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Old 09-07-2013, 07:36 AM
 
Location: Henderson, NV
1,091 posts, read 1,217,672 times
Reputation: 1765

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I tried to plan way ahead for this.

Living well on my pension right now.
House paid off next year = $1600 a month raise.
In 8 years when I turn 62 I go into my Roth for a $20,000 a year raise for 6 or 7 years.
At age 68 or 69 start collecting Social Security $30,000 a year.
At age 71 go into my 401k (estimating taking out $40,000 a year)
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Old 09-07-2013, 07:50 AM
 
Location: Burles
49 posts, read 60,978 times
Reputation: 16
Quote:
Originally Posted by mathjak107 View Post
usually those looking for ways to cut expenses are doing so to stretch their retirement income.

the problem is that over time expenses rise regardless and eventually there is nothing to cut.

you need to look at the income side too and find ways to increase income.

that may be changing allocations, cutting investment fees or increasing risk level for more income.

doing one without the other is only a temporary bandaid .

it is no different than a corporation , a corporation is looked at not only on profits which can come from cost cutting but they look at revenue too from sales. both are important.
Morning Mathjak,

Thanks for your thoughts, interesting reply, hadn't thought about it
that way.

Not saying that we won't acquire a little more for the retirement finances,
but I'd say the majority of the money is there and we'll need to work with
what we have.

We do live somewhat modestly, but just the day to day expenses, and of course
the unforeseen emergencies, do concern me, but again, want/need to get out of
the Rat-Race.

Thanks again for your help, and ideas !!!

Take Care,

Craig
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Old 09-07-2013, 08:06 AM
 
1,227 posts, read 1,261,178 times
Reputation: 4310
TxPanther,

Mathjak is correct. There is only so much you can cut from your budget and then you do need to figure out ways to bring in more money.

Some ways to cut expenses:

1. Turn off all lights when leaving a room
2. Install a motion detector on all lights outside so that they don't burn continuously
3. Turn off computers when not in use
4. Buy things on sale
5. Use coupons
6. Discontinue Cable/Dish TV. Watch TV shows through the Internet/Netflix/etc.
7. Join Netflix. Watch all movies using Netflix
8. When eating out only order appetizers and a glass of water. Do not order drinks, entrees, dessert
9. Try not to eat out.
10. Reduce the amount you pay for entertainment. Go to free museums, concerts, parks, etc.
11. Reduce the cost of gifts that you give to friends and family members
12. Stop celebrating your major events with gifts.
13. Think 3 times before buying anything expensive
14. Take short showers
15. Some people don't flush the toilet each time (thought I find this disgusting)
16. Stop using paper towels. Use cloth towels.
17. Make sure your washing machine is full before doing a load of wash
18. Cut down on the amount of meat you eat.
19. Grow vegetables inside in the winter and outside in the summer.
20. Move to a smaller home.
21. Cut down on/or eliminate expensive hobbies.
22. Review cell phone usage.
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Old 09-07-2013, 08:09 AM
 
10,360 posts, read 9,388,551 times
Reputation: 15973
Quote:
Originally Posted by LookingatFL View Post
TxPanther,

Mathjak is correct. There is only so much you can cut from your budget and then you do need to figure out ways to bring in more money.

Some ways to cut expenses:

1. Turn off all lights when leaving a room
2. Install a motion detector on all lights outside so that they don't burn continuously
3. Turn off computers when not in use
4. Buy things on sale
5. Use coupons
6. Discontinue Cable/Dish TV. Watch TV shows through the Internet/Netflix/etc.
7. Join Netflix. Watch all movies using Netflix
8. When eating out only order appetizers and a glass of water. Do not order drinks, entrees, dessert
9. Try not to eat out.
10. Reduce the amount you pay for entertainment. Go to free museums, concerts, parks, etc.
11. Reduce the cost of gifts that you give to friends and family members
12. Stop celebrating your major events with gifts.
13. Think 3 times before buying anything expensive
14. Take short showers
15. Some people don't flush the toilet each time (thought I find this disgusting)
16. Stop using paper towels. Use cloth towels.
17. Make sure your washing machine is full before doing a load of wash
18. Cut down on the amount of meat you eat.
19. Grow vegetables inside in the winter and outside in the summer.
20. Move to a smaller home.
21. Cut down on/or eliminate expensive hobbies.
22. Review cell phone usage.
Some valid points. As far as 'buying on sale', unless you were already saving for a particular item and then found it on sale, you really didn't save anything at all.
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Old 09-07-2013, 08:35 AM
 
