Join Early Retirement Today
View Poll Results: How much is your retirement budget?
<$15,000/year 1 1.37%
$15,000 - 30,000/year 11 15.07%
$30,001 - 45,000/year 14 19.18%
$45,001 - 60,000/year 18 24.66%
$60,001 - 75,000/year 14 19.18%
$75,001 - 90,000/year 5 6.85%
greater than $90,001 10 13.70%
Voters: 73. You may not vote on this poll

Reply
 
Thread Tools Search this Thread Display Modes
Re: Retirement Budget -- Poll only for those currently retired.
Old 10-21-2006, 06:14 PM   #21
 
Posts: n/a
Re: Retirement Budget -- Poll only for those currently retired.

Quote:
Originally Posted by 2B
If you pay off a mortgage in large chunks, I agree. If you are paying on a mortgage, I don't. It's part of you living expenses.
No it isn't, You are building equity! - How can you compare those of us that have paid off mortgages with those that don't? - It's outside living expenses. Yes you are paying interest, but you are freeing up other money for investment purposes. It's just leverage.

The Taxes on the property are expenses. The interest and payments are investments.
__________________
  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!

Re: Retirement Budget -- Poll only for those currently retired.
Old 10-21-2006, 06:26 PM   #22
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
donheff's Avatar
 
Join Date: Feb 2006
Location: Washington, DC
Posts: 8,634
Re: Retirement Budget -- Poll only for those currently retired.

Remember the saying "you spend what you earn?" That probably has a lot to do with retirement budgets - you spend what you can. I will try a companion poll that addresses SWR. The hypothesis being that most people spend a little under 4%. If the range is much greater there are a fair numberof ERers LBYM in retirement.
__________________

__________________
Every man is, or hopes to be, an Idler. -- Samuel Johnson
donheff is offline   Reply With Quote
Re: Retirement Budget -- Poll only for those currently retired.
Old 10-21-2006, 06:40 PM   #23
Recycles dryer sheets
 
Join Date: Apr 2006
Posts: 190
Re: Retirement Budget -- Poll only for those currently retired.

The reason I added pension vs nestegg to the suggested breakdown is because pension recipients have unavoidable tax liability vs nestegg folks who have maneuvers available to reduce taxes to near zero.

The real key is the single vs family. That's what really widens the poll results.
I suspect those 7 respondents for < 30K may be single.
__________________
modlair is offline   Reply With Quote
Re: Retirement Budget -- Poll only for those currently retired.
Old 10-21-2006, 06:53 PM   #24
Thinks s/he gets paid by the post
free4now's Avatar
 
Join Date: Dec 2005
Posts: 1,225
Re: Retirement Budget -- Poll only for those currently retired.

The mortgage accounting issue could be dealt with by having people deduct mortgages from their reported spending, but add back in the amount that they would pay to rent their dwelling if it were on the rental market. Any difference between mortgage and rent amounts is investment not spending. That would also even the playing field between mortgage and no mortgage people.

__________________
free4now is offline   Reply With Quote
Re: Retirement Budget -- Poll only for those currently retired.
Old 10-21-2006, 07:43 PM   #25
Thinks s/he gets paid by the post
retire@40's Avatar
 
Join Date: Feb 2004
Posts: 2,670
Re: Retirement Budget -- Poll only for those currently retired.

Quote:
Originally Posted by 2B
If you pay off a mortgage in large chunks, I agree. If you are paying on a mortgage, I don't. It's part of you living expenses.
What difference does it make if you pay your mortgage in "large chunks" or not?

It works like this:

If you count your house in your net worth for purposes of using that net worth for future living expenses, then the principal portion is not an expense since it is really a reduction of liability against the asset you are counting as part of your net worth. The interest portion is an expense. This is GAAP.

If you do not count your house in your net worth for purposes of using that net worth for future living expenses, then your entire mortgage payment is an expense since it becomes the equivalent of rent.
__________________
No man is free who is not master of himself. --- Epictetus
Enjoy Yourself (It's Later Than You Think). --- Guy Lombardo
retire@40 is offline   Reply With Quote
Re: Retirement Budget -- Poll only for those currently retired.
Old 10-21-2006, 09:31 PM   #26
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
Re: Retirement Budget -- Poll only for those currently retired.

