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View Poll Results: How Much in Real (Before Tax?) Funds Do you use on average per month?
< $1000 3 3.30%
$1000 - $2000 5 5.49%
$2001 - $3000 15 16.48%
$3001 - $4000 7 7.69%
$4001 - $5000 22 24.18%
$5001 - $6000 15 16.48%
$6001 - $7000 8 8.79%
> $7000 16 17.58%
Voters: 91. You may not vote on this poll

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Real World FIRE Income Poll, Average Monthly Draw
Old 09-12-2006, 08:06 AM   #1
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Real World FIRE Income Poll, Average Monthly Draw

All:

We have discussed in great detail what SWR we recommend and take, how much is needed to retire on etc. etc. etc. What one spends on what per month.... However, I do not recall actual average monthly expenditures. I think it would be of great value to get some actual numbers.

What I am looking for is on average for the year, what would be the amount per month that you and your family live on or draw from your nestegg and income from any pensions, all lumped into one. Everything included! Insurance, entertainment vacations, Medical premiums entertainment, Living expenses, THE LOT.

While this may vary quite drastically based on where you live, from a housing expense perspective, I think it will be of value. I certainly think it will be for me. Especially for those who are thinking abour RE and have no pensions or other means of generating income.

I hope this is not being too Personal, I certainly do not think so, as we so love to banter about this topic..... Cash!

Thanks,

SWR
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Re: Real World FIRE Income Poll, Average Monthly Draw
Old 09-12-2006, 10:05 AM   #2
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Re: Real World FIRE Income Poll, Average Monthly Draw

Not to nitpick your poll, but how about household size? There are posters with several kids at home, married posters, and single posters.

This has to introduce enough spread, even among people with the same standard of living, as to make the results of the poll not too helpful.

Ha
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Re: Real World FIRE Income Poll, Average Monthly Draw
Old 09-12-2006, 10:45 AM   #3
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Re: Real World FIRE Income Poll, Average Monthly Draw

I was really looking for generalities. Of course there will be some extremes. But so far it seem folk withdraw for the most part on the lower side of $6k per month from all sources.

My Logic:

Inflation aside, If you have basically $1m - $1.2m in cash invested at 6% and a home (of sorts) you can live quite hapily for the most part on the interest. Any more is Gravy.

If folk are being honest and it includes all income from pensions etc. Pre Tax, then $5k per month pre-tax should cut it on average leaving $1k for inflation (for $1.2m). As the poll sugests some are a lot higher.

Just my thought. Please fee free to comment on your personal situation and qualify.

The reason I thought it would be useful is that I read recently in a mag some place that a, or some financial advisers are recommending a $2m - $3m stash at least after permanent residence is paid for in full. I personally thought that was a bit steep as an average. So I thought I would ask the folks who are ACTUALLY Retired what they did.

SWR
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Re: Real World FIRE Income Poll, Average Monthly Draw
Old 09-12-2006, 11:17 AM   #4
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Re: Real World FIRE Income Poll, Average Monthly Draw

Quote:
Originally Posted by ShokWaveRider
IThe reason I thought it would be useful is that I read recently in a mag some place that a, or some financial advisers are recommending a $2m - $3m stash at least after permanent residence is paid for in full. I personally thought that was a bit steep as an average. So I thought I would ask the folks who are ACTUALLY Retired what they did.
You can judge by the pictures of their houses, and the way they spend their time that many people here have that and more, in assets or in income equivalents.

There are also many with a whole lot less, though recently we are not hearing near as many stories about rock bottom expenses except from the Kaderlis, who manage a rather posh life on what appears to be a bare bones budget.

Ha
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Re: Real World FIRE Income Poll, Average Monthly Draw
Old 09-12-2006, 03:39 PM   #5
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Re: Real World FIRE Income Poll, Average Monthly Draw

I find it interesting to see how many people live what sounds like a fairly flush life on a modest income. DW and I are a bit spendthrifty (is that a word? ) so we made sure we have a lot saved in case we never change our ways.

As is regularly recomended you should carefully analyze your own expenses. That is the figure that counts. Look at what you actually spend after taxes and savings -- EVERY LITTLE THING. Then figure out what you will need once taxes come back into the picture to end up with that much left. If it will take more than the magic $1.2M you are thinking of, see if you can realistically cut back. But be realistic about what you can actually live with. I think the hardest part for some of us who haven't lived by a budget is figuring out what our real expenses are.
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Re: Real World FIRE Income Poll, Average Monthly Draw
Old 09-12-2006, 03:47 PM   #6
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Re: Real World FIRE Income Poll, Average Monthly Draw

Between $4500-4800 per month.

One person renting a 2200 square foot house.

