Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 04-01-2013, 07:10 PM   #21
Thinks s/he gets paid by the post
JoeWras's Avatar
 
Join Date: Sep 2012
Posts: 2,522
Oversoul: just research it a bit more. You are probably going to be drawing an income level that will be subsidized, so you'll catch a break on the cost. Additionally, when we give worst case scenarios, it includes out of pocket. So, in a healthy year, you would only pay premiums. What we're saying is your health care expenses need attention.

Here's what I've been doing for expenses. DW and I enter EVERYTHING on Quicken. All our checks, all our withdrawals, all our credit cards. We categorize everything. We now have a 12 year record and know very well what our expenses are. Some of our surprise expenses have been house related: old appliance replacement, roofing, hot water heater replacement, etc. We also keep track of our dining out versus groceries. Very enlightening.

I'm not saying you can't do it at $36k, but I suspect you may want to give it just a bit more cushion. Perhaps this means firecalc says 95%. If so, you can probably go for it and manage your expenses in the lean years.
__________________

__________________
JoeWras is online now   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 04-01-2013, 11:44 PM   #22
Full time employment: Posting here.
 
Join Date: Jun 2006
Posts: 926
Quote:
Originally Posted by Oversoul View Post
After payroll deductions, medical/dental/eye insurance & 401k contributions, we bring home $4005 every 2 weeks combined out of our $160k yearly salary.

Our Federal tax bill for 2012 is roughly $25k. We don't qualify for anything except the standard deduction.

Your taxes at 25K are exactly what I would guess they would be. I think you do not understand what I am talking about. If you are saving 5K a month that is 60K a year. If you are spending 3K a month that is 36K a year. Let's add this up. 25(taxes)+60(savings)+36(spending)=121. You are missing the difference between 160K and 121K each year. That is 39 each year that you seem to have lost. I do realize that FICA taxes are taking about 11K out of your 160K combined income but that still leaves a good bit (like 28K) of money unaccounted for. You entered 36K annual expenses in Firecalc and got good results but it would seem that you have been spending a lot more than 36K in recent years. Firecalc results are only as good as the data you enter into the calculator.
__________________

__________________
CW4, USA-(ret)
RN, BSN-(ret)
jclarksnakes is offline   Reply With Quote
Old 04-02-2013, 09:04 AM   #23
Thinks s/he gets paid by the post
JoeWras's Avatar
 
Join Date: Sep 2012
Posts: 2,522
Quote:
Originally Posted by jclarksnakes View Post
You entered 36K annual expenses in Firecalc and got good results but it would seem that you have been spending a lot more than 36K in recent years. Firecalc results are only as good as the data you enter into the calculator.
Jclark says it more directly. I've just been hinting. I can't see how the expenses are that low.

The OP needs to seriously, seriously look at expenses and get realistic.

And JCS is right, the data is only as good as you put in. Garbage-in, garbage-out as the saying goes. I respect OBGynes opinion, but to say "if firecalc says you are good, you are good to go" isn't true if you fed firecalc garbage.

OK, there's theme here. A lot of us are simply saying: Get Real About Your Expenses.
__________________
JoeWras is online now   Reply With Quote
Old 04-02-2013, 06:42 PM   #24
Thinks s/he gets paid by the post
Katsmeow's Avatar
 
Join Date: Jul 2009
Posts: 3,396
Quote:
Originally Posted by jclarksnakes View Post
25(taxes)+60(savings)+36(spending)=121. You are missing the difference between 160K and 121K each year. That is 39 each year that you seem to have lost.
I think that also out of that $160k is taken FICA, health insurance premiums, and 401k contributions. I suspect those collectively make up the bulk (and perhaps all) of the $39k.
__________________

__________________
Katsmeow 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


 

 
All times are GMT -6. The time now is 01:24 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.