Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Old 09-24-2018, 11:25 AM   #21
Moderator
Aerides's Avatar
 
Join Date: Nov 2015
Posts: 13,879
Since you are recently separated, does the $3400 per month in expenses include the full costs of your own residence? (assuming you no longer live together, marital home has been sold and/or assets divided, and you are now living somewhere new, or have split assets and staying put, your Ex-H having moved out fully).

Is $3400 expenses as in bills and "needs" or is that just what you naturally spend? Is that based on several months in your new living arrangement? It's hard to budget without a good year or three behind you, as certain things don't come up nicely on schedule (car repairs, home owners insurance, taxes, travel).

So the reason someone mentioned squeaking by at 65: ... 10 years from now, with inflation that $3400 is going to be more than $4000, and with a pension (fixed) of $1500 and $2000 in SS, (so let's call than $3k in 10-years-from-now-dollars) you're going to start needing to crack into your savings to cover that monthly deficit.

But I think you're putting the cart before the horse here - best first to figure out your divorce, living arrangement, and then job, keep saving more actively and then talk RE later.
Aerides 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 09-24-2018, 01:04 PM   #22
Recycles dryer sheets
 
Join Date: Sep 2018
Location: Philly Burbs
Posts: 155
Thank you. I have purchased my own home, in my name even though I'm still married. The $3,400 is needs, the balance is what I've been spending on wants.

I see what you mean about inflation, but why wouldn't I crack into my savings?? Isn't that what it's for?
Omega is offline   Reply With Quote
Old 09-24-2018, 01:12 PM   #23
Thinks s/he gets paid by the post
gauss's Avatar
 
Join Date: Aug 2011
Posts: 3,594
Have you considered the possibility of taking on a roommate in your new home?

If you cut down you net expenses by 40% or so by taking in a roommate,that could be a game changer in enabling an ER for you.
gauss is offline   Reply With Quote
Old 09-24-2018, 01:44 PM   #24
Recycles dryer sheets
 
Join Date: Sep 2018
Location: Philly Burbs
Posts: 155
Quote:
Originally Posted by gauss View Post
Have you considered the possibility of taking on a roommate in your new home?

I have considered a roommate actually, but they are not easy to find in my area.

If you cut down you net expenses by 40% or so by taking in a roommate,that could be a game changer in enabling an ER for you.
I really don't spend a lot, but I will look at my statements and see what I can cut out. A few things come to mind but nowhere near 40% net!
Omega is offline   Reply With Quote
Old 09-24-2018, 02:21 PM   #25
Moderator
Aerides's Avatar
 
Join Date: Nov 2015
Posts: 13,879
Quote:
Originally Posted by Omega View Post
I see what you mean about inflation, but why wouldn't I crack into my savings?? Isn't that what it's for?
Depends how long you plan to live. Let's stay you stay employed and don't touch it till 65. You'd want a plan that left you financially secure for say 30 ish years. With that pension being non-cola, your income will technically decline over time.

If you started cracking into your savings too much, too soon, it won't be long before your withdrawals exceed your savings growth and then at some point you'll run out. - unless you have a really well researched plan and understand your investments and real needs and wants.

A healthy nest egg will return investments at least as good as your needed withdrawals, on average, over time. So your savings nut is really there to continue to work for you, not to be whittled away (at least not starting at 55 or 65).

This is the 10,000 foot view. Your mission at this point should be to get stable, study and learn a lot, over the next several months.
Aerides is offline   Reply With Quote
Old 09-24-2018, 03:23 PM   #26
Thinks s/he gets paid by the post
gauss's Avatar
 
Join Date: Aug 2011
Posts: 3,594
Quote:
Originally Posted by Omega View Post
I really don't spend a lot, but I will look at my statements and see what I can cut out. A few things come to mind but nowhere near 40% net!
The 40% was based on the income you could achieve by taking in a roommate and splitting shared expenses (and 40% was probably an aggressive figure)-- not from thrifting your current budget.
gauss is offline   Reply With Quote
Old 09-24-2018, 05:05 PM   #27
gone traveling
 
Join Date: Mar 2015
Posts: 3,508
Quote:
Originally Posted by Omega View Post
I find this quite shocking! Barely able to squeak by?! Really!! At 65 with SS, my profit sharing, my pension, and whatever else I save, I will be squeaking by?
I think there is some confusion here.

