Currently, my mom's annual expenses are running around $40k a year to live in her senior living place, including her health insurance, phone and internet. She gets about $21k a year in social security, so for now, she's only needing to use about $20k a year of her retirement money. So far, this year, she has earned a nice 15% return on her money. As much as her investment guy ticked me off, he does do a great job investing. While, of course that 15% could change by the end of the year, with still 2 months to go.
So, she's increased her investment account by a whopping $139,000 since Jan 2021. Plus the $21k of social security (next year should be about $22,400 with the increase). A total "income" (of course I realize the $139,000 is unrealized gain) of $160,000, just to be retired, LOL. When I first created the spreadsheet to track her money and estimate how long it would last, I used a modest 4% return. Last year she earned 12%. Even at a very conservative 4% she was not going to run out of money until she was like 100. At these higher rates of return each year, she just keeps earning more than she is using and it's snowballing. At the beginning of each year, I just update her spreadsheet to show that years beginning balance and then it projects forward. Last year she increased by $124,00 (not including social security), this year by potentially the $139,000.
So, I'm confident, no matter how long she lives, she has more than enough money to take care of her needs. I know I've said it too many times, but step brothers "she only has 8-10 years of money left" (which would now be 6-8 years, since it's been 2 years ago he said that) is a crock of stupidity, LOL. She is in no absolute danger of running out of money between now (age 80 1/2) and her end of life.
She is always saying to me "you should just use some of it now, if you need something, rather than wait until I'm gone. I don't need this much and you're going to end up with what's left anyway. You might as well enjoy some of it now. Just take some". I always say oh that's really sweet and change the subject, haha. While I know she could gift me $15,000 a year, with no income tax, and honestly it would hardly even make a dent in her money, I just can't do it. Part of it is just me, part of it is with her memory now, I'd feel like I'm taking advantage, even though she is the one always bringing it up. If her memory was intact she would very most likely do the gift thing. Years ago, she and my dad would gift us like $1,000 a year at Christmas. It was always such a nice gift, especially as dh and I never had any extra money.
I'm just relieved that while it's so hard to deal with her memory loss and the issues it brings, I do NOT have to worry about her money!