Quote:
Originally Posted by retire@40
What difference does it make if you pay your mortgage in "large chunks" or not?
For you and CT, paying off your mortgage in a regular 30 year mortgage is like paying rent. The reduction in principal is small (usually) with respect to the total payment. "Large chunks" is reducing a debt/fixed income portion of your finances. If someone is paying off their mortgage, they have made a decision that it is an "expense" they choose to have. Paying off a mortgage is also a decision. I'm looking for what people are actually living on by whatever means they determine what they need.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Re: Retirement Budget -- Poll only for those currently retired.
Old 10-21-2006, 10:00 PM   #27
Thinks s/he gets paid by the post
retire@40's Avatar
 
Join Date: Feb 2004
Posts: 2,670
Re: Retirement Budget -- Poll only for those currently retired.

Quote:
Originally Posted by 2B
...The reduction in principal is small (usually) with respect to the total payment...
Whether the reduction of principal is small or large, it does not change the character of the item you are reducing. It is still principal.

And principal is usually large with repect to the total payment toward the end of the amortization period, while it is usually small at the beginning of the period. That doesn't prove or disprove anything. It's just a statement of fact. Large or small, it is principal and you would account for it as I mentioned in my previous post.
__________________
No man is free who is not master of himself. --- Epictetus
Enjoy Yourself (It's Later Than You Think). --- Guy Lombardo
retire@40 is offline   Reply With Quote
Re: Retirement Budget -- Poll only for those currently retired.
Old 10-21-2006, 10:01 PM   #28
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
Re: Retirement Budget -- Poll only for those currently retired.

Quote:
Originally Posted by retire@40
Whether the reduction of principal is small or large, it does not change the character of the item you are reducing. It is still principal.
You are being too technical. I'm looking for what people are spending on a year to year basis. What do people "need" to spend in retirement.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Re: Retirement Budget -- Poll only for those currently retired.
Old 10-22-2006, 03:15 AM   #29
Thinks s/he gets paid by the post
ladelfina's Avatar
 
Join Date: Oct 2005
Posts: 2,713
Re: Retirement Budget -- Poll only for those currently retired.

I'm more confused with each post.. you insist on knowing what we "need" to spend in retirement.. well, I answered, but I can tell you right now that that number would double or triple if I had kids at home and were paying either mortgage or rent. This poll might be more valid if you were to look at
Single ERs w/paid off house
ER'd couple "
ER'd couple with kids at home (or supported in college) "
Single ERs paying rent/mortgage
ER'd couple "
ER'd couple with kids at home (or supported in college) "

Are you trying to get a baseline to compare with your own future budgeting?
__________________
ladelfina is offline   Reply With Quote
Re: Retirement Budget -- Poll only for those currently retired.
Old 10-22-2006, 08:24 AM   #30
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
Re: Retirement Budget -- Poll only for those currently retired.

Quote:
Originally Posted by ladelfina
I'm more confused with each post.. you insist on knowing what we "need" to spend in retirement..

Are you trying to get a baseline to compare with your own future budgeting?
I am looking for the actual, current spending of those that are retired. I don't want to separate the group any finer at this point. If you are retired and have 3 kids at home, then you may be spending more than someone without a spouse or kids but maybe not. Personally, my "baby" graduates from college in December so my "cost of living" will drop by about $15K/year.

The finer point about how much of a mortgage payment may or may not go into principal is also "froth" on the data.

As for my own "baseline," the answer is "yes, but." I'm curious to see what people are actually spending but I know there are a lot of differences. I am also "different" too.

I think the poll is useful to see the spectrum of lifestyles represented. Based on the answers to date, we, as a group, aren't living in hovels and dumpster diving for our next meal. We are also not a herd of country clubbers that have amassed a fortune and are living in a czarist sense of luxury.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Re: Retirement Budget -- Poll only for those currently retired.
Old 10-22-2006, 08:31 AM   #31
Recycles dryer sheets
 
Join Date: May 2006
Posts: 174
Re: Retirement Budget -- Poll only for those currently retired.

