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View Poll Results: How much do you spend each year?
Less than $25k 15 5.51%
Between $25k and $50k 87 31.99%
Between $50k and $75k 64 23.53%
Between $75k and $100k 47 17.28%
More than $100k 59 21.69%
Voters: 272. You may not vote on this poll

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Old 11-23-2012, 10:53 AM   #81
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Originally Posted by rescueme View Post
For instance, we've spent $30k on travel in the last 12 months. That does not include the taxes paid for TIRA withdrawls to fund my DW's passion.
Hard to even imagine spending that, it's twice my entire annual spending.
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Old 11-23-2012, 11:01 AM   #82
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Originally Posted by NW-Bound View Post
If there is any surprise to me from the poll, it is that the percentage of big spenders over $100K/yr is high, at 18.44% as I type this.

Nothing wrong with that of course. One has more, so he spends more. Spending down one's wealth is the best and voluntary way to distribute wealth. I hope to be invested in the right businesses that will receive this wealth redistribution.
Here are some ideas as to why some members are spending so much right now:

1) travel (as Rescueme pointed out)
2) larger families (as Rescueme pointed out)
3) kids in college and having to pay for that
4) big mortgage not paid off
5) health issues and resulting high health care expenses
6) substantial taxes on the high income required to support a $100K+/year lifestyle
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Old 11-23-2012, 11:29 AM   #83
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Originally Posted by NW-Bound View Post
From your past posts, I'd say that you are pretty rich to me.
FI? Sure. Rich? Not at all.

Heck, when "The Millionaire" TV series ended in 1960, converting for the rate of inflation since that time, $1M would be equal to $7,814,763.51 today. And remember, the TV series granted that $1M "tax free" ...

For me? Anything less than $10M in current investable assets does not mean you are rich in today's world.

Just my simple opinion/POV.
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Old 11-23-2012, 11:47 AM   #84
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For me? Anything less than $10M in current investable assets does not mean you are rich in today's world.
My greatest skill in life was wanting but little.” -Henry David Thoreau

I love that quote.

Still, you have mentioned in other posts that you have a disabled son to be concerned about, so it is easy to see why the level of spending that makes you feel rich is probably greater than it would be for those in other circumstances.

For me, having no dependents, Thoreau's quote works. Having enough to buy whatever I want, no matter how little that may be, is what being rich is to me. I don't think I would feel any different with $1M or $10M, because I just can't think of anything I would want to spend that extra $9M on.
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Old 11-23-2012, 11:58 AM   #85
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Still, you have mentioned in other posts that you have a disabled son to be concerned about, so the level of spending that makes you feel rich is probably greater than it would be for those in other circumstances.
True.

In our case (and I'm just telling the story for those that may have a similar circumstance), we've already allocated $2M of our current assets (mixed between taxable, non-taxable, and remainder RE holdings) for his care, assuming we both die tomorrow.

We're figuring a 50% "loss" due to taxes, trust management fees (we have the trust already established) and his personal care "hired help" that he will need at an estimated 10-15 hours per week, for the remainder of his life.

Any remainder value to his (along with our) remainder estate has already been earmarked for my/DW's named non-profit charities.

The one concern we have (if there is a remainder estate, after our son has passed) that our wishes will not be carried out since the proposed tax changes will encourage the government, rather than the indivudial have a say where those $$$ get spent.

As of this date, the excess of the $2M will go (tax free) to our named non-profit charities, assuming we both die tomorrow. In the future (both after we, and our son have passed)? Who knows (at least we won't be around to get angry about it). <end rant >.
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Old 11-23-2012, 12:04 PM   #86
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If there is any surprise to me from the poll, it is that the percentage of big spenders over $100K/yr is high, at 18.44% as I type this.
I agree. This is a forum for people who want to retire early. Why would you work so long to have enough that you can spend $100k/yr if you could retire years earlier and still spend the national average of around half that?
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Old 11-23-2012, 12:08 PM   #87
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..<snip>...still spend the national average of around half that?
Some of us are more average than others ?

(Shades of Lake Wobegon).

Truly, who actually lives on the midpoint of any stat over many decades?

In our case, we knew our son was "exceptional" from the day he was born over four decades ago, and we knew we had to take care of his future (no family to count on).

We could have both died the next day; his future was up to us. So we saved and lived LBYM for decades (as any good parent would do; something that I/DW did not have - we knew we could do better) to ensure his ability to survive after we were gone.

