Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Re: First, thanks to youRe: Contemplating The Big
Old 12-22-2004, 04:06 PM   #41
Thinks s/he gets paid by the post
wabmester's Avatar
 
Join Date: Dec 2003
Posts: 4,459
Re: First, thanks to youRe: Contemplating The Big

Quote:
What kind of ptomaine pits are you dragging the love of your life to anyway?
Thanks, Donner. I think that's the first time a post on this forum caused me to break out the dictionary
__________________

__________________
wabmester is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Contemplating The Big Move
Old 12-22-2004, 04:12 PM   #42
 
Posts: n/a
Re: Contemplating The Big Move

Hey hey hey................you mean I never posted
anything that caused you to consult your Funk and
Wagnalls? I am profoundly hurt

Wab, I am still on the diet, and even though
my LDL dropped like a rock I am stuck now
(still high). But, I am eschewing (look that up) any
prescription meds. That scares me more than high
cholesterol.

JG
__________________
  Reply With Quote
Re: Contemplating The Big Move
Old 12-22-2004, 04:14 PM   #43
Recycles dryer sheets
 
Join Date: Dec 2004
Posts: 147
Re: Contemplating The Big Move

FlowGirl Thanks for the comments. Wish I could dump the mortgage. Could if we were willing to move. But that would be a real big move for us right now. Yeah, I agree that just about everybody could slash their own budget in one way or anoher. The birds could well be set loose to fend for themselves for example.

But I hink a lot of people are missing the point. I think we a relatively close to bulletproofing the retirement budget I set out for you. I figure if both wife and I work 2 more years that will do the trick between increased annuities and portfolio growth. Or if wife wants/needs to retire in 2005 I could carry on for another 4 or so years and accomplish he same thing. If I can cover this nut why not?
__________________
"Remember, if you come this way, don't take no shortcuts and hurry along as fast as you can." (Virginia Reed, Age 12, Donner Party Survivor, 1847)
Donner is offline   Reply With Quote
Re: Contemplating The Big Move
Old 12-22-2004, 04:18 PM   #44
Thinks s/he gets paid by the post
wabmester's Avatar
 
Join Date: Dec 2003
Posts: 4,459
Re: Contemplating The Big Move

JG, your eloquence is matched only by your obstinance. And the low-carb diet just brings your system to a new equilibrium that's a little bit more insulin friendly. Once you plateau, it's time to consider exercise and niacin, for example.
__________________
wabmester is offline   Reply With Quote
Re: Contemplating The Big Move
Old 12-22-2004, 04:30 PM   #45
 
Posts: n/a
Re: Contemplating The Big Move

Guilty as charged. Wab, I saw my GP/MD on Tuesday and
forgot to ask about the niacin. I have liver problems and
so just about any prescription med worries me.
He prescribed WelChol which is supposed to be pretty
benign. I was going to try red rice yeast, but that carries some of the same risks as statins. Anyway,
there is no cardiac trouble on either side of my family tree. No strokes either that I know of, so I am not too worried. I have ratcheted up the exercise as of today
and will check out the niacin. Thanks for the reminder.

JG
__________________
  Reply With Quote
Re: Contemplating The Big Move
Old 12-22-2004, 04:31 PM   #46
Recycles dryer sheets
 
Join Date: Dec 2004
Posts: 147
Re: Contemplating The Big Move

Salaryguru Holly and Altared

Thanks for all your comments. I appreciate that many, maybe most, peolle on this board may have a hard time relating to our cost structure.Part of that is due to our life choices and part is due to where we live. The car is an interesting case in point. I used to drive around in a 1979 Thunderbird. Big as a boat. Loved that thing. But that thing had issues. I was not comfortablel with Mrs Donner driving old clunkers out on RT 66. Made the choice to upgrade to a new Chrysler. It simply is importan to me to have a good reliabloe car
to ge her around in. Call hat an expensive life style choice if you must but there it is.

