Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 08-21-2013, 03:06 AM   #21
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 1,152
I had a lot of uncertainty on future expenses when I was retiring (age 41). I was not sure if I would be living abroad or in the USA, if I would be traveling a lot while maintaining a year around home base in the USA, etc. I was also leaving a high cost of living area. And there was the issue of health insurance.

I just tried to be conservative and estimate the most expensive outcome. My estimates turned out to be pretty good.

Even though everything worked out fine, I know that I should have tracked my expenses better both before and after retiring. I track my total spending carefully now, and I almost can't imagine not doing so in the future. So it is best to get in the habit as early as possible.

If I did not track my spending now, I would be a lot less secure about my retirement. But knowing that I am (only) spending X% of assets assures me that everything is OK.
__________________

__________________
kramer is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-21-2013, 07:27 AM   #22
Recycles dryer sheets
 
Join Date: Jul 2013
Posts: 389
Thanks for the replies everybody. They've been helpful.

One quick thought, if an admin or a regular is feeling proactive - it would be nice to have a list of expenses in a sticky post, noting which ones tend to be completely new in retirement (ie. health insurance), as well as those that commonly increase or decrease.
__________________

__________________
mrfeh is offline   Reply With Quote
Old 08-21-2013, 08:21 AM   #23
Thinks s/he gets paid by the post
imoldernu's Avatar
 
Join Date: Jul 2012
Location: Peru
Posts: 4,616
FWIW... our plan:

Quote:
Our plan is extremely simple... On the spending side, we have three different budgets that we can adjust as circumstances warrant. Best case... Nominal... and Austerity.

On the Asset/Nest Egg side, We boil our assets down into three categories.
1. Fixed assets... house, auto, and other valuable non cash items... real property, jewelry, . We do not count household goods... (experience tells us that this is not realistic)
2. Non Income producing assets... bank accounts, cash, cash value life insurance policies.
3. Income producing assets... stocks, bonds, annuity.

All of these items are kept on a spread sheet and periodically updated. It's easy to come up with a total value... and then to average the income from the total...

To calculate where we stand in our retirement plan, we add
a. Social security amount.
b. Amount of interest earned on income producing assets.
c. ... and add the Total Assets divided by the number of years between now and age 85.

That establishes how much we can spend, which we then adjust to our best/nominal/austerity budget.

Sounds funky, but it works,and it takes about 2 minutes to tell if we're on budget or not.
from here:
Sharing 23 years of Frugal Retirement
__________________
imoldernu is offline   Reply With Quote
Old 08-21-2013, 08:27 AM   #24
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 11,983
Quote:
Originally Posted by mrfeh View Post
One quick thought, if an admin or a regular is feeling proactive - it would be nice to have a list of expenses in a sticky post, noting which ones tend to be completely new in retirement (ie. health insurance), as well as those that commonly increase or decrease.
Lots of useful thoughts online already on what expenses typically increase or decrease FWIW Let me google that for you
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Old 08-21-2013, 09:06 AM   #25
Recycles dryer sheets
 
Join Date: Jul 2013
Posts: 108
One last thought. If you can afford to retire at 50, maybe you have a pretty well-paid job. And this often comes with bonuses. This is my case (lucky me). But then I have a tendency to use some chunk of my bonuses to pay for exceptional stuff, like a big vacation trip every few years or some big expense at home. And it's real easy to overlook when studying your budget with minutia based on your monthly expenses...
__________________
siamond is offline   Reply With Quote
Old 08-21-2013, 09:09 AM   #26
Recycles dryer sheets
 
Join Date: Jul 2013
Posts: 108
Quote:
Originally Posted by Midpack View Post
Lots of useful thoughts online already on what expenses typically increase or decrease FWIW Let me google that for you
Aaaaahhhhh... You're quite right (as usual!)... Very interesting links and data... Hm, this will be my reading this week-end, I suspect... Thanks, Midpack!
__________________
siamond is offline   Reply With Quote
Old 08-21-2013, 11:28 AM   #27
Full time employment: Posting here.
 
Join Date: Feb 2008
Posts: 920
My cc (which we spend most of our money with) has some pretty good online tools for categorizing based on certain rules you set up. With a little bit of effort I found it easy to get a good grasp of where most of our money went, especially after taking the time to set up additional categories based on key words in the charge sources. I'd say at least 95% were corralled fairly quickly, living in the same area for a long time you mostly spend money at the same places every month.

Then the rest was from the bank just ATM withdrawals (all misc entertainment) and the occasional bigger charges and checks for major home improvements, annual property taxes, etc.
__________________

__________________
tuixiu is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 05:30 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.