Location: Grove City, Ohio
10,135 posts, read 12,392,750 times
Reputation: 13984
Quote:
Originally Posted by mathjak107 View Post
usually those looking for ways to cut expenses are doing so to stretch their retirement income.

the problem is that over time expenses rise regardless and eventually there is nothing to cut.

you need to look at the income side too and find ways to increase income.

that may be changing allocations, cutting investment fees or increasing risk level for more income.

doing one without the other is only a temporary bandaid .

it is no different than a corporation , a corporation is looked at not only on profits which can come from cost cutting but they look at revenue too from sales. both are important.
One thing not approached is working longer if you are able.

For many the decision to enter "retirement" is brought on more by mindset than need and there is no reason to work longer as long as one is physically able to do the job.

I'm one year older than my wife and for planning I am using her 66th birthday when I will have just turned 67 which will give her 50% of my FRA social security and by putting mine off I will collect an additional 8% which represents an additional $170-$180/mo in benefit for me AND for my wife under survivor-ship. That alone is no small sum of money and looking at the additional 8% where that will be most useful is after the death of a spouse. As someone mentioned previously if my spouse dies before I do that will be my dating money.....

I have always been a big promoter of if one physically able to work to 70, 75 or 80 that is exactly what they should plan to do because the money may well come in handy later on. If I can put off collecting to 70 in order to collect the additional 32% that is exactly what I will do. An extra $700 will allow me to go on some good dates!

I haven't seen a whole lot about it on the forum but assisted living is one thing that may well pop up and depending on the facility the nicer facilities can get pricey.

In the course of my job I see a lot of assisted living facilities and they are not all equal.

I've seen some for $1,800/mo and they are pretty rough... livable but it would not be my choice or want to live there. The one I would want to live in runs $4,000/mo and it is very nice not unlike a resort. They got drivers and cars to take you wherever you want to go on the residents schedule be it doctors appointments, shopping, church or just a social function somewhere in the county. If you got a flight to catch they'll take you to the airport and pick you up. They have beauty parlors in the facility itself. I've seen the food and it looks pretty good to me and the place is kept in tip top condition in terms of repairs, landscaping and cleanliness but that is what I would expect for $4,000 per person.

I am lucky, you'll pay $4,000 monthly where I live in Georgia but if you're in New York you can expect to pay $6,000 to $8,000 for the same quality that so you better save your money.
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Old 09-07-2013, 08:41 AM
 
29,782 posts, read 34,880,403 times
Reputation: 11705
Quote:
Originally Posted by Darthfrodo View Post
I tried to plan way ahead for this.

Living well on my pension right now.
House paid off next year = $1600 a month raise.
In 8 years when I turn 62 I go into my Roth for a $20,000 a year raise for 6 or 7 years.
At age 68 or 69 start collecting Social Security $30,000 a year.
At age 71 go into my 401k (estimating taking out $40,000 a year)
That is a plan and a good one. Similar to ours and will leave you golden with a steady income stream increase. We will be using my SS both spousal next year and eventually my age 70 full for investments and pouring my RMDs into taxable accounts. Although at some point we might up the lifestyle gauge.
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Old 09-07-2013, 09:28 AM
 
Location: Forests of Maine
30,687 posts, read 49,469,539 times
Reputation: 19134
Sometimes we are our worst enemies.

We have a neighbor who we have over for supper once/month. She inherited two houses with no mortgage. She rented one out to college students and lived in the other while attending classes herself. With no job, she then ran up a bunch of debt. Now she finally got disability coming in, so she has stopped borrowing. Her rental income covers her loan payments. Now she has decided to do a lease-to-own with her renters, as soon as her debts are paid off, the renters will own the house they are in [5-years]. Leaving her with no debt, and only her disability check as income.

