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Old 07-29-2019, 10:54 AM
 
Location: Florida/Tennessee
2,802 posts, read 4,383,168 times
Reputation: 1551

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Quote:
Originally Posted by Cabound1 View Post
The gist of your post makes a lot of sense. The more “stuff” we have, the more we are paying for upkeep, repairs,etc. For a relative minimalist like myself (I have the same digital alarm sitting on my nightstand that I bought when I went off to college 39 years ago....) these costs are relatively small. In my case, they are basically my house, my cars, my pets health and my health.

But as others have pointed out, it seems like every time you leave the house in retirement, it’s going to cost money (other than just the gas cost). This wasn’t the case when we were working, because a good portion of the time, we were headed to work. I’ve found these expenses much harder to quantify.
We all lose sight of what it "costs" to have something. It's easy to see how much a food bill is, restaurant bill, or how much the gas costs, since those costs are in real time. However, when you start adding up 'just what it's costs to have" something, then you get an idea of where the money goes.

I'm living' the dream and paying for it, bigly. What I want and hope for is, avoiding some major expense that debilitates me at the same time. For instance when I was 60 I got both my knees replaced. Yes I was "laid up" for a while, but ultimately it was a major improvement fro me do thing for myself. So... a major health issue or injury.... That would be a double whammy of sorts for me, since I do most of my own maintenance and repairs.
I'm in a rural areas so no services per se', but great neighbors and friends who would help out. I also have one of my 4 adult kids who lives nearby and can "do stuff". One thing I've thought about is to start a "small group" at church of us older capable retirees, to help others in the same boat.
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Old 07-29-2019, 11:05 AM
 
72,683 posts, read 72,534,115 times
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Quote:
Originally Posted by rjm1cc View Post
Take you current spending and adjust for retirement. Say 50,000 a year. Subtract your social security, pensions etc. Lets say 25,000. That means your assets have to give you 25,000 a year. Multiply the 25,000 by 25 to get 625,000 in assets needed.

Next step is to start refining but this is a ball park number. It relates back to the SWR 4% rule.
But that amount may only be true if they are going to be using equities. So there are qualifications that go with these amounts
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Old 07-29-2019, 11:38 AM
 
Location: Loudon, TN
5,924 posts, read 4,928,765 times
Reputation: 20002
Quote:
Originally Posted by Dave_n_Tenn View Post

....
I'm in a rural areas so no services per se', but great neighbors and friends who would help out. I also have one of my 4 adult kids who lives nearby and can "do stuff". One thing I've thought about is to start a "small group" at church of us older capable retirees, to help others in the same boat.
THat's a very good idea. My neighborhood id almost all retirees and we have quite a few of the older ones that can't do stuff, but some of it is too small to call a contractor or handyman. We have a volunteer group that assists with this sort of thing for those who can't get on a ladder to change a kitchen bulb, or replace a doorknob that stopped working, jumpstart a battery, move large boxes to the attic, etc. Of course there are people who do other services for a fee, but some things are just too little to warrant even coming out because they have to charge a $50-75 trip fee.
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Old 07-29-2019, 11:51 AM
 
72,683 posts, read 72,534,115 times
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Quote:
Originally Posted by Rickcin View Post
You are correct however, my grandparents made it until their late 90’s and both of my parents are still alive and living on their own at 94 and 95.

So do you think I need to at least plan on a long retirement period ❓
my mom died at 52 .... i am still going strong at 66
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Old 07-29-2019, 11:53 AM
 
72,683 posts, read 72,534,115 times
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Quote:
Originally Posted by shokwaverider View Post
Anyone can figure this out without any help from others.

Look at your budget spreadsheet or ledger. What, you do not have one? Start making one now. Look at you mandatory monthly expenses, everything you simply cannot do without, and do nor forget home maintenance costs, some of it may be discretional, but habits die hard. Average it over the last 6 months, preferably a year or two. Double it, that is what one will need to have a decent QOL in retirement. Lowering it from 100% (Double) to 50%, 30% or even 20% for an average QOL, sometimes having to give stuff up till next month or save for stuff. This assumes no debt unless it is included in the first number.

