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Old 04-12-2015, 09:02 AM
 
6,239 posts, read 4,721,373 times
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As Mathjak pointed out and I detailed above, healthcare costs are unknowns that can be very substantial. In addition, when you retired do you plan on sitting on the couch? Do you have hobbies, activities and plans for travel? You need to think about your discretionary expenses.

Also consider that you might be able to substantially cut expenses. Depending on where you live, you might be able to downsize, move to a low cost of living area, and very substantially reduce your costs.
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Old 04-12-2015, 09:30 AM
 
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Quote:
Originally Posted by jrkliny View Post
As Mathjak pointed out and I detailed above, healthcare costs are unknowns that can be very substantial.
I was surprised when, during the course of doing my income taxes last week, I added up our medical expenses for the year and it came to a little over $25k. That was a significant increase from the year before and we haven't even hit our 60s yet.


Quote:
Originally Posted by jrkliny View Post
In addition, when you retired do you plan on sitting on the couch? Do you have hobbies, activities and plans for travel? You need to think about your discretionary expenses.
Exactly.

And 24/7 of your time will be available for discretionary expenditures.
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Old 04-12-2015, 09:57 AM
 
Location: it depends
6,074 posts, read 5,332,370 times
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One problem with the "% of ending salary" formula is that many people experience rising incomes in the few years before retirement but never move up their lifestyle or expenditures to match. The other very large issue is people who developed a lifestyle when they had children at home, and only modestly increased any outlays after all the expenses of raising children went away. These people save massive fractions of income as empty nesters. I agree with the posters who say start from scratch and figure out what you'll need to cover how you want to live.

I'm driving a car that is worth about eight days of my current income. My home is worth about eight months of my current income. My total annual living expenses are about six months of annual after-tax income. And all of those facts are just as meaningless as expressing my retirement income needs as a percentage of my income. It is trivia.
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Old 04-12-2015, 10:02 AM
 
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jrkliny , yep 12k is our health insurance number too without the long term care policy. but we are both local to each other and ny runs almost double on the supplements,.
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Old 04-12-2015, 10:05 AM
 
71,508 posts, read 71,674,131 times
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Quote:
Originally Posted by MadManofBethesda View Post
I was surprised when, during the course of doing my income taxes last week, I added up our medical expenses for the year and it came to a little over $25k. That was a significant increase from the year before and we haven't even hit our 60s yet.




Exactly.

And 24/7 of your time will be available for discretionary expenditures.
our medical was insane . between me needing 4 new dental implants and marilyns work we hit 19k in dental alone. medical insurance and long term care were another 17k

then we had glasses and co-pays .

healthcare is scarey.
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Old 04-12-2015, 12:38 PM
 
Location: Grove City, Ohio
10,129 posts, read 12,378,690 times
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Quote:
Originally Posted by lieqiang View Post
Everyone is different, our income needs are far less in retirement.


- We still have two cars but really only drive one now, so will probably sell the extra one. Either way we drive far less than when had two people working
Same here, all we need is one car and an electric golf cart since the community we live in allows golf carts on all public roads where speed limit is 35 mph or less and the road is not a state highway.

From our home we can be to the doctors, hospital, bank, grocery store and post office in under 15 minutes by golf cart.

Quote:
- We spend less eating lunch out because we aren't at work where sometimes that is all you have time for or the temptation of all your coworkers going is great.
For the past couple years we've taken to splitting meals when out not to save money but we just don't finish full portions. Even when we split a meal we end up taking a baggie home or leaving some on the plate.

Quote:
- We were saving a very large percentage of our salaries for retirement, obviously no longer doing that.

- We used to pay a ****-ton of income taxes since home paid off, no kids, two solid incomes but now we could pay almost nothing since in 15% bracket where dividends and cap gains are tax free (this will vary due to Roth conversion ladder ramping up soon)
According to my plan we won't pay any federal or state taxes.

Quote:
- So far have not found entertainment spending to have gone up, most hobbies I have reading library books on kindle, fishing, hiking, video games don't really cost more to spend more time at them, wife goes to a lot more classes at the YMCA yoga, tai qi, etc. but same monthly price
My wife's medicare plan has "Silver Sneakers" which provides free membership at Anytime Fitness.

Quote:
- So far travel costs for short trips are down because we book flights based on cheapest instead of which ones leaves Friday night and returns Sunday, can go mid-week = savings
I guess we did our travel when we were younger and neither one of us has much in the way of travel ambitions with the exception I want a cruise through the Panama Canal. $5,000 for both of us should take care of that. I just want a room with a view.

Quote:
- We're on Obamacare and actually get subsidies because if your income needs are modest and income is mainly the cap gains it isn't hard to fall under threshold
Medicare for both here and the word is cheap, cheap and cheap. Including our Medicare Part B we might spend $400/month each but that includes all the medigap plans, all deductibles, pharmacy and dental insurance. $10k per year for everything medical and we are done.
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Old 04-12-2015, 03:56 PM
 
Location: Tucson for awhile longer
8,872 posts, read 13,545,637 times
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Ever watch a golf match on television? Viewing the commercials that appear during a golf tournament (or some other TV show popular with people in their forties and fifties) will give you some idea of how big the financial services and insurance industries are. They make their money off terrorizing reasonably well-off Americans that they have not saved enough and will not be able to function once they have lost their corporate jobs.

Do you think poor people sit around reading articles about how to structure their retirement incomes? No. They're too busy still trying to earn a buck so they can pay the bills they have now.

Most of the retirees I know who are having trouble living off their retirement incomes are in that boat because they are still keeping their spoiled children/grandchildren in the lifestyle to which they made them accustom.
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Old 04-12-2015, 04:16 PM
 
6,239 posts, read 4,721,373 times
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As long as we are complaining, I just got hit with a huge cost for new eyeglasses. I used to have glasses through my health plan that required Davis Vision. They were absolutely horrid. Coatings pitted and pealed at about 18 months. I went through that for 12 years. I tried Lenscrafters but those lenses seemed prone to scratches. I tried Costco. The coatings seem good, but the lenses cracked and were replaced at 9 months and now a year later the replacements also cracked. I suppose it could be the frames but either way the glasses did not work out.

Any suggestions for good quality at a reasonable price?
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Old 04-12-2015, 04:21 PM
 
950 posts, read 714,360 times
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My healthcare cost besides Medicare is ZERO.

I get excellent healthcare thru the VA.........recently had a hip replacement at a new non -VA hospital ( new VA program ) and my cost was ZERO


Yup, some guys my age gloated that they got a college deferment, some gloated because they tucked their tail between their legs and ran to Canada.

Well, at least I am not paying ....."17k" or "25k" per year in healthcare expense.

I can't believe so few of you male retired posters never served. The draft was in effect for most of you.
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Old 04-12-2015, 04:37 PM
 
71,508 posts, read 71,674,131 times
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not every one had their number called . in fact i had my number called but they ended the draft one month before i was to report.
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