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Expecting the unexpected expenses
Old 10-09-2018, 05:44 PM   #1
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Expecting the unexpected expenses

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
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Old 10-09-2018, 05:48 PM   #2
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good list... covers everything that I can think of.
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Old 10-09-2018, 06:00 PM   #3
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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.
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Old 10-09-2018, 06:16 PM   #4
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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.
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Old 10-09-2018, 06:28 PM   #5
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Major landscaping projects

Special assessments for a homeowners association, if they are likely in your area
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Old 10-09-2018, 06:32 PM   #6
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Major unplanned healthcare expenses are the biggest risk I see.
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Old 10-09-2018, 06:40 PM   #7
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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.
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Old 10-09-2018, 06:44 PM   #8
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Major unplanned healthcare expenses are the biggest risk I see.
+1
Specifically long term care
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Old 10-09-2018, 06:49 PM   #9
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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.
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Old 10-09-2018, 06:53 PM   #10
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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.
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Old 10-09-2018, 07:01 PM   #11
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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.
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Old 10-09-2018, 07:31 PM   #12
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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.
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Old 10-09-2018, 08:01 PM   #13
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Originally Posted by Freedom56 View Post
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.
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Old 10-09-2018, 08:16 PM   #14
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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
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Old 10-09-2018, 08:46 PM   #15
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Originally Posted by W2R View Post
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....
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Old 10-09-2018, 08:52 PM   #16
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Originally Posted by NW-Bound View Post
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.
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Old 10-09-2018, 08:56 PM   #17
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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.
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Old 10-09-2018, 09:00 PM   #18
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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.
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Old 10-09-2018, 09:02 PM   #19
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Our high coverage dental plan(up to $30k per year) does not cover everything either.
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Old 10-09-2018, 09:08 PM   #20
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Painting the house.
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