If this is your first time in my site, welcome! Chateau Du Mer is a beach resort with a beach house and conference Hall. The beach house could now accommodate 10 guests, six in the main floor and four in the first floor( air conditioned room). In addition, you can now reserve your vacation dates ahead and pay the rental fees via PayPal. I hope to see you soon in Marinduque- Home of the Morions and Heart of the Philippines. The photo above was taken during our first Garden Wedding ceremony at The Chateau Du Mer Gardens. You can now read the national and international news in this blog at the right side bar. I have also posted my favorite Filipino and American dishes and recipes in this site. Some of the photos and videos on this site, I do not own, but I have no intention on the infringement of your copyrights!

Marinduque Mainland from Tres Reyes Islands

Marinduque Mainland from Tres Reyes Islands
View of Marinduque Mainland from Tres Reyes Islands-Click on photo to link to Marinduque Awaits You

Wednesday, August 8, 2012

My Life will End in Ten Years

Financially, that is, but hopefully not physically. Let me explain. When I retired ten years ago, I hired a financial consultant to manage my pension, investments, stocks, bonds and mutual funds. I hired her, since she was recommended by a close relative and I did not want to be bothered by the ups and down of the stock market. Her service for the last 10 years had been exemplary and the amount of money I had paid her is worth every penny of it, since I do not have to worry about my financial status during my retirement years.

Last month was our 10th year review( we have quarterly reviews) and we calculated that if the financial market remains the same in the next ten years, my funds will finally run out, since I am withdrawing a fixed monthly amount from the principal just to maintain our standard of living in the same style before my retirement. My wife and my Social Security (SS) benefits only supports about 60% of our monthly living expenses. I will 87 years old then. So assuming I will still be alive in ten years, will I be financially able to support myself and my wife since my accounts will be depleted as projected? Do I have safety provisions that I can use?.

Yes, indeed, I have three safety provisions that I can use. One action item is to get A REVERSE Mortgage from my house, which will be fully paid soon. We have a substantial equity since we purchased the house 12 years ago.

The second safety action item I can use is to cash my personal life insurance that had accumulated a substantial cash value. I had this insurance when I was still in college. I stopped paying the premium when I turned 65, so the cash value keeps increasing every year. There is a provision for my death, natural or accidental. The death benefit is much higher than the cash value and it goes to my beneficiary -my wife of 55 years.

Our third action that we can consider is that my wife and I could move permanently to the Philippines. Since we have already a home in the Philippines, our SS pension will allow us to live like a King and a Queen in provincial Marinduque. This means having a personal driver, housekeeper and cook to help us in our daily activities. But the practical side is that the Medical and Health facilities in our province is not to US standards. If we want medical care comparable to US standards we will have to reside in big cities like Manila or Makati. This is not an option, since I hate the noise, pollution and lifestyle in the big cities. So this third option will not likely occur. We will continue our snowbird lifestyle as long as our health permits.

Lastly, I hope that the financial crises here in US remains the same or even improved. I have a feeling improvement will occur in the very near future. In the meantime, I will not worry about my funds and pension accounts depleting to zero in ten years time or even earlier if the financial markets goes downhill or worst compared to today.

If you are a retiree or are planning to retire soon be sure you a have safety plan just in case your pension fund goes downhill. You just can not really depend on you SS accounts. In general your SS benefits will only cover about 50 to 60% of your living expenses when you retire. It is never too early to plan your retirement. br />
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