Need for exit plan?

We did not want to go in debt so bought a used Class-A. We paid cash. When we have to exit the RV world we will sell it for whatever it's worth at the time or we will live in it down in FL. I fully believe we should all have an exit plan as sooner or later we will have to get off the road - whether we have to sell our RVs or find a nice Resort and live in them. It's best not to get caught off guard.

2gypsies wrote:
According to the article, the couple was newly retired and borrowed $105,000 to get a motorhome. That was their big mistake.

Borrowing $105,000 for a motorhome when newly retired wouldn't be a problem if you had a secure annual retirement of around the same amount and no other bills. And even in that case you should plan on paying the loan off in 3 or 4 years max.

According to the article, the couple was newly retired and borrowed $105,000 to get a motorhome. That was their big mistake.

Did he mention it is OK to make extra payments?
Or if putting nothing down may get a lower priced unit?

The story has nothing to do with a exit plan it has to do with a bad debt. If you cannot afford it they will take it away. You can clear the debt using the courts but the lender is still going to take the HM or TT or car or your house in most cases and you will end up with the kids or on the street or in an apartment or old folks home. If you want to learn about exit plans then there is a website you might like to check out it is Escapees.com Escapees

kakampers wrote:
There are all kinds of ways to have an "exit plan".... We own a fully paid for RV lot, with a fully functional coach house on it, in a high end RV community. We did finance our RV...should something happen that we could no longer travel, we will park the RV on our lot and live out our days there. We would have to pay to live somewhere.... Our RV payment and maintenance of the !ot is WAY less than it would cost to live elsewhere in an apartment or assisted living. Best of both worlds in our way of thinking...to each his own!

I think that you have a good plan when it's time to park the motorhome.

The thing that is hard to deal with, is if one or both of you need assisted living. As hard as it is to think about, it might be very difficult to take a shower in a non-handicap shower and/or toilet area (grab bars, room for walker, etc.).

I had to put my Dad in a nursing home in Feb. of this year. He could no longer stay home even though we had assistants there for him. He just needed that 'extra' care (24 hr.). Having 24 hr. care at home would have been about $12,000 a month, we had an attendant there 4 hrs. a day for a couple of years. They would cook, clean and bathe him. One of us kids (7) would be with him for dinner every night.

None of us want to go to a nursing home. Current cost was about $6,500 a month. Dad passed away last month at 94. I'm glad we were able to keep him home as long as we did.

Basically, we all need to think of the worst case scenario....(nursing home cost).

MM.

2oldman wrote:
More important than an exit plan is an entrance plan:

a) don't wait until you're 65
b) don't borrow money to buy an RV

Money is 99% of any exit plan.

I totally agree. Too many people get hung up on the exit part of full timing. It is how you can financially start that will determine how easy your exit will be.

Even if your home isn't paid off, but you can sell it and your furnishings to pay for an RV plus be debt free, then you are starting out very good.

As long as you have some type of regular income and you don't rebuild debt you will start building a very nice savings account immediately.

Even if you could only save $15,000 a year, in 5 years you could possibly have over $80,000 in the bank. Maybe that "well used" RV could be sold for another $20,000. There are a lot of places you can purchase a decent house or condo for $100,000 in this country.

There are all kinds of ways to have an "exit plan".... We own a fully paid for RV lot, with a fully functional coach house on it, in a high end RV community. We did finance our RV...should something happen that we could no longer travel, we will park the RV on our lot and live out our days there. We would have to pay to live somewhere.... Our RV payment and maintenance of the !ot is WAY less than it would cost to live elsewhere in an apartment or assisted living. Best of both worlds in our way of thinking...to each his own!

We always wanted the RV life well before we retired. We retired as early as we could so we could enjoy the life why we are both still healthy and a live. Even though we try and make a habit of not having debt for things we want. We are still faced with the fact that we will not be around forever. If one of us happen to pass first what does the other one do with all the stuff. I believe it will be much easier for me then it would for my DW.

But you can not live your life's dreams worrying about that. Get out and enjoy why you can.

I would argue that you have to define what the old and new generations are. My grandparents - thw WWII generation - paid cash. My parents, older Baby Boomers didn't. As a Gen Xer, I pay cash or short term low interest (2 years) on used cars.