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I think that is probably your largest risk. What do you do if it goes from $100/month to $1000/month? Or if you're hit with $50K in uncovered medical expenses? Or you need prescription medicine that will cost many thousands per month for the rest of your life?
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.
Your whole post reeks with judgmental assumptions.
I enjoy activities that don't cost much like fishing, hiking, week long rafting trips with my kids
as the guides. Friends all over the country I visit. Recently spent 2 weeks van camping across New Zealand with my oldest kid. Cost me only an airline ticket. Half of Dec I was in Ca with family. The most exciting thing about retiring to me is to free up time for hobbies and interest and travel. I am planning a trip right now with a friend, camping
the entire coastal areas from Maine to Texas. Some prefer being outside to stuffy fancy hotels LOL
But sometimes I do enjoy weeks of down time with just long walks and friends & netflix binging..What in the world is wrong with that?
I have had the years when the budget was 5K, putting kids through college, the big house with acreage and a pool. Those years were great but I am enjoying the simpler life just as much. Less material things to
weigh me down and take care of.
Nothing wrong with your lifestyle or mine, but it's pretty snobby to assume yours is so superior because
you spend more.
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.
I explained earlier that by taxes included, I meant property taxes, not income taxes.
So that budget is 24k Net Income . I am guessing about 28K before taxes.
You could make an offer with a contingency that you sell your current home.
I am being told that it's such a sellers market right now that offers like that are not able to beat out
the better offers without contingencies. I think if I have a contract on the house I am selling that
it would help.
I always look at these budget lists and think of the saying man plans and god laughs.
That is true.
But also with 40 years of life & budget experience there
aren't many budget busters that I haven't seen. Lots of things
that mess up budgets should be planned for ( appliance & house repairs, auto repairs, gifts, trips, roof replacements, HVAC replacements, dental)
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
10 years ago my budget was similar, health insurance was $700, 2 kids in private school & headed to college, $400 electric bill for our old fixer up house & pool & hot tub. I have been there. Those were good times but living "small" now is pretty peaceful & freeing.
Probably the smart move would be to work a few days a week and try to
pad my savings a bit more. Another option that would work would be to do a full-time 13 week travel therapy job every year somewhere I would enjoy spending time. Good money, get to explore a new town and
they provide housing.
I think if I had to I could squeak by on what I have but a little extra spending money is never a bad thing.
The bolded above seems to me to be, if not the best path for sure, certainly a good one.
Do you think you've got a plan for that, and can afford that scenario..without it jeopardizing you latter years' budget.
Quote:
I want to live as large as possible (I have crazy dreams, but their not serious, stuff like doing a round the world cruise)
Quote:
The last thing I want when I retire is a "bare bones" retirement.
I also agree.
I think many people's housing and regular bills/expenses will be lower in retirement, as it seems will be the case with the OP.
But I also agree that many people don't even realize how much more they might spend in other areas, because they have more free TIME, and they underestimate how much doing things and filling that "time" will cost.
I don't penny pinch now, nor do I plan to in retirement.
Of course some people are naturally more frugal than others -- or just don't mind "intentional" frugality.
Personally, I'd rather keep working a few years (even if just part-time) and be able to afford the trip I want to take -- and be able to stay where I want ...than retire early and HAVE to get the cheapest ticket, HAVE to pick the cheapest hotel, or HAVE to only fly-stand by, or HAVE to choose the cheapest meal plan on a trip, or not be ABLE TO buy souvenirs, or add on that extra day trip, or HAVE to only use senior citizen's discounts, or HAVE to go to matinees, or free shows.
OP, I think your budget is a little tight. But that's just me. I'd need a lot more leeway or cushion than that. Good luck to you, though.
Do you think you've got a plan for that, and can afford that scenario..without it jeopardizing you latter years' budget.
I could always up my working hours in the next 5 years if and when health insurance increases drastically.
After that I will be on medicare.
I think working some flexible PRN hrs or a travel therapy gig would be wise.
That would help me take less out of investments in the next 5 years.
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