You now say "I take home $4400/month and spend $800. Just being honest."
But earlier you said your bills were $3400/month, not $800.

If you can give a more accurate account of your expenses in retirement, you'll be able to compare your income to expenses and see where that leaves you.

$500k could safely spin off about $20k/year.
Your pension at 65 will give you about $18k of non-inflation-protected income.
Your social security at 65 will give you about $24k/year.

If you quit work now, you'll need to spend down some of your portfolio until you reach 65 or so. How much of your profit sharing do you expect to have left? And how do you expect to save anything?

Seems to me that's cutting things close. What am I missing?

Quote:
The problem is that I don't have any marketable skills really.
Everyone who currently holds a job has some marketable skills.
joeea is offline   Reply With Quote
Old 09-24-2018, 05:42 PM   #28
Thinks s/he gets paid by the post
HI Bill's Avatar
 
Join Date: Dec 2017
Posts: 2,533
Quote:
Originally Posted by Omega View Post
The "invest, invest, invest" is what I need help with. I have no idea where to start. Call Vanguard and open...what? A Roth IRA? A target retirement fund?
I would start with a Roth IRA, and contribute the maximum to something simple like VTI (Vanguard Total Stock Market Index ETF), then open a Brokerage account, and invest anything over the $5500 in something to diversify what you hold in your retirement and other accounts.
HI Bill is offline   Reply With Quote
Old 09-24-2018, 05:49 PM   #29
Thinks s/he gets paid by the post
 
Join Date: May 2014
Posts: 1,390
I'm at a loss as to understanding the OP monthly spending. Is it $3400 or is it $800? Both it seems has been given. If it's $800, where is the extra cash every month going? If it's $3400, why say it's $800 a month?


Let us assume the spending per month really is $800. There is a lot of opportunity if the take home is $4400 a month. If it's $3400 spending a month then there is probably an opportunity to cut back somewhere.


OP please be clearer what your spending really is. Can you give us a detailed monthly budget? Someone will probably be able to suggest where you can probably cut back. It will only help you in the long run.
__________________
Understanding both the power of compound interest and the difficulty of getting it is the heart and soul of understanding a lot of things. Charlie Munger

The first rule of compounding: Never interupt it unnecessarily. Charlie Munger
UnrealizedPotential is offline   Reply With Quote
Old 09-24-2018, 05:54 PM   #30
Thinks s/he gets paid by the post
gauss's Avatar
 
Join Date: Aug 2011
Posts: 3,594
I interpreted OP as spending a mandatory 3400 with an additional 800 that is discretionary and/or savings.
gauss is offline   Reply With Quote
Old 09-24-2018, 05:59 PM   #31
Recycles dryer sheets
 
Join Date: Jan 2013
Posts: 192
I think everyone is very cautious because of your marital situation. That $500k may turn into $250k after a divorce. That $1500/month pension may turn into $750. That house that you believe is in your own name - maybe not unless there is an official separation agreement in place. Those are all facts that we just don't know about. Also, you obviously have skills at something or why is someone paying you $90k plus? Is your company the only company in that business in the USA? Also, on expenses, what are the chances of payments from your earnings - alimony - if it happens in your state?
marinauser is offline   Reply With Quote
Old 09-24-2018, 05:59 PM   #32
Thinks s/he gets paid by the post
 
Join Date: Jan 2013
Posts: 3,405
I think the $800 is spending above the $3,400 in "bills." There may be ways to cut back on the "bills," such as reducing or eliminating cable, unsubscribing to some services, making his home more energy and water efficient, etc. He can look at reducing the $800 in spending by reducing restaurant spending, looking at his car and associated expenses, etc. OP needs to track all of his spending and prepare a budget to see where he really is.
Another Reader is offline   Reply With Quote
Old 09-24-2018, 06:01 PM   #33
Thinks s/he gets paid by the post
gauss's Avatar
 
Join Date: Aug 2011
Posts: 3,594
Cell phone expenses are often way more than they need to be. Much cheaper plans available with MVNOs.
gauss is offline   Reply With Quote
Old 09-25-2018, 07:23 AM   #34
Recycles dryer sheets
 
Join Date: Sep 2018
Location: Philly Burbs
Posts: 155
Quote:
Originally Posted by joeea View Post
I think there is some confusion here.