That is know by his first name by all the library staff.
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Re: Real World FIRE Income Poll, Average Monthly Draw
Old 09-12-2006, 04:00 PM   #7
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Re: Real World FIRE Income Poll, Average Monthly Draw

Thanks for all the responses, it was just a real money question really. What is the annual number divided by 12 for your specific lifestyle. All in! Holidays, cars etc. I think it would give a person who is striving to be FIRED a good idea.

Personally we could and most probably will spend more than we do now as for a couple of months we do not have to pay for health care. So the $2k - $3k number we are in now could easily hit $5k. I do however find it hard to think of even spending over $6k.

SWR
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Re: Real World FIRE Income Poll, Average Monthly Draw
Old 09-12-2006, 04:03 PM   #8
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Re: Real World FIRE Income Poll, Average Monthly Draw

Quote:
Originally Posted by ShokWaveRider
Personally we could and most probably will spend more than we do now as for a couple of months we do not have to pay for health care. So the $2k - $3k number we are in now could easily hit $5k.
I think the last time this question came up we had a big hump around $2K/month (UncleMick's legendary 1993 year notwithstanding) and another one around $4K/month. So things seem to be fairly consistent with the sparse data to date.

Quote:
Originally Posted by ShokWaveRider
I do however find it hard to think of even spending over $6k.
One word: mortgage.
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Re: Real World FIRE Income Poll, Average Monthly Draw
Old 09-12-2006, 04:08 PM   #9
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Re: Real World FIRE Income Poll, Average Monthly Draw

How can I see the poll results without voting?
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Re: Real World FIRE Income Poll, Average Monthly Draw
Old 09-12-2006, 04:15 PM   #10
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Re: Real World FIRE Income Poll, Average Monthly Draw

Quote:
Originally Posted by Nords
One word: mortgage.
Another word: travel
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Re: Real World FIRE Income Poll, Average Monthly Draw
Old 09-12-2006, 04:41 PM   #11
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Re: Real World FIRE Income Poll, Average Monthly Draw

Quote:
Originally Posted by flipstress
How can I see the poll results without voting?
Click on "View Results" next to the poll
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Re: Real World FIRE Income Poll, Average Monthly Draw
Old 09-12-2006, 04:59 PM   #12
 
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Re: Real World FIRE Income Poll, Average Monthly Draw

Quote:
Originally Posted by ShokWaveRider
My Logic:

Inflation aside, If you have basically $1m - $1.2m in cash invested at 6% and a home (of sorts) you can live quite hapily for the most part on the interest. Any more is Gravy.

If folk are being honest and it includes all income from pensions etc. Pre Tax, then $5k per month pre-tax should cut it on average leaving $1k for inflation (for $1.2m). As the poll sugests some are a lot higher.

Just my thought. Please fee free to comment on your personal situation and qualify.

The reason I thought it would be useful is that I read recently in a mag some place that a, or some financial advisers are recommending a $2m - $3m stash at least after permanent residence is paid for in full. I personally thought that was a bit steep as an average. So I thought I would ask the folks who are ACTUALLY Retired what they did.

SWR
I like the 4% number myself. so if you have 1.2 Million - 4% would be $48K per year or $4K per month. I might increase this a bit if the market did well after 10 years or so. But I'm not in the withdrawel phase yet

- If you had $3 Million you could safely withdraw $120K per year at 4%
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Re: Real World FIRE Income Poll, Average Monthly Draw
Old 09-12-2006, 09:08 PM   #13
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Re: Real World FIRE Income Poll, Average Monthly Draw

Hmmm

All time record low was 1k/mo back in the early 90's, lot's of 2k/mo or slightly under, a couple 3k/mo remodeling years.

Katrina and one year - ran maybe 6k/mo. - with now a mortgage and health insurance, more travel plus remodeling.

4% of port plus pension plus SS comes in at 5.5k/mo and 5%(variable) would be roughly 6.4k/mo all in - taxes included.

13th year - and not getting any younger - ??Bernicke??

heh heh heh heh heh

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Re: Real World FIRE Income Poll, Average Monthly Draw
Old 09-12-2006, 09:18 PM   #14
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Re: Real World FIRE Income Poll, Average Monthly Draw

Quote:
Originally Posted by Cut-Throat
But I'm not in the withdrawel phase yet

- If you had $3 Million you could safely withdraw $120K per year at 4%
CT,

Will $3 mil represent the onset of your withdrawal phase?

Spanky
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Re: Real World FIRE Income Poll, Average Monthly Draw
Old 09-12-2006, 11:50 PM   #15
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Re: Real World FIRE Income Poll, Average Monthly Draw

Quote:
Originally Posted by retire@40
Click on "View Results" next to the poll
Thanks.* I swear I didn't see that earlier--couldn't find it, which I thought was unusual.
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