answer:You have to work backwards. What is the minimum amount you will need to live comfortably for one year? Let’s be conservative, assume that you are not a spend thrift and have decent Medicare and Medigap health insurance. Where are you living now that you have sold your home? Are you renting or did you purchase? How about $40,000 before taxes? At today’s market of 4% interest or dividends, you will earn $9000 on the $225,000. That means you will need to take 31,000 from your principal in year one. That leaves you with $194,000 as your nest egg. In year two, 4% is $7760. You then take $32,240 from your nest egg, leaving you with $161,760. In year three your principal shrinks to $128,230 In year four, $93,360 And in year five, $57,100 This also does not factor in the yearly cost of living increase. In two more years, you will be broke. I have done the math very hastily and may be a bit off, but you get the point. 225K may be enough, just barely, for one person to save for long-term health care alone.