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this is to hypothetical in my opinion. when you run your finances so close to the bone as the op for what could be 75 years with finances pretty close to failure the debate becomes meaningless .
there is all kinds of data and calculators you can use to get a ball park but they all depend on the input data being correct. hypothetically, to discuss what the outcome will or will not be is pretty rediculios.
the op's data has so many variables with the income pushing the limit of success that there is just no way anyone can have an answer or a clue as to the outcome including the op.
Last edited by mathjak107; 12-29-2013 at 03:47 AM..
this is to hypothetical in my opinion. when you run your finances so close to the bone as the op for what could be 80 years hypothetically, to discuss what the outcome will or will not be is pretty rediculios.
there is all kinds of data and calculators you can use to get a ball park but they all depend on the input data being correct.
the op's data has so many variables and the income pushing the limit of success that there is just no way anyone can have an answer or a clue as to the outcome i8ncluding the op.
Do you consider an operating cost that is 50% of revenue to be close to the bone?
Assuming one has $30k or so in the bank, their expenses would need to increase by 200% for 3+ years in order for them to be in trouble. This is assuming they never pick up a job to stop the bank account bleeding. I'm also not factoring in buying more time by selling their (my) home valued at $100k+.
How many people making $40k/living on $39k+ (average American saves $392/year according to what I found) could maintain their lifestyle with a 200% cost of living increase for 3 years? Could they maintain with a $20k cost of living increase for 3 years?
It's hard to believe that someone living on $20k could be better prepared for curve balls than 70-80% of America, but IMO it can certainly be true.
yes i think your income and life style are to marginal to predict it lasting 75 years. especially not knowing inflation.
it is hard enough planning a typical 35 year retirement time frame when you are 62 . that is when lifestyles are usually set, locations set and final expenses predictable.
you my friend may just as well be predicting the sports scores or weather 50 years from now.
Forums are rather public places and I like to keep the details of my financials private. There is also the issue of not rewarding others with what I worked hard to accomplish.
Yeah right. This forum is anonymous.
Anyway....
If I recall, you started out saying you scrimped and saved from the time you were 12. I’ve already conceded that IF you TRULY did all that you might be able to amass a good amount of money. All we’re asking is for is a bit more GENERAL information -- something like, maybe:
- From age 12-16 saved all money got for birthdays and chores
- Got first job at 16 – minimum wage at a local store part time
- Worked various jobs through college making $10 an hour part time.
- Graduated college at 21 – worked full time doing XYZ at 20.00 an hour until age 26.
- Lived at home all that time, and saved every penny I could – now have roughly XYZ, earning x percent.
- Bought a car for 3K in 2010, and my house for 50K in 2009 had roommates for 2 years to help pay it off, and got a rental house in 2011 for xyz…..or whatever the real story is.
More info and/or numbers would go along way to helping us understand your point of view, that’s all. I HIGHLY doubt anyone here wants to steal your idea of how to live off 20K a year. So, UNLESS you’ve told the government one thing about your ability to work or your assets, and the reality is something else and you’re paranoid about getting CAUGHT and having your scheme unravel -- why not help us understand? Of course, I'd advise against admitting to fraud or anything else illegal if I were you, but short of that…what’s the problem? OR IS that the problem.
If you’re an honest Joe who just doesn’t want to work I wish you the best. If you’re a tax or disability cheat – I hope you get caught. And that has nothing to do with supposedly being envious of -- or angry about -- your lifestyle. As many have said many times -- we'd rather work for 60K than do nothing for 20K. And you can't be envious of something you don't want in the first place.
It's been a nice discussion. But every conversation, even a great one runs its course. So unless you have more details you'll share -- my interest in this exercise is exhausted. Without more info I’m done. Have a nice life on your 20K a year …while it lasts.
yes i think your income and life style are to marginal to predict it lasting 75 years. especially not knowing inflation.
it is hard enough planning a typical 35 year retirement time frame when you are 62 . that is when lifestyles are usually set, locations set and final expenses predictable.
you my friend may just as well be predicting the sports scores or weather 50 years from now.
As I said in the OP, $20k adjusted for inflation.
We are also not factoring in what financially rewarding skills a young retired person may develop over 10-20 yrs.
Perhaps they take an interest the skill/artwork involved in remodeling homes
-now they buy a low cost home, apply their skills and sell the home for 50% more than they paid
-their new skill set also saves money on home repairs for their own house
-they are able to market their skills and make money when they want (perhaps once every few weeks)
Had said person had a job, perhaps they never found this passion they didn't know they had.
We are also not factoring in what financially rewarding skills a young retired person may develop over 10-20 yrs.
Perhaps they take an interest the skill/artwork involved in remodeling homes
-now they buy a low cost home, apply their skills and sell the home for 50% more than they paid
-their new skill set also saves money on home repairs for their own house
-they are able to market their skills and make money when they want (perhaps once every few weeks)
Had said person had a job, perhaps they never found this passion they didn't know they had.
WRONG! adjusted for inflation against an index is NOT ADJUSTED FOR COST OF LIVING.
going back a few years pensions and ss saw no cola increases at all since the cpi which is an overall price index changed little. , but for most their cost of living expenses sky rocketed as energy,medical insurance ,food and rents soared since many did not use or have much need for many things that went down in the index keeping it low.
if you didn't refinance or have consumer debt which fell your cost of living went up by a bit.
retirees end up in the retirement graveyard all the time by not understanding their cola'd incomes do not reflect their own cost of living increases.
in pa where we had a second home in those years when there were no cola increases and the cost of living is far lower than where we live in nyc electricity took a 15% jump , home insurance jumped 20% ,medical jumped 15%, food jumped and nothing went down.
we also saw our cell phone bills increase a bit, our cable bill and our gym membership go up. there is a whole lot of stuff i could list that went up in our lifestyle but the point is nothing went down and for 2 years colas didn't happen.
colas do not track your own spending, and 75 years of trying to live close to the bone leaves little cushion.
Last edited by mathjak107; 12-29-2013 at 05:45 AM..
WRONG! adjusted for inflation against an index is NOT ADJUSTED FOR COST OF LIVING.
going back a few years pensions and ss saw no cola increases at all since the cpi which is an overall price index changed little. , but for most their cost of living expenses sky rocketed as energy,medical insurance ,food and rents soared since many did not use or have much need for many things that went down in the index keeping it low.
if you didn't refinance or have consumer debt which fell your cost of living went up by a bit.
retirees end up in the retirement graveyard all the time by not understanding their cola'd incomes do not reflect their own cost of living increases.
in pa where we had a second home in those years when there were no cola increases and the cost of living is far lower than where we live in nyc electricity took a 15% jump , home insurance jumped 20% ,medical jumped 15%, food jumped and nothing went down.
we also saw our cell phone bills increase a bit, our cable bill and our gym membership go up. there is a whole lot of stuff i could list that went up in our lifestyle but the point is nothing went down and for 2 years colas didn't happen.
colas do not track your own spending, and 75 years of trying to live close to the bone leaves little cushion.
Wouldn't an increase in COL without a similarly adjusted increase in income just eat up a slightly bigger portion of my discretionary income?
For example, lets say I can live on $10k one year and two years later it cost me $10,750 to pay the same bills. That reduces my discretionary income from $10k to $9250.
My logic says that unless we see a sudden 100%+ increase on several things (food/utilites/gasoline), my life would be largely unaffected. Right? I also have the option of cutting back on some things to help negate price increases on other things (cancel $50 cable tv, use dumb phone instead of smart, replace gym membership with free exercising, etc).
So while you are right, I'm not sure it's a big enough wrench to break the bank.
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