Retirement Expenses - Critique & Abuse Me!

[simple girl]

How often do you get your haircut? DH goes only every 6 weeks, and it runs him about $20 (including tip).

 

[Midpack]

Midpack, I hope you don't think this is to noisy but do you have a pension and SS?

No pension (a small lump sum) and no retiree healthcare. I do expect SS and Medicare will help one day, but my financial plan includes 50% of published SS and no Medicare - if we're pleasantly surprised, great.

How often do you get your haircut? DH goes only every 6 weeks, and it runs him about $20 (including tip).

Every 4 weeks for $27 incl tip. I am still working (hence the frequency) and I get my hair cut professionally by one of DW's friends, so not negotiable (and it's a very small expense in the overall scheme).

 

[Nords]

In actuality, we have kept most of our cars for 6-7 years and did keep one for 10 years. And we buy them on a staggered replacement schedule. I've just never wanted to put DW in a car that might break down on her, so I've never let her regularly drive our older car. But we might stretch this out more in retirement.

FWIW I think cars are greatly more survivable today than 30 years ago. We have a '97 Nissan Altima that we've generally neglected and put barely enough money into to keep it running. Nothing special, didn't really do much research before buying it. We haven't even bothered repairing any of the fender/bumper dings. If it dies tomorrow then I'd push it to the side of the road and empty the glovebox before abandoning it with the windows open and the keys in the ignition.

Yet when we turned it in last week for new tires and a mortality assessment of future expenses, the service manager said with a frustrated expression "There's nothing wrong with this car!"

It's quite possible that the breakdown probability of a 10-year-old car is only microscopically higher than that of a five-year-old car-- especially for legendary beaters like Honda Civics, Toyota Camrys, or Ford F150 pickups. But the five-year difference can save a lot of accrual expenses.

 

[Rustic23]

Most of what I would say has been said. We do find we spend next to nothing on cloths, with the exception of tennis shoes. I have been retired three years, and I still have dress shirts on the hanger I have not worn. Same goes for suits and slacks. We also find one car works fine for us. Our over all budget, with accrual is around $70,000. Our medical is less than yours, and our travel is greater. Areas we spend less than expected, autos, dinning out, pocket money, clothes, hair cuts areas we are spending more travel.

I think the key, IMHO, is if you have the funds to finance your retirement expenses, then it does not make any difference if someone else does it for less or more. I knew when I retired I was not willing to take any kind of cost of living reduction, and in fact I was most likely going to spend more. As it turned out, I am currently spending less.

 

[W2R]

Every 4 weeks for $27 incl tip. I am still working (hence the frequency) and I get my hair cut professionally by one of DW's friends, so not negotiable (and it's a very small expense in the overall scheme).

Frank gets his cut as frequently now as when he was working, because he likes to look clean cut. Men's barbershops (the old fashioned kind with the barber pole) in this area charge $12 and I would imagine that he leaves a couple of dollars in tip. So, that is about half what you are paying. I am puzzled - - either this is a regional thing, or else your DW's friend is charging you double the going rate. Or maybe you have longer hair that needs to be styled, in which case it very well could be justified.

As for very small expenses, there is an old proverb/quotation that I regard as wise and it goes "Take care of the pennies and the pounds will take care of themselves." - - Lowndes (1652-1724)

Of course, in my case buying the Venza this year did make a difference... But that was planned over many years as an "accrual expense" and it will probably be my last car.

 

[eridanus]

Midpack I think moving is the answer.

Yes, this is the real answer.

My total utilities (including internet) are only a bit more than what you pay for elec/gas alone. A smaller house and lower rates (see above for moving suggestion) are key.

Why is gas so high? Does this include road trips?

Buy a house with a metal roof so you don't have to replace it every 15 years (or every 5 if you live in Texas).

As Nords wrote, use better paint. Contractor's grade lasts 5 years.

Ditch the Dish.

Cook more at home. Or move to somewhere less expensive so the bill is lower.

 

[Midpack]

Why is gas so high? Does this include road trips?

Several people have said this, but I don't understand why? The gas cost includes all our driving, miles/yr isn't exorbitant for two people still working. What do others pay?

