Money Management

One couple recently decided to book 51 back-to-back cruises because it’s cheaper than the alternative. But is it really? Find out more as we take a closer look. 

A retired couple from Australia recently made headlines because of their unique retirement living situation. Instead of opting for a condo in a 55-and-over community, a room in a senior living community, or any other traditional option, they have chosen to spend their retirement at sea — or at least, more than two years of it.

Marty and Jess Ansen booked 51 back-to-back Princess Cruises, all on the same ship, starting in June 2022. The cruises add up to 795 days at sea, which translates to just under two years and two months. When asked why they chose to do this, the Ansens cited the ease of life and the affordability of cruising compared to living in a nursing home.

Is living on a cruise ship truly cheaper than investing for the future and planning to live in a retirement community or nursing home? Let’s take a closer look.

Cruise lines are embracing the life-at-sea retirement

While booking back-to-back cruises for an extended period of time like the Ansens did is certainly an option, several cruise lines have started offering longer cruises to accommodate people who would rather spend their golden years at sea.

For example, the longest cruise ever offered by Royal Caribbean is about to set sail in December. The Ultimate World Cruise will take passengers to ports on all seven continents over a 274-night journey, and it includes airfare to and from the ship, the deluxe beverage package for the duration, seven shore excursions, complimentary laundry service, and internet service to keep in touch with loved ones. And like all cruises, meals and daily housekeeping are included as well. Cruise fares start at $58,499 and $74,654 per person for ocean view and balcony staterooms, respectively.

There are more economical options as well. A company called Life at Sea Cruises offers a three-year voyage that visits 375 ports in 135 countries with rooms starting at $29,999 per year, per person.

How much does a retirement home cost?

The costs of retirement living varies considerably by the type of living situation, as well as the geographic location.

For starters, the median cost of a room in an assisted living facility is $4,774 per month ($57,288 per year) in the United States. But in some states, the cost can easily exceed $80,000.

Additionally, assisted living assumes a reasonable level of independence. For those who might need closer medical attention, a private room in a nursing home costs a little over $9,000 per month on average, and can exceed $15,000 per month in areas with high costs of living.

Is living on a cruise ship really cheaper?

The short answer is “it depends.” As you can see from just the two examples discussed earlier, cruise prices can vary considerably, and that’s especially true if you’re booking many shorter back-to-back cruises. There are big differences in cost between cruise lines, types of staterooms, and other services, and it’s certainly possible to spend quite a bit of money on board as anyone who has cruised can tell you. Plus, there are big differences in the costs of retirement homes, depending on the level of assisted living needed, geographic location, and other factors. Run the numbers for your area and see if they make sense for you.

In many cases, it is entirely possible for budget-conscious retirees to save money by living at sea.

Caveats to keep in mind

The bottom line is that in some cases, spending an extended amount of time on a cruise ship can be more cost effective — as well as more enjoyable — than a nursing home or retirement community. But it isn’t for everyone.

For one thing, spending an extended period of time on a cruise ship is likely only practical if you’re in reasonably good health. Typically, by the time you need a full-service nursing home, you’re not healthy enough to travel for months (or years) at a time — plus the cost of medical care can be astronomically high on a cruise ship or in foreign ports in the event of an emergency.

Having said that, cruising for long periods of time has emerged as a viable alternative to traditional retirement living for many people who have enough in savings to make it happen.

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Not everyone is a great gift giver. Here are some gift-giving mistakes we’d all do well to avoid. 

As someone who left social media years ago, I’ve never looked back. Still, on occasion, I wade into a Reddit forum to get an idea of what people are saying about important world events, like “Most Horrible NFL Quarterback Ever,” or “Why Hotdogs Are Better Than Hamburgers.” Today, I’ve taken a dive into the “Worst Christmas Gift You’ve Ever Received” threads, and some of what they said made sense.

1. A useless 3D poster

Reddit post: My mom bought me one of those 3D posters that were all the rage in the ’90s. I am blind in one eye.

Takeaway: Don’t rush. When holiday shopping is left to the last minute, it’s easy to make purchases that do not fit the recipient. According to Paper & Stitch, the trick is to remember who you’re buying for. And chances are, Mom was so busy finishing up last-minute shopping that she didn’t stop and think whether her child would enjoy (or even be able to see) the gift. Oops!

2. A lonely computer mouse

Reddit post: One year when I was a kid, my parents bought me a computer mouse. What makes it bad is that I didn’t have a computer, and had been asking for one for years.

Takeaway: Save the comedy for open mic night. Maybe the parents didn’t have money in their checking account to buy a computer to go with that mouse, but still this gag fell flat. The number of stories from adults who received “gag” gifts was surprising. And did I mention these were adults, remembering gifts they received as children? Honestly, folks, kids don’t think it’s funny. Ever.

3. Oddly-familiar pajamas

Reddit post: This year I got a pair of pajamas that were identical to the pair I was wearing when I unwrapped them. Thanks again mom!

