Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 12-19-2012, 01:29 PM   #41
Moderator
rodi's Avatar
 
Join Date: Apr 2012
Location: San Diego
Posts: 8,804
Quote:
Originally Posted by Mulligan View Post
I'm sure everyone is being truthful in how they are reporting, it's just how the numbers are being interpreted and believe me , where you live definitely has an impact. I spend a little over $3k a month, but in 2 years that will be under $2500 with DD off the books. I spend no money on health insurance because my HSA tax break more than covers my individual premium. I don't figure in taxes, because they come right off the top of my monthly pension check and I add a little over $1500 a month to my savings( not counting my PT job). I am also single, but I carry a mortgage into retirement. My accounting may seem creative, but to me drawing a pension, it's all about what I spend relative to what gets sent to me each month since the taxes are already out. Others probably pay way less in taxes based on how they are drawing down their assets. BTW- Based on what you are doing, Rodi, it looks like you are doing an outstanding job yourself reigning costs in on a family of four. I wish my house would be paid off in two years!
Thanks for the complement. My kids don't really agree. I had to have a heart to heart with my 12 year old on why Santa (me) wouldn't be getting him everything on his wish list... I had him tally up the prices and even he was shocked by the $800 price tag. (He wanted 3 different new video game consoles - xbox 360, nintendo 3ds, and wii U. he's going to have to live with the old school nintendo ds and old school wii and no xbox.) But I'd be making the same santa decisions even if money were no object. I'd rather he focus on school work and playing outside, than on video games. It's a losing battle I fear.

I've followed your posts quite a bit Mulligan. I envy the pension... I'll have a micro pension starting in 4 years. (approx $300/month). And so savings and budget control is everything.
__________________

__________________
rodi 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 12-19-2012, 01:30 PM   #42
Full time employment: Posting here.
SumDay's Avatar
 
Join Date: Aug 2012
Posts: 799
Well, all I know is that I'm going to have to give up Amazon Prime before I retire. Too darned easy to order anything & everything. I can afford it now, because we're both still pulling in income, and we have no debt. When we both retire, I'm thinking Amazon Prime has to go. Seriously. And I'll cry.
__________________

__________________
SumDay is offline   Reply With Quote
Old 12-19-2012, 01:35 PM   #43
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Sep 2005
Location: Northern IL
Posts: 18,274
Quote:
Originally Posted by rec7 View Post
"we"? Is that $16K for a couple? I'd be interested in details.

Here you go
$275 Taxes and insurance house and car
$110 Medical insurance
$250 Utilities
$500 Food
$100 Car gas
$100 odds and ends

Total $1335
About 16k
So here's an example of my previous post - don't you need to budget for replacing the car?

No maintenance on the house or car? You never need new appliances, furnace, paint, remodeling, etc, ... nothing?

So maybe you spend $16K in some years, but it seems you've left out the expenses that do hit us from time to time, and on average are not likely to fit in a $100/month misc category.

-ERD50
__________________
ERD50 is offline   Reply With Quote
Old 12-19-2012, 01:38 PM   #44
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Sep 2005
Location: Northern IL
Posts: 18,274
Quote:
Originally Posted by MelBay View Post
Well, all I know is that I'm going to have to give up Amazon Prime before I retire. Too darned easy to order anything & everything. I can afford it now, because we're both still pulling in income, and we have no debt. When we both retire, I'm thinking Amazon Prime has to go. Seriously. And I'll cry.
I've never understood this kind of thinking. What you can spend in retirement is a function of what you saved earlier. I just don't see them as separate 'accounts'.

I've never thought in terms of, 'I can afford this while I'm working, but not while I'm retired'. If it is something I really value, I want to make sure I can afford it in retirement. If it isn't really of value, why spend the money now and impact my retirement spending?

-ERD50
__________________
ERD50 is offline   Reply With Quote
Old 12-19-2012, 01:44 PM   #45
Thinks s/he gets paid by the post
 
Join Date: Nov 2009
Posts: 3,861
Quote:
Originally Posted by Retire2014 View Post
Do you live in NYC?
Long Island (Nassau County).
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

"I want my money working for me instead of me working for my money!"
scrabbler1 is offline   Reply With Quote
Old 12-19-2012, 01:44 PM   #46
Full time employment: Posting here.
 
Join Date: Jul 2007
Location: ST LOUIS
Posts: 993
Quote:
Originally Posted by ERD50 View Post
So here's an example of my previous post - don't you need to budget for replacing the car?

