November 2018 Articles*

Falco & Associates, P.C.

How Long $500,000 Will Last
In Retirement In Each State

If you’re wondering how much you need to retire, the answer could depend on a number of variables. Conventional wisdom suggests having a retirement nest egg of at least $1 million, but not everyone will have $1 million saved for retirement — in fact, very few people will.

To paint a more realistic picture of retirement finances, GOBankingRates determined how long $500,000 will last in retirement in each state. To do this, we analyzed the average spending data for people ages 65 and older, as well as the cost of living in each state. The study assumes you are only spending from your savings and doesn’t account for Social Security income.

50. Hawaii - $500,000 will last: 5 years, 6 months

Hawaii has the overall highest cost of living of all the states for people ages 65 and older, with the highest costs for groceries, housing, utilities and transportation. The total annual expenditures in Hawaii are an estimated $90,450 — over $22,000 more than the next most expensive state.

49. California - $500,000 will last: 7 years, 5 months

One of the major costs of living in California is housing, which will set retirees back an estimated $33,234 each year. After Hawaii, it has the second-highest annual expenditure: $67,729.

48. Massachusetts - $500,000 will last: 7 years, 10 months

In Massachusetts, healthcare alone can cost $7,235 a year. In fact, it’s one of the worst states for senior care costs. The state has the second-highest healthcare costs for those ages 65 and older in the U.S. Overall, it costs $63,839 a year for retirees to live in this Northeastern state.

47. New York - $500,000 will last: 7 years, 10 months

The cost of living in New York is high. Retirees can expect to spend nearly $4,000 a year on groceries and over $30,000 a year on housing in New York. With an average annual expenditure of $63,646 in the state, a retirement nest egg of $500,000 won’t even last eight years.

46. Alaska - $500,000 will last: 7 years, 11 months

Alaska has the highest healthcare costs for those ages 65 and older of all the states, with an average cost of $8,901 per year. It’s also one of states that spends the most on groceries — retirees should be prepared to spend $4,846 per year on food.

45. Oregon - $500,000 will last: 8 years, 1 month

Oregon has the second-cheapest utilities in the U.S., but that’s the only living cost that is low in the state. The average annual expenditure for people 65 and older in Oregon is $62,109.

44. Maryland - $500,000 will last: 8 years, 1 month

Maryland is one of the most expensive states in the U.S. and the No. 4 most expensive state in terms of housing, with the average annual cost in the state at $29,087. Groceries are expensive as well, with an average annual cost of $3,985 — the eighth highest overall.

43. Connecticut - $500,000 will last: 8 years, 3 months

It costs a lot to get around Connecticut: The average annual transportation cost in the state is $7,598 — the seventh-highest transportation cost in the U.S. Overall, living costs for people 65 and older add up to $60,380 each year in Connecticut.

42. Rhode Island - $500,000 will last: 8 years, 5 months

Rhode Island might be the smallest U.S. state, but the cost to live there is large: $59,371 per year for people 65 and older. Utilities alone cost $4,520 each year — the fourth-highest average cost in the U.S. It also has the fifth-most expensive groceries, with an average cost of $4,121 each year.

41. New Jersey - $500,000 will last: 8 years, 6 months

Housing costs an average of $24,036 each year in New Jersey — the state has the eighth-highest average housing cost of all the states. It also has the sixth-most expensive transportation, with an average annual cost of $7,611.

40. Vermont - $500,000 will last: 8 years, 7 months

Vermont is tied with New Jersey for sixth-most expensive transportation, with an average annual cost of $7,611. However, housing costs about $700 less per year, so a $500,000 retirement nest egg will stretch slightly further in Vermont.

39. New Hampshire - $500,000 will last: 9 years, 1 month

The annual cost of groceries in New Hampshire is $4,071 — the sixth highest of all the states. It also has the fifth-highest annual healthcare costs for people 65 and older, with an average of $6,923 a year.

38. Maine - $500,000 will last: 9 years, 2 months

Retirees can anticipate spending $4,162 a year on utilities — the seventh-highest cost of utilities of all the states. The annual expenditures on necessities for people ages 65 and older in Maine total $54,568 on average.

37. Washington - $500,000 will last: 9 years, 8 months

It costs an average of $51,445 a year for people ages 65 and older to live in Washington. The Pacific Northwest state has the fourth-most expensive transportation, with an average annual cost of $7,931.

36. Nevada - $500,000 will last: 9 years, 11 month

A retiree will spend an average of $7,502 on transportation each year in Nevada, making it the eighth-most expensive state to get around. Annual expenditures in the state total $50,293 on average.

