Anyone out there living on $25,000 and less in retirement? Still enjoying life anyway? (gifts, vacation)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
You choose where to live, what to buy and somewhat by extension how much to withdraw from tax deferred accounts each year.
I filed taxes for fellow servicemembers for many years, and even among a group of men who are all the same pay-grade earning the same amount, each tax filing is different.
That is the big different between a system of voluntary taxation and forced taxation.
In a room filled with servicemembers who grossed $65k/year, how much any of them paid to the IRS could vary from zero [or even less than that with EIC], and up to $4k.
I filed taxes for fellow servicemembers for many years, and even among a group of men who are all the same pay-grade earning the same amount, each tax filing is different.
That is the big different between a system of voluntary taxation and forced taxation.
In a room filled with servicemembers who grossed $65k/year, how much any of them paid to the IRS could vary from zero [or even less than that with EIC], and up to $4k.
Actually you are on a tangent that I know enough about (second hand) to be dangerous. My wife is a CPA. In the tax classes she took in school, people creating returns with different amounts could both get As and people with the same amounts might get different grades. It was all about whether your justifications (which they had to write up) made sense or not. You can choose different tax treatments for income and expenses; it isn't always black and white. The potential for an audit and a request for an amendment is always a possibility, but if you can defend your interpretation and application of the tax code it is unlikely that you will be asked to do so and if it is a reasonable defense, it is extremely unlikely there will be any fine even if they don't agree with your interpretation. That's a long winded way of saying "yup; people pay different amounts".
I am looking at Bristol, TN and understand that VA doesn't tax food. So I'll just go to a VA supermarket. Don't spend much on food anyway, as a single person.
And I won't make enough income in retirement to pay any income taxes.
People from my area drive to KY to shop. With all the senior discounts, I figure it covers the sales tax on food and groceries, but it's always a shock when I buy an appliance or big piece of furniture.
In Florida, every homeowner can deduct $50,000 off the assessed value of their primary residence for property tax calculation. This is called the Homestead Exemption.
There are additional exemptions for homeowners who meet the criteria for those exemptions, and I just recently learned of two that apply to me.
There's a $500 exemption for widows and widowers.
And for limited-income seniors over the age of 65, depending on which county or municipality your property is located in, there can be a $50,000 exemption from the assessed value (in addition to the regular $50,000 Homestead Exemption). To qualify for 2015, your 2014 total household income cannot exceed $28,448. This is new as of 2012, and it doesn't apply statewide -- it depends on the local taxing authority.
And there are other exemptions too, for disabled persons, deployed military, etc.
If you're a Florida resident and homeowner, it's worth looking into.
What's the reasoning?
Homeowners shouldn't be taxed out of their homes, but renters are fair game?
In Florida, every homeowner can deduct $50,000 off the assessed value of their primary residence for property tax calculation. This is called the Homestead Exemption.
There are additional exemptions for homeowners who meet the criteria for those exemptions, and I just recently learned of two that apply to me.
There's a $500 exemption for widows and widowers.
And for limited-income seniors over the age of 65, depending on which county or municipality your property is located in, there can be a $50,000 exemption from the assessed value (in addition to the regular $50,000 Homestead Exemption). To qualify for 2015, your 2014 total household income cannot exceed $28,448. This is new as of 2012, and it doesn't apply statewide -- it depends on the local taxing authority.
And there are other exemptions too, for disabled persons, deployed military, etc.
If you're a Florida resident and homeowner, it's worth looking into.
The homestead exemption varies by county. I've lived in two counties in which the exemption was only $25,000.
People from my area drive to KY to shop. With all the senior discounts, I figure it covers the sales tax on food and groceries, but it's always a shock when I buy an appliance or big piece of furniture.
But purchase your gasoline in Tennessee, right?
For many, with discipline and self control I think a person could live comfortably on $25,000, which is $2,083/month, but it does have a lot to do with where you live, do you own the home free and clear and you do not have any outstanding debt, right?
In my area of the country, southern Georgia, it is very doable and here is the budget I came up with.
Small two bedroom, 1,400 sq ft house in a middle class safe neighborhood. Yes, property taxes are that cheap in south Georgia.
I assumed the $25,000 was gross and that Medicare Part B would be deducted so it is figured in the budget.
These figures are pretty close to what my wife and I currently pay but I pared it down to a single person.
Medical is a big expense and while you might get a cheaper Medicare Advantage Plan with the Plan G there are never any additional expenses or co-pays beyond the $147 deductible.
