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Old 10-14-2016, 09:41 AM
 
Location: R.I.
978 posts, read 605,084 times
Reputation: 4232

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Quote:
Originally Posted by selhars View Post
If a person has the resources to spend 10K a month…more power to them. That's clearly a different price point lifestyle than at which many others might live. IMO, it's the lifestyle price point that makes the difference. Lot's of people get hair cuts. They don't get $300 hair cuts. Lots of people eat out. They don't spend $100 per person on a meal. Lots of people go to free entertainment events. Others go to Broadway shows and hundreds a ticket.

Some people can spend 10K a month to live the lifestyle they want. Others have much less than that and so live on less. That's just life.



I'm planning on living on about that (or less) when I retire to a paid off family home, and that's not for nine years yet.
In today's dollars:
-- Homeowners Ins. less than 100. a month, RE taxes less than 100 a month
-- Utilities would be less than 400 a month (I don't live there yet, but when my mom was there her utilities were less than that)
-- Food (grocers not eating out) 300 am month
(no car payment or mortgage)
I'm sure I've forgotten some basic subsistence cost in that -- but let's say those basics are 1K or less.

Health insurance will be Medicare and a medigap plan TBD, and I'll have to see about dental and vision

I'll just have to see what things cost at that time. Who knows? We all might have a single payer health care by then…..

There's one old thread -- I think on the personal finance thread -- about "living the good life on less than 12K a year." I don't know if I'd call it the good life, for me, but, clearly it can be done.

I am still working and have Federal BC/BS Standard self + 1, FEP Blue Vision High self + 1, and MetLife PPO Dental High self + 1. My Federal BC/BS will become our gap insurance when we take on Medicare Part B at age 65. If the rumor that Medicare Part B premium will rise to $149/month for most individuals becomes fact, with this coverage if we were to retire in 2017 our annual cost would be $11,700 or $975/month which would be a $3,500 increase in our health coverage than what we are paying now. Even if a single payer plan comes along I do not expect any major cost decrease, if there is then our taxes will go up!! So minimally by the time I retire at age 66 in 6 years I expect that our health insurance will be around $1,000 a month. If you are looking at similar insurance costs, your health insurance will deplete 1/2 of your $2,000 monthly budget. Adding your home owner's insurance, utilities, and food will deplete it by another $800. You forgot car insurance, and when you add that in with some car gas and some other essentials you are in deficit territory.
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Old 10-14-2016, 10:10 AM
 
8,197 posts, read 11,913,206 times
Reputation: 17979
Quote:
Originally Posted by KYBob View Post
That being said I have never spent anything close to $90 for dinner for two, let alone $500. There is absolutely nothing wrong with that, it's just something my wife and I have no interest in.
Quote:
Originally Posted by KYBob View Post
Once again there's nothing wrong with $90 meals, it's just that they're not on our priority list, and by forgoing them we have been able to have other experiences we found more valuable.
And there's nothing wrong with not doing it. My problem is not with someone such as yourself who perhaps recognizes that $90-$100 for a meal out for two people is not outlandish, but chooses not to spend the money on such meals, it is with people who can't seem to understand that such meals are not exorbitant and can't fathom how anyone could spend that much several times a month.

And as I've shown, we're not really talking about fine dining here. My $90 bill was at a relatively inexpensive (for Miami) pizza joint just down the road from me.
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Old 10-14-2016, 10:13 AM
 
10,604 posts, read 14,202,393 times
Reputation: 17203
Quote:
Originally Posted by MadManofBethesda View Post
No, your conflating my response which was directed at a particular poster (CLR210) who questioned how it could be possible for anyone to spend $500/month on dining out with the OP of this thread (MCNE) who is looking to retire at 54.

Now that we have that straightened out...

Are you seriously going to suggest that it is completely unfathomable to you that regular people can routinely spend $500/month in restaurants? I can understand people being on a budget and not doing so, but it's not like we eat out in gourmet restaurants every night. That's only 6-7 meals (if that) in fairly inexpensive restaurants like the one we went to last night.
Well I didn't use your hyperbole (unfathomable) but ok - YEP. Regular average RETIRED people don't. I didn't say can't.

You said it yourself, you can understand people on a budget not doing so. But you think because it's a pizza joint that it's "average"?

It's not. It's average for Miami.

On top of that, most normal everyday retiring people don't chose Brickell - where the AVERAGE one-bedroom apartment rents for $2,000 per month. What's the per sq ft on sales? About $475? Your COLA is about 150% higher on housing and at least 20% higher on eating out than mine.

A studio at SOMA is $1,770 – 2,615.

I know Florida having grown up here part time. LOL fun fact my father was a musician at the Fountainbeau

Anyway, trust me I work for MANY of these people, in Vero Beach - home of the most retired CEOs in the country.

Where Gloria and Emilio Estefan opened up their resort & spa?