You now say "I take home $4400/month and spend $800. Just being honest."
But earlier you said your bills were $3400/month, not $800.

If you can give a more accurate account of your expenses in retirement, you'll be able to compare your income to expenses and see where that leaves you.

$500k could safely spin off about $20k/year.
Your pension at 65 will give you about $18k of non-inflation-protected income.
Your social security at 65 will give you about $24k/year.

If you quit work now, you'll need to spend down some of your portfolio until you reach 65 or so. How much of your profit sharing do you expect to have left? And how do you expect to save anything?

Seems to me that's cutting things close. What am I missing?


Everyone who currently holds a job has some marketable skills.
I see, thank you! I especially appreciate the comment about having marketable skills. I don't mind working really, I just hate the job I have now. 10 years is a lonnnnnggg time to spend 40 hours a week somewhere you hate.
Omega is offline   Reply With Quote
Old 09-25-2018, 07:33 AM   #35
gone traveling
 
Join Date: Mar 2015
Posts: 3,508
Quote:
Originally Posted by Omega View Post
10 years is a lonnnnnggg time to spend 40 hours a week somewhere you hate.
I agree!

I know this is an Early Retirement forum. But I believe everyone deserves to feel good about their work.

If you aren't getting what you need out of your current job, you always have alternatives besides leaving the workforce. A new job. A different career. Part-time work. These are all viable options.

Over my work life, I had three distinct careers. The last one was the best by far!
joeea is offline   Reply With Quote
Old 09-25-2018, 07:37 AM   #36
Recycles dryer sheets
 
Join Date: Sep 2018
Location: Philly Burbs
Posts: 155
Quote:
Originally Posted by HNL Bill View Post
I would start with a Roth IRA, and contribute the maximum to something simple like VTI (Vanguard Total Stock Market Index ETF), then open a Brokerage account, and invest anything over the $5500 in something to diversify what you hold in your retirement and other accounts.
Thank you! This is exactly what I was looking for! So I should call Vanguard and talk to someone about opening a Roth IRA and invest it in the VTI? I told you I'm a novice, I just don't want to sound like one when I call.
Omega is offline   Reply With Quote
Old 09-25-2018, 07:39 AM   #37
Recycles dryer sheets
 
Join Date: Sep 2018
Location: Philly Burbs
Posts: 155
Quote:
Originally Posted by joeea View Post
I agree!

I know this is an Early Retirement forum. But I believe everyone deserves to feel good about their work.

If you aren't getting what you need out of your current job, you always have alternatives besides leaving the workforce. A new job. A different career. Part-time work. These are all viable options.

Over my work life, I had three distinct careers. The last one was the best by far!
It's so intimidating to start over. I know more about what I don't want to do rather than what I want to do. Also, I have no formal education which I'm afraid will pose some problems.
Omega is offline   Reply With Quote
Old 09-25-2018, 07:43 AM   #38
Recycles dryer sheets
 
Join Date: Sep 2018
Location: Philly Burbs
Posts: 155
Thank you all so much for responding. I'm going to give myself some homework so I can post accurate numbers regarding my spending.
Omega is offline   Reply With Quote
Old 09-25-2018, 01:19 PM   #39
Full time employment: Posting here.
 
Join Date: May 2011
Posts: 873
I look forward to seeing how you move forward.
kimcdougc is offline   Reply With Quote
Old 09-25-2018, 07:25 PM   #40
Recycles dryer sheets
 
Join Date: Sep 2018
Location: High Plains Non-Drifter
Posts: 314
Dear Omega -- Don't fret about the formal education thing. You have the best education on the planet: "life experience." Best wishes to you.
WyomingLife is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
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
Stick a Fork in Me.... EllisWyatt Life after FIRE 79 04-25-2014 01:07 AM
Please stick a fork in me. I think I'm done FLD3C Hi, I am... 5 01-09-2014 04:53 AM
Stick a fork in me.... 67walkon Life after FIRE 16 03-10-2013 10:54 PM
Trying to Think of an Effective Way to Stick My Nose Into Someone Else's Business. haha FIRE and Money 27 10-19-2010 08:45 PM
Stick a Fork in Me...I'm Done! SarahW Life after FIRE 35 06-19-2009 07:06 PM

» Quick Links

 
All times are GMT -6. The time now is 12:50 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.