A great start to the New Year

cfw1994

ali_bear said:

I'm much less likely to disregard a post such as this if the OP was to bother providing some written summary of what the video is about. I have plenty of other YouTube content to watch thanks very much. 

For anyone here interested in retirement, I would suggest James Shack is the number one person to follow.

That episode pretty well nails it.  A very wise head on young shoulders.
If you want the content summary: he gives it!

00:00 Intro
00:29 Lesson 1 - Money is not a good predictor of success
01:22 Lesson 2 - Better predictors of success
02:16 Lesson 3 - Don’t let the tax tail wag the dog
03:32 Lesson 4 - Spending money is easy
04:37 Lesson 5 - Embrace the concept of Dying With Zero
05:29 Lesson 6 - “The nastiest, hardest problem in finance”
06:32 Lesson 7 - Expectations are everything
07:17 Lesson 8 - Changes to tax legislation
08:30 Lesson 9 - An identity crisis
09:04 Lesson 10 - Test run your retirement
10:00 Lesson 11 - Don’t underestimate the power of a routine
10:23 Lesson 12 - Build long-term care costs into your plan
11:09 Lesson 13 - Don’t underestimate how brutal the next crash will be
12:15 Lesson 14 - Have a predetermined plan for the next crash
13:24 Lesson 15 - Retirement is not a final act
14:26 Lesson 16 - Prepare for cognitive decline
15:04 Lesson 17 - Have a Financial Continuity Plan
16:38 Lesson 18 - Move to your forever home early
17:07 Lesson 19 - Lasting Powers of Attorney
18:10 Lesson 20 - The no.1 reason for family feuds
18:13 Lesson 21 - Think about unlocking the value of your home
20:00 Lesson 22 - Find what works for you, not what works for others
20:45 Lesson 23 - A solution?
 
Keep your salmon fishing though....although you might enjoy this bunch of fellas from near me - we are about as far from the sea as you can get....

Albermarle

Pat38493 said:

If this is the one with the 23 points of advice, I watched it the other day and thought it was very good.

I found the point about making sure you have provision for long term care interesting and a bit of a counterpoint with what I hear on the Meaningful Money podcast.  In the latter, they are often saying that it’s pretty rare for people to go into a care home, and when they do, most people aren’t there for long (for obvious reasons).

However James Shack is quoting 25% of people, and average 3 year stay - not sure where he got those figures from but it’s higher than what I’ve heard in the past.

Personally, I am not planning to save up an additional £200K in my pension to cover care home costs as that would require an additional several years of work - if I get a good SORR run, it will be covered anyway.  If not, it will have to be equity from the home that covers any care home costs.

I suspect the figures around care homes will vary depending on how the statistics are analysed. I have seen different ones before as well. 
I think 25% would most likely to apply to an older age group , say > 80, by which time a % of the population would have already died. 
Also I would think the length of stay is typically about 2 years, but the average is pushed up by a few long stayers, such as those with early dementia, or catastrophic incident at a relatively young age etc . 

Sarahspangles

Albermarle said:

Pat38493 said:

If this is the one with the 23 points of advice, I watched it the other day and thought it was very good.

I found the point about making sure you have provision for long term care interesting and a bit of a counterpoint with what I hear on the Meaningful Money podcast.  In the latter, they are often saying that it’s pretty rare for people to go into a care home, and when they do, most people aren’t there for long (for obvious reasons).

However James Shack is quoting 25% of people, and average 3 year stay - not sure where he got those figures from but it’s higher than what I’ve heard in the past.

Personally, I am not planning to save up an additional £200K in my pension to cover care home costs as that would require an additional several years of work - if I get a good SORR run, it will be covered anyway.  If not, it will have to be equity from the home that covers any care home costs.

I suspect the figures around care homes will vary depending on how the statistics are analysed. I have seen different ones before as well. 
I think 25% would most likely to apply to an older age group , say > 80, by which time a % of the population would have already died. 
Also I would think the length of stay is typically about 2 years, but the average is pushed up by a few long stayers, such as those with early dementia, or catastrophic incident at a relatively young age etc . 

It’s really difficult to get to a figure, I have tried in the past for work reasons. The 25% sounds more like the proportion who at some point in older age access some form of social care, which doesn’t imply they are all in a care home. More people receive care in their own home, or respite care to relieve their own family carers. These anrrangements often run for longer than those placed in residential care, because only a subset require that higher level of support.

Nebulous2

I've never really liked motivational speakers, selling something. So I watched this video with fairly low expectations, and was surprised to find I really liked it, and a lot of it hit home. I could have been doing with seeing it before I retired. Although I may simply have shrugged it off.

Lesson 15 in particular resonated for me. 

I worked in care, sometimes working considerably more hours than I was paid for, and was driven by two things - What you could call the protestant work ethic, and a sense of purpose. 

I became quite disillusioned during Covid, did my sums, decided I could afford to retire and left. Almost immediately I felt cut loose. That 40 year-long sense of purpose had disappeared. I had a sense, which I never really articulated, that I had entered a waiting room for the graveyard. 

Over the past three years I haven't found a new sense of purpose, but I've become a bit more comfortable with my place in the world. Hopefully the idea that this is the beginning of a second act, rather than a final act, will give me something to work on.... 

Cobbler_tone

I just can’t accept that you ‘should’ factor in a large additional amount for care. None of my family (including my mother-in-law who passed yesterday in hospital) needed long term funded care. The state don’t throw you out on the street.
Ultimately you may have savings, a property to charge against if needed. If you save for every eventuality you may as well work until you drop and accumulate as much money as possible. 

ali_bear

I have now seen the video, and a few others. 

I think he's saying that 25% of us spend our last few years in care, as opposed to say, illness and death in hospital, hypothermia in a secluded beauty spot, an accident in the home, or peacefully in our sleep. 

With regard to the value and identity we get from working. It is true this does form an important part of our psyche. But sadly once we retire our previous employers very quickly forget us, replace us with someone younger (and better/cheaper) and in fact we were not nearly as indispensable as we once thought.