Most whom would be considered extremely comfortable ie living in a $1-2M condo on the ocean or a new $400K single HOA house . Right now I'm caring for a couple's pets who're in AU for a month. Costing them about $3K for pet care.

These are NOT the retired CEOs - THOSE folks spend $23,000 per year on my pet services and live in exclusive housing.

You can be as spendy as you want. Go for it. My father spent his money on luxury cars (Carrera, Lamborghini and Pantera)...and boats. I'm just saying that you are not in the "AVERAGE" demographic ESPECIALLY in Florida.
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Old 10-14-2016, 10:20 AM
 
Location: On the road
5,940 posts, read 2,891,210 times
Reputation: 11366
I gotta agree with MMOB, the grab-401k conspiracy theory has been floating around in various formats for years. It is ridiculous.
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Old 10-14-2016, 10:25 AM
 
10,604 posts, read 14,202,393 times
Reputation: 17203
Quote:
Originally Posted by MadManofBethesda View Post
And there's nothing wrong with not doing it. My problem is not with someone such as yourself who perhaps recognizes that $90-$100 for a meal out for two people is not outlandish, but chooses not to spend the money on such meals, it is with people who can't seem to understand that such meals are not exorbitant and can't fathom how anyone could spend that much several times a month.

And as I've shown, we're not really talking about fine dining here. My $90 bill was at a relatively inexpensive (for Miami) pizza joint just down the road from me.
I'm glad you're qualifying your point of view by stating "for MIAMI" now.

Because up until your last post or two nobody would know you're talking about one of the highest cost of living cities. And the MENU saying "Miami" doesn't exactly mean it had to be in Miami.

IE this post:



Quote:
Originally Posted by MadManofBethesda View Post
I'd love to see your budget with a delineation of your other expenditures to see how you do that. I spend more that that just on property taxes, HOA fees, and homeowners' insurance premiums. But then again, I do have two residences. Then there's life insurance, LTC insurance, umbrella liability policy, jewelry and artwork rider, car insurance, and pet insurance. We also budget $500/month for prescription drugs and other medical co-pays and incidental expenses. (And that's on top of the $400+/month we pay for our Blue Cross policies.)

Our routine monthly expenses are between $8k-$9k, and that's before adding in discretionary spending such as travel, clothes, event tickets and other entertainment expenses. Now we could obviously cutback on some of that if necessary; for example, doing away with the landscaper, cable tv, pet groomer, etc. But there is no conceivable way we could get down to $2,000. Hell, even my 89 & 84 year old elderly parents have more than $2000 in regular, routine monthly bills, and they live in the same small house they bought in 1957.
Still laughing you'd consider cutting out the poor dog getting groomed while maintaining this lifestyle.

You can get a dog groomer CHEAP in Miami (one of the few things) but no, not a boutique groomer like your wife's salon.
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Old 10-14-2016, 10:35 AM
 
10,604 posts, read 14,202,393 times
Reputation: 17203
Quote:
Originally Posted by MadManofBethesda View Post
Only if someone has an IQ lower than the temperature in winter and believes such idiocy.
Might wanna fact check your personal attacks, boo.

EVERYBODY knows proposals were floated out there. Teresa Ghilarducci created quite the stir. Just like Gruber - after it was too late. Shocker: Obamacare is failing. (Oh no, they NEVER said it was a path to single payer did they?)

What do you think the tax on "Cadillac healthcare plans" is? A WEALTH tax. Under a different name. Where did the Medicaid money come from under Obamacare? Medicare.

http://www.annuitywatchusa.com/is-th...ing-your-401k/
Quote:
Proposals to replace 401(k)s are varied. Most would continue the practice of having participants invest their savings in stocks and bonds. The big change? The government would at least partly take over sponsorship of these accounts, making them available to all. “One could make the argument that the economy would benefit from disentangling retirement plans from employment,” says Prof. Benartzi at UCLA. “Our current system has airlines running 401(k)s. Let them use their resources to fly planes.”


http://www.wsj.com/articles/SB122878...9575?mg=id-wsj

House Democrats contemplate abolishing 401(k) tax breaks

http://www.forbes.com/sites/nextaven.../#9c890c822f2b

https://www.bloomberg.com/view/artic...s-middle-class

She wants to kill your 401(k)

Factcheck dot org gibberish:


"Oh NO! They're only proposing limiting the deductibility of donations, and offering as an alternative a $600 tax credit and a new type of account with an annual return guaranteed by the government."


IRAs, 401(k)s and You

Last edited by runswithscissors; 10-14-2016 at 10:58 AM..
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Old 10-14-2016, 10:43 AM
 
6,880 posts, read 7,281,254 times
Reputation: 9786
MadMan, Relax.
OK so what? 250 instead of 300. No need to clarify a $50 difference.

The numbers were just examples….I was actually explaining that some people live at high price points than others. (Because some posters seemed aghast at the numbers which are higher than many retirees are accustomed to.)
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Old 10-14-2016, 10:45 AM
 
Location: Forests of Maine
30,682 posts, read 49,449,101 times
Reputation: 19134
Quote:
Originally Posted by KYBob View Post
Everyone's situation is different. I have been retires since 2001 (now 64) and feel that my retirement has been and will continue to be quite comfortable. I think that I have the money to do all of the things that I want to do.

