Will the Money Run Out?

[Steve CDN]

Many RVers have chosen "early retirement", sold the house and furniture and are RVing fulltime.? Financially our lifestyle cannot be considered less expensive than traditional retirement, and careful financial planning must be done in advance.

How does one manage affairs while traveling?? Is Internet access sufficient or are telephone calls required?? What about turning over one's asset management to a professional?

Once the decision can be comfortably made, the most important question is how to calculate the funds required if fulltiming is done in retirement.? How is this calculation made?? Does one live off their capital or the income from their capital?? How does one determine the amount required and for how long? into the future??

What are some important strategies in financial planning to ensure the money does not run out before the end of the last trip?

 

[Ned]

Financial planning for retirement for fulltimer Rvers is no different than retirement in a fixed location, other than the RV is a depreciating asset.? We have found that overall living costs are about the same as if we were still in a house or condo, just some different allocations.? The retirement funds are managed exactly the same.? With the ready availablity of internet access and cell phones, managing bill paying and investments is no different.? We pay all of our bills online via Quicken as well as manage our bank and credit card accounts.? We also get daily updates on the brokerage and mutual fund accounts via Quicken and the internet.? Transferring funds between the checking and savings accounts is also done with Quicken.

If we need to talk to our broker, we use the cell phone if it's urgent or email if it's not.? We can do wire transfers from the brokerage account to our checking account with an email and there is no cost.

In short, we see very little difference in financial management that is due to our lifestyle.

 

[Phil]

Once the decision can be comfortably made, the most important question is how to calculate the funds required if fulltiming is done in retirement.  How is this calculation made?  Does one live off their capital or the income from their capital?  How does one determine the amount required and for how long  into the future?

Steve,

In the end, if you have been frugal and didn't spend all of your money, you get to pay the nursing home costs out of your savings.  If you spend every cent you have, the government will pay the nursing home costs for you. 

Or:

You pays yer money and you takes yer chances. 

Online banking has made money management while traveling the same as money management for people that don't travel.  There are no guarantees for life expectancy.  Enjoy it while you can.

Phil