Altared if you move back this way today you will be in for a shock. We are now in real estate lala land with much of he rest of he country.
__________________
"Remember, if you come this way, don't take no shortcuts and hurry along as fast as you can." (Virginia Reed, Age 12, Donner Party Survivor, 1847)
Donner is offline   Reply With Quote
Re: Contemplating The Big Move
Old 12-22-2004, 04:43 PM   #47
Recycles dryer sheets
 
Join Date: Dec 2004
Posts: 147
Re: Contemplating The Big Move

Mikey Your earlier comment to he effect that time is flying by and we will never be able to replace these days of relative health is very much on my mind as we contemplate retirement. My dad used to say that at some point you have to decide what is more important:
your time or money. We are closing in on that decision point. Wife and I are both contemplating the best path to transition from "The World of Work" which we are well acquainted with to what I would call "The World of Living" which we are just beginning to come to grips with. Differfent propositions altogether.

If I have missed anybody I apologize. I do appreciate all the comments which werfe all obviously made with good intentions Thanks to all.
__________________
"Remember, if you come this way, don't take no shortcuts and hurry along as fast as you can." (Virginia Reed, Age 12, Donner Party Survivor, 1847)
Donner is offline   Reply With Quote
Re: Contemplating The Big Move
Old 12-22-2004, 04:46 PM   #48
 
Posts: n/a
Re: Contemplating The Big Move

"Real estate lala land" got me to thinking. I am sure
many of you will enjoy this.

We live in an 1100 square foot "cottage" with 100 feet
of frontage on a pretty big river. Plenty of space for us and 4 dogs. I paid $68,000 in 2001. Now, I have put
quite a bit into the place since, but it was never really a
fixer-upper. I would guess our place is about in the middle range of value here. There are about 30 homes
on the water. I would guess the prices from $50,000
to $225,000. The highest price would buy you a real
palace here. I know there are many places where
200K wouldn't buy an outhouse. I guess my main point is that our situation is not all that unusual. I have been
all over this country. If you stay away from the cities and the
enclaves of the rich and famous, our situation could
be duplicated most anywhere, although I concede
water frontage might require some serious searching.

JG
__________________
  Reply With Quote
Re: Contemplating The Big Move
Old 12-22-2004, 04:58 PM   #49
Recycles dryer sheets
 
Join Date: Dec 2004
Posts: 147
Re: Contemplating The Big Move

JG Don't think about moving to he DC suburbs!
You will have that life altering health event sooner than you think!
__________________
"Remember, if you come this way, don't take no shortcuts and hurry along as fast as you can." (Virginia Reed, Age 12, Donner Party Survivor, 1847)
Donner is offline   Reply With Quote
Re: Contemplating The Big Move
Old 12-22-2004, 05:30 PM   #50
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Brat's Avatar
 
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 5,670
Re: Contemplating The Big Move

Donner, I hope you love what you are doing because it will be difficult for you to adjust to retirement.

I strongly suggest that you AND your spouse attend several retirement sessions, the one offered by OPM is a starter. Retirement is more than an income decision, it also has life-style and marrage impacts. You and your wife need to consider how you want to spend the rest of your life together and what it takes to get there.

I don't think your budget is the real issue.
__________________
Duck bjorn.
Brat is online now   Reply With Quote
Re: Contemplating The Big Move
Old 12-22-2004, 06:26 PM   #51
Thinks s/he gets paid by the post
charlie's Avatar
 
Join Date: Mar 2004
Location: Dallas
Posts: 1,211
Re: Contemplating The Big Move

Donner,

I am not sure what a TSP is but you mentioned
that it contains $800k "liquid". Assuming you
are free to do so, you could invest that in
Vanguard's Wellesley Income Fund and collect
a current dividend rate of about 3.6%. This
would bring in about $28k more per year. This
would more than make up your gap between
$94k and $108k. Wellesley is a very conservative
fund containing 35% value oriented stocks and
65% intermediate term bonds. IMHO, you could
expect the income to grow with inflation. Vanguard
does the re balancing for you ..... even my 89 year
old depression era mom let me put her into that
fund.

Sorry, I just noticed that you need $108k after taxes.
So you would need to prune your life style or grow
the $800k to $1.25 mil to make $45k "almost guaranteed" with Wellesley.

Hey, I have one idea ....... If the cell phones are for
emergency use, take a page out of TH's book and
buy "free2go" cell phones. You can get 667 minutes
good for 1 year per $100. Another idea on meals out
is to share the entrée ..... Lyn and I do that a lot.

