crazy retirement opprtunity or not?

suz1023April 1, 2012

dh and i are still working in our home based business, caring for the disabled.

he's way past retirement age and has been ill for years.

while caring for people is very rewarding, it leaves us no time for ourselves and life is oh so complicated and busy.

we'd both love to just be together alone for a few years.

however we need to work to supplment his pensions because we have a farm with a large mortgage and associated upkeep of a farm property of this size.

if we sold we could pay cash for an opportunity which has come up suddenly. we don't know yet if we can manage to live on his pension alone without the mortgage or if we'll still need additional income.

we'd like to invest the remaining money from the sale of our place and hopefully earn some interest that way.

i am much younger and shall likely outlive him within five years.

at that time i'll lose half of his pension and have to work anyway.

with that sum of money invested ,plus the equity in another home i own outright i could buy or build another home business.

would you take the risk?

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Too many aspects with too few details.
You haven't given any details on the business or income potential from the farm.
In any case, I'd recommend that you seek out a financial planner to help you evaluate the possibilities.

Here is a link that might be useful: Ric Edelman website

    Bookmark   April 1, 2012 at 11:23PM
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Planning with the assumption that your husband is going to pass in 5 years is a bad idea. Even with known diseases, you can never be sure of the progression. eg my grandfather had 5 bypass surgery in the late 80's. He and his doctors thought his heart was in really bad shape and he probably didn't have that long to live. He sold his house, started renting cars, etc. Well, it's 2012 and he's still with us and living independently. Modern medicine is pretty amazing, but there is still a LOT that they don't know.

So, it sounds like it is time to sit down with a financial planner and really go through your finances. You don't need to guess if you have enough money. You need someone to help you run the numbers and tell you if your income is going to be enough for your expenses or if you'll need to continue working/earning. Also, "working" isn't an all or nothing proposition. You might be able to cut back on the number of clients you take or get part time positions working for someone else to supplement your income.

    Bookmark   April 2, 2012 at 9:03AM
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bill i would give anything to assume we have more time, but his cancer is a known killer eventually.
sadly i MUST plan for his demise, he's already on borrowed time.
i need a way and place to support myself afterwards so i am not a burden on my kids or society.
luckily i can care for the disabled anywhere in the world, but i'll need a home with enough bdrms and baths to do so properly.
meanwhile the time we have left together should be quality, and though we love our place, the upkeep and expense is staggering.

i keep thining we'd be happier somewhere more simple with no fat mortgage payment.
unfortunately we both long for salt water and a cold climate, which means $$$.
making that appt w/ the financial planer today~

    Bookmark   April 2, 2012 at 12:04PM
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You want a Certified Financial Planner with true fiduciary responsibility - NOT just a "financial advisor" which is a meaningless title with no fiduciary duty towards you!

    Bookmark   April 2, 2012 at 3:43PM
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The advice here is all good, of course. But I was wondering if there was a compromise solution. If it's a large farm, could you sell off part of it? and keep your home and maybe a small portion of the land? Would that yield enough $$$ to help you sort out your mortgage and your future?

Of course, if you do consider that, you may have to factor in the fact that it can be expensive to subdivide land (a friend has a bit of land that she wanted to divide into smaller lots so she could sell some to finance her dream retirement home--the legal fees alone were over 20,000, and that was before they 'moved a spoonful of dirt'--her words).

    Bookmark   April 20, 2012 at 10:10AM
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"You want a Certified Financial Planner with true fiduciary responsibility - NOT just a "financial advisor" which is a meaningless title with no fiduciary duty towards you!"

Certified Financial Planners don't have true fiduciary responsibility either. Just try suing one.

"Financial Planners- The consumer has been led to believe that a few designations represent the definitive education and training in the field. Not even close. The CFP Board of Standards states on its web site, that CFP's have "met the highest standards for the practice of financial planning.......and competent and ethical financial planning advice." I do not agree.

Let me put all this into perspective with a simple example. Your daughter has a brain tumor. You can bring her to a witch doctor, veterinarian, emergency room physician, proctologist or neurologist. It's a simple question backed by this reflection- how important is your daughter? Some pundits will say the emergency room physician is "adequate", but I submit that this is a rationalization to stupidity. In that context, however, I admit that the patient may not die initially- maybe even having a good life for "x" years. But no amount of concession can alter the probabilities that a more experienced and better trained individual could vastly improve the odds of success for any procedure. The neurologist is not a panacea for success- but it beats the alternatives simply because of the added knowledge and experience.

My point to planning? First of all, outside of the witch doctor, at least all the other entities above had a mandatory degree relative to their work. That is not the case with a CFP, ChFC, PFS or all other planning designations. There are no planning degrees required. Nor is it a requirement simply because one joins an organization such as the Financial Planning Association (FPA), National Association of Personal Financial Advisors or whatever. Yet, starting in the 1980's, the American College offered the first accredited Master's course in Financial Services. The College for Financial Planning (where I got mine) followed suit and now there are many colleges and universities offering Bachelor and Master's degrees in planning. This additional effort increases competency (through my experience) by 75% more than that obtained through a designation.

The second point to the degree status is that, due to the increasing numbers of degree graduates, consumers have adequate access to this greater competency in every metropolitan area in the U.S. You may have to do some more work to find them, but 'isn't your daughter worth it'? It's obviously your decision, but anyone of any reasonable intelligence would clearly opt for something better than a designation and there are enough degree practitioners available to now be considered the "standard of practice".

So, what about planner ethics? Sorry- this has been a complete "misconception" fostered on the public through marketing hype and inexperienced journalists. Note this statement- ethics starts where the law leaves off. Yet from an attorney with the CFP Board of Standards, "we will not enforce an ethical violation UNLESS preceded by a legal one." It is a perfect business decision but belies the promotion of highest standards. There are numerous CFP, ChFC and CPA planners in California- and literally all NAPFA members- that are in active violation of state statutes."

A link that might be useful:

    Bookmark   April 21, 2012 at 1:05PM
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Another thing to check on, is if you do go ahead and take care of other people in your home, you need to find out what certification you need, what must be in your home to meet state/county/city permits, how much help you will have, how certified and trained they are etc.

    Bookmark   April 21, 2012 at 8:29PM
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