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Old 08-01-2019, 08:45 AM
 
2,430 posts, read 624,572 times
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Quote:
Originally Posted by Dave_n_Tenn View Post
I've been retired for 3+ years now. Here's what I've learned and know. Take everything you have and determine the "carrying" cost, not the total cost just what it takes to own it.

**For instance you own a car. You must have a driver's licence to use it, insurance too and possibly a loan. None of these necessities will make the car drive or move or start = carrying cost. Not everyone has the same carrying costs for specific items. Gas, oil, brakes, tires and repairs are NOT carrying costs.

** Appliances use 10 year average and large tools (think lawnmower)
** Don't forget subscribed services like TV and phone, etc. If you have unlimited then find out what the basic/minimum is.
** Insurance is a biggie
** property taxes too

**Now do that for everything you own or have. This is a lot or work and the amount will scare you. Then break everything down to monthly.

** Then double it if you do most of your own repairs or services
** If you rely on "others" to do it add 20%-30%

This is anecdotal, but it appears to be accurate for me. I need roughly $3800 a month just to own my stuff, 'cause I have lots of stuff. In addition as time marches on and I do less and less for myself (do 90% of my repairs and maintenance), my costs go up unless I get rid of some stuff.

Insurance costs are outrageous. 2 homes, RV, boat, medical, 2 cars and a truck, and some other polices as well.

Ideally you have 20% left over each month for fun.

All the expenses you list above do add up - but in my case they are swamped by my Federal Income Tax obligation. Under the TCJA, my federal income tax obligation went up a fair bit, as it did for many uhnw and very high income individuals.
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Old 08-01-2019, 12:28 PM
 
Location: NYC
2,999 posts, read 1,628,871 times
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Interesting interactive link in today's NY Times apropos what was discussed earlier here delineating exactly how one would relatively rank with X amount of annual income in various metro regions. (Hope that the link is available to non subscribers too.)

https://www.nytimes.com/interactive/...-you-rich.html
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Old 08-02-2019, 04:40 AM
 
14,219 posts, read 7,604,862 times
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Quote:
Originally Posted by Hefe View Post
Interesting interactive link in today's NY Times apropos what was discussed earlier here delineating exactly how one would relatively rank with X amount of annual income in various metro regions. (Hope that the link is available to non subscribers too.)

https://www.nytimes.com/interactive/...-you-rich.html
This is kind of useless in the context of retirement. When you’re retired, the question is what you need for yearly cash flow to sustain your standard of living with low risk of running out of money. If you’re a retired union public sector worker in the northeast, if your house is paid for, you’d have no drop off in standard of living even if your home was your only asset. In the context of this thread, you’d need $0 beyond your home equity.
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Old 08-02-2019, 05:21 AM
 
29,979 posts, read 35,062,916 times
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Quote:
Originally Posted by GeoffD View Post
This is kind of useless in the context of retirement. When you’re retired, the question is what you need for yearly cash flow to sustain your standard of living with low risk of running out of money. If you’re a retired union public sector worker in the northeast, if your house is paid for, you’d have no drop off in standard of living even if your home was your only asset. In the context of this thread, you’d need $0 beyond your home equity.
And what are you suggesting that retired union status translates into as a percentage of working year income?

Are you suggesting that living a secure life in retirement can be done without a nest egg for the various large out of pocket expenses that occur? Especially for health care and home/institutional health and life support as we age?

Will whatever that retired union income as you call it be sufficient 10, 20, 30 years into retirement?
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Old 08-02-2019, 06:33 AM
 
72,689 posts, read 72,534,115 times
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Quote:
Originally Posted by TuborgP View Post
And what are you suggesting that retired union status translates into as a percentage of working year income?

Are you suggesting that living a secure life in retirement can be done without a nest egg for the various large out of pocket expenses that occur? Especially for health care and home/institutional health and life support as we age?

Will whatever that retired union income as you call it be sufficient 10, 20, 30 years into retirement?
people forget there are years you go way over budget from unexpected expenses . you need a pile of dough to keep pulling from to pay all the things that don't match the flow of your ss or pension amount .

car , health and home repairs are the biggest culprits .. this is where a 40k pension and a million bucks in an account spinning off 40k are vastly different in capacity and ability to deal with unexpected large stuff
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Old 08-02-2019, 07:30 AM
 
72,689 posts, read 72,534,115 times
Reputation: 50227
Quote:
Originally Posted by Hefe View Post
Interesting interactive link in today's NY Times apropos what was discussed earlier here delineating exactly how one would relatively rank with X amount of annual income in various metro regions. (Hope that the link is available to non subscribers too.)

https://www.nytimes.com/interactive/...-you-rich.html
there was a similar look at the various nyc neighborhoods .. i think going up to 40% of income for rent is pretty high though . that means you really need more income . .

https://ny.curbed.com/2019/8/1/20748...n-queens-bronx
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Old 08-02-2019, 07:47 AM
 
2,430 posts, read 624,572 times
Reputation: 4239
Quote:
Originally Posted by GeoffD View Post
This is kind of useless in the context of retirement. When you’re retired, the question is what you need for yearly cash flow to sustain your standard of living with low risk of running out of money. If you’re a retired union public sector worker in the northeast, if your house is paid for, you’d have no drop off in standard of living even if your home was your only asset. In the context of this thread, you’d need $0 beyond your home equity.
Very true.
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Old 08-02-2019, 07:50 AM
 
Location: Florida/Tennessee
2,802 posts, read 4,383,168 times
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The ole "goes inna" has to slightly exceed the "goes outa". Works all the time.
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Old 08-02-2019, 07:54 AM
 
2,430 posts, read 624,572 times
Reputation: 4239
Quote:
Originally Posted by mathjak107 View Post
people forget there are years you go way over budget from unexpected expenses . you need a pile of dough to keep pulling from to pay all the things that don't match the flow of your ss or pension amount .

car , health and home repairs are the biggest culprits .. this is where a 40k pension and a million bucks in an account spinning off 40k are vastly different in capacity and ability to deal with unexpected large stuff
You make a good point, but for retired public sector employees I personally know, it is more like $200K $400K per year in risk-free pension income, earned in jobs in high COL areas, who retired to no-state-income-tax Nevada. And they also have substantial financial assets.

It is almost always both pension & savings rather than just pension alone.
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Old 08-02-2019, 08:34 AM
 
14,219 posts, read 7,604,862 times
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Quote:
Originally Posted by RationalExpectations View Post
You make a good point, but for retired public sector employees I personally know, it is more like $200K $400K per year in risk-free pension income, earned in jobs in high COL areas, who retired to no-state-income-tax Nevada. And they also have substantial financial assets.

It is almost always both pension & savings rather than just pension alone.

In my zip code, a 50-something public school teacher with 35 years in and 2% vesting is looking at a $60K pension that includes really generous supplemental Medicare coverage. No state income tax on it so they don't need to scurry off to a zero tax state if they don't want to. The town cops have an even better deal than that since they pension spike with overtime their last few work years. Median household income in the town is $75K. After you back out the 5.05% state income tax and the 7.65% in payroll taxes, that teacher pension spends like the median household in town. Assuming there's a spouse with their own retirement setup, it's quite comfortable. I'm in a $250 per square foot housing cost town so it's not anywhere near "high COL" by Northeast Corridor and California/Seattle standards.


$200K+ is an outlier public sector pension but $100K for 35 years in a pretty vanilla job isn't unusual in a high COL place.
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