Can I Afford To Leave?

[Molly]

Just skimmed through the book, "Too good to leave-to bad to stay" and determined I should leave. Even though my husband just started AA, all the decades of dealing with alcoholism have left me empty. I've been wanting to move on for a long time but stayed because of finances.

So I would like to get your input. I am 63, retired and have a combined pension and annuity of about $2,800 per month after taxes and health care premiums. I would buy a condo with cash from the proceeds of the sale of our house. We have no debt.

Do any of you live on that amount? My concerns are inflation, or outliving my money. I am pretty healthy except for arthritis and osteoporosis, which limit my mobility and ability to lift things.

I cannot return to work. The degenerative arthritis leaves me incapable of working at a computer for more than 30 minutes at a time (severe neck pain), and back pain prevents me from standing too long. In fact, I had to take early retirement because of these issues.

Any input is appreciated.

[bae]

I'd take a look at "Your Money Or Your Life", do some budgets and projections, and see how it looks.

[Teacher Terry]

I don't think the amount you have left is that low. However, it depends on if you live somewhere with a high cost of living. I would read the book Bae recommended and do a few sample budgets and also check out prices of condos. Also Mr MM is a forum where people have lots of great ideas on how to get the cheapest cell phone packages, etc and tons of ways to save $.

[Molly]

I am fortunate to live in a part of the country where the cost of living is low. I have read Your Money or Your Life, and The Tightwad Gazette. Thank you for the Mr. MM tip. I haven't been there yet but will check it out.

[ApatheticNoMore]

You can pretty much live ANYWHERE in the country on that after taxes, healthcare and housing (the only potentially big expenses there are), it doesn't matter where, it's good money. Yes I live off less after those expenses and yes single (in a relationship but definitely single financially and have my own place I rent), heating bills are pretty low here though :) , and renting saves some costs.

But yes long term concerns about inflation etc.. may reduce the amount of money one WANTS to live off now as opposed to saving more for the future (ie keeping it in investments for future health issues or whatever). It may help to figure in if a car eventually needs to be replaced etc. as well of course, what healthcare will cost when on Medicare etc.. But I do think the dollar figure in many cases will leave enough slack not to have to need the full amount to live off of and to save some for later if they want.

Honestly I probably would go to a fee for service financial planner, the present is just knowing your expenses, but predictng the distant future is hard, they might recommend more aggressive investments if they think you need more in the long run, but one has to be personally comfortable with that or else they shouldn't do it.

[Tybee]

My input is that you should have no trouble living on that amount. If money is the only thing holding you in the marriage--well, you have enough money to be single. Alcoholism destroys lots of marriages. There is no shame in giving up on a marriage, and you sound ready to do so.

Instead of a condo, you might consider buying a duplex and renting out half for more income. There are many, many single women aged 60 and up who looking for such housing, so you could probably find someone like yourself to rent to.

[Oddball]

$2,800 a month is over $33K a year. The fact that it's after taxes and health premiums is all the better. I'm single and live on way less. This is by choice, as I save a lot more than I spend. I'm single and rent a studio apartment (this is also by choice, as I don't want a house or condo). My total expenses last year were less than $20K. If I had to, I could live on half of your pension and annuity income. That's just me, though. You have to do what's comfortable for you.

Stumbled on this yesterday and found it interesting -- Guess the amount Americans spend on these 5 common things (http://www.msn.com/en-us/money/spendingandborrowing/guess-the-amount-americans-spend-on-these-5-common-things/ar-BBBvE9H#page=2)

[BikingLady]

I don't know, but I wish you luck and strength friend. Life is so short.

[Yppej]

My average spending per month for the past several years has been $1748.63 excluding medical insurance premiums. My house is paid off. Most of the time I had car payments. I live in the exurbs of a major metropolitan area in the Northeast. You can absolutely do this in a low cost area. Be prepared to say no to charities, family, friends wanting expensive outings, etc. At your age and in your health you must take care of yourself first.

[iris lilies]

OP, I am not clear: because you dont use the phrase "Social security" I cant figure out if you are in the U.S. or in Canada. Which is it? Or neither?

[Molly]

OP, I am not clear: because you dont use the phrase "Social security" I cant figure out if you are in the U.S. or in Canada. Which is it? Or neither?

I live in the U.S. I have a government pension, so I don't get Social Security.

[JaneV2.0]

If you divorce, will the split be amicable?

[mschrisgo2]

If you divorce, will he be entitled to any of your pension? If not, that is definitely enough to live on.

I've been living on less, with a car payment, for several years now, very comfortably. My needs/wants are simple, gardening, quilting, training my dogs. I've added to my savings and have no concerns about retiring next month, on that same amount monthly. (house is paid for, medical insurance is provided by pension fund.)

[Tenngal]

my mother lives on approx $1,500 per month in the south. House paid off, small car payment along with the other usual expenses.

[Rachel]

Molly, You've had some good input here and it sounds like you are thinking this over very carefully. I think with your age and your physical issues it would be important to consider: cost of hiring some home care now and then should you need surgery or the like...cost of hearing aids should that become necessary...cost of dental work (Medicare doesn't cover dental or hearing)...cost of a car repair if you drive. I would factor those considerations into various budget plans. Good luck---wishing you well.

[sweetana3]

And it does not have to be house or condo. Mom lives in a very nice senior independent apartment designed for almost anyone. All kinds of services can be secured if needed and don't have to be paid for until needed. Groceries can be delivered. (Different from assisted living.)

No maintenance, no HOA fees or special assessments, no replacement of appliances, utilities are included, etc. Around $700 per month. Also includes a bus with regular routes. Some have lived there for over 30 years. Don't ever underestimate the costs of home or condo ownership in the long run. Furnace goes out, stove needs to be replaced, plumbing is a problem.

I liked that the bathtubs are gradually being converted to shower units for ease of use. Pet can be allowed in some of the buildings.