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Old 03-21-2016, 02:58 PM
 
Location: Colorado Springs
4,865 posts, read 4,977,192 times
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Quote:
Originally Posted by JJGittes65 View Post
Assume that your house is paid off, you live in a low/no income tax state, and your health insurance is paid for (thru VA, or pension, or whatever), how much per month do you need to live on . . . not just survive . . . but be comfortable by your own standards..?
Sometimes it's useful to do a back-of-the-envelope calculation. What ballpark are we talking about?

Case A: Imagine that you are still working and your gross income is $90K

Your taxes on that will be about 22% (remember that fica alone is 7.65%)...annual taxes $19.8K

Likely you will be paying rent or a house payment, let's guess $1.5K per month...annual rent $18K

Your employer will likely provide health insurance but you'll still pay a monthly premium, guess $400...$4.8K

And finally, you will need a car. Assume a car payment of $400...annnual car payment $4.8K

Therefore only those yearly expenses would be about $47.4K leaving you $42.6K or $3.55K per month.

Case B: Now you are retired and your house is paid off, your cars are paid off and you get Medicare.

If you and your wife together get about $3550 per month from SS alone your standard of living will be similar to somebody making about $90K and still working.
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Old 03-21-2016, 03:27 PM
 
Location: Mount Airy, Maryland
10,485 posts, read 5,949,749 times
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Quote:
Originally Posted by mathjak107 View Post
except with all that time to fill many folks need more then they did working , at least early on .

i spent very little on trips and doing things when i was working . today we have a huge budget for trips and going places .

we just got back from disney with the kids and grand kids . we are in manhattan more now then i think in my entire life , and i was born here .

time can cost money and retirement is just filled with time
I know what you mean, I tend to spend more in a 2 day weekend than I do the 5 work days. I didn't even mention health care costs.
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Old 03-21-2016, 03:45 PM
 
71,893 posts, read 71,942,576 times
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my cobra , my wifes medicare , drug plan and f-plan supplement with our long term care policy run 18k in after tax dollars . we get a 2k credit from the state on the ltc policy so call it 16k .

so healthcare costs and free time cost us plenty .

i won't know until december what we actually spend since we just started in july . i set a max budget but that does not mean we will spend it . it is there if we need it but i rather not .
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Old 03-21-2016, 07:07 PM
 
Location: Los Angeles area
14,018 posts, read 17,765,919 times
Reputation: 32309
Quote:
Originally Posted by rjm1cc View Post
You might get better answers with a pole.
How would you use the pole to get better answers? Beat people with it or poke peoploe with it until they answer? I imagine you would have better results with a poll.
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Old 03-21-2016, 07:51 PM
 
Location: Silicon Valley
18,134 posts, read 23,045,598 times
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Quote:
Originally Posted by Escort Rider View Post
How would you use the pole to get better answers? Beat people with it or poke peoploe with it until they answer? I imagine you would have better results with a poll.
Well, the pole would come in handy with the rope.

Mathjack, regarding how long the rope needs to be, I was going to ask how high the ceiling is?

I know, dark humor.
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Old 03-21-2016, 07:53 PM
 
Location: East of Seattle since 1992, originally from SF Bay Area
29,885 posts, read 54,596,860 times
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When we retire in a few years, we hope to make it on our 2 pensions and SS, after we sell the house and pay cash for a new one in a less expensive area. We'd be 67 and 66 then. We would also expect to have 3 late model paid off vehicles, one is already paid off now. That would be about $5,000 net, without using the 401k and 457 money. We hope to only withdraw the minimum required and put it into savings for a rainy day.
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Old 03-21-2016, 07:55 PM
 
536 posts, read 633,247 times
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Few of those assumptions is likely to apply to me, so I guess I can't answer.
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Old 03-21-2016, 07:59 PM
 
35,108 posts, read 40,325,166 times
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The amount needed depends on what you are willing to give up after retirement as well as the amount you gain from not going to work daily in regards to business attire, gasoline, driving time, etc. etc.
We are not retired but we are not in debt either and own our home and vehicles and don't need anywhere near $4500.00 to live as we do. Each household brings different dynamics and what some consider necessities and others consider luxuries
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Old 03-21-2016, 08:17 PM
 
5,432 posts, read 3,462,764 times
Reputation: 13714
Quote:
Originally Posted by JJGittes65 View Post
Nope, I'm just honestly interested in if there is a consensus out there, particularly among early retirees who are actually doing it. I suspect most early retirees will come in with a number around $2500-4000 a month, under the above assumptions. Of course money doesn't guarantee happiness, but for those considering early retirement, and living frugally sooner rather than later, concrete numbers can give guidance.

I'd say that I could do it fairly comfortably on $4500 a month pre-tax (considering my hobbies and tastes), but my wife would probably want a reliable income above $6000 a month to sleep well at night and do what she wants.
JJGittes65,

just to weigh in to show a difference from perhaps typical posts, $4000 or $4500 is not necessarily needed, from my perspective.

And as stated earlier in this thread, it can be a matter of what you are willing to give up. Some people are willing to live more modestly than others. Others make do with whatever amount of money is available.
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Old 03-21-2016, 08:29 PM
 
5,432 posts, read 3,462,764 times
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mathjak107,

I've never thought of retirement as being "all that time to fill."

It never occurred to me to think of retirement in that way.

I think that's more a thought from couples in retirement who by the nature of relationships feel more necessity to entertain each other, keep each other entertained, do things of 'interest' together as a couple, and to be interesting people to each other. just my opinion.

Last edited by matisse12; 03-21-2016 at 08:44 PM..
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