We didn't have a "life remaining" clock on our foreheads, telling us how much time we had left to prepare for the future. If we did, it would have made our planning so much easier.

I would say that life gives you a future, based upon the current "known" challange you are trying to meet. Sometimes it just works out that you come up short; in other cases, things turn out (at least financially) better than you could have imagined, as in our case.

Like I said, who plans, and actually lives live on the midpoint? It sounds like you are doing a bit of Monday morning quarterbacking, or at the very least blaming the result on the condition that you (or any of us) have no control over.

Each of us does the best we can in life. Not based upon stats, but based upon our own (and others we feel responsible for) needs.
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Old 11-23-2012, 12:50 PM   #88
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As an early retiree for the last 4 years, I spend about $23k-$24k per year, including taxes and health insurance. A key requirement for my being able to ER was that I would not have to change my day-to-day lifestyle in any way. I did this by building into my spending plan (budget) a cushion or surplus of income over spending so that if something arose I would have it covered. So if my spending were to rise to $25k or $26k one year it would be just fine.
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Old 11-23-2012, 01:23 PM   #89
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Originally Posted by W2R View Post
Here are some ideas as to why some members are spending so much right now:

1) travel (as Rescueme pointed out)
2) larger families (as Rescueme pointed out)
3) kids in college and having to pay for that
4) big mortgage not paid off
5) health issues and resulting high health care expenses
6) substantial taxes on the high income required to support a $100K+/year lifestyle
Add to that:

7) Live in a higher COL area (and have ties, making a move unattractive)
1b) any other expensive hobby
8) High property taxes to live in an area with decent schools (followed by my #7 'tie' comment)
9) Simply prefer a life-style in the $100K (or whatever) range.


Quote:
Originally Posted by aaronc879 View Post
I agree. This is a forum for people who want to retire early. Why would you work so long to have enough that you can spend $100k/yr if you could retire years earlier and still spend the national average of around half that?
See my number 9 - because we can, or we we want to? For some people, working until they could support a certain number (whatever that # is) in retirement was the goal - not supporting some statistical number.


Isn't there some stat that says the average person has $x,xxx in CC debt? Should we'aspire' to that?

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Originally Posted by NW-Bound View Post
If there is any surprise to me from the poll, it is that the percentage of big spenders over $100K/yr is high, at 18.44% as I type this.
It might be a surprise because they have learned to just 'shut up' about it? Seems that whenever someone posts about having $XM or spending >$yy,yyy annually, there is a flurry of posts 'Oh, anyone should be able to live on that!.... We can all learn to be perfectly happy on less!.... Lotsa people get by on less!...If I had that much, I'd quit yesterday!', etc, etc, etc.

-ERD50
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Old 11-23-2012, 01:42 PM   #90
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For me? Anything less than $10M in current investable assets does not mean you are rich in today's world.
I am significantly below the above magic threshold, and FIRECalc says there's a very good chance I will get there (in today's dollars no less). I hope there are more people like you, so that I will not get taxed too much until I get there.

Seeing that extra digit in Quicken is NICE! I hope I will see it someday, particularly as it is in nominal dollars, and future inflation will help push it up too. And because it will not happen anytime soon, I have to live for some more years until that point, and that alone is something to celebrate.

Quote:
Originally Posted by aaronc879 View Post
I agree. This is a forum for people who want to retire early. Why would you work so long to have enough that you can spend $100k/yr if you could retire years earlier and still spend the national average of around half that?
In my case, I did not hate my work, and just did not think of retiring early at all until I found this forum. Bad influence, I guess.

But I was only spending $100K+ back when supporting my children through college. I am quite comfortable now spending less than that. I also have no earned income now, and must stay within my 3.5%WR.

Quote:
Originally Posted by ERD50 View Post
It might be a surprise because they have learned to just 'shut up' about it? Seems that whenever someone posts about having $XM or spending >$yy,yyy annually, there is a flurry of posts 'Oh, anyone should be able to live on that!.... We can all learn to be perfectly happy on less!.... Lotsa people get by on less!...If I had that much, I'd quit yesterday!', etc, etc, etc.

-ERD50
Well, whoever spends more than I do is rich if he can afford it, or a spendthrift if he cannot.

Conversely, whoever spends less is either a scrooge or an ascetic.

I do not see how else this can be viewed.
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