$160 /mo
$2.75 /gal
58.2 gal/mo
2 cars
29.1 gal/mo per car
30 mpg average (Camry Hybrid and Honda Element)
873 miles/mo ea
10,473 miles/yr each

 

[Midpack]

Frank gets his cut as frequently now as when he was working, because he likes to look clean cut. Men's barbershops (the old fashioned kind with the barber pole) in this area charge $12 and I would imagine that he leaves a couple of dollars in tip. So, that is about half what you are paying. I am puzzled - - either this is a regional thing, or else your DW's friend is charging you double the going rate. Or maybe you have longer hair that needs to be styled, in which case it very well could be justified.

A conventional men's haircut in a 'barber pole' joint is probably about $12 here too. My hair is very short (and getting sparser). DW's friend is a salon stylist, she charges $22 + $5 tip. Probably not wise to fire DW's friend to save $150 to $220 per year. But when/if we move I will probably go back to a barber pole or cheapcuts place.

 

[eridanus]

Several people have said this, but I don't understand why? The gas cost includes all our driving, miles/yr isn't exorbitant for two people still working. What do others pay?

So this will drop when you're retired?

 

[Gotadimple]

Several people have said this, but I don't understand why? The gas cost includes all our driving, miles/yr isn't exorbitant for two people still working. What do others pay?

$160 /mo
$2.75 /gal
58.2 gal/mo
2 cars
29.1 gal/mo per car
30 mpg average (Camry Hybrid and Honda Element)
873 miles/mo ea
10,473 miles/yr each

Is your assumption that you two will be driving the same amount in retirement? With the commute gone, what should you assume. My experience was that my driving around was half of when I was working -- not counting driving vacations.

Rita

 

[W2R]

Several people have said this, but I don't understand why? The gas cost includes all our driving, miles/yr isn't exorbitant for two people still working. What do others pay?

I think probably some of us just do not have the need to drive as many miles as the two of you drive. That's a lifestyle choice and I would imagine that your commuting probably requires that you drive a lot.

In answer to your question, as a single person, working until Nov 9th and then retired, my 2009 gas cost averaged $15/month. But, I didn't do much that required driving and I live just a mile or two from my former workplace. For 2008, it averaged $40/month and included the expenses of driving to Missouri for a hurricane evacuation.

 

[Alan]

How often do you get your haircut? DH goes only every 6 weeks, and it runs him about $20 (including tip).

Over 10 years ago we bought electric hair clippers from Walmart for $22 and DW still does my hair for nothing using those same clippers.

These days the clippers are set with the lowest setting attachment and she "mows" my head every week

 

[calmloki]

My gal uses scissors so we don't even have the electric cost.

A savings possibility - we just got Ooma VOIP phone system working - I think. Wanted a dedicated fax number and capability, so bought the premium plan for $10/month vs, no cost/month. Figure it will save us about $650 the first year after paying for the equipment, $830/year thereafter until Ooma goes out of business, changes it's fee schedule, or our box breaks. Quality at this point seems superior to Qwest landline.

 

[Rustic23]

I use a flowbee. Two advantages, I don't have to pay for hair cuts, and it embarrasses the heck out of my kids when I tell people.

 

[youbet]

Over 10 years ago we bought electric hair clippers from Walmart for $22 and DW still does my hair for nothing using those same clippers.

If DW cuts the hair of the fella in your avatar, you might want to reconsider your strategy about haircuts.........

 

[kumquat]

• We're at 38X the expenses shown, but I believe in plenty of safety factor

I think 38X has about a 50% [-]inflation[/-] safety factor built in. On the other hand, if you live as cheaply as possible, your [-]kids[/-] heirs will have a great ER.

• .....(the next 30-40 years could see drastic changes, health care & taxes, etc.) and we are perfectly happy living LBYM, always have been

If the next 30 - 40 years see these changes, why do you think it will affect you more than the rest of the country? You have a big cushion already. At some point the peasants will rebel, but you will only be up to a 4% SWR. If the rebellion is tin-foil hat serious, everyone is equally screwed.

 

[SecondCor521]

I think you're doing very well. I spend right at $60K per year; roughly 75-80% of that I expect to go away in retirement (taxes, child support, kid expenses), which puts me in the $12-$13K range for expenses.

Key differences between me and you:

1. I'm single and don't have to impress anyone with my house, my stuff, or my clothes.
2. I live in flyover country.
3. I scrimp. On everything.
4. I have one, older car (95 Toyota).
5. None of the $ numbers above include any accruals.

2Cor521