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40k a year
Old 03-22-2010, 11:17 AM   #1
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40k a year

I'm planning on taking a buy-out in a couple of months. We have been living on $40K or less a year for quite a few years. I've figured the taxes for '10 and '11 using the best knowledge I can obtain and everything still works to actually exceed that amount. I've got a few years left until 62 and she is going to keep working for a while. I have factored in increases in taxes both fed and local. I even factored in getting the 2 kids out of the house in a few years.

I have no debts of any kind. I have at least a half million projects to keep me busy and will probably scare up a little income on the side.

Is there anything I'm missing?
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Old 03-22-2010, 11:21 AM   #2
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Health insurance?
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As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
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Old 03-22-2010, 11:24 AM   #3
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If you have a lot of projects to take care of, will they be expensive? Have you considered the cost in your planning?
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Old 03-22-2010, 11:39 AM   #4
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Wife will carry the health insurance through her employer.

Cost of the projects were built in to the figures probably a little more aggressively than my carcass will be able to accomplish.
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Old 03-22-2010, 11:44 AM   #5
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If you die, what happens to the survivors? For example, does your family lose any of your pension income?

If your wife dies, what happens to the survivors? For example, do you lose health insurance?
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Old 03-22-2010, 12:06 PM   #6
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No pension.

If the wife dies I won't have any health coverage nor will one kid. She will be out of coverage (college) in a few years anyway. I will be medicare eligible in 7 years. (you think I oughts be nicer to her? LOL)
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Old 03-22-2010, 12:19 PM   #7
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Big ticket replacement costs for aging vehicles, appliances, heating/AC systems on top of the routine upkeep and unexpected repairs ?
For instance, I had my house roof redone with 30 year shingles while I was still employed.
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Old 03-22-2010, 12:23 PM   #8
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House is only three years old. Highest mileage vehicle is 40k. 2005 is the oldest.

My tractor, however is a 1957, but as my wife says she'd go first....
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Old 03-22-2010, 12:31 PM   #9
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A will or trust comes to my mind as well.
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Old 03-22-2010, 12:53 PM   #10
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It seems to me that the soon-to-be-law health care legislation significantly reduces the risk of the availability health care in FIRE; the costs remain to be seen. Overall, probably a net positive to those with FIRE plans...

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Old 03-22-2010, 12:57 PM   #11
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how much in the emergency fund?
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Old 03-22-2010, 01:29 PM   #12
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Ahhhh....what the hell.........take a shot. That's what I am planning to do in 15 months. You can be careful to an extreme.........smart, but not much fun.
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Old 03-22-2010, 02:20 PM   #13
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Quote:
Originally Posted by billin View Post
We have been living on $40K or less a year for quite a few years. ........Is there anything I'm missing?

YES. You're overlooking a huge item, the gorilla in the room.

You're living on $40k/yr now, but is that how you want to live in your retirement years? $40k may be more than you need for your desired RE lifestyle or it may be inadequate.

Write a budget looking out several years. That's what you need to compare your anticipated retirement income to, not your current expenses. Some of our members here hate their j*bs so much, they'd live in a box under a bridge as long as they can "retire." Living on a tiny fraction of their current expenses would be fine with them. Anything, as long as they are away from the hated j*b. Others have had j*bs they enjoyed but which kept them very busy. They're counting on extensive travel and other expensive recreation in retirement they haven't had time for while working and would gladly work another year to be able to pencil in these items on the RE budgets. They wouldn't voluntarily leave a j*b to sit at home on a tight budget. You have to make these decisions yourself. It's a very personal thing with no right or wrong.

It sounds, from your brief post, that you'd be content to live as-is. But think about it before you click the switch.
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Old 03-22-2010, 02:41 PM   #14
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All very good things. Thank you all for the help. I started working in middle school and its going to be a hard habit to break, and that may be the big problem. I also realize that this isn't a situation that allows for mulligans.

We don't really live cheap as far as lifestyle, we just seem to have a knack for saving money. We travel about as much as we can with time restraints and responsibilities, and will be doing more as wife is teacher so summers will be available. I've had 4 weeks a year for suite a while and have been at 8 weeks accrual for the last few. We have been figuring on an Alaskan cruise, a loop of the Pacific Northwest, and the St. Lawrence Seaway. We've been most everywhere else that we wanted to go.

Don't hate my job but there isn't much challenge left, and not much exercise either.

Emergency fund isn't a problem.

I like having the time to chase the deer and turkeys and really wanted to get some fishing done.
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Old 03-22-2010, 02:59 PM   #15
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Well there ya go! And, really, with DW still holding on to her teaching gig with benefits, you're not going cold turkey into retirement. Rather, you're just moving to a single income family sitution. Your risk is low. Enjoy!
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Old 03-22-2010, 03:43 PM   #16
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Enjoy your ER Billin.
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