Made a Mistake on Spending Level?

[haha]

Just take what you consider surplus and blow it on a luxury tour. If you have made a mistake by spending too little, this is easily fixed. Or perhaps buy a 2nd tier painting from some no longer popular era. I know a guy who deals in 2nd tier French impressionists, maybe I could get you a deal.

Poof! Surplus over.

Ha

 

[Bikerdude]

I am planning on 200%+ of spending level.

You need after tax money, not pre-tax. Spending is after tax money.

Maybe you get a new car, and them you have payments that you do not now.
Maybe health insurance is much more expensive after you quit a job.
Maybe kids (which I do not have) expenses, like college, eat up money.
Maybe you want to buy an RV and travel, or just travel.
Maybe you have a situation that no RE planner has ever encountered, and you need more.
Maybe a significant legal, medical, or homeowner insurance items comes up. Hose falls off a cliff, flood, sink hole that is not covered, etc.

You do not want your finances to come to a catastrophic end, because of an unforeseen event.

Don't forget the ASTEROID!

 

[Senator]

You never know what might happen...

There are a lot of people that are a long ways away from a river, like 5 miles, and they get flooded out. A creek swells and washes away the banks of the river and takes your home. Mud slide, etc.

Or a few homes near a cliff, where the cliff falls. Insurance doesn't cover everything. Even more likely, a lapsed premium payment due to degraded memory, and a subsequent fire, would cause a major loss.

Not to mention the obvious. Higher inflation with a low stock market. Higher medical bills. Even a condition that is covered by insurance, but having the extra $$ makes your life better.

And if the price of strippers and beer goes any higher, you will need more for sure.

 

[RetireAge50]

I think I will add keep wife and drink water to the plan

 

[Finder]

1. We messed up and should have retired earlier
2. We messed up and should have spent more while working
3. Good planning as it is better to have 1.5 times spending to enjoy retirement to the fullest

I don't see a mistake. Good planning, congrats! Good buffer.

 

[foxfirev5]

No matter what sooner or later you're going to have to take the plunge. Safe spending levels are only what we know today. However, take the odds and run with it. Meanwhile I'll continue to do whatever it is that they at Megacorp are paying me to do in the field.

 

[sanfanciscotreat]

Number 3 is where we are now, spending mucho bucks on margaritas in the West.

 

[OAG]

+2 0n #3. We are "suffering" in our mid-70's at well over 3X - beats anything less!

 

[WannabeRetired]

#3 would be my opinion, too. I'm pretty conservative (or paranoid) though.

 

[ChicagoGal]

What do you think?
1. We messed up and should have retired earlier
2. We messed up and should have spent more while working
3. Good planning as it is better to have 1.5 times spending to enjoy retirement to the fullest

I think you're in a great position! Better to plan slightly conservatively and retire with more peace of mind. Congrats

 

[RetireAge50]

S

 

[Ozstache]

Am I the only one thinking #1? If the residual mortgage was small enough, the OP could probably retire right now and have a 20% buffer, which would be plenty enough contingency for me.