Takeaway: Make a list. On one side write the recipient’s name, and on the other, make a note of what they received. Keep that list (mine is saved to my desktop). Pull the list out as you plan the upcoming holiday season. I know what it’s like to be so busy that you actually forget what you bought the year before. After all, I am continually teased for giving my sons bathrobes several years in a row. But who doesn’t need a new robe? Grown men, that’s who. Grown men do not need a new bathrobe every single year. Lesson learned.

4. A “you’ve got to be kidding” push lawn mower

Reddit post: I feel ya. When me and my twin sister turned 16 she got a car in the driveway wrapped in a big bow and I got my parents old push-mower and a weed-whacker.

And here’s another one along the same lines.

Reddit post: First Christmas with my dad, new stepmom, and her kids. They got electronics and designer bags. I got a bottle of Herbal Essences shampoo. No conditioner.

Takeaway: Do not show favoritism. According to the BBC, a child’s personality is fundamentally shaped by ending up on the short end of the favoritism stick. Children who grow up feeling they are treated unfairly experience a deep sense of unworthiness. They may feel as though they’re unlovable, or do not possess the special traits and characteristics needed to be loved by other people. Not to put too fine a point on it, but such children sometimes end up being people pleasers, trying to make people care about them. No kid expects the adults in their life to take out a second mortgage to buy gifts, but they do notice if gift-giving is unfair.

5. A box of surprises

Reddit post: I can actually answer this question with one of my presents this year. When I had gotten home from college I found myself with some excess cash. I decided to invest in some new video games for myself and had them sent to my house. The strange thing was I had only received half of the games. I emailed the suppliers and told them I hadn’t gotten my packages yet and was growing quite sad. Well Christmas morning came around and I was opening up my presents. I got to the one from my older brothers. I tore the paper away and opened the box. Inside there were several other packages that had been mailed to our house. With my name on them.. My brother had taken half of my games and hid them from me until Christmas… Worst present ever.

Takeaway: Be open and create an experience. If you don’t plan to spend money on a gift or can’t afford to buy one this year, it’s okay to be honest about it. It’s possible to create an even better memory by taking a different route. For example, if you’re in school and can’t afford a gift for your grandparents, set a date for the two (or three) of you to spend the day together. It may involve taking them out to a park, playing board games, or simply hanging out together. Most humans crave connection far more than presents.

That said, I’ll admit to laughing at one of the responses to the post: I used to do something like this in high school but not as mean. I would steal something from all my friends. Not something of value and something they would never notice was gone. Then I would wrap that item up and give it to them for Christmas. I called myself Klepto-Claus.

6. A “questionable tool box”

Reddit post: My father bought me a metal tool box with my name across it. It was very used. It actually said “’s Breeding Service.” It was a used bull semen collector’s tool box.

Takeaway: Shop for useful gifts. According to Everyday Health, “quirky” gifts tend to collect dust until the recipient ends up donating it. Recipients value gifts they’ll be able to use over and over again. I’m pretty sure no kid has 100 uses for a tool box once used by a bull semen collector.

The bottom line is this: As long as a gift comes from the heart, the lucky recipient is going to know it. And while the gift may be quite useful, what they’re likely to remember is how special they felt opening it.

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Individual healthcare expenses average $157,500 in retirement. Here are a few steps to take to plan ahead. 

When it comes to retirement planning, there are many different factors people try to plan for, including how much to save, how long retirement will last, and what things you want to do in retirement.

But one thing that some people overlook, which can significantly impact their retirement, is their health. Here’s why your healthcare — and all the expenses that come along with it — should be a factor in your overall retirement planning strategy.

Many people retire early for health reasons

Federal Reserve data from 2020 shows that 30% of people entered retirement earlier than expected due to health reasons. That’s worth repeating: Nearly one-third of people entered retirement earlier than planned because of their health.

So, let’s say you enjoy your work and plan on doing it until you’re 75. That can be an excellent strategy for stretching your Social Security income. Working longer also keeps you active and engaged with other people.

But with such a large percentage of people being forced to retire for health reasons, many retirees will have fewer years of earned income than they originally planned for.

In addition, the cost of covering healthcare expenses is costly. Fidelity says the average 65-year-old will need $157,500 to cover healthcare expenses in retirement.

When added together, some retirees will not only have fewer working years than planned, but they’ll also have to spend a significant sum on healthcare expenses.

How to save up for healthcare costs

It’s easy to feel overwhelmed by some of this data, but it is important to focus on what you can control. Thankfully, there are some ways that you can adjust your planning to put yourself in a better position to cover future healthcare expenses.

Here are a few steps you can take to prepare for health-related expenses in retirement.

1. Maximize your 401(k) contributions

Maximizing your contributions can be a great way to plan for future healthcare expenses. In 2023, you contribute up to $22,500 to your 401(k) and $30,000 if you’re 50 or older.

