LBYMs what do you splurge on?

[NW-Bound]

Quote:

Originally Posted by ERD50 I just read his NW is ~ 76B. At a nice conservative 2% WR, that would be.... Over $4 Million a day!

I wonder how much he has divested of MS stock, and how that affects his WR. Does he run his own version of FIRECalc to see what WR he can get?

Hmm... I do not own nor follow MS stock, so just look it up. MSFT dividend yield is 2.57%, relative to S&P composite value of 1.84%. Wow, MSFT is now a dividend-paying value stock. Still, its expected earning growth matches that of S&P. Not bad at all.

If I were Bill Gates, I would kick it up a notch and do 2.5% or even 3% WR, not the 2% like you suggested. If the economy faltered, I would switch to Bernicke's spending model.

[haha]

Quote:

Originally Posted by NW-Bound The problem with living off your investments instead of a paid salary is that your "means" is not well defined. Is my means 3% WR, 3.5, or 4? And how about future SS?

I think this is the big enchilada. There is more uncertainty to this way of life than is commonly accepted.

Ha

[Zathras]

Electric vehicles are definitely my splurge item.
Travel is relatively cheap as we only take driving vacations.
And $3500/year gas savings covers vacations nicely.

[Totoro]

Quote:

Originally Posted by NW-Bound I wonder how much he has divested of MS stock, and how that affects his WR.

He has about 4% of MSFT left. He's selling / donating to his foundation, and will continue to do so I believe.

Steve Ballmer actually has more shares than him now

[audreyh1]

Quote:

Originally Posted by haha I think this is the big enchilada. There is more uncertainty to this way of life than is commonly accepted. Ha

Only if you ignore the fact that someone can be be laid off/let go from a salary job at any time. Once this is realized, living off investments, no matter how variable, seems far more secure.

[NW-Bound]

Quote:

Originally Posted by Zathras Electric vehicles are definitely my splurge item. Travel is relatively cheap as we only take driving vacations. And $3500/year gas savings covers vacations nicely.

How long is your extension cord?

[audreyh1]

Quote:

Originally Posted by rec7 I will be the nosy one. What did it cost if you don't mind saying?

I'm not used to spending $300 a night on hotels. This is not the most expensive hotel in the old city area by any means - more mid price range.

Actually, in Europe, $250 or more a night is not uncommon at all for downtown city hotels.

We could easily double the price of our Europe trip by flying business class instead of economy+ .

[Totoro]

Quote:

Originally Posted by audreyh1 Actually, in Europe, $250 or more a night is not uncommon at all for downtown city hotels.

Amsterdam list prices for a not-so-nice hotel is about that. Would guess Paris or London on par.

As usual, one can shop around (or airbnb) to get to $100 usd or so but without due diligence, you get fleeced

[eta2020]

Quote:

Originally Posted by audreyh1 I'm not used to spending $300 a night on hotels. This is not the most expensive hotel in the old city area by any means - more mid price range. Actually, in Europe, $250 or more a night is not uncommon at all for downtown city hotels. We could easily double the price of our Europe trip by flying business class instead of economy+ .

Or you can rent private apartment which will come with kitchen, washing machine etc. I stayed in Vienna Center 6-7 years for about 70-80 bucks a night. Prices are probably higher now.

I am European and always prefer apartment to hotel...... I can cook my own breakfast and wash my laundry.

[aja8888]

Quote:

Originally Posted by audreyh1 I'm not used to spending $300 a night on hotels. This is not the most expensive hotel in the old city area by any means - more mid price range. Actually, in Europe, $250 or more a night is not uncommon at all for downtown city hotels. We could easily double the price of our Europe trip by flying business class instead of economy+ .

Come out to West Texas....last week I paid $280/night in a Holiday Inn Express, but it came with a free breakfast! (and I was smarter in the morning)

Under $300 a night is cheap and hard to find, even in places like Alice, Texas! I have paid as much as $400/night in Midland when the only spot in town had a room. Same goes for N & S Dakota.

[REWahoo]

Quote:

Originally Posted by aja8888 Come out to West Texas....last week I paid $280/night in a Holiday Inn Express, but it came with a free breakfast! (and I was smarter in the morning) I have paid as much as $400/night in Midland when the only spot in town had a room.

+1

DD#2 and family live in Midland where the cost of living - especially for housing - is nuts.

[NW-Bound]

Of course RV'ers know that we spend much less than the amounts quoted above for campgrounds. And many were able to boondock for free, and I mean real boondocking, not at Walmarts.

I have always reminded myself of this saving when standing there at the pump, waiting patiently to fill up the cavernous gas tank, under the glare of the poor motorists behind me.

[aja8888]

Quote:

Originally Posted by NW-Bound Of course RV'ers know that we spend much less than the amounts quoted above for campgrounds. And many were able to boondock for free, and I mean real boondocking, not at Walmarts. I have always reminded myself of this saving when standing there at the pump, waiting patiently to fill up the cavernous gas tank, under the glare of the poor motorists behind me.

Drag your camper/RV out to Midland/Odessa (or anywhere else nearby) and see what happens when you pull into a campground, if you can find one that has a an opening.

[NW-Bound]

No, I do not think I want to go to Midland/Odessa, or some places in North Dakota where they are drilling.

I am a retiree on a vacation, remember?

[REWahoo]

Quote:

Originally Posted by aja8888 Drag your camper/RV out to Midland/Odessa (or anywhere else nearby) and see what happens when you pull into a campground, if you can find one that has a an opening.

Yep, we used to stay in a Midland RV park for a couple of days to visit the grandkids on our way to and from New Mexico, but no more. Now we park the RV at the SIL's workplace (secured equipment yard, no hookups) and stay with them.

[pjm-7]

Travel through west Texas. Yikes it's expensive (energy boom) and the food is all fried. There is a neat old hotel in Big Spring. The Settles is a restored 1930's (Deco style). It does have a decent restaurant and not all fried.

[REWahoo]

Quote:

Originally Posted by pjm-7 Yikes it's expensive (energy boom)...

+1

Quote:

Originally Posted by pjm-7 ... and the food is all fried.

Only if you eat where all the oil patch workers eat.

[NW-Bound]

Recently, my future son-in-law needed to go to Fort Stockton to meet his relatives, who drove there to meet him half way. They thought they had to spend the night in their cars.

Last year, on the way back from N.O., we stopped and overnighted in a rest area on I-10 not too far from Fort Stockton. It was in May, so still cool, and so nice in my motorhome.

[nash031]

I'd say probably dining out, though not like when we were dating. We go to more inexpensive places now, but we still like a nice dinner with good wine/cocktails periodically. Travel would be next, but we still hunt for the best deals when we go. Wine is probably in there as well.

Fortunately, even after all that we're still able to live well below our means...

[anethum]

Quote:

Originally Posted by audreyh1 I'm not used to spending $300 a night on hotels. This is not the most expensive hotel in the old city area by any means - more mid price range. Actually, in Europe, $250 or more a night is not uncommon at all for downtown city hotels.

About a month ago, I had to find accommodations for 4 nights in Paris just 6 days before we were going to arrive. (We were going to stay with friends but at the last moment, there was a major health issue in their family and we didn't want to impose on my friends in those circumstances.) I know a bunch of semi-reasonably priced hotels in Paris, but none of them had availability at that late date. I contacted several places on airbnb and we found a small 1 bedroom apartment in a nice neighborhood in the 11th arrondissement. The price, including airbnb fees, was $79/night for the apartment. We were very pleased with the apartment, which we had to ourselves.