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Old 01-14-2018, 06:53 PM
 
8,080 posts, read 13,457,239 times
Reputation: 10322

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My budget for those that asked.....


125 Townhouse HOA
80 Insurance on House
200 Property Taxes
210 Utilities ($25Wifi,gas,water,trash,electric,$40 cell phone)

100 Health- Insurance and $20 RX

300 Car Payment
100 auto Insurance
100 auto fuel

300 food & dining out

1515 Total

Leaving about 500 for shopping, repairs, travel. Most of my travel is to see family & friends so it's
not expensive. Dining out is factored into food budget.

xxEHxx, You are correct that if I need more medical care at a later point I will have copay and
deductible expenses to consider...
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Old 01-15-2018, 04:36 AM
 
71,511 posts, read 71,674,131 times
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I always look at these budget lists and think of the saying man plans and god laughs.

I know with us when i list our expenses our actual expenditures are so much higher. Spending and expenses just come out of no where in retirement.

Not only because more things go wrong like dental ,vision and hearing aids. But because we find time cost money and with plenty of time the spending increases
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Old 01-15-2018, 07:33 AM
 
7 posts, read 3,092 times
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It does look like you have worked hard at reducing expenses. Frugality at it's best is my approach as well. You probably already know this but categorize your expenses into Needs and Wants. This will help you stress test. If you have little Wants then you may not be able to reduce spending during market-down years. On the good side I read somewhere (Bernicke, Kitces?) that even in down years you only need to reduce budget by 2.5% for that year.
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Old 01-15-2018, 07:38 AM
 
71,511 posts, read 71,674,131 times
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We use bob clyatt's withdrawal system.

We draw up to 4% of our balance each year or in down years we take the higher of 4% or 5% less than the prior year.
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Old 01-15-2018, 08:01 AM
 
6,615 posts, read 3,742,110 times
Reputation: 13667
I just wonder how someone can live well on $24k, as OP says (including taxes, vacations, etc.). $24k less taxes means clearing maybe $21,500 or so.

Grocery & household monthly
Car gas
Car repairs & maintenance (annual allowance)
Electricity
Water
Gas (if applicable)
Medical premiums
Medical expenses (other)
Dental
Entertainment
Misc.
Homeowner's Ins.
Auto ins.
Phone (cell or home)
Internet
Property taxes
Car registration & inspection
Clothing
House repairs & maintenance (annual allowance)
Pet expenses?

In 10-20 yrs: new car, new roof, new a/c

I can see why at first glance it looks like a person can get along with clearing $22k, on just the necessary expenses payable each month, but when taking into account all the annual and intermittent expenses, I don't see that staying under $22k.

But with $20k from personal accounts + $20k from SS, that will cover expenses and then some. Maybe that's what OP means? (I am single and have worked and re-worked a budget many times and could not get it to $24k, even tho I have no debt. However, I have had multiple pets. I also include emergency things that could, but may not, happen.) ???
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Old 01-15-2018, 08:17 AM
 
9,189 posts, read 9,267,265 times
Reputation: 28774
Quote:
Originally Posted by kelly237 View Post
Considering all the life curve balls I have had thrown at me I am pleased to be where I am financially.
I have been divorced, single parented 2 boys , and widowed.
It has taken a lot of work to get to 60 and be in decent shape financially. My kids are all grown and independent and making me proud.

My financial planner thinks I need to work PT and bring in 2-3K / month until 67, but I am not convinced.
I haven't worked the last few years but could easily find PT work in my field if I need to.


Here are the #'s

60 year old single
Own 230K Home with no Mortgage.
500 K in investments
2000/month budget is enough to include taxes, vacations and extras.
Will draw 1700 SS at 67 (option to draw less earlier)
I may move but that would be same price house & cost of living.
Realistic life expectancy 85 based on family history

All advice welcome.
So, your only source of income right now is what you earn on $500 K in investments?

A $2,000 monthly budget is minimal. It probably doesn't even account for a broken refrigerator and washing machine. What if you need to replace your furnace? What are you doing for health insurance until you are eligible for medicare? Does your current plan have large deductibles?

I would suggest you wait until age 67 like your financial planner suggests.

There are simply too many people in your boat. They want to retire at age 60. However, their finances aren't really suited to do that. People need to think about how to stay in the labor force and make their work easier rather than try to get out at such early ages.
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Old 01-15-2018, 08:36 AM
 
Location: Philadelphia/South Jersey area
2,871 posts, read 1,401,499 times
Reputation: 10071
Quote:
Originally Posted by bpollen View Post
I just wonder how someone can live well on $24k, as OP says (including taxes, vacations, etc.). $24k less taxes means clearing maybe $21,500 or so.

Grocery & household monthly
Car gas
Car repairs & maintenance (annual allowance)
Electricity
Water
Gas (if applicable)
Medical premiums
Medical expenses (other)
Dental
Entertainment
Misc.
Homeowner's Ins.
Auto ins.
Phone (cell or home)
Internet
Property taxes
Car registration & inspection
Clothing
House repairs & maintenance (annual allowance)
Pet expenses?

In 10-20 yrs: new car, new roof, new a/c

I can see why at first glance it looks like a person can get along with clearing $22k, on just the necessary expenses payable each month, but when taking into account all the annual and intermittent expenses, I don't see that staying under $22k.

But with $20k from personal accounts + $20k from SS, that will cover expenses and then some. Maybe that's what OP means? (I am single and have worked and re-worked a budget many times and could not get it to $24k, even tho I have no debt. However, I have had multiple pets. I also include emergency things that could, but may not, happen.) ???

