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Re: $100 per Day or Less
Old 03-31-2005, 03:07 PM   #21
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Re: $100 per Day or Less

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Since we were discussing good ER books on another thread, I got out my Terhorst book and reread portions. *In it, he discussed living on $50 per day. *Now that was written about 1985, so it's gotta be more to live on, now.

I'm thinking $100 per day should be plenty. *That would be double his prescription and equal $36,500. *I can easily cover that with pensions, and not touch IRA.

BTW, his maxims include getting rid of most assets, like cars and homes, and to spend on yourself, not your stuff.

So, I throw it out to the forum, how much is enough to live comfortably, simply, and still enjoy life? *My situation, *here in Texas, is $100 per day. *My med insurance is a lot cheaper than most, so I know I'm lucky. *And everything probably costs *more in California and other higher cost-of-living areas. *Oh, in the book, he exempted $4000 for travel, for some reason. *But, without exempting anything, what do you need to cover food, taxes, medicine, travel, fun, lodging, trans, etc. * It seems to me that if you can figure this out (LBYM), and you can cover it, your retirement is doable. Can you live on $100/day?
Quick note.

For the Terhorsts it was $50 for two, which is now around $87 US CPI adjusted.

For the PT it makes a big difference for two people as a large part of the cost is rental accommodation and this is often the same or very little extra for two than for one.

Petey
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Re: $100 per Day or Less
Old 03-31-2005, 03:18 PM   #22
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Re: $100 per Day or Less

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and this is often the same or very little extra for two than for one.
You havent seen how much crap my wife has...
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Re: $100 per Day or Less
Old 03-31-2005, 07:57 PM   #23
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Re: $100 per Day or Less

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You havent seen how much crap my wife has...

Yeah well, I'm spared that problem at the moment!

I do think that getting a LBYM clued-up partner is key. Otherwise you'll just be fighting about what you're not spending, how you shop in a LBYM and she doesn't and so on. Don't see that working!

Petey

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Re: $100 per Day or Less
Old 04-01-2005, 12:05 AM   #24
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Re: $100 per Day or Less

Oh she's an LBYM'er all right. I gave her $20 for odd expenses a couple of months ago and yesterday I asked her if she had any cash and she said "Yeah, heres that $20 you gave me a couple of months ago".

She did stop at Sams Club to buy about $50 worth of clothes last month. She keeps that up and we're off to the poorhouse!
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Re: $100 per Day or Less
Old 04-01-2005, 04:37 AM   #25
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Re: $100 per Day or Less

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I know here in CA if you take the COBRA (and mine from my old job indeed cost more than buying the same package directly from the insurer) and exhaust it, the same insurance company (or another one with a similar policy) has to take you due to HIPPA, regardless of pre-existing conditions. Dont know if that applies to every state though.
Here is the down and dirty on insurance portability:

To be eligible under HIPAA, you must:

1. Have at least 18 months of continuous creditable coverage
2. Have been covered under a group health plan, a governmental plan, or church plan (or health insurance offered in connection with such plans, such as COBRA) during the most recent period of creditable coverage
3. Not be eligible for coverage under a group health plan, Medicare, or Medicaid
4. Not have other health insurance coverage
5. Have not had your most recent coverage canceled for nonpayment of premiums or fraud (unless it was your employer that failed to pay premiums)
6. Have elected and exhausted any option for continuation of coverage (under COBRA or a similar state law) that was available under your prior plan.

If you qualify as an eligible individual, any insurer that sells individual health plans in your service area must offer you a plan. But keep in mind that your premiums are not governed by HIPAA; rather, they are determined by state law and can generally be set higher if you have medical problems. Thus, while your application for coverage won't be rejected because of your health problems, the health plan can charge higher rates as long as it has state approval. These rates can be very, very high.

In addition, your benefits could be vastly different under an individual plan. That's why when you're moving from a group plan to an individual plan it's especially important to shop around for the best rates and benefits to suit your needs.


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Re: $100 per Day or Less
Old 04-01-2005, 04:49 AM   #26
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Re: $100 per Day or Less

Great post Martha! I could have used that info back in
my "insurance shopping" period. I recall that at one point I thought "HIPPA says I "must" be offered coverage........cool!" Then I discovered what I would be required to pay. Couldn't do it, so that was simply not
an option. I also thought (naively) that maybe I could
"work" the state pools/residency angle, as I had not
officially selected my state of ER residence. Again, I was shocked by the cost. We found coverage we can afford
and are just limping along until Medicare kicks in.