Quote:
Originally Posted by 2B


We are also not a herd of country clubbers that have amassed a fortune and are living in a czarist sense of luxury.
LOL!! This is a hoot. Wait til my friends who belong to the local CC find out that they are living in czarist luxury.
__________________
jeff2006 is offline   Reply With Quote
Re: Retirement Budget -- Poll only for those currently retired.
Old 10-22-2006, 08:40 AM   #32
Thinks s/he gets paid by the post
retire@40's Avatar
 
Join Date: Feb 2004
Posts: 2,670
Re: Retirement Budget -- Poll only for those currently retired.

Quote:
Originally Posted by 2B
...Based on the answers to date, we, as a group, aren't living in hovels and dumpster diving for our next meal. We are also not a herd of country clubbers that have amassed a fortune and are living in a czarist sense of luxury.
Yup, we're just a bunch of middle-class folks who managed to save (or in the process of saving) some money to live on for the rest of our lives.
__________________
No man is free who is not master of himself. --- Epictetus
Enjoy Yourself (It's Later Than You Think). --- Guy Lombardo
retire@40 is offline   Reply With Quote
Re: Retirement Budget -- Poll only for those currently retired.
Old 10-22-2006, 09:31 AM   #33
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Posts: 1,375
Re: Retirement Budget -- Poll only for those currently retired.

Quote:
Originally Posted by retire@40
Yup, we're just a bunch of middle-class folks who managed to save (or in the process of saving) some money to live on for the rest of our lives.
hmmm...I think we're mostly upper middle class (household incomes $65-$100k during recent working years), which made/makes it easier to save. And we mostly had a clue (via brains and/or upbringing) about getting an education, avoiding debt, avoiding huge families to support, avoiding destructive habits like drug addiction, learning about retirement accounts, etc. And we were mostly lucky in our health--and in our health insurance.
__________________
You can't always get what you want, but if you try sometimes, you might find you get what you need.
astromeria is offline   Reply With Quote
Re: Retirement Budget -- Poll only for those currently retired.
Old 10-22-2006, 09:54 AM   #34
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
Re: Retirement Budget -- Poll only for those currently retired.

Quote:
Originally Posted by astromeria
hmmm...I think we're mostly upper middle class (household incomes $65-$100k during recent working years), which made/makes it easier to save. And we mostly had a clue (via brains and/or upbringing) about getting an education, avoiding debt, avoiding huge families to support, avoiding destructive habits like drug addiction, learning about retirement accounts, etc. And we were mostly lucky in our health--and in our health insurance.
astromeria, sorry about the report. I figured out what I had done.

We've had the "luck" discussion here before. The bottom line is that life is not "fair" but it is "equitable." Our first bit of "luck" is being born or being brought to the US or a comparable Western country where healthcare and education is generally available. 99% of India are "unlucky" and won't have anything that resembles what we take for granted.

Our personal health is partly "luck" and partly choice. My older brother smoked all of his life and hasn't had regular physicals despite them being available on his health plan. He is now "unlucky" and may need a bypass. Some are "unlucky" and born with Downs Syndrome.

Neither of my parents went to college and never helped or encouraged any of their children to go. Three paid their own way to the bachelor degrees of our choosing. We saved or spent as our lives evolved. I had more children than any of my siblings. I paid for all of their colleges. I drove the old cars and lived a lower lifestyle. I am the only one in a position to ER. I was the "lucky" one.

If I had learned what I know now sooner, I'd have been even luckier. Now, I only hope our politicians don't decide to take what my "luck" has created and distribute it to those less "lucky."
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Re: Retirement Budget -- Poll only for those currently retired.
Old 10-22-2006, 10:29 AM   #35
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Posts: 1,375
Re: Retirement Budget -- Poll only for those currently retired.

I didn't say we were lucky--more like we were smart (and isn't that lucky!). I don't agree that life is "equitable"--but let's not go there...agree to disagree, as it were. The statement that we're all just regular middle class folks who saved is a wee bit misleading, IMO.

