Exactly what is a comfortable middle class retirement? (supplement, states, friend)

[forest beekeeper]

Originally Posted by nicet4

...
Here's their problem though. Should one spouse die their income would be cut in half. One could make it on $1,958 a month but would definitely have to be planned for.

Good point.

I have lived in areas where $2k/month would have been just barely scraping by.

I lived in each of those areas because my career required that I live there.

The cool thing about retirement is that you get to live anywhere YOU want to live.

We moved to a depressed area, where the economy was booming until is was hit hard by the invention of 'refrigeration' and the local ice-shipping industry went broke. They have never recovered from that bust.

Here we see families who buy homes and raise children on two part-time minimum-wage incomes.

$1500/month is plenty enough money in a depressed economy to support a family with 3 kids.

It is more than enough for a retired couple.

This is not a statement about the nation's current economic woes.

I retired onto my pension before the current market crash. And I moved to a depressed area. I bought a large farm [for really cheap] and I can now enjoy really low taxes.

We see our neighbors, who are raising families, on the same level of income as my pension.



If you focus on staying in an expensive area with high taxes; then you will need a higher pension.

[Den Mathias]

[quote=forest beekeeper;9423394]
We moved to a depressed area, where the economy was booming until is was hit hard by the invention of 'refrigeration' and the local ice-shipping industry went broke. They have never recovered from that bust.

I retired onto my pension before the current market crash. And I moved to a depressed area. I bought a large farm [for really cheap] and I can now enjoy really low taxes.

We see our neighbors, who are raising families, on the same level of income as my pension.



The problem I, see with a depressed area is it may not have all the amenities, health care or activities that a more upscale area may have.
You may have cheap living but not much fun or security?

I wonder if crime is worse in a depressed area? Larger use of drugs? Gangs?

[Ode]

[quote=Den Mathias;9429278]

Originally Posted by forest beekeeper

We moved to a depressed area, where the economy was booming until is was hit hard by the invention of 'refrigeration' and the local ice-shipping industry went broke. They have never recovered from that bust.

I retired onto my pension before the current market crash. And I moved to a depressed area. I bought a large farm [for really cheap] and I can now enjoy really low taxes.

We see our neighbors, who are raising families, on the same level of income as my pension.



The problem I, see with a depressed area is it may not have all the amenities, health care or activities that a more upscale area may have.
You may have cheap living but not much fun or security?

I wonder if crime is worse in a depressed area? Larger use of drugs? Gangs?

Living in an area with a depressed economy doesn't have to mean living in an inner city area or a slum situation. From what I understand, FB lives in a rural area (150 acres of nicely forested farmland with a river frontage) just a bit north of Bangor, ME. He has access to the ameneties of a small city life with good healthcare. He most likely isn't too worried about the crips or the bloods doing a home invasion or a drive by on his place, and I imagine drug use is about what it is anywhere.

If you can choose where to go then there are many areas like his. The only people who live in crime and drug-riddled areas do so because they cannot go anywhere else. What he seems to be saying is that you can move to an area where the costs of living are much lower than average, and thus make your limited dollars work for you rather than against you. I hope to be able to find a place like his someday, it sounds ideal.

[nancy thereader]

Gee, I retired at 62 and my SS is probably the max for that age and I do not get anywhere near $47,000. Or even half that. I didn't even know that Social Security actually paid that high of a rate.

[akck]

The maximum SS benefit is $27,876 in 2009 for retiring at 66. I assume the $47,000 is for a couple, both receiving benefits.

[akck]

Originally Posted by nicet4

What does it take to live a comfortable retirement life?

I've pondered this question ever since I was in my late 40's. Before that, it was about how much I was going to get in retirement. Currently, I chart out my current expenses and inflate them for the future (3%). My expense categories are:

• Mortgage including property tax and insurance
• Utilities
• Transportation
• Insurance (auto, boat, life)
• Medical Insurance
• Medical expenses
• Food
• Travel
• Misc
• Taxes

I'm sure some will think 3% inflation is too low, but the mortgage accounts for almost 40% of expenses and won't inflate. In fact, it will eventually drop to about 8% of expenses about 3 years after retirement with my plan to pay it off early. I also use a higher tax rate than what I should be paying as a cushion. I'm also fortunate in that my medical insurance is part of my retirement benefits, so I won't see any big jumps there.

The biggest comfort is that last year, I figured we can retire on our pensions and SS benefits and my IRA can act as a cushions for unknowns.

[forest beekeeper]

Originally Posted by Den Mathias

...
The problem I, see with a depressed area is it may not have all the amenities, health care or activities that a more upscale area may have.
You may have cheap living but not much fun or security?

