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Re: 80% Rule?
Old 04-16-2004, 05:18 PM   #21
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Re: 80% Rule?

Quote:

Good point, TH. It also takes time to taste all those cheap red wines to find the ones that are really good. And it took me the first 6 months of ER to go through all the recurring charges on my credit card, cancel the dial-up MSN account I never used, drop the unused phone line, change the long distance carrier, analyze the cell phone stuff, dump a few auto-renewing subscriptions etc that saved a bunch of money, too.

I agree that over time you just stop needing to spend the same way -- after I've been hanging around in my slippers and t-shirt posting on this board all afternoon, I don't feel the same need to go to a really chic restaurant downtown, and we go out to pizza or cook in instead.

Still, I don't want to advocate making ER into some sort of poverty track. I got a parking ticket today (sucker cost 20 bucks) and I realized that ER is no good if a parking ticket can ruin my day or wreck my weekly budget, either. I think you can't cut the budget too tight, or you end up swapping work worries and obsession with portfolio or spending worries and obsession, which is no fun either.
Boy that sounds familiar. I had three phone lines, full satellite service, a cell phone, a pager, several computers to keep up to date, full fare long distance, blah blah blah.

I cant believe how much you can save by watching the pennies and letting the pounds take care of themselves.

Consider my "100 years ago" post to show that the average well-to-do people in 1904 lived at or below what we consider the "poverty level" today. Do you think they considered their lifestyle "poor"?

Similarly, my lifestyle would be considered by most to be solidly middle class, maybe a little better. With a reasonable WR. After health costs, taxes, and everything else. Predominantly because I have no debt of any kind.

I guess if I ever felt that I was being held back by funding status, and that bothered me, I'd get a job.
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Re: 80% Rule?
Old 04-16-2004, 07:19 PM   #22
 
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Re: 80% Rule?

Well, this was my day. Slept in. Poached egg and
Frappacino for breakfast. Then , wife and I went fishing
for about 4 hours. Did real well and a beautiful day.
Then, pasta salad for lunch, cleaned the fish, ran some errands and home
by cocktail hour. A decent chablis (jug wine), leisurely
dinner overlooking the river. Then , putz on the computer for a bit. And so it goes.....................

John Galt
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Re: 80% Rule?
Old 04-29-2004, 08:34 AM   #23
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Re: 80% Rule?

In terms of what retirement costs, I think the "live on your take home pay" makes sense, at least for me. Two years ago I started cutting back my hours at work. Even at half pay (but with benefits) I was more than able to live on the $2000/month I was bringing home. And that included a mortgage, house insurance, gardener, maintenance on a nice house (total costs: ~ $1000/month) and a four-star hotel, three-week trip to the UK and Ireland. Sell the house, buy or rent in a state less expensive than California and I can live really well on $2K/month. My hours are back up to 32, but I'm investing all the excess cash.

Question: what "luxuries" can't you do without? I still like to have my hair done once every six weeks and buy pricier cosmetics. But the extra $60/month doesn't break the budget.

And...has anyone out there used the new Virgin mobile phone plan that allows you to "pay as you go"? On the surface it makes sense to me. We're buying an RV and hitting the road in 2005, want a cost-effective phone plan. Don't like talking on the phone much but would use it for making campground reservations, keeping in touch with my mom, emergencies. I can run the numbers but wonder if anyone has signed up for Virgin.
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Re: 80% Rule?
Old 04-29-2004, 09:44 AM   #24
 
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Re: 80% Rule?

Here's what I decied to do 40 years ago and it has worked better that I could have expected: save as much as you can until it hurts. If it continues to hurt, back off a bit on the savings, but still continue to save but at a lower rate. Once you feel comefortable again, increase the saving % and keep doing so until it hurts again. Then back it off, etc., etc.

The entire process is so simple. Making projections 17, or 27 or 37 years into the future is crazy. You have no idea what lies ahead but you do know what you have now (today) and that is the only thing that you can realistically control.

Economist Adam Smith came up with his "invisable hand" theory hundreds of years ago and it sorta works with my plan. Save/invest as much as you can along the way. Over a 40 year period it somehow works out.

regards,
mickeyd :
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Re: 80% Rule?
Old 04-29-2004, 10:23 AM   #25
 
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Re: 80% Rule?

What is the Virgin phone plan? Would it replace a cell phone? We use the cell for emergencies and USA long distance.
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Re: 80% Rule?
Old 04-29-2004, 12:47 PM   #26
 
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Re: 80% Rule?

A "Virgin" phone is one that has never been plugged in.

