How much is enough???
 

My conundrum: In two years I can retire at age 55 with a 65k per year pension. Or wait 5 more years to take home 72k at 60yrs old. I don't qualify for social security. If I try to keep my mortgage payment under $1000 is it feasible to enjoy the Villages on 65k or wait to be more secure. I will be by myself so I won't need as huge place. I need to know the hidden costs, taxes, bonds, insurance etc. I know this is a question for a financial planner and there are books on it but if anyone would like to share their situation I am listening. I want to get down there as soon as possible but I also don't want to shoot myself in the foot...again....lol my pension would have been 102k if I didn't get divorced, but it is so worth it...Cheers and thanks in advance.

Go to "Nuts and Bolts" section as there is a three part post by zcaveman telling you what it costs for a patio villa.

I found it to be extremely helpful.

work 2 more years , and pay cash for home.:spoken:

Do your due diligence. There is a lot of written and on-line information available on the core costs of living in TV. As I understand it the developer's information is quite accurate. The real variables are about your personal lifestyle, restaurant meals (Ruth's Chris or McDonald's), transportation expenses, (Escalade or golf cart), etc.

What is a reasonable estimate of your life expectancy?

You are buying years of retirement, it does little good to work to sixty if everyone in your line lives to 64. Most that give advice don't ask this question.

Firecalc
 

Once you decide by how much is enough you can go to firecalc.com and see the chances of your nest egg lasting your lifetime. You can input many variables such as social security, lump sum withdrawals and so on.

When you find a home update your costs as the Villages are in three different counties and can also have city taxes. One county does not allow bonds. You will owe the bond and it will not be in the price of your home.

Inflation is a big problem. Assuming you live to about 95 and inflation is 2% per year you will need twice the amount of money you need when you retire. Thus your might have to save part of your retirement income to cover inflation.

Be sure you figure out health costs.

I would not retire if you need a mortgage. Work longer and save more money,

we were in the same situation. retire at 48 or wait till mandatory 56.

we chose 56, because he was fed CSRS with a pension it will? adjust with inflation, also no social security

the thought was to work till he had to... and then retire to the villages. The issue was, every year we waiting the prices of homes inflated....

So, think carefully in making your decision.

Also, TV is not your usual home purchase.

1- Most homes come with a bond, ($10k-50K) depending on the home type you purchase, on top of the home sale price. you can pay it off at time of home purchase, or finance at approx 5-7% for 30 years,on your tax bill, but its not tax deductable. Older homes sometimes have lower to no bond balance.

2-Yearly maintenance fees, ($250-900) also depends on which neighborhood you choose and is paid on your yearly tax bill, also not deductable. This fee pays for upkeep of the common areas of your particular neighborhood.

3- Amenity Fees, (typical HOA) pays monthly with your water bill and pays for use of pools, clubs, golf, ect. $150 per month.

4- Taxes depend on what county you live in and your city. Millage from 11-17%. You can use the tax estimator on the county websites.


Thats the long and short of it. Think about the gain you will make working 5 more years, vs the prices of Villages home esculating and then you can make your decision. Best case, buy now and rent the house till you get here.

P.S. there are also neighborhoods close by TV that do not have all the fees....just in case your interested in those as well.

Hope this helps....

We retired at 60 a year ago and were told we could continue with our company’s health insurance until we qualified for Medicare. Then after a year, the company decided to cancel that benefit. You didn’t mention health insurance. Check that out carefully. Our costs are extremely high now for the next few years until we reach 65.

Consider this...tomorrow is promised to no one.

Quite hardily agree with you.

Carpe diem

You have not mentioned your savings, investments, or if you presently have a home to sell. The goal for most is to not have a mortgage when retiring. Go to a financial planner and let him tell you what to do as you most likely don't want to divulge your personal financial situation on a public forum. It doesn't matter where you end up, The Villages or some other retirement community but the fact that you are asking for financial advice on a public forum would tell me that you have not planned for your retirement and that you don't want to pay for professional advice. You get what you pay for.

Chuck,
Also as pending when you got t he divorce, need to assess what other assets took a hit such as 401k Still paying any loans college for kids, etc.. As your asset base and debt factors are important variables. Suggest now is a good time to bunker down and build the base plus payoff loans while your still working. Most folks coming out of a late life divorce take a hit $ wise. But perhaps your situation is different. Wish you the best!!!

You could consider buying the home now if possible and renting it out until you retire.