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Expecting the unexpected expenses
10-09-2018, 04:44 PM
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#1
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Dryer sheet aficionado
Join Date: Mar 2018
Posts: 40
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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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10-09-2018, 04:48 PM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,370
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good list... covers everything that I can think of.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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10-09-2018, 05:00 PM
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#3
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Recycles dryer sheets
Join Date: Jun 2018
Location: Alameda
Posts: 342
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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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10-09-2018, 05:16 PM
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#4
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Moderator
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 25,340
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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.
__________________
When I was a kid I wanted to be older. This is not what I expected.
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10-09-2018, 05:28 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Aug 2018
Posts: 1,020
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Major landscaping projects
Special assessments for a homeowners association, if they are likely in your area
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10-09-2018, 05:32 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Jun 2016
Posts: 4,663
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Major unplanned healthcare expenses are the biggest risk I see.
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10-09-2018, 05:40 PM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2016
Location: Colorado
Posts: 8,971
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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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10-09-2018, 05:44 PM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2018
Location: Tampa
Posts: 11,298
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Quote:
Originally Posted by Scuba
Major unplanned healthcare expenses are the biggest risk I see.
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+1
Specifically long term care
__________________
TGIM
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10-09-2018, 05:49 PM
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#9
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2007
Posts: 13,227
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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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10-09-2018, 05:53 PM
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#10
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
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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.
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
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10-09-2018, 06:01 PM
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#11
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Thinks s/he gets paid by the post
Join Date: Jan 2013
Location: SoCal, Lausanne
Posts: 4,408
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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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10-09-2018, 06:31 PM
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#12
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2007
Location: New Orleans
Posts: 47,500
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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.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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10-09-2018, 07:01 PM
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#13
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
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Quote:
Originally Posted by 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.
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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.
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
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10-09-2018, 07:16 PM
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#14
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Recycles dryer sheets
Join Date: May 2010
Location: Knoxville
Posts: 369
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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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10-09-2018, 07:46 PM
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#15
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Full time employment: Posting here.
Join Date: Jul 2010
Location: San Francisco
Posts: 862
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Quote:
Originally Posted by 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.
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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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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10-09-2018, 07:52 PM
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#16
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Thinks s/he gets paid by the post
Join Date: Jan 2013
Location: SoCal, Lausanne
Posts: 4,408
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Quote:
Originally Posted by NW-Bound
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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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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10-09-2018, 07:56 PM
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#17
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Thinks s/he gets paid by the post
Join Date: Mar 2014
Location: Southern Cal
Posts: 4,032
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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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10-09-2018, 08:00 PM
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#18
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Moderator Emeritus
Join Date: Apr 2011
Location: Conroe, Texas
Posts: 18,731
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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.
__________________
*********Go Yankees!*********
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10-09-2018, 08:02 PM
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#19
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Thinks s/he gets paid by the post
Join Date: Mar 2014
Location: Southern Cal
Posts: 4,032
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Our high coverage dental plan(up to $30k per year) does not cover everything either.
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10-09-2018, 08:08 PM
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#20
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Thinks s/he gets paid by the post
Join Date: Dec 2017
Posts: 2,555
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Painting the house.
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