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A Senior Outgo - Income
Old 10-18-2018, 11:42 AM   #1
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A Senior Outgo - Income

A summary of one couple's ongoing financial status.

This long thread summarizes 30 year of retirement experience. Too long to read now, but kind of a backup to this thread from the activity/money standpoint. 30 years of happiness, with no regrets or feelings that we missed the best part of life.

Sharing 23 years of Frugal Retirement

Now it comes down to where we are today... some real dollars of income and expenses.

Simple Numbers... Ongoing income...
Social Security for 2 @ age 62, now $25,000 yr.
From $110K in I bonds bought in 2000-2003... $12,000 yr in interest..
Total income $37,000.

Actual outgo....

Expense Est. Item reg exp's

Food home 90/week 4680
Eat out 20/wk 1040
Upkeep 1000
House Taxes 2900
House Insur. 1050
Phone/intnet/tv 2300
Utilities 1800
HMO 1800
Car Deprec +gas 1000
Car Ins 1200
Car Lic + reg 220
Medicare 280 mo. 3360
med supp. 280 mo. 3360
repair/replace est. 1000
fun/sin 25/week 1300
Dental misc meds etc 3000
Nursing Home Insur 2200
Misc newsp/clean mat. 400

Tot annual Expense 36880

While we were snowbirding in FL, 1990 thru 2012, our expenses were about $7000 more per year. Sold in May of this year.

We certainly don't feel poverty stricken, nor, at this age, do we wish we could travel or indulge in major adventures.

To date... our original $$$ in total net worth (retired @53 in 1989), (now 82) is exactly the same as it was the day we took SS @ age 62.

Thought some might be interested in what income and expenses could look like 30 years after retirement..
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Old 10-18-2018, 11:55 AM   #2
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I'm a bit lost trying to carve out your expenses specifically for being in the CCRC. I see RE tax, homeowner's insurance and utilities. But, isn't there some monthly fee you pay to the CCRC?
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Old 10-18-2018, 12:07 PM   #3
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Originally Posted by imoldernu View Post
Actual outgo....

Expense Est. Item reg exp's

Food home 90/week 4680
Eat out 20/wk 1040
Upkeep 1000
House Taxes 2900
House Insur. 1050
Phone/intnet/tv 2300
Utilities 1800
HMO 1800
Car Deprec +gas 1000
Car Ins 1200
Car Lic + reg 220
Medicare 280 mo. 3360
med supp. 280 mo. 3360
repair/replace est. 1000
fun/sin 25/week 1300
Dental misc meds etc 3000
Nursing Home Insur 2200
Misc newsp/clean mat. 400

Tot annual Expense 36880

For comparison, outgo working fam of 2 (flyover NORTH country)

+Daycare 20000
+Mortgage 27000
+401kDH 18500
+401kDW 8000
+RothDH 5500
+RothDW 5500
+HSA 1200
+529 2000
+KidExp 2000
+Food 4mouths 6000
+HMO MedIns/Denal/Vision/SuppLife 1800
+IncomeTax 12% ~10000
+HomeIns *Larger house for kids 1800
+PropertyTax(GoodSchoolTax) 3950


-Nursing Home Insur 2200
-med supp. 280 mo. 3360


Tot annual Expense 137290 OVER 100K difference!
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Old 10-18-2018, 12:16 PM   #4
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I'm a bit lost trying to carve out your expenses specifically for being in the CCRC. I see RE tax, homeowner's insurance and utilities. But, isn't there some monthly fee you pay to the CCRC?
We 0wn in our CCRC... a Villa... a regular 1600sf house. All part of the CCRC. We have our own HMO, but can and do participate in most of the activities of the larger complex.


Look for Liberty Village Peru.
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Old 10-18-2018, 12:22 PM   #5
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We 0wn in our CCRC... a Villa... a regular 1600sf house. All part of the CCRC. We have our own HMO, but can and do participate in most of the activities of the larger complex.


Look for Liberty Village Peru.
HMO? Is this the home owners association? $150 per month? Not bad.
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Old 10-18-2018, 12:35 PM   #6
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HMO? Is this the home owners association? $150 per month? Not bad.
Oops... yes... HOA.... covers mowing, trimming trees and shrubs, snow removal, and many other things... Post and garage lights, replacement of 30 trees diseased ash trees, and some time ago, replaced wood garage and door trim that required repainting, with aluminum trim for all homes. Oh yeah... and three big HOA meetings a year at nice local restaurants. Very satisfied.

