U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 03-23-2016, 10:12 AM
 
21 posts, read 14,622 times
Reputation: 92

Advertisements

To live comfortably, $2100 a month. I could make do with a lot less, but would end up depriving myself of activities I enjoy.
Reply With Quote Quick reply to this message

 
Old 03-23-2016, 10:30 AM
 
708 posts, read 503,673 times
Reputation: 1165
Biggest key to retirement is having no debt. If you have everything paid for (hopefully including your house) then what you need to live is much more controllable. You are going to have fix expenses like taxes, real estate taxes, insurance, utilities, gas etc so you need to add those all up. Then figure your variable expenses like what how expensive groceries you buy, clothes, travel, activities you enjoy, house repairs, medical costs. Once you do your financial worksheet that will give you a very good idea what you need to live off each month. If you are in the negative you need figure what to cut. It is just like a business income vs. expenses. Hopefully, you have money set aside so you don't have to worry about the month to month stress of bills.
Reply With Quote Quick reply to this message
 
Old 03-23-2016, 03:19 PM
 
Location: Texas
1,972 posts, read 1,377,839 times
Reputation: 6755
Our retirement situation is as follows. We pay property tax, auto and home insurance annually. So one month per year our expenses run around $12K. The remaining 11 months our expenses usually don't exceed $3K. We have zero dept and only standard deduction. My insurance is paid for life by the company, and my wife pays only $165 per month. Our monthly retirement income is five figures. Our SS is taxed at 85% and we are in the 25% tax bracket, our effective adjusted tax rate is 12%.
So in retirement we actually save more than we did working.
Reply With Quote Quick reply to this message
 
Old 03-23-2016, 11:31 PM
 
406 posts, read 370,818 times
Reputation: 822
Quote:
Originally Posted by Escort Rider View Post
I wish you would give some details explaining how you are able to live on so little. As a homeowner, do you put aside an amount each month to build up a reserve for big-ticket items that can hit you, such as roof repairs, replacing the heating/air-conditioning system, major plumbing repairs, and the like? Those things do not necessarily reccur on a predictable schedule.

Anyway, it sounds like you are very disciplined with your spending.
Yes, we do have a cash reserve for big ticket items. Otherwise, we live solely on our social security which is $2,414 per month. From that deduct the $908 for health insurance each month and we have $1,506 to live on. We do also have an IRA, but so far we don't need to use it.

We put $100 away each month for truck maintenance and repairs, which haven't amounted to much. It's a 1997 Toyota that was made in Japan and has been a great truck. It will most likely outlive us.

We also put away $276 per month for the bills that are not monthly such as auto insurance, house insurance, property taxes, auto club, and auto registration.

Our food budget is $400 per month and $25 for non-food grocery items such as laundry detergent, paper towels, TP, etc.

Utilities: Electricity is on average $125/mo. water is just under $15/mo, phone and internet $72, trash is just under $20/mo. We have a pre-paid cell phone for emergencies that is $11 every 90 days.

Gasoline varies and we have grocery rewards that reduce the amount per gallon. Lately, it has been as little as $15/mo., but more often it's around $30/mo. We don't drive a lot, so just fill up once per month, or so.

Haircuts: $12.00/mo.

Prescriptions: $115

Gardener: $65

I'm doing this by memory, but I think that's everything. Leaving us between $300 and $400 for hobbies and what not.
Reply With Quote Quick reply to this message
 
Old 03-24-2016, 06:58 AM
 
Location: Forests of Maine
30,697 posts, read 49,488,800 times
Reputation: 19146
Quote:
Originally Posted by txfriend View Post
Our retirement situation is as follows. We pay property tax, auto and home insurance annually. So one month per year our expenses run around $12K. The remaining 11 months our expenses usually don't exceed $3K. We have zero dept and only standard deduction. My insurance is paid for life by the company, and my wife pays only $165 per month. Our monthly retirement income is five figures. Our SS is taxed at 85% and we are in the 25% tax bracket, our effective adjusted tax rate is 12%.
So in retirement we actually save more than we did working.
Your annual payments for property tax, auto and home insurance come to $12k ? Isn't that extremely high?
Reply With Quote Quick reply to this message
 
Old 03-24-2016, 07:50 AM
 
1,227 posts, read 1,262,186 times
Reputation: 4310
Quote:
Originally Posted by Submariner View Post
Your annual payments for property tax, auto and home insurance come to $12k ? Isn't that extremely high?
Submariner, Texas has very high property taxes. For instance, a friend who purchased her 4,062 sq ft home in 2009 for $550K was billed $15,000 for her 2015 property tax.

My home is 1,600 sq ft and I pay $6,000 annually for property tax.... and the property tax keeps rising annually.
Reply With Quote Quick reply to this message
 
Old 03-24-2016, 07:55 AM
 
6,334 posts, read 5,072,656 times
Reputation: 12880
Quote:
Originally Posted by LookingatFL View Post
Submariner, Texas has very high property taxes. For instance, a friend who purchased her 4,062 sq ft home in 2009 for $550K was billed $15,000 for her 2015 property tax.

My home is 1,600 sq ft and I pay $6,000 annually for property tax.... and the property tax keeps rising annually.
Yes, we live in a very small town in Texas and property taxes are very high for what we have. But we are 100% exempt, so that helps. Disabled veteran - 100%.

I know people that live in what some would consider shacks that have to set up monthly payment plans because they can't afford it otherwise.
Reply With Quote Quick reply to this message
 
Old 03-24-2016, 07:57 AM
 
406 posts, read 370,818 times
Reputation: 822
Quote:
Originally Posted by Submariner View Post
Your annual payments for property tax, auto and home insurance come to $12k ? Isn't that extremely high?
It is $276 per month, which is $3,312 per year. That is to cover property taxes, house insurance, auto insurance, auto club and auto registration. I think that's very reasonable for all of those expenses.
Reply With Quote Quick reply to this message
 
Old 03-24-2016, 07:58 AM
 
708 posts, read 503,673 times
Reputation: 1165
Quote:
Originally Posted by LookingatFL View Post
Submariner, Texas has very high property taxes. For instance, a friend who purchased her 4,062 sq ft home in 2009 for $550K was billed $15,000 for her 2015 property tax.

My home is 1,600 sq ft and I pay $6,000 annually for property tax.... and the property tax keeps rising annually.


Wow that is very high as you have same size house as I do and I pay $2000 but then again
Texas has no income tax as the saying goes they need to get their money somewhere
Reply With Quote Quick reply to this message
 
Old 03-24-2016, 08:16 AM
 
Location: Forests of Maine
30,697 posts, read 49,488,800 times
Reputation: 19146
Quote:
Originally Posted by LookingatFL View Post
Submariner, Texas has very high property taxes. For instance, a friend who purchased her 4,062 sq ft home in 2009 for $550K was billed $15,000 for her 2015 property tax.

My home is 1,600 sq ft and I pay $6,000 annually for property tax.... and the property tax keeps rising annually.
I see.

Our home is 2400 sq ft, with wrap-around covered porch and carport the total foot-print is 4800 sq ft. Built in 2005 it is assessed at $60k. Along with 150 acres of river frontage land our property taxes are around $800/year.

Our auto and home insurance add another $1500/year [Prius, Honda minivan and a commercial dump truck].

I pay no Income Taxes. [They just made military pensions tax-free in this state starting this year, but it was a political move to favor votes. The tax brackets are set high enough that military pensions fall well below them, I have never paid Income Taxes in this state.]

I see now why some people 'need' so much in retirement. I was wondering why the numbers that posters have been claiming were running so high. Now it makes more sense.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top