Anonymous wrote:Why pay rent when you can just commit a crime and have the government provide room and board for free?

Anonymous wrote:13:13 here - also note that alzheimer's/dementia services are even more expensive than standard assisted living. So if you care about the quality of your life later on, consider doing some of the things now to try to ward off alzheimer's. (eat omega-6 fats, do crossword puzzles, exercise, etc.)

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:As PPs noted, life on Medicaid is anything but sweet.

Curious, OP, if your cultural tradition includes caring for aging parents in exchange for inheritance, why is Medicaid an issue at all?

The above scenario works in the homeland, where typically the daughter or daughter in-law does not work outside of the home. It won't work for us here becauseboth my brother and I work and therefore can't provide the care. My parents never thought, does anyone?, that they would end up in a position to worry about this. So as they built up an inheritance for us, due to misinformation, they missed or misunderstood how medicaid works. They have a decent savings - a fully paid house, car and about 100-150K savings. I just wished they enjoyed life more and didn't feel the need to save this money for me and my brother - esp since we are both working and contributing to our own retirement plans.

I didn't realize that the care a medicaid recipient receives is different. My husbands undle was in a nursing home for rehab, ended up dying there, and he was self pay. I thought it was a horrible place, as a PP described, sad, old people left in wheelchairs in hallways, dilapidated rec area with various games that didn't work. His estate went to his care and ti was awful.

But if your parents have some money, why couldn't they live with one of you and use the cash to hire daytime help? It's far better than spending it down and going into a Medicaid home.

Anonymous wrote:I also wonder about people that save a ton of money for retirement. For example, my dad made an offhand remark one day that they have a few million saved and will probably never use all that money. Hell I wish they'd spend more of it and make up for lost time, they deserve it.

I agree it's important to save some amount of money (for argument's sake let's say an amount that would let you draw $35-40K per year in addition to your SS payments). That lets you take a few modest trips and live a comfortable life but not extravagant (this plan also assumes you'll have paid off your mortgage or will sell and move to a lower COL area so housing expense is minimal).

Obviously there's a margin of error here too and you want to err a little on the side of caution but I can't see socking away tons of money for retirement. By the time you're old and need nursing home care your quality of life kinda sucks already so why not use more of the money when you can actually enjoy it.

Anonymous wrote:PP, Medicare does not cover nursing homes. When you hear about someone who is in a nursing home and has run out of money and is having it paid for, it is Medicaid, not Medicare that is paying for it and only for those who are out of money.

OP, living on just SS in retirement is living very poor and many people do not end up needing nursing home care for long at the end of life so it would be silly to just keep yourself extra poor in old age for that reason. Also, as others have said, it is hugely helpful to be able to pay for at least a little nursing home care and then switch to Medicaid if money runs out.

Anonymous wrote:

Anonymous wrote:As PPs noted, life on Medicaid is anything but sweet.

Curious, OP, if your cultural tradition includes caring for aging parents in exchange for inheritance, why is Medicaid an issue at all?

The above scenario works in the homeland, where typically the daughter or daughter in-law does not work outside of the home. It won't work for us here becauseboth my brother and I work and therefore can't provide the care. My parents never thought, does anyone?, that they would end up in a position to worry about this. So as they built up an inheritance for us, due to misinformation, they missed or misunderstood how medicaid works. They have a decent savings - a fully paid house, car and about 100-150K savings. I just wished they enjoyed life more and didn't feel the need to save this money for me and my brother - esp since we are both working and contributing to our own retirement plans.

I didn't realize that the care a medicaid recipient receives is different. My husbands undle was in a nursing home for rehab, ended up dying there, and he was self pay. I thought it was a horrible place, as a PP described, sad, old people left in wheelchairs in hallways, dilapidated rec area with various games that didn't work. His estate went to his care and ti was awful.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I also wonder about people that save a ton of money for retirement. For example, my dad made an offhand remark one day that they have a few million saved and will probably never use all that money. Hell I wish they'd spend more of it and make up for lost time, they deserve it.

I agree it's important to save some amount of money (for argument's sake let's say an amount that would let you draw $35-40K per year in addition to your SS payments). That lets you take a few modest trips and live a comfortable life but not extravagant (this plan also assumes you'll have paid off your mortgage or will sell and move to a lower COL area so housing expense is minimal).

Obviously there's a margin of error here too and you want to err a little on the side of caution but I can't see socking away tons of money for retirement. By the time you're old and need nursing home care your quality of life kinda sucks already so why not use more of the money when you can actually enjoy it.

"Tons" of money is required in order to withdraw $35-40K per year! Agree or not?
Plus in another 20 years it'll actually be $50K you'll need to reap that same benefit, due to inflation. So how much will we need then?

If you want to take $40k/yr from savings you'd best have --at minimum --- $1 million+ in liquid investments (just a rule of thumb re 4% annual draw etc.).

Anonymous wrote:

Anonymous wrote:I also wonder about people that save a ton of money for retirement. For example, my dad made an offhand remark one day that they have a few million saved and will probably never use all that money. Hell I wish they'd spend more of it and make up for lost time, they deserve it.

I agree it's important to save some amount of money (for argument's sake let's say an amount that would let you draw $35-40K per year in addition to your SS payments). That lets you take a few modest trips and live a comfortable life but not extravagant (this plan also assumes you'll have paid off your mortgage or will sell and move to a lower COL area so housing expense is minimal).

Obviously there's a margin of error here too and you want to err a little on the side of caution but I can't see socking away tons of money for retirement. By the time you're old and need nursing home care your quality of life kinda sucks already so why not use more of the money when you can actually enjoy it.

"Tons" of money is required in order to withdraw $35-40K per year! Agree or not?
Plus in another 20 years it'll actually be $50K you'll need to reap that same benefit, due to inflation. So how much will we need then?

Anonymous wrote:I also wonder about people that save a ton of money for retirement. For example, my dad made an offhand remark one day that they have a few million saved and will probably never use all that money. Hell I wish they'd spend more of it and make up for lost time, they deserve it.

I agree it's important to save some amount of money (for argument's sake let's say an amount that would let you draw $35-40K per year in addition to your SS payments). That lets you take a few modest trips and live a comfortable life but not extravagant (this plan also assumes you'll have paid off your mortgage or will sell and move to a lower COL area so housing expense is minimal).

Obviously there's a margin of error here too and you want to err a little on the side of caution but I can't see socking away tons of money for retirement. By the time you're old and need nursing home care your quality of life kinda sucks already so why not use more of the money when you can actually enjoy it.