We're very happy here.
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Old 10-18-2018, 01:00 PM   #7
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I pay less in HOA, I’m happy.
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Old 10-18-2018, 01:05 PM   #8
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Originally Posted by kgtest View Post
For comparison, outgo working fam of 2 (flyover NORTH country)

+Daycare 20000
+Mortgage 27000
+401kDH 18500
+401kDW 8000
+RothDH 5500
+RothDW 5500
+HSA 1200
+529 2000
+KidExp 2000
+Food 4mouths 6000
+HMO MedIns/Denal/Vision/SuppLife 1800
+IncomeTax 12% ~10000
+HomeIns *Larger house for kids 1800
+PropertyTax(GoodSchoolTax) 3950


-Nursing Home Insur 2200
-med supp. 280 mo. 3360


Tot annual Expense 137290 OVER 100K difference!
So once you reach FIRE, presumably kids expenses, 401K & Roth, mortgage go away your taxes probably go down. It looks like you would actually spend less that Imoldernu
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Old 10-18-2018, 04:58 PM   #9
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A little bump, just to bring up the subject of the cost of homes in different parts of the country. This involves not just the home cost and impact on the living budget, but the taxes and other associated expenses.
Wondering what this house would cost in California, and what the annual taxes might be.


https://www.trulia.com/p/il/peru/4-c...54--2058634351 (25 more interior pics)

Surprising how different the cost of living is in different parts of the country. Not only are the housing costs lower, but the traffic is much less, the people are super nice and every store, eating place, and activity center.. parks, YMCA, Hospitals and in our case Starved Rock State park less than 10 minutes away.

The post was intended to show that a couple can live well at a reasonable cost... even though today's current salary may be necessary to support a more expensive lifestyle in the more expensive cities and states.
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Old 10-18-2018, 05:19 PM   #10
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Surprising how different the cost of living is in different parts of the country.
Location is everything. According to redfin.com our house has a market value of $262.5k. I have no doubt, put the same house where we used to live and it'd be well over a million.
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Old 10-18-2018, 05:56 PM   #11
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A big expense for many retirees is health insurance which costs us 1k/month. We also like to travel and go out for entertainment, etc.
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Old 10-18-2018, 06:19 PM   #12
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A big expense for many retirees is health insurance which costs us 1k/month. We also like to travel and go out for entertainment, etc.
Our normal healthcare cost is about 10K/yr... We do sometimes go over this, but just by the deductible.

No longer the urge nor inclination to travel. Got most of that out of our system by age 75. Only by car, but in the early days, 35K to 45K miles a year. Entertainment is now mostly the shows that are monthly in our CCRC and TV and Netflix.

Honestly, based on our years in an active over 55 community in Florida, when we partied or went to Daytona at least 5 days a week, we thought it would continue forever. Not so... It's age!!!... While we know people from our CCRC, who travel regularly...even those who are older than us....we're much more content to play cards , watch TV, or just wander around the internet.

It is what it is... we're still very happy.
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Old 10-18-2018, 07:25 PM   #13
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quite reasonable list, especially as i expect I will also not want to travel much should i reach your age.
My HC expenses are already at age 58 at about 9K/yr however, mostly premiums. Hopefully it will go down some once on medicare. Of course who the heck knows what medicare will consist of/cost by then.
Speaking of um .heck, what "sins" does one commit for $25/week while having fun doing so? Could not resist asking, made me smile to see that item. Assume bingo or something similar?
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Old 10-18-2018, 07:29 PM   #14
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Our normal healthcare cost is about 10K/yr... We do sometimes go over this, but just by the deductible.

No longer the urge nor inclination to travel. Got most of that out of our system by age 75. Only by car, but in the early days, 35K to 45K miles a year. Entertainment is now mostly the shows that are monthly in our CCRC and TV and Netflix.

Honestly, based on our years in an active over 55 community in Florida, when we partied or went to Daytona at least 5 days a week, we thought it would continue forever. Not so... It's age!!!... While we know people from our CCRC, who travel regularly...even those who are older than us....we're much more content to play cards , watch TV, or just wander around the internet.

It is what it is... we're still very happy.
A lot of people in my bridge club do exactly that. They dont travel anymore, just play bridge once a week. But it’s also their chance to socialize. Some dress up to the nine with lots of expensive jewelry as if they were going some where.
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Old 10-19-2018, 09:33 AM   #15
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I think the key to frugal living is not wanting much. Some people have a lot and are still not content. Others have very little and are very happy. The key is being able to get fulfillment in ways that are within ones means.

DH and I value experiences over things, but we do value great weather and pay to live in So CA to have it. We also value global travel which is more expensive than driving vacations. And of course healthcare is quite expensive pre-Medicare. We planned for our desired lifestyle before we REd and were happy, albeit at a higher spending rate than many on this forum.

YMMV
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Old 10-20-2018, 08:07 AM   #16
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We are exactly the same. If it is a choice between the latest and greatest or travel, the latter will always win out. Helps not to care about the Jones' or not to like shopping.
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