Our proposed NYC retirement budget

[palomalou]

Here is what we plan, based on spending a few weeks in NY in our retirement place a couple of years ago (all in 2014 dollars assuming 3% inflation):
food and eating out 1291
household & maintenance 53
clothes and personal items 242
transit cards 242
cable, internet 200
phone 135
entertainment 834
professional expenses (unknown what they would be, may not have any) 160
electricity 110
FICA 80
medical insurance 430
LTC insurance 185
out of pocket medical 180
gifts 185
computer 53
property insurance 70
common charges on condo 700
SS 161
property taxes 60
fed taxes 715
state inc taxes 429
city inc taxes 134
financial charges 11
Total 6660
How reasonable does this look to you guys for a NYC budget? Have we omitted something important?

 

[travelover]

..... Have we omitted something important?

Yes, you forgot to add it all up.

 

[donheff]

No transportation other than transit cars? Travel? Or is that a nonessential thus not addressed?

 

[haha]

May be fine, as I know nothing at all about you and haven't lived in NYC in decades. But your property taxes seem unbelievably low, and I don't really get the low figure for household and maintenance. I suppose you should know, but you had better not drop any dishes.

Ha

 

[palomalou]

All good points. Property taxes are on an abatement until after 2030, then rise gradually.
I've traveled a lot for work, so except for possibly one more trip to Italy, don't have any desire to go anywhere. Our entertainment projection is a touch kingly, so Italy could shave off a bit of that at a time if desired. Hate cars, so one reason we will move back is to not have to use/have them.
If I need bus/commuter train to get to part-time work, that would come out of the earnings and be a factor in evaluating opportunities.
Good point about the maintenance. We plan to do everything in the apartment prior to move in, and I've subtracted one-time expense in Firecalc for that. But little things might need to be done from time to time anyway. Thank heaven we will have no outside to have to take care of!

 

[BillNOVA]

I don't see any rent or mortgage amounts?

 

[palomalou]

Bill, we bought the apartment for cash. Gives me a greater sense of security.

 

[ChrisC]

The taxes do appear relatively low even if abated unless you're living in a very big, multi-tenant building or the building is in a landmarked area. Where is this apartment, what type of dwelling, and how old is it because it could affect reserves for the building. If it's an old building in a landmarked area say Brooklyn Heights or parts of Harlem you could be facing potential special assessments down the road for major maintenance issues. (For example, old buildings in NYC have steam heat which has lots of maintenance challenges.)

I didn't see any allowance for laundry or dry cleaning; is that already factored into some of your items or you have a washer and dryer in the apartment?

 

[palomalou]

Ah, laundry--no, forgot about that! Thanks!
The building has about 60 apartments and is in northern Manhattan and was built in 2004. Wanted that because didn't want window air conditioners or fire escapes, for security/aesthetic reasons.

 

[mathjak107]

i live in bayside queens in nyc and lifestyle is such an important factor as to a budget that its just impossible to base it on expenses.

living in a city like new york is really about doing all the wonderful things the city offers and that can cost money, lots of money.

people live on 35k and people live on millions in nyc.

i wont even guess at what you need based on expenses.

we had planned to retire to the poconos of PA and bought a house 5 years ago.

since then we realized that living in the rural 2 hours from nyc wasnt the life we wanted.

we sold the house in july and now intend to stay put in nyc but its not going to be cheap for us.

 

[ChrisC]

i live in bayside queens in nyc and lifestyle is such an important factor as to a budget that its just impossible to base it on expenses.

living in a city like new york is really about doing all the wonderful things the city offers and that can cost money, lots of money.

people live on 35k and people live on millions in nyc.

i wont even guess at what you need based on expenses.

we had planned to retire to the poconos of PA and bought a house 5 years ago.

since then we realized that living in the rural 2 hours from nyc wasnt the life we wanted.

we sold the house in july and now intend to stay put in nyc but its not going to be cheap for us.

Good point, but ya gotta admit that not having major housing expenses in NYC (whether you have a paid-up apartment or a rent control unit) stretches your ability to have a very productive and happy retirement. Sure there are many expensive things one can purchase in NYC that will cost lots of money, but there is so much free and cheap stuff in NYC that is qualitatively better than comparable stuff available elsewhere. The free cultural stuff -- Shakespeare in the Park, Free Summer Concerts, Museums -- is amazing. And you can always find good quality and cheaps eats in NYC. I could spend 2-3 hours each day for the rest of my life at the New York or Brooklyn Public Libraries.