Donner, it is all a matter of "want to". If you really
want to retire you can find a way to do it and still
not impact your life style much. Most people would
kill to be in your financial shape.

Cheers,

Charlie
__________________
charlie is offline   Reply With Quote
Re: Contemplating The Big Move
Old 12-22-2004, 08:35 PM   #52
Recycles dryer sheets
 
Join Date: Jul 2004
Posts: 94
Re: Contemplating The Big Move

No comment from me on your budget, needs and wants as I am one of the few other high expense-ers round here.

My main points have been covered (far better than I could) by others already so will just wish you well and hope you find the solutions you need. At the end of the day, each of us has our own needs, be it 24k or 124k a year, but the principles and maths behind it all work regardless of the absolute numbers.

Good luck and good health.
__________________
50% Down in NW and Can't Stop Smiling!!
SDY888 is offline   Reply With Quote
Re: Contemplating The Big Move
Old 12-26-2004, 08:18 AM   #53
Recycles dryer sheets
 
Join Date: Dec 2004
Posts: 147
Re: Contemplating The Big Move

Charlie-- Thanks for the suggestion on Vanguard's Wellesley Income Fund. It seems to be a favorite with a number of posters. I will investigate it. I had been thinking for some years now that when I finally pulled the trigger on reirement that I would roll out of the Govt Thrift Savings Plan into an IRA with Fidelity or TRowe Price or some other fund family. But I am reconsidering based on the extremely low cost of he TSP. The TSP website indicates the admin cost of the plan is about 0.001% of the balance. Can't beat that anywhere that I know of.

Also, while the TSP has limited investment options it does have one remarkable investment option that is available only to Federal employees and members of Congress who also participate. It is called the G fund and it is where I have our retirement funds invested for now. This is a special fund which by law must return the average of all U.S Govt obligations outstanding wih a maturity greater than 5 years. These special G Fund obligations turn over every 2 to 3 days with no possibility of losing your principal. So, TSP participants get a few low cost plain vanilla index investment options with one really unique opportuniy -- guaranteed long term risk free return on a short term instrument.As long term rates creep up so will my returns. Currenly returning about 4.4%. This is enough to keep current with inflation while I wrestle with my allocation demons. Not sure its a long term soluion though, particularly when I start drawing down.
__________________
"Remember, if you come this way, don't take no shortcuts and hurry along as fast as you can." (Virginia Reed, Age 12, Donner Party Survivor, 1847)
Donner is offline   Reply With Quote
Re: Contemplating The Big Move
Old 12-26-2004, 01:04 PM   #54
Thinks s/he gets paid by the post
charlie's Avatar
 
Join Date: Mar 2004
Location: Dallas
Posts: 1,211
Re: Contemplating The Big Move

Well Donner, at 4.4% of $800K you are only about
$10k short of your $45k investment return goal .....with an almost "COLA" in your G fund. I see now why you
said you need $1.0 mil to bullet proof your income.
I don't know how long it would take you to "save"
the remaining $200k, but I would be inclined to make
a try at pruning my expenses while increasing the
stash. You will get there quicker. Good luck!

Cheers,

Charlie
__________________
charlie is offline   Reply With Quote
Re: Contemplating The Big Move
Old 12-27-2004, 08:29 AM   #55
Recycles dryer sheets
 
Join Date: Nov 2004
Posts: 123
Re: Contemplating The Big Move

Donner:
We certainly live on the same planet and hell, maybe the same zip code.

Finetuning allocations, etc. is all well and good, but it seems that time would be better spent cutting the budget. We've got the same groceries budget as you (my #1 project to plan better, cheaper meals and shop better in my retirement) and other expenese are in the ball park but all to the lower side. Adds up to another $10-20 K annually saved though.

I agree with others on the life insurance, we've dumped that since we've saved enough to not need it.

Wish we'd bought our house in 90 instead of 2000, but still number one goal when we moved here was to pay off the mortgage (done last year) while continuing to save for ER as well as pay off other debts. Then we spend the rest! We try to look at every expense in terms of how big of a nest egg we need to support it. So your garden, for example, requires you to have about $150 k in the nest egg ($6K/4%). That simple math exercise helps us to prioritize how badly we want something. Do I really want to work for X more years in order to have a garden, etc.? That's how we determined that the groceries were out of control.