That being said I have never spent anything close to $90 for dinner for two, let alone $500. There is absolutely nothing wrong with that, it's just something my wife and I have no interest in.
Same here. I retired in 2001 too.

Everyone is different.

My wife likes having long hair, I like her with long hair. We had a renter in 2001 who was attending beauty school, they offered my wife a free wash and perm. It took three students to work on her hair. That was the last time that she was inside a beauty parlor. I trim her split ends once a year. Otherwise she lets it grow.

We do fine on our pensions. We have known for a while that when we both start getting our SS, our gross income would roughly double. Though we have no idea what we would do with that much money.

Now via an inheritance we suddenly have roughly triple the income of our pensions.

We have no plans to increase our spending. We enjoy our current lifestyle too much to allow us to be drawn into anything else.



The only thing that is going to change for us, is that now we will begin to pay income taxes. That really grinds my gears.
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Old 10-14-2016, 10:49 AM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,569 posts, read 39,952,759 times
Reputation: 23699
Quote:
Originally Posted by lieqiang View Post
I gotta agree with MMOB, the grab-401k conspiracy theory has been floating around in various formats for years. It is ridiculous.
+/-, who knows... ANY Taxable income is a cream treat for future politicians / hungry government agencies that have been growing, staff / pensions but not required to grow local revenues. (they are running LOW(er) on wage income !)


equally "On-Topic" for our age 54 retiree, might be a bolstered ROTH now...to use as income to keep his MAGI in obamacare 'subsidy' range.

Usually I consider my ROTHS as a tool for future occasional high tax years (during traditional retirement), such as when selling investment props or taking stock gains, or for Min. Dist. after age 70, BUT AFFORDABLE healthcare (subsidies) pre-age 65 might require pulling income from ROTH rather than taxable 'Qualified accts' such as 401k. As soon as ROTH 401k became an option, I advised those eligible to consider swapping to ROTH 401k, rather than Taxable 401k. I roll Traditional to ROTH each time I am under a 7% IRS tax liability. (Like this yr...Great yr for ROTH conversions as I balanced to ZERO net earnings, LOTS of expenses and income property 'improvement' offsets. I LUV getting subsidies to increase future valuations) Retirement 'creative finance' has SO much latitude Age 54 is gonna LUV it!

I doubt there is much value to discussing $90 pizzas in this thread (other than the usual "Please-Puff-me-up" insecurities. / high need of missing the 'strokes (giggles)' of subordinates... Yes, The Emperor still likes his new clothes, and they fit FINE, even after PIZZA!)

$10 Tuesday Papa Murphy works once / month for our 'special treat', (If we don't get our usual 1/2 price $5 large Pizza near closing time 'overstock'). but... even that 'treat' can have negative affect on my $5.99 denim trousers. Heaven forbid a new wardrobe, I still have excellent clothes I bought (sewed) @ 4-H in Jr High! Frostline Kits ... These are "Sew nice", I bought some more on eBay last year (<$20 - FREE shipping), they will last another 50 yrs, so I'm all FIXED up!!, as long as I flee the Pizza places! To think that I 'delayed' this expense for 50 yrs, and was able to buy it for $40 off!!! SCORE! (hint:... that is what it takes to retire at age 54 and live COMFORTABLY on $25k/ yr! (in a USA major metro) Millions are doing it

Last edited by StealthRabbit; 10-14-2016 at 11:03 AM..
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Old 10-14-2016, 10:56 AM
 
6,880 posts, read 7,281,254 times
Reputation: 9786
Quote:
It is ridiculous.
Oh, please. Like Congress has never passed "ridiculous" rules and regs before?

Remember when they passed a change that lessened went after early MILITARY retiree pensions just a couple of years ago? And after an uproar they undid it saying "Oh, we didn't mean to do that." Yeah , right. If they'll go after MILITARY retirements -- they'll sure as hehl go after anyone else's.

Quote:
it is with people who can't seem to understand that such meals are not exorbitant and can't fathom how anyone could spend that much several times a month.
And you don't seem to understand that such meals ARE exorbitant to them. "Exorbitant" is subjective -- what's exorbitant to one, may or may not be to another. So at some point the conversation is circular to the point of ad nauseum.

I used to marvel at what others spent on certain things. Then it finally sank in....OTHER PEOPLE likely feel the same about what I SPEND on the things I enjoy. Each side marvels at the other's choices. They really are marveling at the other person, for the same reason the other person marvels at them. So can we all call it a draw….You don't get them. They don't get you. And you're both happy where you are and how you live…..at different price points.

As long as someone has the money to live the lifestyle they want, .they can spend whatever they like. I do.

Last edited by selhars; 10-14-2016 at 11:10 AM..
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