No maintenance on the house or car? You never need new appliances, furnace, paint, remodeling, etc, ... nothing?

So maybe you spend $16K in some years, but it seems you've left out the expenses that do hit us from time to time, and on average are not likely to fit in a $100/month misc category.

-ERD50
I did not budget for replacing the car. Bought it used 11 years ago for 5k. I am guessing another five years out of current one. Appliances our washer went out a friend gave me one. I paid another guy $35 to haul it home for me. No need to remodel and I do a small bit of outside painting every 8 to 10 years maybe a gallon or two of paint. I try to do all my own repairs around the house. You are right if I did need a roof or furance that might put up the numbers 5k that year. But we have been close to 16k since the year after we bought the car.
__________________
Proverbs 15:22 Designs are brought to nothing where there is no counsel: but where there are many counsellors, they are established.
rec7 is offline   Reply With Quote
Old 12-19-2012, 01:46 PM   #47
Recycles dryer sheets
Retire2013's Avatar
 
Join Date: Aug 2009
Location: Northern Virginia
Posts: 392
I live in the suburbs of Washington DC. Mortgage already paid off but property taxes is $4980 yearly. Cost of living is high but I am likely to stay put once ER'd even though I would need a lower WR in lower-cost of living areas. My annual expenditures for a single person and 2 dogs is $38K.
__________________
Retire2013 is offline   Reply With Quote
Old 12-19-2012, 01:47 PM   #48
Thinks s/he gets paid by the post
martyb's Avatar
 
Join Date: Nov 2006
Location: Bossier City
Posts: 2,182
Somewhere north of $45k and south of $50k for the two of us for the year in net income/spending. That number supports 2 apartments in 2 states (I work out of state & commute home on weekends). Also means 2x all utilities including cable/internet, water, elec & a family cell plan for 3 people. Full coverage insurance for 2 vehicles, no credit card debt.
__________________
“Change is the law of life. And those who look only to the past or present are certain to miss the future.”
-John F. Kennedy

“Hard work never killed anybody, but why take a chance?” - Edgar Bergen
martyb is offline   Reply With Quote
Old 12-19-2012, 01:56 PM   #49
Thinks s/he gets paid by the post
 
Join Date: Jul 2012
Location: Mississippi
Posts: 1,878
Quote:
Originally Posted by ERD50 View Post
So here's an example of my previous post - don't you need to budget for replacing the car?

No maintenance on the house or car? You never need new appliances, furnace, paint, remodeling, etc, ... nothing?

So maybe you spend $16K in some years, but it seems you've left out the expenses that do hit us from time to time, and on average are not likely to fit in a $100/month misc category.

-ERD50
The OP said expenses not budget. I spend ~$16K, but I get more than that from dividends/interest. The left over covers any emergent expense, I just don't carry a line item for it. I got 220K miles out of the last car but that was heavy commuting to work. At my current mileage rate the new car should outlast me!
__________________
rbmrtn is offline   Reply With Quote
Old 12-19-2012, 02:08 PM   #50
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 4,836
Here's my current ER spending budget. The health premium is more than I pay at the moment as my employer pays 3/4 of that, and I pay more tax right now as my earned income is far higher than the income I'll draw/need in retirement. No mortgage, but I have a $400/month slush fund that I put aside for one off costs and I have an emergency fund of one year's expenses that I don't include in my income calculations so it can be used for large costs

house tax & ins 550
health premium
450
Internet & calbe TV 110
cell phone 65
food 500
misc, entertainment, clothes, repairs etc 400
gas
60
electricity
30
heat
95
car
200
tax 369
monthly total 2829

yearly total 33948
__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”

Current AA: 65% Equity Funds / 20% Bonds / 7% Stable Value /3% Cash / 5% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
nun is offline   Reply With Quote
Old 12-19-2012, 02:15 PM   #51
Full time employment: Posting here.
SumDay's Avatar
 
Join Date: Aug 2012
Posts: 799
Quote:
I've never understood this kind of thinking. What you can spend in retirement is a function of what you saved earlier. I just don't see them as separate 'accounts'.
You know, I don't understand it either. I have virtually NO vices. I eat healthy, quit smoking 27 years ago, maybe a few drinks a month. I guess this is my one naughty habit. Not enough to delay our retirement, but I am amazed when I see my Master Card bill each month (which I always pay in full). Perhaps I'll try to scale back 10% each year for the next 5 years I plan to work. I like having goals. Thanks for the impetus.