I wonder if crime is worse in a depressed area? Larger use of drugs? Gangs?

I live in a rural setting.

7 miles off the freeway. 20 from a city with: international airport, shopping malls, 3 universities, 2 hospitals, etc.

For 'fun', we fish, hunt, ski, sled, horse, or play bingo at the VFW.

For 'security', uh, like what?

Space invasions?

My little town only has a deputy and a game warden who each drive through here once a week. We do not have local PD or FD.

On the other hand when I go shopping in the winter at least half the cars at the grocery store have been left running. No body steals them.

When I built our house, I locked the door once, to test the locks, the door has not been locked since.

My Dw accidentally locked her car's trunk, and the lock jammed, now we have to take it in to get it to unlock. She has had the car 2 years, and this was the first time that she locked anything on it.

I know one realtor [and maybe more] who leaves a spare car at the airport with keys in the visor just in case a customer comes into town who needs a vehicle. Now his office is also left un-locked, in case anyone needs to go in and use his computer [those are his words].

Our nearest newspaper each week lists the police journal, it commonly has entries for: barking dog, or drunk pedestrian, or their traffic light malfunctioned. The university students commonly get busted for drinking at their parties.

We do have 'crime' I guess. Bored kids smoke cigarettes, or bang mail boxes with ball bats.

'Gangs' ?

You are kidding right?

[Jaybee]

OK, I was thinking of starting a new thread, but this one seems to be headed in a similar direction.

My wife and I were having this "philosophical" discussion about the perfect "retirement conditions"; i.e. balancing income, age, hobbies, place issues, etc. Since my father died quite young (56), I've decided to retire as soon as possible, while addressing "comfort" as much as I can, if that makes sense. I've known some who obviously retired too early-or perhaps opted to retire in the wrong economy or place. You feel sorry for those folks after they've made that decision and are forced to return to the workforce, oftentimes in "menial" jobs.

Am I rambling? Sorry... Anyway, I'd like to know if there is a "retirement calculator" online somewhere wher one can input his or her own personal financial conditions, and account for inflation over various scenarios and based on that make more informed retirement decisions?

Thanks for any input. Sorry if that takes this thread another direction. If anyone is aggreived by that I'll gladly start another.

[jrkliny]

You really don't need a fancy calculator. Most financial planners recommend having sufficient investments so that you can pull live of on 4%/year. With the current downturn some advisors are even more conservative. Very few of us have saved anywhere close to what we need according to the calculators. At some point we will pull down our investments and will not be able to get by. Of course that assumes that we continue to live with good health. Most of us will decline both mentally and physically and will need more help than we can pay for.

[Den Mathias]

Originally Posted by forest beekeeper

I live in a rural setting.

7 miles off the freeway. 20 from a city with: international airport, shopping malls, 3 universities, 2 hospitals, etc.

For 'fun', we fish, hunt, ski, sled, horse, or play bingo at the VFW.

For 'security', uh, like what?

Space invasions?

My little town only has a deputy and a game warden who each drive through here once a week. We do not have local PD or FD.

On the other hand when I go shopping in the winter at least half the cars at the grocery store have been left running. No body steals them.

When I built our house, I locked the door once, to test the locks, the door has not been locked since.

My Dw accidentally locked her car's trunk, and the lock jammed, now we have to take it in to get it to unlock. She has had the car 2 years, and this was the first time that she locked anything on it.

I know one realtor [and maybe more] who leaves a spare car at the airport with keys in the visor just in case a customer comes into town who needs a vehicle. Now his office is also left un-locked, in case anyone needs to go in and use his computer [those are his words].

Our nearest newspaper each week lists the police journal, it commonly has entries for: barking dog, or drunk pedestrian, or their traffic light malfunctioned. The university students commonly get busted for drinking at their parties.

We do have 'crime' I guess. Bored kids smoke cigarettes, or bang mail boxes with ball bats.

'Gangs' ?

You are kidding right?

Nope, i am not kidding about the gangs. Most large states have them as they follow the illegal population that has moved into the US. You are blessed to live in an area that apparently has not been touched by this influx.
A friend's Mother has a home in a small farming town in California's Central Valley. She has been moved to a care home and in the 4 months she has been gone the house has been broken into 2 times. Each time more furniture, household goods were taken. The family is struggling to clean out the house before it is all gone. The town has only about 14,000 people but the majority are transient. To leave your home unlocked or to leave an untended car with the keys in the visor is an impossiblity!

So enjoy your part of paradise.