Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 01-06-2018, 12:39 PM   #81
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2003
Location: Kansas City
Posts: 7,466


This thread reminds of the early days of this forum. You know Dory36's - 33% That's My Story - The Four Yorkshiremen - Dryers Sheets - and all that.

I'm tempted but I not gonna go there - again, yet,

heh heh heh - It's not bragging if you did it. That fact I was layed off, canned with a less than stellar portfolio is a minor detail I often neglect to mention.
__________________

unclemick is offline   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!

Old 01-06-2018, 12:54 PM   #82
Thinks s/he gets paid by the post
 
Join Date: May 2014
Posts: 3,672
Quote:
Originally Posted by FUEGO View Post
Seems like you could squeeze a little extra $$ into the heating budget, no? That's one area where I don't mind spending what it takes to keep it comfortable in our hot, humid summers and our cold winters. Going from uncomfortable to comfortable adds maybe $200-300/yr to our heating/cooling budget (aka about the same cost as one day on a family cruise or 2-3 days of family slow travel).
I know- I can be cheap in silly areas like this, then spend a few thousand $$ for the comfort of Business Class on a transatlantic. This is my first year of keeping the thermostat that low and I plan to compare it to last year when I have a full heating season behind me. (I know it won't be perfect due to temperature fluctuations.) I kept the A/C off till it hit 80 and that didn't bother me at all.
__________________

athena53 is offline   Reply With Quote
Old 01-06-2018, 01:14 PM   #83
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2007
Posts: 7,671
Quote:
Originally Posted by athena53 View Post
I know- I can be cheap in silly areas like this, then spend a few thousand $$ for the comfort of Business Class on a transatlantic. This is my first year of keeping the thermostat that low and I plan to compare it to last year when I have a full heating season behind me. (I know it won't be perfect due to temperature fluctuations.) I kept the A/C off till it hit 80 and that didn't bother me at all.
I was thinking about that Biz Class seat when I wrote my comment I'd gladly "save" $3-4k by spending an uncomfortable 8-16 hrs in coach and use that to have 10-15 years of very comfortable indoor temperatures for the entire family and all guests. Or spend the same $ on 5-10 years of hiring out the mowing in the summer. Or hiring a housecleaner 1-2x/month for several years.

I'm taking baby steps and have decided to contract out some of the HVAC and plumbing chores that I used to do myself (and still fly coach ).
__________________
Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (6, 11, and 13).
FUEGO is offline   Reply With Quote
Old 01-06-2018, 01:20 PM   #84
Recycles dryer sheets
 
Join Date: Dec 2013
Location: Kansas
Posts: 105
Quote:
Originally Posted by FUEGO View Post
I was thinking about that Biz Class seat when I wrote my comment I'd gladly "save" $3-4k by spending an uncomfortable 8-16 hrs in coach and use that to have 10-15 years of very comfortable indoor temperatures for the entire family and all guests. Or spend the same $ on 5-10 years of hiring out the mowing in the summer. Or hiring a housecleaner 1-2x/month for several years.

I'm taking baby steps and have decided to contract out some of the HVAC and plumbing chores that I used to do myself (and still fly coach ).
I am glad you wrote this. I guess I could mow my own lawn. I am cleaning my own house for now when I used to have a housecleaner when I w*rked. Like you said "baby steps"
Sasset is offline   Reply With Quote
Old 01-06-2018, 01:30 PM   #85
Recycles dryer sheets
 
Join Date: Feb 2013
Location: San Jose
Posts: 190
Quote:
Originally Posted by NW-Bound View Post
Can any of y'all cut back enough to live on 0.5% WR, as we talked about in another thread?
That's what I've been effectively doing over the past few years. I'm still working but if my W2 income and its associated taxes both go to zero and my living expenses don't change, my spend rate would be below 0.5% per year. So no wiggle room for me, I'm living small enough already.
dunkelblau is offline   Reply With Quote
Old 01-06-2018, 08:23 PM   #86
Thinks s/he gets paid by the post
street's Avatar
 