Being risk averse, the simplest way to improve the portfolio is to look at the expenses. You've got a lot of room to trim them.


Your fellow Arlingtonian,
Kay
__________________
You can either take action, or you can wait for a miracle. Miracles are<br />great, but they are so unpredictable.<br />(Peter Drucker)
kayelem is offline   Reply With Quote
Re: Contemplating The Big Move
Old 12-27-2004, 09:38 AM   #56
Recycles dryer sheets
 
Join Date: Dec 2004
Posts: 147
Re: Contemplating The Big Move

Kay-- Hello and merry Christmas to a fellow Arlingtonian!
Hope you are enjoying this fine crisp day! Wife and daughter are off after frugal post-Christmas sales bargains. I am enjoying a rare day off to myself. Back to the grind tomorrow.

As a fellow Northern Virginian, I wonder if you share my wonder at those who can ER on a 24k frugal budget?
I don't see how anybody could pay taxes, pay rent, eat, and put clothes on their backs for $2k per month around here and coninue to live on their own. Yes, I am sure people do but it has got to be one heck of a spartan existence. I know some young people who are earning about that much but they are just starting out and living wih others and sharing costs. You may want to argue wih me but I know this much --you cannot support a family independently on that income in our area.

I agree there is plenty of room to CUT BACK in my projected budget. Mrs Donner has suggested a few places where I am way off or where retirement would bring savings. I am wondering whether reirement
(ER or otherwise) always means you have to cut back somewhere. Sometimes I get the feeling on this board that maintaining your pre-retirement spending level ( or, heaven forefend ,planning to increase post-retirement spending!) is an immoral proposition. Not a very virtuous goal among ERers apparently. Frugal living BYM is the virtuous goal. And of course lots of discussion about what constitutes frugality.

I think your ideas about the groceries are good. I don't want to start another rah rah on this board but we do shop at Whole Foods for our protein and fresh vegetables. Safeway for the paper and cleaning products etc When we retire I think we will do a little better job at shopping for food bargains.

I will look hard at the life insurance. But since I am into maintaining what we have, rather than ratcheting down, I will place a high value on replacing my lost income for my wife in the event of my demise. And that will cost me a good penny. Now is that foolish or frugal?
Is that good planning or a frivoulous waste of money that could be better spent on? on? on? What?

Paying off the mortgage sounds good. Just out of curiousity how did you manage to pay off your morgtage in 4 years (2000-2004)? You must have placed a real high priority on that.

Finally, Kay, are you living in ER and retired in place here in Arlington? We could pull the plug today and move to one of the low cost paradises you read about on this board but I want to hear from people who are fighting to stay in place!

__________________
&quot;Remember, if you come this way, don&#039;t take no shortcuts and hurry along as fast as you can.&quot; (Virginia Reed, Age 12, Donner Party Survivor, 1847)
Donner is offline   Reply With Quote
Re: Contemplating The Big Move
Old 12-27-2004, 11:25 AM   #57
Recycles dryer sheets
 
Join Date: Nov 2004
Posts: 123
Re: Contemplating The Big Move

Donner:
It's a great day! (because I am not working)! I am enjoying the crisp air and just goofing off around the house, running errands, etc.

I haven't "pulled the plug" yet. I plan to hand in my resignation anytime in the next month or 2. (I got carried away with my last working Christmas and over spent, maybe subconsiously delaying the big day). My husband is going to work another year or so. Since neither of us will retire with full benefits we need a bit more in savings to feel completely comfortable. And he really likes his job, where I am finding mine stressful and time consuming.

We had been working to pay off our mortgage since we first got married, late in life in 1997. We had made good progress, but then the move to Arlington set us back. So we really were working on paying down the mortgage for about 7 years total. We did make it a priority. And we don't have any children (married too late for that). However, my husband likes to point out that I have spent as much on my dog and cats as he thinks it would take to raise a child! (Not true looking at your phone bill!).