Our utilities include electric, water, sewer and weekly garbage pick up and we do keep the house well lit and very comfortable year round. I did not live to retirement to freeze or roast to death in the dark. Most months total utilities run $180 to $200 but in July and August this year we got one bill of $318 but on average $250 should easily cover cit.
For cell phone I called chatted with Verizon and a retired person could get this
For $40 you can have unlimited talk and text for staying in touch.
Not your latest I-Phone but any of those would do the trick for a retired senior.
At $100/week I will eat healthy enough and I even have $50/week to eat out or take in a movie if I was so inclined.
$100 for miscellaneous which would be planting flowers in the spring or gasoline for the lawn mower. This reminds me I have to mow the lawn today.
I got $30 for gasoline which at $3 would get me 10 gallons which would drive me 350 miles in a month. I can do this because
Wal-Mart Super Center 3.0 miles
Doctor 1.5 miles
Hospital 1.8 miles
Post Office 1.5 miles
Bank 0.4 miles (Walking is good for you)
Corner Grocery 0.5 miles
Church 10 miles
The car insurance is right because I just paid for it last week. Full coverage on a Honda Civic that Edmund's is telling me is worth $12,000.
One thing that is about living in the south; in our town electric golf carts are street legal as long as the posted speed limit is not more than 35 mph, you are a licensed drive, you obey all traffic laws and do not travel on the two state highways in town. These "highways" are two lane roads which we can cross but not travel on. Easy, side streets are everywhere. With the exception of church we really wouldn't need a car except for rainy or cold (yeah, right) days. On cold or rainy days why not just stay home?
$300 for emergency. If you don't have one that's great but save it because someday you will need to replace an air handling unit or have a new roof put on.
I just noticed I forgot to include the monthly insect extermination and annual termite inspections which are must have items in the south. I pay for both these once a year in January so I get a 10% discount and end up paying $459.00 for the year.
In my opinion it is tight but doable and comfortable enough.
In my opinion it is tight but doable and comfortable enough.
Your drug co-pays of $20/month are very low. If that is truly your monthly drug cost (and I'm assuming it is), you are very lucky. Drug costs can really increase your budget needs, esp. once you are in the dreaded "donut hole". My husband falls into the donut hole fairly early each year. Believe me, it is not for lack of trying to get his drug costs down (generics, trying other medications, etc.).
Your drug co-pays of $20/month are very low. If that is truly your monthly drug cost (and I'm assuming it is), you are very lucky. Drug costs can really increase your budget needs, esp. once you are in the dreaded "donut hole". My husband falls into the donut hole fairly early each year. Believe me, it is not for lack of trying to get his drug costs down (generics, trying other medications, etc.).
Everyone varies and my drug co-pays are less than $20/month except for one.
One drug I pay runs me about $800 per year for an additional $67 monthly so increase my monthly to $87 on the average.
There is a much cheaper med available but my doctor says he would prefer the more expensive because from tests it seems to do a better job controlling my condition.
This was a make believe budget designed for someone that would be living in my area with the understanding some of us don't require any medications while others are not so lucky.
That all said $2,083 is pretty tight for me and I'd feel a lot better with $2,500 but some people aren't so lucky.
I am married but if I was single my budget would look something like this:
Monthly Expenses
Property tax $75.00
Property Insurance $50.00
Medicare Part B $104.70
Medicare Plan G $136.00
Plan G Deductable $12.25
Medicare Plan D $28.00
Drug Co-Pays $100.00
Monthly Utilities $250.00
Cable, TV and Internet $180.00
Cell Phone $120.00
Auto Insurance $62.50
Gasoline $100.00
Food $649.50
Clothes $100.00
Entertainment $433.00
Miscl $400.00
Emergency $500.00
Termite/Pest Control $38.25 Total Expenses $3,339.20
For me that would be comfortable enough because I would have the room to cut back if I had to.
I think I am going to take up scuba diving again.
I scuba dived back in the 80's and 90's but haven't touched it for nearly 15 years now. Stopped by a scuba shop yesterday just to check it out and I'd have to spend around $2k to get back into it.
Nice, easy shallow dives in warmer water, my days of wet suits and cold water are over. If I have to wear a full wet suit it's to cold.
Also easy dive, my strength isn't what it used to be and I actually have to wonder if I could climb a ladder with all that gear to get back on the boat. But to me the scuba diving would be entertainment.
Airplanes and scuba diving... it is as if I don't want to be on the planet.
Last edited by nicet4; 10-11-2015 at 02:21 PM..
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
With all the senior discounts, I figure it covers the sales tax on food and groceries, but it's always a shock when I buy an appliance or big piece of furniture.