And by the way, with Amazon Prime you get thousands of free streaming videos to watch on your Kindle. I've just started watching Upstairs Downstairs for free, so there's some squishy cost in all this too.
__________________
SumDay is offline   Reply With Quote
Old 12-19-2012, 02:55 PM   #52
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,403
Quote:
Originally Posted by Lsbcal View Post
Those who mention percentage of portfolio numbers may have different values because some may be getting Social Security or have pensions. We just started SS last year and that helped a lot with % of portfolio spending.
I cannot speak for others who quoted WR, but as I have repeatedly mentioned here that I have a goal of staying at 3.5% WR, I need to add a clarification.

We have no pensions, no health benefits, and are not at SS drawing age. The 3.5% WR should include very little income tax, as I will be spending after-tax savings. There's much dividend and cap gain inside 401k and IRAs that are tax-delayed.
__________________
NW-Bound is offline   Reply With Quote
Old 12-19-2012, 03:07 PM   #53
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Lsbcal's Avatar
 
Join Date: May 2006
Location: west coast, hi there!
Posts: 5,676
Quote:
Originally Posted by NW-Bound View Post
I cannot speak for others who quoted WR, but as I have repeatedly mentioned here that I have a goal of staying at 3.5% WR, I need to add a clarification.

We have no pensions, no health benefits, and are not at SS drawing age. The 3.5% WR should include very little income tax, as I will be spending after-tax savings. There's much dividend and cap gain inside 401k and IRAs that are tax-delayed.
That last part reminds me that tax strategy is quite individual and can also skew the WR. One person could appear to have a lower WR partly because of how they manage their withdrawals.

For us, we took a lot of income this year from my IRA and hence had pretty high tax bills. That was because I could get over the SS marginal rate hump and draw down at a reasonable marginal rate for the remaining dollars. Then next year I'll probably take out much less taxable to keep below the SS marginal rate hump.

Also some people might be drawing a lot from Roth IRA's or even taxable and letting their IRA's build up. Might work OK although too much of this could set one up for high rates in the future when RMD's kick in and also if tax rates move up on them.
__________________
Lsbcal is online now   Reply With Quote
Old 12-19-2012, 03:24 PM   #54
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,403
Quote:
Originally Posted by Lsbcal View Post
Also some people might be drawing a lot from Roth IRA's or even taxable and letting their IRA's build up. Might work OK although too much of this could set one up for high rates in the future when RMD's kick in and also if tax rates move up on them.
I may change my withdrawal when I get to 59-1/2. Right now, I am happy to avoid setting up a 72t schedule. I will also look into Roth conversion next year, as I only stopped part-time work earlier this year.

Quote:
Originally Posted by aaronc879 View Post
Looks like I should come in a couple hundred under my $15,000 budget. Single, no kids, no debt, low cost area.
Quote:
Originally Posted by Sarah in SC View Post
I fear that I may have spent that much on beer.

But there are two of us!

Seriously, though, we save our targets and whatever is left, we spend: on travel, entertaining (beer), parties, boat rides, and other sorts of fun. These are truly the best years of our lives...so far.
Surely you jest! But suppose that it was true. Then, how would I spend $15K/yr on booze? Lemme see.

I drink about 1 bottle of red wine every 4 days. As I buy wine under $10, let's assume an average price of $7/bottle with tax. Then, for wine alone, it's (365/4)*7 = $639.

Then, for family parties, as a host I buy perhaps 15 bottles/yr, with fancier labels (whether they taste better or not) at a higher price of $12. So, that's just $180.

OK, I do buy some beers. Hard to tell how much, but my best guess is $200/yr.

That budget of $15K would leave me with $15K-$639-$180-$200 = $13981!

What would I do with $14K extra? Oh, I forgot about strong booze, the 80-proof stuff.

Oh la la, even at $150/bottle for the top-notch stuff, that's 93 bottles. That's almost 2 bottles/week. I might not live to collect SS!
__________________
NW-Bound is offline   Reply With Quote
Old 12-19-2012, 03:38 PM   #55
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,439
Quote:
Originally Posted by Sarah in SC View Post
I fear that I may have spent that much on beer.

But there are two of us!

