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Interesting to read all the posts in this thread, although one can't actually compare unless locale and cost of living there are taken into account.
I have recently downsized and have much more in income and savings than I ever expect to need, but in no rush to spend it. Happy to leave my kids each a bundle. Not that any of them need it.
But there is a good feeling just living comfortably within one's means and having money in savings if it is needed.
One of the smartest decisions I made was leaving HCOL northern Virginia after retirement and moving to a relatively LCOL area ( rural southside Virginia and then the Raleigh area ).
We've found this to be true also. Our move here saved us thousands per year (home values, insurance, taxes, utilities). My initial estimate of savings was over $17K per year cheaper for us to live in east TN versus our nearly identical home in Northern CA. We have less land now, but that land cost us little annually other than our labor, and we've gained by having access to many amenities here that we didn't have there. Now I realize it's much more $$ than that with the price of gas, water, and energy in CA being so high now. In our 11 years here, that equates to over $187,000 saved! I didn't realize that it was so much until I just did that math.
Our highest unexpected/emergent expense by far has to be purchasing an additional 10ac parcel of undeveloped land next to our current property. The owner had gone into Assisted Living in January, and needed the funds. Knowing the situation, we paid his asking price and kicked in all closing costs. We didn't want to finance it, so it took about 80% of our emergency cash fund away. It will increase our tax load a bit, but as it is adjacent to our existing land and undeveloped, we are able to apply homestead exemptions, so we should be good.
Glad you got the homestead exemption applied to the property you bought, that at least will save some on your property taxes. And, it'll prevent another buyer coming in, buying that property and building a McMansion that encroaches on your property.
Glad you got the homestead exemption applied to the property you bought, that at least will save some on your property taxes. And, it'll prevent another buyer coming in, buying that property and building a McMansion that encroaches on your property.
Thanks! Yeah, the property contains the most beautiful meadow in our field of view, so now it will remain untouched. But a bigger win is that the energy company in our region has been scouting for large parcels of land to put oil wells on, and they have to frack the shale beneath them to reach oil. Our water is near perfect, but I don't know what would have happened to it if they fracked a well this close to us...
We didn't want to take that chance at all.
Thanks! Yeah, the property contains the most beautiful meadow in our field of view, so now it will remain untouched. But a bigger win is that the energy company in our region has been scouting for large parcels of land to put oil wells on, and they have to frack the shale beneath them to reach oil. Our water is near perfect, but I don't know what would have happened to it if they fracked a well this close to us...
We didn't want to take that chance at all.
Well what happened in Texas is that wells dried up and property became worthless.
Spend around $30K a yr. No mortgage, no debt. Biggest monthly expense is insurance - Medicare, home and auto. Largest unexpected out of pocket expense since retiring - dental work. Annual prop taxes are $1300 a yr down from $10K plus in TX.
Spend around $30K a yr. No mortgage, no debt. Biggest monthly expense is insurance - Medicare, home and auto. Largest unexpected out of pocket expense since retiring - dental work. Annual prop taxes are $1300 a yr down from $10K plus in TX.
It seems as though dental work is the leading cause of unexpected expenses here . I actually also had a dental emergency in 2021 which cost $880, but it was not my highest unexpected expense in retirement so far - the HOA special assessment this year (for some bizarre defect in our old building, which is against the city building code) was about duble the 2021 dental emergency. But still, my unexpected expenses so far haven't been anything particularly serious.
8 years ago my unexpected dental expenses were 33k. Unbeknown to me or my dentist that I saw every 3 months my cpap machine rotted my teeth from the inside. By the time it was apparent it was too late.
I'm 72yo & started collecting SS at 70yo, that has been my biggest financial "windfall" in retirement, now about $49K/year after 6 years of "spending down" my own $$$. The decent market & (too) frugal ways the first year or two, meant that my net worth never really went down.
I paid off my mortgage when I retired, I live in a 850sf apartment in NYC & my total cost for it: on-site services/taxes/heat & water/emergency account was just raised this winter to just under $800/mo. I pay for gas/electric & condo insurance. Up until the recent raise my non-discretionary expenses were barely over $1K/mo + groceries. No vehicle.
I've always lived somewhat frugally & invested heavily my last 20 years of employment. My health has mostly maintained so far & net worth has grown since SS so I'm probably the outlier here. I'm spending more freely now than at any time in my life. Not like a drunken sailor on leave but, for example, I rarely cook anymore preferring going out somewhere in the neighborhood (no chain restaurants). These days I buy a good wine not the cheapest.
Travel has always been the primary obsession of my life & I have been to many countries & most states. After 3 months in Europe after turning 70, (2 months mostly staying with family & flights between 3 countries paid for in FF "points", so not much $$$ spent) I returned utterly exhausted & have been reassessing my previous nomadic ways.
So my big expense may be, unless a health issue comes up, I'm considering a move to a nicer apartment but in my same neighborhood, considered a modest nabe by NYC standards. I figure that will cost me about $150K or so above what I will get after selling my place.
So I'm living in reverse to most here it seems: spending more than I ever did, slowing down on my travel & "upsizing".
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(I hope!)
. I actually also had a dental emergency in 2021 which cost $880, but it was not my highest unexpected expense in retirement so far - the HOA special assessment this year (for some bizarre defect in our old building, which is against the city building code) was about duble the 2021 dental emergency. But still, my unexpected expenses so far haven't been anything particularly serious.