JG
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Re: $100 per Day or Less
Old 04-01-2005, 09:01 AM   #27
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Re: $100 per Day or Less

I can't count this year as I am still receiving my salary and health benefits. I am way below the $100/daily still being in a squirrelling away mode.

In 2006, single and living in NY, my daily rate inflation adjusted depending on the expense, will be $133, but 1/2 will be budgeted expenses for travel, personal, home maintenance and auto that may not be all used.
I own my home and am debt unless you count the $24K 0% interest cc loan, due in 6/2005

I figure in 2006, I should be around $100 to $110 a day.

MJ
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Re: $100 per Day or Less
Old 04-14-2005, 08:08 AM   #28
 
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Re: $100 per Day or Less

I had estimated our yearly expenses at around $50,000 (Wife, 17-yr-old, and me), but I did a detailed analysis of last year, and was surprised to see the total at $67,000 (including taxes).

The first batch of numbers is from the credit card annual summary (we put a lot on credit card, but of course always pay off the balance, and never pay interest). The car and health care are higher than normal, since we had some major repairs in both areas. Gas is high because it's 25 miles to town (and school) from our house.

House is paid off, and I'm semi-retired at 51.

What I learned from this is that unless you really analyze an actual year, you can't rely on your estimate.

I don't know if this counts as $61/day (three people), $92 (two) or $183.

I'll bet we can get this down to $55,000 when the daughter is off on her own, and taxes will be a bit lower.

ATM Withdrawals 5100
Groceries (CC) 8607
Airline 2015
Healthcare 3623
Gasoline 2420
Car Repairs 3130
Yarn, Books, Stuff 3170
Hardware, Garden 1604
Home Improvement 1450
Computer for Jenny 1405
Restaurant (cc) 557
Internet 191
Ski Trip 911
Other 3808

Charity 1271
Health Insurance 4924
Home Insurance 1180
Non CC Healthcare 1095
Prop Tax 2353
Utilities excl Propane 2017
Car Insurance, DMV 2168
Tax Prep 325
Firewood 416
Propane 1164


Fed Tax 11503
State Tax 840

Total 67248
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Re: $100 per Day or Less
Old 04-14-2005, 10:54 AM   #29
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Re: $100 per Day or Less

Just curious but what is your medical insurance in TX
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Re: $100 per Day or Less
Old 04-14-2005, 01:32 PM   #30
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Re: $100 per Day or Less

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Fed Tax 11503
State Tax 840

Total 67248
Al,
Even if you're semi-retired your fed tax looks high. Do you have a self-employment company and are you getting your full deductions, SEP, IRA etc? Deducting health insurance? If you work on that one, you might be able to get your federal tax down a lot (or do you also have taxable pension income?) Anyway, some tax savings could get your annual nut closesr to 55k and a few more investigations into categoreis like "other" and "books,yarn,stuff" might yield a few goodies, too.

Welcome to the Board
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Re: $100 per Day or Less
Old 04-14-2005, 03:34 PM   #31
 
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Re: $100 per Day or Less

Bob,

Yes, I'm self employed, max out the SEP-IRA, wife maxed out on her IRA, all medical/dental expenses and health insurance payments deducted.

The tax probably looks high because even though I'm semi-retired, I'm lucky enough to still be bringing in a good amount of money.

I have a software product that I sell. Being SR means that I'm not developing any new products, and I answer about three tech support calls a day plus some emails. I'm pretty confident that my accountant has got the tax as low as possible.

I agree that the Other, and Books, Yarn, Stuff categories are the ones to concentrate on.

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Re: $100 per Day or Less
Old 04-23-2005, 04:20 PM   #32
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Re: $100 per Day or Less

We are shooting for $46k spending this year net of taxes, mortgage and retirement savings. That's about $126 per day.

We are spending quite a bit on vacations, mostly with our families (lot of $$ for airfare and nice hotels). I guess without the vacations we'd be close to $100 per day.

We're still working and are spending quite a bit on gas for a 2 hour per day commute. We also have 2 Great Danes and a border collie mix - probably cheaper than a kid.

-helen
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Re: $100 per Day or Less
Old 04-23-2005, 04:27 PM   #33
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Re: $100 per Day or Less

We have 4 dogs, 2 homes, 3 vehicles and a boat.
This year, we are spending at about 22K per annum.
No problem!

JG
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Re: $100 per Day or Less
Old 04-26-2005, 11:48 AM   #34
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Re: $100 per Day or Less

Al,

The other, books and yarn are important, too!!!!!! Especially the books and yarn - one thing about the books is there's the library, but the yarn....no yarn libraries I know of that will allow me to borrow it :-) for a long time - like forever?

From a yarn aficionado :-) - Deserat aka Bridget
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