Retirement Income

[Hermit]

Well, this is interesting. On one hand, we seem to have a lot of interest in folks that can't figure out how to spend $40k per year in retirement. On the other hand, we have very few in or even close to that income category!

[W2R]

Quote:

Originally Posted by RobbieB That number is closer to 10% of fair rental value.

Oh! Thanks for the clarification. I thought you meant 10% of the value of the home. Oops.

[Idnar7]

W2R is that a recent photo? You seem to be much younger :^)

[W2R]

Quote:

Originally Posted by Idnar7 W2R is that a recent photo? You seem to be much younger :^)

Yes, I was much younger. I was just 17 when the photo was taken.

[Idnar7]

I might be falling in love :^)

[W2R]

Quote:

Originally Posted by Idnar7 I might be falling in love :^)

Sorry! That ship has sailed. But thank you. 50 years later, I look so different that I feel that using this photo doesn't even endanger my anonymity any more. Oh well, life is good even without that youthful appeal.

[Idnar7]

That is ok, mine has sailed also. Enjoy your posts and lifestyle. Love NOLA, but haven't been there for ages. Need to go again.

[Danmar]

Quote:

Originally Posted by RobbieB Me thinks I should have extended the high end a bit. Good to know we are doing well -

Agree.

[Danmar]

Quote:

Originally Posted by W2R 10% for upkeep? Wow. I went back to re-examine my actual records for upkeep, and found that I spend 1% on average for upkeep, not 10%. When Googling "What percentage of home's value for upkeep?" I came across numerous sites and all that I clicked on gave 1%, not 10%. For example, here's one: How Much Should You Budget for Home Maintenance? Oh well. Anyway, I just didn't include anything for my paid off home, because it wouldn't have pushed me into another category even if I did. Just wanted to point this out (because I'm old and cranky! ).

My places generally are in the 3-5% of current market for maintenance. This includes all costs, taxes, upkeep, utilities, repairs, some professional management, etc. Most expensive is the house in Arizona(5%). Least expensive is the Toronto condo (3%). What really gets you is the periodic remodels. New kitchen at lake house ($90k). Remodel of Toronto condo (also $90k), new roof at Lake house ($50k). We like to keep our places well maintained so I suspect we would be at the higher end. But I think 1% would not be sustainable. Does that include taxes? Probably not, so if you add in .5-1% for taxes getting a little closer.

[Danmar]

Quote:

Originally Posted by Hermit Well, this is interesting. On one hand, we seem to have a lot of interest in folks that can't figure out how to spend $40k per year in retirement. On the other hand, we have very few in or even close to that income category!

Agree, a little surprised at the fairly high income proportions. Yet, the critical mass of discussion here appears to centre around lower income levels. Perhaps a reluctance on the part of some people to tip their hands re their income? A natural shyness or perhaps an unwillingness to buck the predominate culture here?

[Meadbh]

Quote:

Originally Posted by Danmar Agree, a little surprised at the fairly high income proportions. Yet, the critical mass of discussion here appears to centre around lower income levels. Perhaps a reluctance on the part of some people to tip their hands re their income? A natural shyness or perhaps an unwillingness to buck the predominate culture here?

Danmar, I think you have a hard time understanding just how much of an outlier you really are!

Besides, many contributors to discussions are early in their careers, while this poll targets those who have already retired. And there is a difference between retirement income and retirement spending.

[Danmar]

Quote:

Originally Posted by Meadbh Danmar, I think you have a hard time understanding just how much of an outlier you really are! Besides, many contributors to discussions are early in their careers, while this poll targets those who have already retired. And there is a difference between retirement income and retirement spending.

I think I do understand this, it just seems like I'm such a lone voice here, Turns out I am not as alone as I thought? I think the difference of retirement spending vs income not that much of a issue as pointed out by NW bound? Some will simply use the spend numbers. If anything a pure definition of income will understate the figures, no? I guess taxes would be an issue? Many people will also view forecasted or realized cap gains as available to spend?

Anyway, I am a little surprised at the higher levels 40% have incomes over $100k. I would have pegged the median around $50 but looks like it is more like $75k? Maybe that isn't such a big difference but there are quite a few at higher levels.

[Fedup]

I put the income I would report to the IRS. Not counting income earned in retirement account. I consider that investment asset to be used. Not income unless I take it out as distribution.

[kcowan]

Quote:

Originally Posted by Fedup I put the income I would report to the IRS. Not counting income earned in retirement account. I consider that investment asset to be used. Not income unless I take it out as distribution.

I included 5% mandatory distribution on my retirement account. included as taxable income.

[kcowan]

Quote:

Originally Posted by Danmar Anyway, I am a little surprised at the higher levels 40% have incomes over $100k. I would have pegged the median around $50 but looks like it is more like $75k? Maybe that isn't such a big difference but there are quite a few at higher levels.

I think it is because most of the discussion is about those that are close to the line rather than those of us with big buffers?

[tmm99]

Quote:

Originally Posted by kcowan I think it is because most of the discussion is about those that are close to the line rather than those of us with big buffers?

It must be. I am as surprised as Danmar. There is a lot of discussions on this board about spending less than 40K.

[NW-Bound]

People may be thinking that they can cut down to $40K if they need to, but they are in fact spending much more.

Is that wishful thinking? We do not really know unless the market takes another dump and loses 50% as it did in 2009, but I think they can. When there's no money but only $40K/year, people will figure out a way.

[Fedup]

I'm actually surprised there are more people in the lower brackets on this forum. Maybe they don't post that often.

[Fedup]

Quote:

Originally Posted by NW-Bound People may be thinking that they can cut down to $40K if they need to, but they are in fact spending much more. Is that wishful thinking? We do not really know unless the market takes another dump and loses 50% as it did in 2009, but I think they can. When there's no money but only $40K/year, people will figure out a way.

Oh come'on, it's not likely going to happen. I think max is down 30% in a recession. But most likely down 20%.
I'm practicing fortune telling of course.

[jkern]

I voted based on my AGI before I read the requirements. If I counted the actual rental income (no depreciation), imputed income from paid off house and withdrawal from nest egg, my income would be 4 times higher.