My parents weren't college folks either, and they really were middle class (just barely some of the time), but they did encourage (I should say insist!) that my brothers and I attend college. Lucky us! I mean--smart us :
__________________
You can't always get what you want, but if you try sometimes, you might find you get what you need.
astromeria is offline   Reply With Quote
Re: Retirement Budget -- Poll only for those currently retired.
Old 10-22-2006, 10:37 AM   #36
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
Re: Retirement Budget -- Poll only for those currently retired.

Quote:
Originally Posted by astromeria
The statement that we're all just regular middle class folks who saved is a wee bit misleading, IMO.
I agree.

The "middle class" goes down to a pretty low income level IMHO. I suspect that many of us here would qualify for the governments definition of the "upper class." We may bristle at the term but my current income puts me safely in the upper quartile.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Re: Retirement Budget -- Poll only for those currently retired.
Old 10-22-2006, 10:54 AM   #37
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,046
Re: Retirement Budget -- Poll only for those currently retired.

According to a blog, the wealth distribution in the US:
Quote:
The wealth distribution chart below shows that the top 1% own 38.1% of the wealth in the country, the next 4% own 21.3%, and the next 5% own 11.5%. That is to say, the top 10% of the country owns 70.9% of the wealth of this nation!

Ninety percent of the country owns a mere 29.1%.
__________________
May we live in peace and harmony and be free from all human sufferings.
Spanky is offline   Reply With Quote
Re: Retirement Budget -- Poll only for those currently retired.
Old 10-22-2006, 11:39 AM   #38
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
Re: Retirement Budget -- Poll only for those currently retired.

I'll bet that the top 10% down actually "own" 70.9% of the assets. I'll bet they loaned the money to the bottom 90% to buy it.

Wealth seldom survives more than three generations in this country.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Re: Retirement Budget -- Poll only for those currently retired.
Old 10-22-2006, 12:02 PM   #39
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Gone4Good's Avatar
 
Join Date: Sep 2005
Posts: 5,381
Re: Retirement Budget -- Poll only for those currently retired.

Quote:
Originally Posted by Mr._johngalt
Truly, it is hard for me to imagine how I could spend 50K, even if I had an S.O.

JG
I guess that depends, in part, on where you live. Post ER I'm looking at $11K for health insurance, $8K in income taxes, $5K in property taxes . . . I'm about half-way to $50K and all I've done is paid for health insurance and taxes.
__________________
Retired early, traveling perpetually.
Gone4Good is offline   Reply With Quote
Re: Retirement Budget -- Poll only for those currently retired.
Old 10-22-2006, 12:29 PM   #40
Thinks s/he gets paid by the post
retire@40's Avatar
 
Join Date: Feb 2004
Posts: 2,670
Re: Retirement Budget -- Poll only for those currently retired.

Quote:
Originally Posted by astromeria
hmmm...I think we're mostly upper middle class (household incomes $65-$100k during recent working years)...
I don't disagree with your definition, but I consider middle class people those who are neither poor (upper cutoff at the point where they make just enough to survive on a bare bones budget) and rich (lower cutoff at the point where they have saved just enough to live the rest of their lives completely on their investments). I don't think you will find those definitions anywhere because I just made them up. But that's how I define the middle class.
__________________

__________________
No man is free who is not master of himself. --- Epictetus
Enjoy Yourself (It's Later Than You Think). --- Guy Lombardo
retire@40 is offline   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


Similar Threads
Thread Thread Starter Forum Replies Last Post
Poll: What is your basic income need (floor) in retirement? chinaco FIRE and Money 226 01-31-2011 07:06 AM
Why Did You Retire? -- Poll only for those currently, fully retired 2B FIRE and Money 46 11-18-2006 09:48 AM
Vanguard Adding More Target Retirement Funds Lusitan FIRE and Money 23 03-21-2006 07:17 PM
Poll: Healthcare in retirement Lusitan FIRE and Money 8 03-20-2006 11:28 PM
Tear appart my est. for retirement budget dex FIRE and Money 7 11-01-2003 02:22 PM

 

 
All times are GMT -6. The time now is 05:16 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.