We like the area for all the parks, trails, museums, culture etc. We'd like to stay here post retirement for awhile and feel that we have taken advantage of what the area has to offer. We've both been working so much that we haven't nearly done all that the things we want to. So for the near to mid term we plan to stay here, although after my husband quits it might be tempting to sell the house and try to stash some of that money in the bank and move to Iowa! It one of the main questions that has not been settled as we enter this phase.

As for the budget, we think we can get along on $70 K, with no mortgage, but we would be paying for health insurance at that point so may need more like $85. Health care is another reason my husband wants to work a while longer. We'd be ok right now with our annuities and interest/dividends but health care is a wild card. I really feel right now that I'd be increasing my chances of staying healthy by quitting sooner vs. later though.

We use quicken and we have figured out that our bare bones budget a (all non discretionary stuff) is something like $45-50 K. Everything does cost a lot here...$25K would not be doable unless I got rid of the husband, pets, house, and started eating canned pork and beans! (pets are not discretionary...another topic of discussion around here )

Best of luck to you. One thing that I have learned on my grocery quest is that ANYTHING that you find at Trader Joes is cheaper than our grocery store (Harris Teeter). We shop at Whole Foods a lot too which I know is just throwing money down the tubes!

Kay
__________________
You can either take action, or you can wait for a miracle. Miracles are<br />great, but they are so unpredictable.<br />(Peter Drucker)
kayelem is offline   Reply With Quote
Re: Contemplating The Big Move
Old 12-28-2004, 02:56 PM   #58
Recycles dryer sheets
 
Join Date: Dec 2004
Posts: 147
Re: Contemplating The Big Move

Kay-- You and I are definitely on the same planet. Difference is the mortgage and the health care costs.
We too like life in Arlington. Wife is a native and here is where family, friends and community are. Moving would be a really big decision for us. We shop at Trader Joe's only occasionally. I think their specialty items are great. Not so crazy about meat and veggies though.
__________________
&quot;Remember, if you come this way, don&#039;t take no shortcuts and hurry along as fast as you can.&quot; (Virginia Reed, Age 12, Donner Party Survivor, 1847)
Donner is offline   Reply With Quote
Re: Contemplating The Big Move
Old 12-28-2004, 03:01 PM   #59
Recycles dryer sheets
 
Join Date: Dec 2004
Posts: 147
Re: Contemplating The Big Move

Cut-Throat-- Upon reflection I think you are right. Cut out he mortgage and the health care costs and our orbits do begin to cross!
__________________
&quot;Remember, if you come this way, don&#039;t take no shortcuts and hurry along as fast as you can.&quot; (Virginia Reed, Age 12, Donner Party Survivor, 1847)
Donner is offline   Reply With Quote
Re: Contemplating The Big Move
Old 01-22-2005, 04:47 PM   #60
Thinks s/he gets paid by the post
 
Join Date: Jan 2005
Posts: 2,402
Re: Contemplating The Big Move

Hi Donner,

I just wanted to say that I am impressed with the amount that you have been able to save in the TSP fund being that you are so risk adverse. I am a Fed employee also, but I am under CSRS, so I can't contribute as much and the gov does not contribute a cent to mine. I have been contributing the maximum allowable since TSP has been in existence and I also do the catch-up since I am 51 yrs old. My salary would not be as high as yours, since I can't max out the $14000.00 per year since I can only contribute 10% of my salary. Last I check my TSP balance was approx $76,000. I keep thinking that I must be doing something wrong. I had a large portion in the C Fund (stock fund)and it did lose alot for a few years while the market was down. Maybe you are alot smarter being strictly in the G fund!! Best wishes in your retirement decision!!

Dreamer
__________________

__________________
Dreamer is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
In the course of ER how often did you move? perinova Life after FIRE 14 10-11-2006 09:10 AM
24 years old: what's my next move? soupcxan Young Dreamers 50 07-03-2006 09:36 AM
Good move or Bad move?? JPatrick FIRE and Money 46 07-05-2005 07:25 PM
Time to Move grumpy Other topics 3 01-24-2005 05:22 AM
Need some advices - move to Asia Gates007ca Young Dreamers 16 01-21-2005 05:23 AM

 

 
All times are GMT -6. The time now is 11:24 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.