Join Date: Nov 2016
Posts: 1,377
Quote:
Originally Posted by dunkelblau View Post
That's what I've been effectively doing over the past few years. I'm still working but if my W2 income and its associated taxes both go to zero and my living expenses don't change, my spend rate would be below 0.5% per year. So no wiggle room for me, I'm living small enough already.
Good for you. I got some criticism for my .5% WR in an other thread. I'm still not sure why it is such a bad thing. LOL
street is offline   Reply With Quote
Old 01-06-2018, 09:19 PM   #87
Full time employment: Posting here.
beowulf's Avatar
 
Join Date: Oct 2007
Posts: 502
I don't think it's a bad thing at all. If you have RMDs and you don't need the money and just reinvest it with no other withdrawals, you effectively have a 0.0 WR. what do you call it when your assets gain value over the year and you don't make any withdrawals? A negative WR?
__________________
Mission accomplished - not necessarily ER, but certainly R.
beowulf is offline   Reply With Quote
Old 01-07-2018, 04:46 AM   #88
Thinks s/he gets paid by the post
DrRoy's Avatar
 
Join Date: Dec 2015
Location: Michigan
Posts: 2,132
The OP did not say why to cut back. I might have missed it among the posts. Is it just on principle? We spent freely last year (more than double the OP) on 1.5% WR + a small pension. I do not see a reason to cut back or go to .5% WR. Why not enjoy the resources that you have?
__________________
"The mountains are calling, and I must go." John Muir
DrRoy is offline   Reply With Quote
Old 01-07-2018, 06:37 AM   #89
Thinks s/he gets paid by the post
 
Join Date: May 2014
Posts: 3,672
I think the OP's question was theoretical; it's a question I ask myself regularly because I don't ever want my "non-negotiable expenses" to be an uncomfortable % of my investments.

So far, 3.5 years in, I'm OK with the withdrawal rate (average a little under 4%, not drawing SS on my own record) and have no desire to pare it back to leave more to my heirs- in fact, at the end of the year when I had money left in the kitty for 2017, I bought a new computer, started a 529 for my youngest granddaughter and made plane reservations to Scotland in September. In Business Class!
athena53 is offline   Reply With Quote
Old 01-07-2018, 06:52 AM   #90
Recycles dryer sheets
 
Join Date: Mar 2011
Location: Dallas
Posts: 497
We are at $43k annually and could easily cut $3-4k on the additional car, $2-3k on travel, and another $2-3k misc...getting us down to appx. $35k, all in...
Surewhitey is offline   Reply With Quote
Old 01-07-2018, 07:05 AM   #91
Thinks s/he gets paid by the post
 
Join Date: Dec 2009
Location: Alberta/Ontario/ Arizona
Posts: 3,393
First level would be the obvious things.. Travel,eating out, gifts and charity, clothing, home renos. Probably around 25%. Next level would include real estate related items up to and including some sales. Could not get down to .5% WR without really major cuts. But could easily get down to div rate and these are very safe so not worried.
Danmar is offline   Reply With Quote
Old 01-07-2018, 07:22 AM   #92
gone traveling
 
Join Date: Mar 2015
Location: Greenville
Posts: 653
Not retired yet, but all this "cut" talk got me thinking and looking. Just cut $300/year of CC Annual fees for AMX Delta cards that NEVER give us any benefit... You either can't use the companion certificate without paying through the nose for the 1st ticket, and/or you don't get enough miles to use them. Use to be so much better program with Delta....
Pilot2013 is offline   Reply With Quote
Old 01-07-2018, 07:53 AM   #93
Thinks s/he gets paid by the post
 
