Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
How much do you live on in retirement?
Old 04-18-2011, 11:48 AM   #1
Confused about dryer sheets
 
Join Date: Jul 2010
Posts: 2
How much do you live on in retirement?

I know the answers will change dramatically based on lifestyles, health insurance, mortage, etc, however the biggest struggle for me as I get closer to "the number" is how much I'll actually spend each year. 51 year old, sold a business, have invested the proceeds of that sale and have no personal debt.
Investable assets are split between taxable and no taxed and would throw off $80K/yr at 4%SWR. I've budgeted $12K a year for the higher deductable health plan that I currently am paying $8K/year for. I have an interest in some commercial buildings and land that will provide cash if and when I decide to sell them. I've talked to contemporaries that pull anywhere from $40K/yr to $150K a year from their portfolios. I guess none of this information really has an effect on spending, other than to say I'm curious what people actually live on... health care and SS aside.

Thanks !
__________________

__________________
Fender 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!

Old 04-18-2011, 12:15 PM   #2
Thinks s/he gets paid by the post
vicente solano's Avatar
 
Join Date: May 2009
Posts: 1,116
We live quite confortably on 56000 euros a year. We could live on much less but we donīt want to be the richest inmates of the cemetery and our 34 years old son has more than his basic needs perfectly covered
__________________

__________________
I get by with a little help from my friends....ta ta ta ta ta...
vicente solano is offline   Reply With Quote
Old 04-18-2011, 12:17 PM   #3
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,852
I live on very close to the same amount that I lived on before retirement. I save money on some things but spend more on others, and it balances out.

The best way to figure it out, is from your present budget. You might want to subtract some for the costs of commuting and work clothing, which you will no longer need. You might want to add some for entertainment, travel, and so on.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is offline   Reply With Quote
Old 04-18-2011, 12:19 PM   #4
gone traveling
 
Join Date: Apr 2009
Location: Eastern PA
Posts: 3,851
I live on the same net income (adjusted upwards for my personal rate of inflation) as I did before I retired, four years ago.

As you said - disregarding income sources and lifestyle expenses (which are different for everybody), I feel I lived a good life (financially) before I retired - meaning I did not delay anything till retirement, nor reduce any expenses after retirement, so I chose to live in the same manner. Luckily, I can afford it...
__________________
rescueme is offline   Reply With Quote
Old 04-18-2011, 12:32 PM   #5
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,090
Quote:
Originally Posted by vicente solano View Post
We live quite confortably on 56000 euros a year.
Vicente, prior to you deleting that fourth zero I was really impressed!
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 04-18-2011, 12:35 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,384
Quote:
Originally Posted by rescueme View Post
meaning I did not delay anything till retirement, nor reduce any expenses after retirement, so I chose to live in the same manner. Luckily, I can afford it...
Nothing to do with luck, but merely a reflection of your superior virtue.

Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is online now   Reply With Quote
Old 04-18-2011, 12:37 PM   #7
Full time employment: Posting here.
 
Join Date: Dec 2010
Location: Southern California
Posts: 916
This could be an interesting thread. I'm not FIRE yet, but I hope to live on the same budget as before/after work life.... give or take about $60k. I've factored in $75k in my spreadhseets. This assumes mortgage free/auto loan free.

Healthcare and kids' expenses could be the wildcards.
__________________
Aiming_4_55 is offline   Reply With Quote
Old 04-18-2011, 12:40 PM   #8
Full time employment: Posting here.
 
Join Date: May 2008
Posts: 589
Gonna just say it again, the right amount is going to be something near what you were living on before. It is the amount you spent a long time getting comfortable with, and a huge change would be very uncomfortable.
__________________
plex is offline   Reply With Quote
Old 04-18-2011, 12:42 PM   #9
Recycles dryer sheets
 
Join Date: Dec 2010
Location: Tequesta
Posts: 279
I'm looking at that too. I don't see that it will be much different, with a few exceptions.

Our last child has probably 3 more years of college; when he graduates, our expenses will go down by that amount.

Our mortgage will be retired in about 6 years, so that amount will go down.

I don't see anything else going down. Maybe the laundry for the dress shirts and suits I take there, but that won't amount to a hill of beans. Maybe lunches, but I'm pretty cheap there already.

The idea of assuming you will live on significantly less in retirement has never made sense to me.
__________________
67walkon is offline   Reply With Quote
Old 04-18-2011, 12:43 PM   #10
Thinks s/he gets paid by the post
Major Tom's Avatar
 
Join Date: Nov 2009
Location: SF East Bay
Posts: 3,129
Quote:
Originally Posted by plex View Post
Gonna just say it again, the right amount is going to be something near what you were living on before. It is the amount you spent a long time getting comfortable with, and a huge change would be very uncomfortable.
Unless you're a very adaptable person.
__________________
Major Tom is offline   Reply With Quote
Old 04-18-2011, 12:45 PM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
bbbamI's Avatar
 
Join Date: Dec 2006
Location: Dallas 'burb
Posts: 9,039
Quote:
Originally Posted by plex View Post
Gonna just say it again, the right amount is going to be something near what you were living on before. It is the amount you spent a long time getting comfortable with, and a huge change would be very uncomfortable.
Yep...pretty much.

We budget our spending to 3% of our portfolio. Some years I'm sure we'll go over and some years we'll spend less. Life happens.
__________________
There's no need to complicate, our time is short..
bbbamI is offline   Reply With Quote
Old 04-18-2011, 12:47 PM   #12
Moderator Emeritus
 
Join Date: May 2007
Posts: 11,038
Our income has changed considerably over the years but our expenses have not. I guess we found our comfort level. I see no reason to spend differently in retirement.
__________________
FIREd is online now   Reply With Quote
Old 04-18-2011, 12:48 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
donheff's Avatar
 
Join Date: Feb 2006
Location: Washington, DC
Posts: 8,643
We are spending about the same as when we were both working (which is a whole lot less than we were earning) but what we spend on has changed a bit. Lots more on travel, lots less on restaurants at home and lots less for DW's clothes . It balances out.