35. Delaware - $500,000 will last: 10 years, 1 month

It costs an average of $49,428 a year for a retiree to cover basic necessities in Delaware, so a $500,000 retirement nest egg will last just over 10 years in the state.

34. Colorado - $500,000 will last: 10 years, 2 months

Colorado has the fourth-lowest utility costs in the U.S., with an average annual cost of $2,934. However, other living costs — including housing and healthcare — are relatively high, bringing the average annual expenditures for living costs for people 65 and older to $49,140.

33. Virginia - $500,000 will last: 10 years, 2 months

It costs an average of $49,092 for a retiree to cover living expenses in Virginia, so a $500,000 retirement nest egg will only last about 10 years. However, the state has the fifth-lowest transportation costs, with an average cost of $6,208 per year.

32. Pennsylvania - $500,000 will last: 10 years, 2 months

Although Pennsylvania is a relatively expensive place to live overall — the average annual expenditures for living costs for people 65 and older total $48,996 — it has the fourth-most affordable healthcare. On average, healthcare in the state costs $5,473 a year.

31. Montana - $500,000 will last: 10 years, 4 months

Utilities are the cheapest in Montana of all the states, with an average annual cost of $2,750. But the overall living costs for retirees add up to an average of $48,227 a year, so a retirement nest egg of $500,000 won’t stretch much longer than 10 years in the state.

30. North Dakota - $500,000 will last: 10 years, 5 months

The average annual cost for a retiree to live in North Dakota is $47,891. The state has the ninth-highest healthcare costs, with the average annual cost at $6,791.

29. Minnesota - $500,000 will last: 10 years, 5 months

The overall cost of living in Minnesota is the same as in North Dakota: an average of $47,891 per year for people ages 65 and up. But healthcare costs are higher in Minnesota. With an average annual cost of $6,815, the Midwestern state has the eighth-highest healthcare costs overall.

28. South Dakota - $500,000 will last: 10 years, 5 months

The average cost of transportation in South Dakota is the ninth-lowest overall: $6,351 per year. But the total cost to live in the state per year for a retiree is $47,795, so a nest egg of $500,000 will only stretch 10 1/2 years.

27. South Carolina - $500,000 will last: 10 years, 5 months

South Carolina and South Dakota are tied for average overall annual expenditures, but the Southern state has very expensive utilities. With an average cost of $3,963 per year, South Carolina has the 10th-most expensive utilities.

26. Florida - $500,000 will last: 10 years, 6 months

Florida is a popular place to retire, but it falls right in the middle compared to the other states’ cost of living expenses, including housing, groceries, utilities, transportation and healthcare. The average annual expenditures in Florida for people 65 and older total $47,699, so a $500,000 retirement nest egg will last approximately 10 1/2 years there.

25. Illinois - $500,000 will last: 10 years, 7 months

Retirees should be prepared to spend $46,690 each year to cover living expenses in Illinois. With a nest egg of $500,000, you’d only be able to live in retirement there for under 11 years.

24. Wisconsin - $500,000 will last: 10 years, 9 months

Bad news for retirees: Wisconsin has expensive healthcare, with an average annual cost of $6,833. That’s the seventh-highest average annual cost of all the states.

23. West Virginia - $500,000 will last: 10 years, 10 months

On the other end of the spectrum, West Virginia has affordable healthcare compared to the other states. The average annual cost of healthcare for people 65 and older is $5,496, the sixth lowest in the U.S.

22. Utah - $500,000 will last: 10 years, 10 months

Utah has the third-most affordable utilities of all the states, with an average annual cost of $2,828. The overall annual cost to live for a retiree is $45,969, so a $500,000 retirement nest egg will last just shy of 11 years.

21. Wyoming - $500,000 will last: 10 years, 10 months

Although a $500,000 retirement nest egg will last longer in Wyoming that in most other states, some living costs in the state are high. For example, the average annual cost of groceries is $3,917 — tied with Massachusetts for the 10th-highest grocery cost.

20. Arizona - $500,000 will last: 10 years, 11 months

It costs $45,921 a year for a person 65 or older to live in Arizona, $14,218 of which typically go to housing costs.

19. New Mexico - $500,000 will last: 11 years, 0 months

New Mexico has some of the cheapest utilities of all the states. Averaging $2,995, utility costs are the fifth-lowest in New Mexico compared to the rest of America. Overall, it costs $45,585 a year for people 65 and older to live there.

18. North Carolina - $500,000 will last: 11 years, 0 months

North Carolina has relatively low costs for housing, $13,376 per year on average; utilities, $3,442 per year on average; and transportation, $6,685 per year on average. Retirees can expect to spend $45,441 each year to cover living costs.

17. Louisiana - $500,000 will last: 11 years, 0 months

With overall living costs for retirees totaling an average of $45,345 in Louisiana, those with a nest egg of $500,000 can support themselves for 11 years.

