years later we sold it last year. That money gave us enough to buy the trailer and acre and fix it up to live in. There is enough money left if we manage carefully for emergencies and health care if we need it. We are 73 and 72 yrs now so this hopefully will be our last move. For us having a home paid for is so important because after renting last winter we realized how fast savings can erode away and then you become dependant on government social security month to month just to live. The bad news is if governments keep spending tax money like they do Social Security in the USA and Social Insurance and Old Age Pensions in Canada could run out eventually. In Canada the retirement age is 65 yrs and there are more people drawing every year than babies being born or people going into the work force . Ralph Goodale former finance minister for Canada warned us all before he died a few years ago. He said if you are under 50 yr save for your own retirement because there won't be any Old Age Pension for you when you reach 65 yrs! Simple logic tells me if more money is being spent than is coming in something has to give. That applies to governments and individuals. So be frugal and if lucky enough to own a home debt free to retire in make sure you save to pay property taxes and have a place to grow a garden so you can eat . Smaller is better sometimes in lean times. Most of all don't count completely on government funds for an income if you can help it. Sometimes we have no choice but if you are young enough to still work plan ahead and save.Like doozie said," Save more than you think you will need while you can, it can't hurt to have more savings.'


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## lmrose

Alice In TX/MO said:


> Do you have enough of a post retirement income stream to cover deductibles and 20% of catastophic medical expenses? Or to purchase a good Medicare supplement policy?
> 
> Do you have long term care insurance?
> 
> Have you drawn up a power of attorney for someone you trust to make decisions if you are incapacitated? Medical directive? DNR? Out of hospital DNR? Your will?


Good advice! USA has a different medical system than Canada but Canada's system only works part of the time. It paid for my eyes to be operated on last year but I still have no doctor to go too for other things other than the ER at the hospital. There is a vast shortage of doctors here. Now we try to stay healthy but even trying does not always work as you age. One can literally be fine one day and have a problem develop over night! It is part of ageing as we were not created to live forever in these physical bodies .The challenge is to stay as healthy as possible through the later part of our physical lives. So if at forty you are saving for retirement be sure to factor in the possibility in later years health issues could affect your choices as how you want to live. To think ahead for retirement talk to older people already at that space in time and see what they have to say . Life may not be at 70 years what they expected when planning at forty. Think way ahead!


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