I think a lot of people do without the things others see as necessary. I couldn't do it but my goal has never been to live a bare bones as possible. LOL I admit I want to live as large as possible (I have crazy dreams, but their not serious, stuff like doing a round the world cruise)

my budget with a mortgage (haven't decided whether or not I'm paying it off before I retire). Now I have two college students at home so this is hopefully going to go down.

1066.00 mortgage
450.00 property taxes
185.00 home insurance
175.00 HOA
70.00 gas
70.00 water
125.00 electric
200.00 cable/internet/home security
500.00 groceries (includes home paper goods)
600.00 vacation account
200.00 cell phones, family plan
500.00 car insurance. 3 cars kids are responsible for renewals, gas and maintenance
115.00 car registration and inspection (1 car, kids cover their own)
165.00 dog medicine (of course I have a dog with diabetes. insulin and needles and food. he's 14 so this will go down)
226.00 health care, this will definitely go up because I'm still working
150.00 Health care spending account
200.00 entertainment and eating out

~5K a month. some of these things will go down as my sons move out but I too cannot imagine living on 2K a month. I couldn't stay in my house at that amount
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Old 01-15-2018, 09:09 AM
 
9,189 posts, read 9,267,265 times
Reputation: 28774
Quote:
Originally Posted by eliza61nyc View Post
I think a lot of people do without the things others see as necessary. I couldn't do it but my goal has never been to live a bare bones as possible. LOL I admit I want to live as large as possible (I have crazy dreams, but their not serious, stuff like doing a round the world cruise)

my budget with a mortgage (haven't decided whether or not I'm paying it off before I retire). Now I have two college students at home so this is hopefully going to go down.

1066.00 mortgage
450.00 property taxes
185.00 home insurance
175.00 HOA
70.00 gas
70.00 water
125.00 electric
200.00 cable/internet/home security
500.00 groceries (includes home paper goods)
600.00 vacation account
200.00 cell phones, family plan
500.00 car insurance. 3 cars kids are responsible for renewals, gas and maintenance
115.00 car registration and inspection (1 car, kids cover their own)
165.00 dog medicine (of course I have a dog with diabetes. insulin and needles and food. he's 14 so this will go down)
226.00 health care, this will definitely go up because I'm still working
150.00 Health care spending account
200.00 entertainment and eating out

~5K a month. some of these things will go down as my sons move out but I too cannot imagine living on 2K a month. I couldn't stay in my house at that amount
I agree with you. The last thing I want when I retire is a "bare bones" retirement. Right now, DW and I are planning on a retirement income when our social security finally kicks in of about $12,000 to $14,000 a month. Our working lives include annual trips to Europe, additional trips around the USA, two homes, financing college for our kids, and two new automobiles. I want our retired lives to be similar.

I understand not everyone can do that. However, I don't understand the people who are so angry about working that they would choose to live on $2,000 to $3,000 a month just so they could leave the work force at age 60. What exactly do they intend to do ? Do nothing, but go on long walks and watch t.v.? Maybe drink cheap beer all day?

I tend to think this impetus for early retirement comes from people who never gave much thought to their job or career. They just took whatever came along and never thought more than a few months or a year down the road. By their 40's they were regretful. By their fifties they absolutely hated their job. By 60, no one was going to stop them from leaving.

To each his own, but people need reminder. There is no constitutional right to retire at age 60. If somehow you can afford it, you can do it. But don't expect those of us who intend to work to about age 70, to feel sorry for you if you struggle to make ends meet.
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Old 01-15-2018, 09:32 AM
 
2,215 posts, read 742,813 times
Reputation: 1376
Quote:
Originally Posted by markg91359 View Post
I agree with you. The last thing I want when I retire is a "bare bones" retirement. Right now, DW and I are planning on a retirement income when our social security finally kicks in of about $12,000 to $14,000 a month. Our working lives include annual trips to Europe, additional trips around the USA, two homes, financing college for our kids, and two new automobiles. I want our retired lives to be similar.

I understand not everyone can do that. However, I don't understand the people who are so angry about working that they would choose to live on $2,000 to $3,000 a month just so they could leave the work force at age 60. What exactly do they intend to do ? Do nothing, but go on long walks and watch t.v.? Maybe drink cheap beer all day?

I tend to think this impetus for early retirement comes from people who never gave much thought to their job or career. They just took whatever came along and never thought more than a few months or a year down the road. By their 40's they were regretful. By their fifties they absolutely hated their job. By 60, no one was going to stop them from leaving.

To each his own, but people need reminder. There is no constitutional right to retire at age 60. If somehow you can afford it, you can do it. But don't expect those of us who intend to work to about age 70, to feel sorry for you if you struggle to make ends meet.
I loved my job and made very good money, more then I really needed to live on so I saved.
I took early retirement because I could. My job was not my life. My job was needed to live my life.
And with a pension and savings I don't need the job anymore to live my life.

My goal was always to retire as early as I could and I achieved that even sooner than I expected.

With that said though..given the OP's budget and finances I would not retire early and would work at least to FRA and even then revisit the budget and savings. There doesn't seem to be a good "buffer" to handle the unexpected.

Last edited by skycaller23; 01-15-2018 at 09:46 AM..
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Old 01-15-2018, 10:09 AM
 
Location: Paranoid State
13,047 posts, read 10,431,986 times
Reputation: 15678
Quote:
Originally Posted by kelly237 View Post
I have to sell in Raleigh before house shopping in Oak Island. The transitional housing between selling & buying is the only thing I haven't figured out.
You could make an offer with a contingency that you sell your current home.
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