How long would this amount of money last if a couple retired in East TN?
ASSUMPTIONS:
1. both receive $1,200 in social security ($2,400)
2. both have no other source(s) of income
3. both are debt free
4. couple own their home valued at $200,000
5. both have a medicare supplement
6. both are 67 years of age
7. both are in relative good health
8. both have conservative lifestyles
9. expenses are less than $4,000/month
10. both have inexpensive hobbies
This means that each month they will deplete their savings of $1,500 or $18,000 which equates to $180,000 every 10 years or $540,000 after 3 decades with both individuals now being at the age of 97 years old with a deficit value in savings (not including any interest earned) of ($60,000); however, with their home valued at $200,000, the couple still has a net worth of $140,000 using the equity in their home to guarantee any loan they would need to create... or, decide to create a reverse mortgage with a local bank or credit union.
NOTE: The couple would still have enough money saved to live to age 97 even if inflation maintained a constant rate of 2-3% increase each year.
HOWEVER, these financial consideration would not be realized if this couple were living in other part of the United States and are related to the East TN area only.
OBVIOUSLY... $500,000 is not much money considering the vast amount of wealthy people living in the USA today, but there are still some areas of the US that are still conducive living rather well for less... and, East TN is one of those areas. Once the assumption has been made of no debt and a simple lifestyle...
I should know because my wife and I have been retired in East TN for over five years.
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