Join Date: May 2014
Posts: 3,672
Good move. At one point DH and I were shelling out over $400/year on annual credit card fees. It made more sense when I was traveling on business when I was also accumulating points from actual travel, but not now. They also cut sign-on bonuses. Now I mostly use my Fidelity 2% cash back card. I laugh when I get the glossy mailings for cards with a $450 annual fee.
athena53 is offline   Reply With Quote
Old 01-07-2018, 09:11 AM   #94
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2007
Posts: 7,671
Quote:
Originally Posted by DrRoy View Post
The OP did not say why to cut back. I might have missed it among the posts. Is it just on principle? We spent freely last year (more than double the OP) on 1.5% WR + a small pension. I do not see a reason to cut back or go to .5% WR. Why not enjoy the resources that you have?
I took it to be hypothetical in nature. A brainstorming session of sorts to figure out what a Plan B might look like if Plan B is to cut spending during a really bad period in the stock market.

I don't personally plan on implementing any of the $9000 potential cuts I mentioned upthread and in fact I'm working diligently to increase my spending in response to increasing net worth. I'd hate to leave too much to my children and make them horrible spendthrift layabouts. Worst legacy one could leave!
__________________
Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (6, 11, and 13).
FUEGO is offline   Reply With Quote
Old 01-07-2018, 10:18 AM   #95
Dryer sheet aficionado
 
Join Date: Jul 2016
Posts: 26
We have a plan B budget that we update once a year. Right now plan B is 43% less than Plan A. That will carry us through an economic downturn if we need to reduce our withdrawal rate.
Lake161 is offline   Reply With Quote
Old 01-07-2018, 10:44 AM   #96
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
kcowan's Avatar
 
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 6,266
Send a message via Skype™ to kcowan
Ironically, Danmar and I are looking for ways to increase our spending!
__________________
For the fun of it...Keith
kcowan is offline   Reply With Quote
Old 01-07-2018, 10:56 AM   #97
Administrator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: On the road again
Posts: 26,468
Quote:
Originally Posted by kcowan View Post
Ironically, Danmar and I are looking for ways to increase our spending!
Well, if youíre looking for some help, Iím happy to lend a hand.
MichaelB is offline   Reply With Quote
Old 01-07-2018, 11:29 AM   #98
Moderator Emeritus
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 40,432
Quote:
Originally Posted by kcowan View Post
Ironically, Danmar and I are looking for ways to increase our spending!
That does seem like a logical thing to do during this bull market.

After all, if we plan to cut back during future market crashes, the reverse should be true for many of us; we could spend a little more right now while the market is surging upwards.
W2R is offline   Reply With Quote
Old 01-07-2018, 11:42 AM   #99
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 20,888
Quote:
Originally Posted by street View Post
Good for you. I got some criticism for my .5% WR in an other thread. I'm still not sure why it is such a bad thing. LOL
No, not I.

People who can live on 0.5% WR with no other incomes such as pension or AA are either extremely frugal or rich. Either case, it's not something I can do or am.

The Federal Poverty Level for a couple is $20,290. To even get this at 0.5%, one needs $4M in investable assets. If I had $10M, then I would be comfortable with $50K/year, but I am a long way from there.
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is offline   Reply With Quote
Old 01-07-2018, 11:58 AM   #100
Thinks s/he gets paid by the post
RobbieB's Avatar
 
Join Date: Mar 2016
Location: Central CA
Posts: 3,188
I could cut 50% easy, but I wouldn't do it even if the market fell 50%.
__________________

__________________
Retired at 59 in 2014. Should have done it sooner but I worried too much.
RobbieB 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
How much could you cut spending? Rustic23 FIRE and Money 116 07-20-2014 01:04 PM
To Cut The Deficit We Must Cut Large Categories haha FIRE and Money 21 01-09-2011 07:10 AM
Battery breakthrough could cut recharging to seconds FinallyRetired Other topics 20 03-13-2009 12:24 PM
Would you live in a place you didn't like if it meant you could FIRE? Kathryn48 Life after FIRE 66 07-18-2008 12:58 PM

 

 
All times are GMT -6. The time now is 01:12 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.