So if your Minimum COL is $3k pm, you will need $6k and so one. Not rocket science. You still may need to save up for a splurge.
pretty much how we did it.. we took all the bills which we considered to be non discretionary , then doubled it to allow for "life "
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Old 07-29-2019, 03:35 PM
 
7,025 posts, read 1,499,959 times
Reputation: 17400
As others have said, what you need is determined by how you live and what your choices have been and will be. We should do well on $3,300 a month, but I have know of retirees who get by (barely) on $1,000 a month and others who "scrape by" on $6,000 (or even more). Anyway, for us, our monthly budget percentage of income will be approximately:

Housing and Utilities: 24% (about $800)
Food and Groceries: 18% (about $600)
Transportation: 6% (about $200)
Medical/Dental: 24% (about $800)
Income Taxes: 3% (about $100)
Other: 24% (about $10,000 per year, which is about $800 per month)

Notes

Housing includes property taxes, insurance, utilities (including Intenet, and one "senior" cellphone, not a Smartphone). Our single family home will be paid in full.

Food and Groceries include food, wine, and grooming and cleaning items -- and going out to eat twice a month.

Transportation includes gas and car insurance only. We have just one car, and that is brand new, so we don't anticipate getting another one -- and if we do, we will pay cash for it.

Medical/Dental: Includes Medicare deductions and Supplemental Insurance

Income Taxes: We will pay very little in income taxes because we will not take more than $40,000 a year from Social Security and 401k disbursements combined, which is only about $10,000 more than the standard deduction for retirees 65 and older.

'Other' will be for things like house and car maintenance and repairs, unforeseen "big ticket" items, and small (under $50) expenditures for things like recreation, haircuts, clothing and gifts -- so this amount will vary greatly from month to month. Btw, we have enough clothes (both casual and dressy) to last us for 20 years, probably -- lol -- so our clothing budget will be very small, mostly shoes and underwear, probably. (Neither one of is very fashionable.)

Last edited by katharsis; 07-29-2019 at 04:19 PM..
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Old 07-29-2019, 04:33 PM
Status: "Life is good." (set 17 days ago)
 
Location: Colorado
58 posts, read 13,583 times
Reputation: 302
Quote:
Originally Posted by TheShadow View Post
if $x > 360($y) then
When did math start using letters? I may need to go back to school after retirement!
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Old 07-29-2019, 04:37 PM
 
72,683 posts, read 72,534,115 times
Reputation: 50224
Quote:
Originally Posted by Deoge View Post
When did math start using letters? I may need to go back to school after retirement!
Ever since algebra
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Old 07-29-2019, 05:12 PM
 
1,133 posts, read 545,393 times
Reputation: 1923
Quote:
Originally Posted by katharsis View Post
As others have said, what you need is determined by how you live and what your choices have been and will be. We should do well on $3,300 a month, but I have know of retirees who get by (barely) on $1,000 a month and others who "scrape by" on $6,000 (or even more). Anyway, for us, our monthly budget percentage of income will be approximately:

Housing and Utilities: 24% (about $800)
Food and Groceries: 18% (about $600)
Transportation: 6% (about $200)
Medical/Dental: 24% (about $800)
Income Taxes: 3% (about $100)
Other: 24% (about $10,000 per year, which is about $800 per month)

Notes

Housing includes property taxes, insurance, utilities (including Intenet, and one "senior" cellphone, not a Smartphone). Our single family home will be paid in full.

Food and Groceries include food, wine, and grooming and cleaning items -- and going out to eat twice a month.

Transportation includes gas and car insurance only. We have just one car, and that is brand new, so we don't anticipate getting another one -- and if we do, we will pay cash for it.

Medical/Dental: Includes Medicare deductions and Supplemental Insurance

Income Taxes: We will pay very little in income taxes because we will not take more than $40,000 a year from Social Security and 401k disbursements combined, which is only about $10,000 more than the standard deduction for retirees 65 and older.

'Other' will be for things like house and car maintenance and repairs, unforeseen "big ticket" items, and small (under $50) expenditures for things like recreation, haircuts, clothing and gifts -- so this amount will vary greatly from month to month. Btw, we have enough clothes (both casual and dressy) to last us for 20 years, probably -- lol -- so our clothing budget will be very small, mostly shoes and underwear, probably. (Neither one of is very fashionable.)
Your numbers look exactly like mine, the big exception being medical/dental. With that income, can’t you find an ACA policy(s) for less with some tweaking of the AGI line?
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Old 07-29-2019, 06:17 PM
 
Location: Haiku
4,442 posts, read 2,673,907 times
Reputation: 6506
Quote:
Originally Posted by Cabound1 View Post
Your numbers look exactly like mine, the big exception being medical/dental. With that income, can’t you find an ACA policy(s) for less with some tweaking of the AGI line?
ACA? Most retirees are on Medicare.
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