A short story. We need a bed or futon to accommodate
visitors. We had a fairly nice bunk bed (bought used)
but in my zeal to liquidate stuff and raise cash, I sold it.
Anyway, in my pre-ER days I would have maybe shopped a little and then just bought something.
This time around, my wife found an old iron bed frame
in the attic. Then she hauled home a pretty nice mattress from the nursing home where she works.
(They were replacing them). I picked up some perfectly sized wooden slats off the neighbor's burn pile.
When completed, we'll have a nice single bed. Total
cost of $2.00 (for paint) and maybe a half hour's work.
ER, you gotta love it !

John Galt
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Re: 80% Rule?
Old 04-29-2004, 01:12 PM   #27
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Re: 80% Rule?

Quote:
Here's what I decied to do 40 years ago and it has worked better that I could have expected: save as much as you can until it hurts. *If it continues to hurt, back off a bit on the savings, but still continue to save but at a lower rate. *Once you feel comefortable again, increase the saving % and keep doing so until it hurts again. Then back it off, etc., etc.

The entire process is so simple. Making projections 17, or 27 or 37 years into the future is crazy. *You have no idea what lies ahead but you do know what you have now (today) and that is the only thing that you can realistically control.

Economist Adam Smith came up with his "invisable hand" theory hundreds of years ago and it sorta works with my plan. *Save/invest as much as you can along the way. *Over a 40 year period it somehow works out.

regards,
mickeyd :
Hey mickeyd, great post! I agree 100% and followed the same strategy you are describing.
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Re: 80% Rule?
Old 04-29-2004, 02:40 PM   #28
 
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Re: 80% Rule?

Cute, John :
Now, What's the Virgin mobile phone plan?
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Re: 80% Rule?
Old 04-29-2004, 04:18 PM   #29
 
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Re: 80% Rule?

A "Virgin mobile phone" is one that will go with anyone in their car and still not get plugged in. Happy to be
able to explain this stuff.

John Galt
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Re: 80% Rule?
Old 04-29-2004, 08:43 PM   #30
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Re: 80% Rule?

I'll do more research on the Virgin mobile phone plan since it seems to be an object of derision...as well it should since it wears the "Virgin" moniker. ;-)

John and anyone else out there looking for an extra bed for guests: forget a space-consuming bed or futon. We went to Costco and bought a $40 (if it was even that much) inflatable mattress. Very good quality. Size of a queen-size mattress. Durable and more comfortable than anything else we've tried: sofa beds, reconditioned mattresses, et. al. Folds up into a small package. Comes with an automatic inflation device. You can put the mattress on a frame (home-made or bought) or right on the floor. Great for camping, too.
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Re: 80% Rule?
Old 04-30-2004, 05:27 AM   #31
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Re: 80% Rule?

I believe my first inflatable matress came mail order from Playboy 30 yrs ago. Have used them for 30 yrs in lieu of an 'expensive' bed(my single days), camper era, and curently have a queen size(from Walmart) for overflow guests at the camp. Also have the plug in pump. And that's one thing(in a single suitcase) brought with us during Hurricane evacuation time.

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Re: 80% Rule?
Old 05-02-2004, 01:16 PM   #32
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Re: 80% Rule?

FYI the Marines call an inflatable mattress a "rubber lady". makes sense to me!

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Re: 80% Rule?
Old 05-02-2004, 05:58 PM   #33
 
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Re: 80% Rule?

I was driving around today and noticed someone putting
a mattress, box spring, and dresser out by the curb.
Naturally I stopped and asked. Yes they said, they
were mine if I wanted them, which I certainly did.
Sooooooooooooo, I hauled them all home where my wife informed me that they were the wrong size. DOH!!
The mattress and box spring have now been burned,
but I think I can make money on the dresser. BYW,
my spouse thinks I have now gone too far and is
lobbying for a new futon from BIG LOTS. I think she
has a point. Free is good, but it can be taken to excess.

John Galt
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Re: 80% Rule?
Old 06-08-2004, 11:16 AM   #34
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Re: 80% Rule?

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I took a couple of years to decellerate
Still decellerating here ... hope it ends in a few years.

I read an article online a few months back and it made perfect sense. Basically it stated to subtract FICA (7.25%), Medicare (.65%?), and retirement savings (average 10 -20%) from income. This leaves most needing 72 - 82% if they want to be able to spend as much money in retirement as they had pre-retirement. The spendable income will actually be more than before as the tax bracket will be lower. But that is harder to put in general terms.

Of course, if you are able to dump your mortgage then you could subtract that too.
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