BTW my rental is pleasant, well priced, secure tenancy and close to kids, if not a bit small.
I am an older (51 years) single parent with 10 years off before the kids are both over 18. Secure job on middling wage, rent and expenses chew up most of my income but I’m still able to scrimp and put $25K a year (including dividends) into my retirement account. Net worth is about $1 million now which sounds like alot but that is what a very small two bedder costs to buy where I currently need to live.
My investment goal is to have enough to have a bolt hole somewhere nice, a bit of a community, and enough funds to have a few modest adventures and visit the kids (or they visit me) wherever they may be in this wide land or overseas.
With all the evidence of rocketing house prices (everywhere, even in the formerly cheap places), I have this feeling that stock/bond returns are never going to keep up with costs of shelter and costs of living in the places that are worth living at.
So make myself feel more secure, I have started envisioning alternative accommodation options for when I choose to retire (or am forced to retire) which might be from 62 years onward.
Options I have dreamt of so far;
- Buy or lease a cheap parcel of land somewhere nice with good people around and build a cheap tiny home/place to live and store my few treasured possessions.
- Buy a modest bolt hole unit somewhere cheap and use the savings to travel around and do stuff.
- Grey Nomad. Live on the road (with a modest van) for as long as possible, visit nice places, meet people. I love hard core camping so maybe it would be okay, like in the movie. Live on a 1% drawdown.
- Share a rental home with other elderlies.
- Minority co-ownership with a friend who is asset rich but cash poor. Build a little granny flat in their back-yard.
- Professional house-minder, moving from house to house.
- Live in a nice, cheap part of the world eg Bali.
- Find a friend or girlfriend with a spare room in a big house and move in. Help with maintenance.
I was really interested in hearing Boglehead thoughts on the above and whether some people have actually found some alternative, modest shelter arrangements that have suited their financial situation and life goals into old age.