To me, having rental income and no debt would be better for her.
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Old 09-07-2013, 11:08 AM
 
Location: Grove City, Ohio
10,135 posts, read 12,392,750 times
Reputation: 13984
Quote:
Originally Posted by LookingatFL View Post
TxPanther,

Mathjak is correct. There is only so much you can cut from your budget and then you do need to figure out ways to bring in more money.

Some ways to cut expenses:

6. Discontinue Cable/Dish TV. Watch TV shows through the Internet/Netflix/etc.
7. Join Netflix. Watch all movies using Netflix
Until I retire we'll continue getting cable but it is costing us $123.27 monthly. True, along with that we get internet and land line phone but I could save$70 monthly if I switch to another internet provider. Get one of those indoor antennae (not rabbit ears) and I can pick up four local stations for news etc.

Quote:
8. When eating out only order appetizers and a glass of water. Do not order drinks, entrees, dessert
My wife and I always split meals now. If I order an extra side salad we'll split the entree and with the change we've had in eating habits we still take home a doggie bag.

The only tough part is selecting something we both like.

We seldom eat dessert but when we do we split one.

Quote:
14. Take short showers
15. Some people don't flush the toilet each time (thought I find this disgusting)
Sorry, can't do either of those. Will not do either of those.

I am one of those that don't mind the energy saving bulbs and I like leaving ALL my lights on. I did not work over half a century to live my last years cold and in the dark.

I leave my lights on all the time because I like light. My wife no longer nags me about it because she determined if I felt nagged I would turn even more lights on which is true. If I am home I like every light in the house left on.

Winter here is very moderate but summers can be brutal and along with my lights I keep the thermostat exactly where I am most comfortable. In the daytime we'll move it up to 72 but at night I like it at 69 so I have to cover with blankets which is exactly what we do.

The Jacuzzi tub takes a lot of water but with the onset of arthritis I am not about to give that up either.

Quote:
20. Move to a smaller home.
To save money we sold the house we raised the family in going from four bedrooms two and a half baths with 2,600 sf to two bedrooms, one bath (but it is big with a Jacuzzi tub) with 1,400 sf.

One of the biggest rooms in the house is our bedroom (over 400 sf) it even has a fire place in it.

With the smaller house I saw rather dramatic reductions in utility costs but the biggest reduction of all was property tax which reduced by $300 monthly.
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Old 09-07-2013, 01:41 PM
 
Location: Burles
49 posts, read 60,978 times
Reputation: 16
Quote:
Originally Posted by LookingatFL View Post
TxPanther,

Mathjak is correct. There is only so much you can cut from your budget and then you do need to figure out ways to bring in more money.
Morning/Afternoon LookingatFL,

Thanks so much for your list, some are interesting, and some would say common sense,
but I've never been accused of having that, so Thank You!!!

Take Care,

Craig
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Old 09-07-2013, 01:54 PM
 
Location: Burles
49 posts, read 60,978 times
Reputation: 16
Quote:
Originally Posted by nicet4 View Post
To save money we sold the house we raised the family in going from four bedrooms two and a half baths with 2,600 sf to two bedrooms, one bath (but it is big with a Jacuzzi tub) with 1,400 sf.

One of the biggest rooms in the house is our bedroom (over 400 sf) it even has a fire place in it.

With the smaller house I saw rather dramatic reductions in utility costs but the biggest reduction of all was property tax which reduced by $300 monthly.
Howdy NiceT4,

Thanks so much for your thoughts and suggestions, the house is one place
we can change/ do something. We bought it late in our Working lives, and still
owe a considerable amount, but our 5 acres has finally starting to increase
and with location and the land we should be able to sell and move into a smaller
home like you talked about, which would decrease our monthly out-lay by a minimum of
600 a month and also the associated expenses.

Thanks Again, Take Care,

Craig

Last edited by TxPanther; 09-07-2013 at 02:25 PM..
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