Edit: Actually, I didn't include two mortgages that we paid while working but paid off prior to retirement. ER spending is down that much.
__________________
Every man is, or hopes to be, an Idler. -- Samuel Johnson
donheff is offline   Reply With Quote
Old 04-18-2011, 12:49 PM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Mulligan's Avatar
 
Join Date: May 2009
Posts: 7,376
Quote:
Originally Posted by Fender
I know the answers will change dramatically based on lifestyles, health insurance, mortage, etc, however the biggest struggle for me as I get closer to "the number" is how much I'll actually spend each year. 51 year old, sold a business, have invested the proceeds of that sale and have no personal debt.
Investable assets are split between taxable and no taxed and would throw off $80K/yr at 4%SWR. I've budgeted $12K a year for the higher deductable health plan that I currently am paying $8K/year for. I have an interest in some commercial buildings and land that will provide cash if and when I decide to sell them. I've talked to contemporaries that pull anywhere from $40K/yr to $150K a year from their portfolios. I guess none of this information really has an effect on spending, other than to say I'm curious what people actually live on... health care and SS aside.

Thanks !
Been retired for about a year, and expenses are about the same as before. For what is worth, I live on about 4k a month and still am paying on my mortgage. Other than my semi monthly trips to Vegas to feed my sports betting habit, I live a pretty simple life. Fender your 8k a year for high deductible insurance seems high. Is that for you or a family plan? My HD insurance is $700 a year for 5k deductible, individual. I'm only 4 years younger than you.
__________________
Mulligan is offline   Reply With Quote
Old 04-18-2011, 01:19 PM   #15
Thinks s/he gets paid by the post
 
Join Date: Nov 2005
Location: North of Montana
Posts: 2,753
Since it's how much do we live on, not how much do we spend, I'll feel free to ignore taxes and gifts to the kids.

I used to make mid 6 figures and we probably 'lived on' about $75K. It may be $85K today, I don't keep detailed records.
__________________
There are two kinds of people in the world: those who can extrapolate conclusions from insufficient data and ..
kumquat is offline   Reply With Quote
Old 04-18-2011, 01:35 PM   #16
gone traveling
 
Join Date: Apr 2009
Location: Eastern PA
Posts: 3,851
Quote:
Originally Posted by haha View Post
Nothing to do with luck, but merely a reflection of your superior virtue.
Had to be luck (I'm not that smart )...
__________________
rescueme is offline   Reply With Quote
Old 04-18-2011, 01:41 PM   #17
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,616
Quote:
Originally Posted by Fender View Post
I guess none of this information really has an effect on spending, other than to say I'm curious what people actually live on... health care and SS aside.
Thanks !
How Did You Do On Your Expense Budget in 2010?

How much did you spend in 2010?
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 04-18-2011, 01:44 PM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
freebird5825's Avatar
 
Join Date: Feb 2008
Location: East Nowhere, 43N Latitude, NY
Posts: 9,017
Pre-FIRE: My gross salary used to be > $75K.

Post-FIRE: Less than $50K gross income from pension + annuity. Not tapping into my investments at all.

I live in a semi-rural area, no mortgage, high taxes, moderate COL (compared to urban areas). Spending is too variable to quantify.
I have enough left over after all expenses to continue DCA at varying levels as prudent, build up some more cash, make some minor improvements on the house (windows right now), and go on an annual low budget trip to FL.
__________________
"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
freebird5825 is offline   Reply With Quote
Old 04-18-2011, 02:31 PM   #19
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 4,836
Annual expenses are $60k. Once the mortgage is paid off that will be $30k. Half of that will be covered by rent from the ground floor apartment. I live in Boston and that $30k includes everything, taxes, health insurance @ $5k a year etc. Areas where significant savings can be made are food and transportation. I eat very well but I'm very frugal as I grow fruits and veg in my garden and do a lot of cooking. Why pay $10 for a big apple pie when it costs $2 to bake one and it tastes better. I have a car, but use my bike around the city to shop and go out. The saving on gas and maintenance are big.

Once I ER a 1.5% WR plus the rent will cover my expenses and once SS starts I will have no need to withdraw from my investments for income.
__________________
nun is offline   Reply With Quote
Old 04-18-2011, 03:17 PM   #20
Thinks s/he gets paid by the post
grasshopper's Avatar
 
Join Date: Oct 2010
Posts: 1,670
Ms G. and I have about 40k in expenses. So far in 5 years of ER, we have generated that much yearly from our taxable account alone. As a matter of fact we are about half a year ahead of ourselves.

We are spending about 5k more in retirement than our w**king life. Our home and cars were paid for before ER, and BCBS sets us back about 7k a year. Additionally the roads here ate an SUV we owned and had to buy a new GMC truck.
__________________

__________________
grasshopper 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
Would like to live in 2 places after retirement... Amethyst Hi, I am... 68 01-15-2009 07:26 PM
Live-in-Place vs Retirement Community Caroline Life after FIRE 34 04-17-2008 07:25 PM
In Retirement, two can live as cheaply as... Three? Telly FIRE and Money 7 05-01-2007 08:03 AM
retirement tax strategy and where to live simple girl Life after FIRE 69 10-08-2006 01:29 PM
Best Places To Live in Retirement? Our View ShokWaveRider Life after FIRE 27 11-03-2004 04:14 PM

 

 
All times are GMT -6. The time now is 04:20 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.