Even if you can’t afford to max out this amount, make sure you’re contributing enough to earn the maximum amount for your employer contribution program. Many companies offer matching programs that will contribute to your 401(k) up to a certain percentage of your income as long as you contribute.

2. Let your investments grow in an IRA

If you don’t have access to a 401(k) or want to contribute more money to your retirement investing, setting up an individual retirement account (IRA) is a good idea. You can find one by checking out the best stocker brokers.

You’ll have the choice between a Roth IRA or a traditional IRA, and both have their own tax advantages. In general, the Roth IRA will allow your contributions to grow tax-free, while you’ll have to pay taxes on withdrawals in retirement if you choose a traditional IRA.

In 2023, you can contribute up to $6,500 per year to an IRA — or $7,500 if you’re 50 or older. Maximizing these contributions will help your money grow faster and help offset future healthcare expenses.

3. Consider long-term care (LTC) insurance

If you think you’ll need to cover healthcare costs out of pocket in retirement or supplement Medicare, you may want to consider buying an LTC insurance plan.

LTC plans may cover expenses like at-home care, assisted living, and nursing home care. Like other insurance policies, you choose how much coverage you want, and then pay a monthly premium.

According to the American Association for Long-Term Care Insurance, the average annual cost of an LTC plan for a 55-year-old woman is $2,675.

4. Focus on your health

Focusing on your health will do more than just make you feel good in retirement; it could also help you save money. Keeping up to date on medical screenings, staying active, eating healthy, and staying connected to a community are all factors you can control.

Of course, there’s no guarantee keeping up with your health will help you reduce your expenses. Still, some research has shown that healthcare costs are significantly lower in retirement for people who maintain moderate physical activity or increase their physical activity before or into middle age, with savings of between $824 and $1,874 per year during retirement years.

Even if you can’t do everything on this list, it’s a good idea to pick a few that will put you in the best possible financial shape to cover future healthcare expenses. Now, if you’ll excuse me, I need to get away from my desk and do some push-ups — I’m planning for my retirement.

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Millions of Americans are expecting tax refunds in 2024. Read on to find out how long you might have to wait for yours. 

Millions of Americans get tax refunds each year, and since last year’s average refund amounted to $2,753, it’s no surprise that many people are eagerly anticipating their next one. After all, tax refunds can provide much-needed cash to pay off your holiday shopping bills, invest for your future, or add to your emergency fund.

So, how soon can you get yours? The answer is a bit more complicated than you might think, so here’s what you need to know as you’re getting ready for tax season.

The basics of tax season

Technically speaking, tax season runs from Jan. 1 through the April 15 filing deadline each year. However, this doesn’t mean you can submit your tax return on New Years’ Day and receive your refund a few days later.

Each year, the IRS announces the start of filing season. Typically, this is in late January, although it can be delayed in some cases — such as to give the IRS time to adapt to tax law changes. For reference, Jan. 23, 2023, is when the IRS began accepting tax returns for the 2022 tax year. To be clear, you can certainly submit your tax return to the IRS before this date, but it will sit in the queue (or virtual queue) until the IRS actually starts processing returns.

When it comes to actually getting your refund, the IRS intentionally allows for more time than it is likely to take.

According to the official guidance from the IRS, if you electronically file your tax return, your refund should be issued and arrive in your bank account in less than 21 days. Paper returns can take longer, and you should also allow for extra processing time if you request a paper check rather than a direct deposited refund. The IRS will also sometimes advise that it needs extra time to process refunds if you claim certain tax credits, such as the earned income tax credit (EITC).

In practice, the vast majority of refunds are issued well within the 21-day window. But using this as a guideline, and assuming that you submit your return on the first day of filing season, the earliest you should count on having your tax refund is in mid-February. It may come earlier, but you shouldn’t count on it.

Be sure you have your documentation before you file

Having said all of that, it might not be practical for you to submit your tax return as soon as the IRS starts accepting them. Employers generally have until the end of January to send your W-2s and other income documentation, and certain other documents (such as if you are a partner in a business) have even later deadlines.

It’s also worth noting that if you haven’t received your W-2 by the time the IRS starts accepting returns, don’t simply use the numbers from your last pay stub or even worse, estimate your income and tax withholding. The IRS will receive a copy of your W-2, and if the numbers don’t match, it’s a pretty surefire way to trigger an audit.

The bottom line

Here’s what this means to you. If you happen to have a very simple tax situation and/or your employer gets your tax documents to you early, you could have your tax refund in your bank account by the middle of February. But if you have tax documents you need before you can submit your return, the general timetable for a tax refund is three weeks or less from the date you submit your completed tax return to the IRS.

If you need the money sooner, you might want to consider a credit card with a 0% intro APR that you can pay off in full once your tax return arrives. You could also consider a personal loan if your goal is to fund a larger expense.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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