Aging parents - cost of retirement homes, etc

It seems that in some cases they are able to count the net salary (if your tax decutions are higher than usual), but that seems unlikely.

So lets assume 200k gross is 170k net and you can deduct 20k which leaves you with 150k taxable income and 1.75 million taxable net worth. That’s 205k which is 85k above the threshold, so the state could get 42.5k/year from you. Which is still a lot.

P.s. Can you deduct those contributions to your parents from your taxable income?

I’m glad this topic generated a good discussion with lots of valuable information.

The most important things is taking the time to discuss it with your parents and siblings before is too late - there needs to be at least some kind of rough plan in place. I have three sibling so the eventual cost for my parents will be split by 4 and make it bearable. I know my parents, both suisse and zero connections abroad would want to stay here.

It does pose an additional “risk” for FIREing too early if things are not properly discussed with relatives.

And finally I guess early donation and tricks to get EL are not really worth it and possibly unethical - it seems there isn’t even a real deadline and they can get back more than 10 years to ask you to contribute.

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Isn’t the 10 year thing a myth? They can go much further?

My thinking seems to be diametrically opposite versus @Grog 's father

We aim to retire with an annual expense budget of 2.5% of Net Wealth. A main reason is to allow our wealth to keep growing so we have freedom to buy good care in the future - and not have to accept a solution that we may not like

My grandmother ended her last few years in a home. Even though it was a nice place - relatively speaking - she just didn’t like it and although she was a very resilient person throughout her life she became lonely and depressed. She started refusing food and died soon after

I am happy with my life now and I would prioritize working a while longer to make sure I have freedom of choice and to be able to afford some luxuries in the future

I would also like to be able to help my parents if they need it but I never discussed the topic with them yet. Thanks @Grog for the thread and for triggering the thought

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The most common misconception among many, still is that retirement homes are the same as old age homes. However the truth is, THEY ARE NOT. Retirement homes are well-planned communities that have been built to cater to the needs of the senior citizens while giving them an exceptional quality of life.