Expecting the unexpected expenses

[couch]

I've searched a bit for previous threads but the phrases seem to match too many unrelated threads on this forum.

I'm wondering if anyone has a list of expected but irregular expenses. I am looking to put together a budget(or plan anyway) with some more specifics.

I am thinking things like:
# Vehicle #
- replacement car
- car repairs
# House #
- furnace
- air conditioner
- roof
- driveway
- windows
- appliances
- furniture
- lawn mower
# Technology #
- laptop
- cellphone
- television

Basically a list of big ticket (fairly) non-discretionary items that can't be repaired cheaply. I can then put together my list with anticipated timelines and costs.

So in the end I can add details for my specific situation.

furnace / 10 years / $5000
laptop / 5 years / $2000
etc

 

[pb4uski]

good list... covers everything that I can think of.

 

[zippy2020]

As long as you include inflation in your analyses, there shouldn't be any problem.

We had our home's exterior painted in 2009 for $8K. A recent quote was $15K.

 

[Walt34]

Are you on well water or city water? We had the water line from the street to the house start leaking a few years ago, a completely unexpected $3,400 repair. If on a well, plan on maintenance expenses for that and for whatever type of sewage system the house has, be it septic or sewage line. Fortunately we haven't had that but I'd wager that isn't cheap either.

 

[Lewis Clark]

Major landscaping projects

Special assessments for a homeowners association, if they are likely in your area

 

[Scuba]

Major unplanned healthcare expenses are the biggest risk I see.

 

[COcheesehead]

Dental work
Medical deductibles
Care for loved ones/ family members
Remodeling house - tile, counter tops, cabinets
If you have pets, most of their cost is in the last few days of life. Vet bills.

 

[Dtail]

Major unplanned healthcare expenses are the biggest risk I see.

+1
Specifically long term care

 

[RunningBum]

Long-term / memory care, not just for you but perhaps a parent.

Other family situations where you may want to help. Of course you don't have to, but if you think you would, it's something to consider.

 

[NW-Bound]

I know one has to allow for non-recurring large expenses, but itemizing them and estimating the costs takes too much work for me.

So, I just hope that my low WR of 3% or less will leave enough margin. And then, there's SS if I need it too.

 

[Freedom56]

During our working years and into retirement we always kept about $100K or more in a money market savings account to cover purchases/repairs that could not be covered by normal monthly cash flow. This was more than enough to cover major purchases (cars or repairs). The amount we set aside was also enough to cover the deductible our earthquake insurance policy with a lot of margin or hurricane damage in excess of our policy for our property in Florida. You may want to set aside an amount that covers your worst case scenario without tapping into investment accounts and not worry about unexpected expenses.

 

[W2R]

Dental implants, for some of us.

Dental implant costs vary depending on where you live but they aren't one bit cheap. Last year I paid $3,900 each, for two, but I have heard they cost up to $10K in some higher cost locations and less in others.

Out here the termite guys want to give the house a full treatment every few years (maybe every 5 years? 10? I forgot). That involves drilling into the driveway and stuff like that, and cost me $1,100 back in 2016. On the other years the cost is much less, maybe $100, for them to just look and make sure all is well.

 

[NW-Bound]

During our working years and into retirement we always kept about $100K or more in a money market savings account to cover purchases/repairs that could not be covered by normal monthly cash flow. This was more than enough to cover major purchases (cars or repairs). The amount we set aside was also enough to cover the deductible our earthquake insurance policy with a lot of margin or hurricane damage in excess of our policy for our property in Florida. You may want to set aside an amount that covers your worst case scenario without tapping into investment accounts and not worry about unexpected expenses.

People who live on just pension and SS have to set some money aside, but for people drawing off their stash, the $100K or more is simply part of the stash.

 

[gromit]

To see if you've thought of all your home systems, you can google "home inspection checklist". Also "InterNACHI's Standard Estimated Life Expectancy for Homes" has life expectancy for home components. Be advised that life expectancy can be very different from how long it takes for the SO to decide that "we need to replace..." https://www.nachi.org/life-expectancy.htm

 

[Retch The Grate]

Dental implants, for some of us.

Dental implant costs vary depending on where you live but they aren't one bit cheap. Last year I paid $3,900 each, for two, but I have heard they cost up to $10K in some higher cost locations.

Out here the termite guys want to give the house a full treatment every few years (maybe every 5 years? 10? I forgot). That involves drilling into the driveway and stuff like that, and cost me $1,100 back in 2016. On the other years the cost is much less, maybe $100, for them to just look and make sure all is well.

Silicon Valley I paid $10k for one, but that includes the cost of the bone harvesting and grafting for the area with bone loss, getting to be unconscious for both surgeries, and some fancy extras that the surgeon does (re-injecting my concentrated blood to promote healing in the wound area, is it worth it? Who knows, but the surgery healed up great). I shudder to think of the expense as I get older and crowns start failing and have to be replaced with implants. Crossing fingers I don't have too many, the implant was for a tooth that never came in so hopefully it's a once in a lifetime thing....

 

[Freedom56]

People who live on just pension and SS have to set some money aside, but for people drawing off their stash, the $100K or more is simply part of the stash.

Fair enough, those that don't have a pension or SS, can allocate a portion of their stash to cover irregular expenses. In our case, we have a pension that easily covers our non-discretionary expenses and then some. But come mid-April every year we have to pay a large tax bill for our taxable investment income over and above what they deduct at source from our pension. Our reserve helps with that and other large expenses.

 

[Fedup]

For implants, I paid $1500 for one tooth 10 years ago, my out of pocket cost is $500. The doctor graduated top 1% UCLA dental school, but he is retiring, so I’m out of luck.

 

[aja8888]

Between 2017 and 2018, my dental work (everything old fell apart) cost over $40K. Then two implants for another $10K. All of this was out of pocket as Medicare does not cover anything above the neck.

 

[Fedup]

Our high coverage dental plan(up to $30k per year) does not cover everything either.

 

[HI Bill]

Painting the house.

 

[RobbieB]

I have a "self insured" dental plan.

 

[aja8888]

I have a "self insured" dental plan.

Yeah, that's what mine was (is) too!

 

[aja8888]

Folks, don't forget Vet bills for old(er) animals. Vets are getting up there with the medical profession with charges.

 

[W2R]

Looking through my records, here are some unusual larger expenses that stuck out other than dental implants and termite treatments.

1) I haven't had to evacuate for a hurricane since Hurricane Isaac in 2012, but that one cost me $913.80. It was a brief evacuation, too. Others before that one have been more costly.

2) New columns for the outside front of my house cost $900. The old ones had deteriorated and I didn't notice at first. They needed immediate attention! So I guess that would be in the category of urgent house maintenance.

3) Major landscaping work, but hopefully your landscaping is already just as you wish and suitable for your capabilities to maintain it in the foreseeable future. This, along with other expensive fix-up work was really part of my house purchase and moving expenses.

4) Tires and battery for the car, but then I think that was mentioned already.

 

[audreyh1]

Long-term / memory care, not just for you but perhaps a parent.

Other family situations where you may want to help. Of course you don't have to, but if you think you would, it's something to consider.

This is definitely a concern for me. I’m just hoping I’ve built up enough of a war chest if my siblings run into major issues.

Fortunately my Dad is well funded, so don’t need to worry about him unless he suddenly needs uber expensive care.

Knock on wood.