Seriously, though, we save our targets and whatever is left, we spend: on travel, entertaining (beer), parties, boat rides, and other sorts of fun. These are truly the best years of our lives...so far.
Spending that much on beer is crazy. Now, if you add wine, it makes much more sense. Most definitely agree on the part about both saving and enjoying your money while you can.
__________________
MichaelB is online now   Reply With Quote
Old 12-19-2012, 03:47 PM   #56
Moderator
Sarah in SC's Avatar
 
Join Date: Sep 2005
Location: Charleston, SC
Posts: 13,456
Quote:
Originally Posted by MichaelB View Post
Spending that much on beer is crazy. Now, if you add wine, it makes much more sense. Most definitely agree on the part about both saving and enjoying your money while you can.
Y'all must not have enough friends, LOL--my "beer budget" also includes entertaining and going out with friends. And I also include in that guess the really fun stuff, like DH's 50th birthday party last weekend. We rented a place at the beach, cooked a bunch of oysters and barbecue, and inaugurated the shot-ski drinking device. A very memorable (for the ones who could remember) night! And well worth the expense in booze. Here's the birthday boy in his splendid gift shirt with his best buddies.
Attached Images
File Type: jpg Shotski1.jpg (431.9 KB, 40 views)
__________________
“One day your life will flash before your eyes. Make sure it's worth watching.”
Gerard Arthur Way

Sarah in SC is offline   Reply With Quote
Old 12-19-2012, 04:01 PM   #57
Thinks s/he gets paid by the post
 
Join Date: Jan 2004
Posts: 2,049
My cashflow out, post-tax, was under $32,000. Single, no kids. I'm including PITI but not including federal taxes. There's little pre-amortization this year because the car and house funds are flush.
__________________
eridanus is offline   Reply With Quote
Old 12-19-2012, 04:24 PM   #58
gone traveling
 
Join Date: Apr 2009
Location: Eastern PA
Posts: 3,851
Quote:
Originally Posted by ERD50 View Post
I've never thought in terms of, 'I can afford this while I'm working, but not while I'm retired'. If it is something I really value, I want to make sure I can afford it in retirement.
+1.

Our plan was to budget/spend the same amount in retirement as we did during our accumulation years, and after 5+ years thus far, have no problem with that plan.

If we could not afford to do the things we did before we retired (such as travel, our biggest expense both before and after retirement), we would have continued to w*rk.

We didn't cut back so we could retire; we ensured we had the $$$ to retire and live the way we desired, for whatever time we have left.
__________________
rescueme is offline   Reply With Quote
Old 12-19-2012, 04:59 PM   #59
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,403
Quote:
Originally Posted by Sarah in SC View Post
Y'all must not have enough friends, LOL--my "beer budget" also includes entertaining and going out with friends...
I certainly do not have as many friends.

But, but, but if your friends reciprocate, and each treats mutual friends as generously as you do, then each would also have spent $15K/yr in booze for parties. And each would have drunk a LOT of booze!

That's a lot more booze than I can see myself drinking.

Quote:
Originally Posted by ERD50 View Post
I've never thought in terms of, 'I can afford this while I'm working, but not while I'm retired'. If it is something I really value, I want to make sure I can afford it in retirement. If it isn't really of value, why spend the money now and impact my retirement spending?
Quote:
Originally Posted by rescueme View Post
+1.

Our plan was to budget/spend the same amount in retirement as we did during our accumulation years, and after 5+ years thus far, have no problem with that plan.
+1.

Unless some people are so fed up with work that they want to sacrifice some leisures in order to get out of the rat race. And perhaps while working, they spent more money as a way to escape. My wife, back when she was with her high-stress job, took quite a few foreign trips with friends because I was tied up with my work and could not go. She needed an escape from her work. So, she has been to Brazil, Argentina, Bali, Kuala Lumpur, Singapore, and even the island of Komodo (to see those terrible lizards), places that I have not been. Once she quit her work, she did not demand to travel as much. It's my turn now.

I myself want to have at least the same lifestyle as I did before. It should not be too hard as we have always been frugal, and even when we traveled, did not splurge too often.

And now, with the children done with college, I should have more money for self-indulgence. So far so good... But why did I go over 3.5%WR? Something's still wrong!
__________________
NW-Bound is offline   Reply With Quote
Old 12-19-2012, 05:19 PM   #60
Recycles dryer sheets
 
Join Date: Jun 2010
Posts: 339
Quote:
Originally Posted by rbmrtn View Post
ontrack for a little over $16k.

I am nearly right with you at $15,633 as of today.
__________________

__________________
LauAnn is online now   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 02:52 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.