Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 07-01-2012, 04:16 PM   #41
Recycles dryer sheets
 
Join Date: Jan 2005
Posts: 362
My budget consists of spending less than I have coming in. I actually did budget expenses for years and years and just don't want to do it anymore.
__________________

__________________
kz 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 07-01-2012, 04:29 PM   #42
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2006
Posts: 11,013
Quote:
Originally Posted by obgyn65
Interesting. I am also planning on 70k-100k annual expenses until age 95. I am quite frugal (annual expenses now : about $3k a month), and for some reason I am still worried about FIRE, probably because I am useless at budgeting.
It's not that hard if you stick to the big picture. On January 1st, top up your chequing account to the budgeted amount, and pay all the bills from that account. If you run out of money before the end of the year, you are over budget!

This thread reminded me that it has been a year since I moved, and although there were certainly significant expenses, most of them were corporate. So I downloaded my personal bank records for the last 12 months and analyzed them in Excel. It turns out that I spent just over $57K, inclusive of income tax, but not including investments.

I can live with that!

__________________

__________________
Meadbh is offline   Reply With Quote
Old 07-26-2012, 01:03 PM   #43
Thinks s/he gets paid by the post
 
Join Date: Feb 2007
Posts: 2,423
Quote:
Originally Posted by Sue J View Post
Looking at monthly income vs outgo we are doing splendidly. Monthly, we currently spend 91% of the pension payment so there's still a small cushion and then my itty bitty part-time income all goes to savings. The monthly budget includes setting aside savings for medical expenses and other non-monthly expenses. The utilities are all within estimates (next months electric bill for all this A/C will be HIGH!) and I've changed how we get our prescriptions and saved a lot since January.
I posted that quote on 6-29-12.

This week we got a letter about our health insurance. Our health care plan is through DH's pension. It's subsidized based on his years of service and the subsidy has been quite generous and we had a choice of 3 levels of insurance. Since he retired in 2010 we've chosen the lowest cost plan with the highest deductible. We have few doctor's visits and cheap generic prescriptions. This has worked just fine for us.

The letter announced that the low cost, high deductible plan will no longer be offered as of Jan., 2013 and we all have to accept the "Enhanced Plan" with low co-pays and low deductible but a MUCH HIGHER monthly cost.

The impact to our monthly expenses is about $400/month. This is so disappointing as the low cost plan was just fine for us. This will eat up our entire monthly cushion and a good hunk of my part-time income.

Our options are to accept this or drop all coverage which really is no option at all as this is still much less cost to us than a private policy would be.

This change is only for 2013 because starting in 2014 the pension plan is dropping all coverage for spouses of retirees. There will be no subsidy and no ability for spouses to have access to insurance, even if the spouse pays the full premium amount. DH will still have coverage with a subsidy but I'm certain the costs will go up. So I'm hoping that Obamacare really happens in 2014.

The pension plan says that the pension is secure, but that the health care fund is unsustainable. They say they are working to keep health care for the retirees, yada, yada, but spouses are just excess baggage.

So 2013 will look different for us, budget wise. I can make it work, but it gets me mad that other people make decisions (no more options on insurance levels) and it impacts my bottom line to the tune of $400/month. We are grateful to have insurance and the subsidy for as long as we have it. It's just very disappointing to not be able to have a high deductible/low cost option next year.
__________________
Married, both 62. DH retired June, 2010. I have a pleasant little part time job.
Sue J is offline   Reply With Quote
Old 07-26-2012, 01:22 PM   #44
Moderator
Alan's Avatar
 
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 21,074
Sorry to hear this Sue. Retiree Health costs is one of the least stable budgetary items for us as well. (we also ER'ed in 2010).
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Now it's adventure before dementia
Alan is offline   Reply With Quote
Old 07-26-2012, 01:28 PM   #45
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
easysurfer's Avatar
 
Join Date: Jun 2008
Posts: 7,882
Quote:
Originally Posted by Sue J View Post
I posted that quote on 6-29-12.

This week we got a letter about our health insurance. Our health care plan is through DH's pension. It's subsidized based on his years of service and the subsidy has been quite generous and we had a choice of 3 levels of insurance. Since he retired in 2010 we've chosen the lowest cost plan with the highest deductible. We have few doctor's visits and cheap generic prescriptions. This has worked just fine for us.

The letter announced that the low cost, high deductible plan will no longer be offered as of Jan., 2013 and we all have to accept the "Enhanced Plan" with low co-pays and low deductible but a MUCH HIGHER monthly cost.

...
I'd expect what you experienced is probably the norm and not the exception. Brings back memories to when I FIRE'd (was back in early 2008). Even then companies were shifting the costs to employees/retirees. At the megacorp I was in, for active employees, an HMO option was dropped. Old fashioned health care (co-pays, deductibles) got increased a lot. Megacorp was steering folks to HSAs which most folks didn't like.

As for me, I had planned all alone to go with the HSA in preparation to when I'd make the "I'm outta here" exit plan.
__________________
Have you ever seen a headstone with these words
"If only I had spent more time at work" ... from "Busy Man" sung by Billy Ray Cyrus
easysurfer is online now   Reply With Quote
Old 07-26-2012, 01:30 PM   #46
Thinks s/he gets paid by the post
Katsmeow's Avatar
 
Join Date: Jul 2009
Posts: 3,391
Quote:
Originally Posted by Sue J View Post

The letter announced that the low cost, high deductible plan will no longer be offered as of Jan., 2013 and we all have to accept the "Enhanced Plan" with low co-pays and low deductible but a MUCH HIGHER monthly cost.

The impact to our monthly expenses is about $400/month. This is so disappointing as the low cost plan was just fine for us. This will eat up our entire monthly cushion and a good hunk of my part-time income.

Our options are to accept this or drop all coverage which really is no option at all as this is still much less cost to us than a private policy would be.

This change is only for 2013 because starting in 2014 the pension plan is dropping all coverage for spouses of retirees. There will be no subsidy and no ability for spouses to have access to insurance, even if the spouse pays the full premium amount. DH will still have coverage with a subsidy but I'm certain the costs will go up. So I'm hoping that Obamacare really happens in 2014.
Ouch! This is exactly what I worry about as I am covered on DH's retiree coverage and we have a high deductible plan. The regular PPO claim is over $700 a month higher! So far, they have made not any change but I do worry about it, and I know that even though we've seen so signs of it they could always drop spouse/dependent coverage.
__________________

__________________
Katsmeow 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 08:46 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.