16. Kentucky - $500,000 will last: 11 years, 1 month

Cheap groceries help a retirement nest egg stretch further in Kentucky. The state has the least expensive groceries overall, with an average annual cost of $3,210.

15. Nebraska - $500,000 will last: 11 years, 2 months

The average annual cost of utilities in Nebraska is $3,076 — the eighth lowest of all the states. Retirees pay an average of $44,625 annually in the state to cover all living expenses.

14. Ohio - $500,000 will last: 11 years, 3 month

Housing in Ohio is the sixth cheapest of all the states, with the average annual housing cost for people 65 and above at $12,200. All in all, retirees can expect to pay $44,336 a year to cover living expenses.

13. Idaho - $500,000 will last: 11 years, 3 months

Idaho-based retirees can expect to pay $44,228 a year for living expenses. Cheap groceries help keep overall costs low: The state has the third-most affordable groceries, with the average annual cost at $3,228.

12. Iowa - $500,000 will last: 11 years, 4 months

Iowa has the eighth-cheapest groceries of all the states, with an estimated annual cost of $3,357. In total, living costs for people 65 and above are $43,856 a year, on average, in the state.

11. Texas - $500,000 will last: 11 years, 4 months

Only Kentucky has cheaper groceries than Texas, where retirees can expect to pay $3,221 annually on groceries. And, it’s one of the 20 most tax-friendly states for retirees.With the overall cost of living at $43,808 at year, Texas retirees with a nest egg of $500,000 can stretch their savings to cover almost 11 1/2 years of living expenses.

10. Indiana - $500,000 will last: 11 years, 5 months

Average housing costs in Indiana are the ninth lowest of all the states, with an average cost of $12,343 per year. The state also the 10th-most affordable healthcare, with an average annual cost at $5,592.

9. Georgia - $500,000 will last: 11 years, 5 months

Georgia is one of the states where a retirement nest egg will stretch the furthest, thanks in large part to its affordable housing. The average annual housing cost is $11,994 — the fifth lowest of all the states.

8. Alabama - $500,000 will last: 11 years, 5 months

Alabama has the most affordable healthcare for people 65 and older of all the states, with an average annual cost of $5,185. The Southern state also has the second-cheapest housing, with an average annual cost of $11,597.

7. Kansas - $500,000 will last: 11 years, 6 months

Living costs are low in Kansas: The state has 10th-cheapest groceries, eighth-cheapest housing and eighth-cheapest transportation of all the states. The overall annual cost of living in Kansas for people 65 and above is $43,328, so $500,000 in savings will last 11 1/2 years there.

6. Missouri - $500,000 will last: 11 years, 7 months

Housing is very affordable in Missouri. In fact, it’s only cheaper in two states: Alabama and Mississippi. The average annual housing cost of $11,787 keeps overall living costs for retirees down. On average, the annual expenditures would total $43,183 in Missouri.

5. Tennessee - $500,000 will last: 11 years, 7 months

The costs of essentials like groceries and healthcare are low in Tennessee compared to other states. Groceries cost an average of $3,303 annually — the sixth-lowest cost of all the states — and healthcare costs an average of $5,323 annually, the third-lowest cost of all the states.

4. Michigan - $500,000 will last: 11 years, 7 months

Michigan is tied with Arkansas for the fourth-least expensive groceries, with the average grocery bill in the state for people 65 and older totaling $3,275 per year. Overall, retirees can expect to spend $43,087 a year to live in Michigan.

3. Oklahoma - $500,000 will last: 11 years, 8 months

Of all the states, Oklahoma has the fourth-cheapest housing, second-cheapest transportation costs and seventh-cheapest healthcare. The annual expenditures to live in the state for people 65 and older total $42,847, so a $500,000 retirement nest egg will last almost 12 years.

2. Arkansas - $500,000 will last: 11 years, 10 months

It costs less to get around Arkansas than any other state: The average annual transportation cost is only $5,962. The total annual cost of living for a retiree in Arkansas is $42,175, on average.

1. Mississippi - $500,000 will last: 12 years, 3 months

A $500,000 retirement nest egg will last longer in Mississippi than any other state. Housing is the biggest living expense, and it’s cheapest in Mississippi: about $11,231 per year. Mississippi also has the ninth-most affordable groceries, the 10th-most affordable utilities, the fourth-most affordable transportation and the fourth-most affordable healthcare.
By: Gabrielle Olya, gobankingrates.com

Falco & Associates, P.C.

Cost To Build Your
Mother-In-Law Suite

Ernie K-Doe once sang that his mother-in-law was “the worst person I know,” but for many, mothers-in-law are bastions of support and love. They offer insight, affection and wisdom gleaned from their lived experiences. Even when she’s driving you crazy, your mother-in-law knows best.

Mother-in-Law Day, which falls on Oct. 28 this year, is a chance for families to show their appreciation for their other mother. Another way to show appreciation is to invite your mother-in-law to live with you. What’s the best way to do that, while still keeping her at arm’s length? With a mother-in-law suite. Get started on a home renovation that will pay you back.

What Is a Mother-in-Law Suite?

The mother-in-law suite — sometimes called a granny flat — is a catch-all term that includes any living space with a bedroom, kitchen and bathroom and an entrance separate from the main house. Officially called “accessory dwelling units” (ADUs), in-law units can be converted garages, basements, attics, guesthouses or suites in the true sense of the word.

How Much Does a Mother-in-Law Suite Cost?

Like families, building an in-law unit takes patience, planning and maybe sweat and tears. And also like families, in-law units cost money — anywhere from $40,000 to $125,000, according to Realtor.com. Before you ask your mother-in-law to live with you, check your local zoning and building codes to make sure your future unit is within regulations. You might also want to consider separating the utilities between the unit and the primary residence to save money due to inactivity or if you want to rent out the unit later.

The Cost to Add a Mother-in-Law Suite to an Existing Home

You’re more likely to save money when you convert underused space instead of opting for a brand-new addition. All cost estimates are via Realtor.com.

  • Garage: $20,000 to $50,000 (plus $15,000 to $25,000 for a bathroom): While insulation might be an issue to update, a garage already comes with framing and foundations and more than likely already affords occupants a degree of privacy. Wiring and piping for outlets and plumbing are essential for code compliance.
  • Basement: $10,000 to $27,000: A spacious basement should provide its own floorplan, especially since the piping and drains should already be there. It’s still wise to plan for add-ons and exterior doors in particular. They’ll provide a safe exit and keep the unit within regulations.
  • Attic: $41,400 to $90,000: Likely one of the more challenging spaces to convert, you’ll need to take into account the ceilings height, stairwell width, proper plumping extensions, sound-proofing measures and sources of light to make the space habitable.
  • Unused rooms: $2 to $4 per square foot for framing walls, plus $3,000 to $25,000 to add a bathroom:Since rooms should already have proper flooring, lighting and wiring, this renovation should be the easiest undertaking when adding an in-law unit to your home.

The Cost to Build a Brand-New In-Law Suite

Building an addition can cost as much as six figures, with high-end additions approaching an average of $120,000, according to HomeAdvisor. Then again, they can also cost much less — it all depends on your in-law’s needs and your budget. Here are some estimates for some additions homeowners might undertake. Just remember to budget for the costly home repairs that will catch you by surprise. All cost estimates are via HomeAdvisor unless otherwise noted.

  • Additional Rooms: $80 to $200 per square foot:You can either build out or build up when it comes to adding a room. Building out adds a room to your home at ground level while building up requires adding a room to the second story of your home. Building out might be more complicated because it involves expanding your home’s physical footprint, but building up requires a whole new floor.
  • Granny Pod: $85,000 to $125,000:This portable abode is great for giving your in-laws privacy and proximity. It looks like a bungalow on the outside but has hospital-grade features on the inside. The unit hooks up to the main house’s sewer system and includes hand railings, lighted floorboards and a soft floor to lessen fall-related injuries.
  • Detached Additions: $15,000 to $25,000: These smaller units also exist on the property but are useful for guests or even office space. Simple shed-like rooms without amenities will run about $15,000, but also consider excavation costs ($70 per cubic yard).

Cost Factors

Once you’ve decided what sort of addition you want, it’s time to crunch the numbers. Here are some estimates to keep in mind as you’re planning your in-law’s perfect home-away-from-home-and-you:

  • Architectural services: Usually accounts for 10 to 17 percent of the total project’s cost
  • Support beams and roof trusses: $15-$30 per square foot
  • Drywall: About $9.80 for a 4-foot-by-8-foot sheet of drywall
  • Electrical wiring installation: Requires a licensed professional, who could charge $50-$100 per hour

A Unit Only a Mother-in-Law Could Love

An in-law unit or guesthouse should be seen not only as a financial investment but an emotional one. You can’t put a price on accommodating your family’s needs, and the addition can help you and your family grow together. It can also help your home’s equity grow. You can rent out the extra space in the short-term and homebuyers are also willing to pay extra for a property equipped with an in-law unit. So, bust out those blueprints the next time your mother-in-law hints she doesn’t see you nearly as often as she’d like.

If you’ve caught the DIY bug, increase your home’s value with these remodeling projects.

By: gobankingrates.com





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