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01-06-2018, 12:39 PM
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#81
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2003
Location: Kansas City
Posts: 7,968
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01-06-2018, 12:54 PM
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#82
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2014
Posts: 7,323
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Quote:
Originally Posted by FUEGO
Seems like you could squeeze a little extra $$ into the heating budget, no? That's one area where I don't mind spending what it takes to keep it comfortable in our hot, humid summers and our cold winters. Going from uncomfortable to comfortable adds maybe $200-300/yr to our heating/cooling budget (aka about the same cost as one day on a family cruise or 2-3 days of family slow travel).
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I know- I can be cheap in silly areas like this, then spend a few thousand $$ 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.
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01-06-2018, 01:14 PM
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#83
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2007
Posts: 7,746
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Quote:
Originally Posted by athena53
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.
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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 (8, 13, and 15).
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01-06-2018, 01:20 PM
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#84
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Recycles dryer sheets
Join Date: Dec 2013
Location: Kansas
Posts: 107
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Quote:
Originally Posted by FUEGO
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 ).
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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"
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01-06-2018, 01:30 PM
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#85
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Recycles dryer sheets
Join Date: Feb 2013
Location: San Jose
Posts: 289
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Quote:
Originally Posted by NW-Bound
Can any of y'all cut back enough to live on 0.5% WR, as we talked about in another thread?
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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.
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01-06-2018, 08:23 PM
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#86
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2016
Posts: 9,417
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Quote:
Originally Posted by dunkelblau
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.
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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
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01-06-2018, 09:19 PM
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#87
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Full time employment: Posting here.
Join Date: Oct 2007
Posts: 798
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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.
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01-07-2018, 04:46 AM
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#88
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Thinks s/he gets paid by the post
Join Date: Dec 2015
Location: Michigan
Posts: 4,962
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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
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01-07-2018, 06:37 AM
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#89
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2014
Posts: 7,323
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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!
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01-07-2018, 06:52 AM
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#90
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Thinks s/he gets paid by the post
Join Date: Mar 2011
Location: North TX
Posts: 1,799
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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...
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01-07-2018, 07:05 AM
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#91
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Thinks s/he gets paid by the post
Join Date: Dec 2009
Location: Alberta/Ontario/ Arizona
Posts: 3,393
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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.
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01-07-2018, 07:22 AM
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#92
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gone traveling
Join Date: Mar 2015
Location: Greenville
Posts: 653
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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....
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01-07-2018, 07:53 AM
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#93
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2014
Posts: 7,323
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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.
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01-07-2018, 09:11 AM
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#94
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2007
Posts: 7,746
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Quote:
Originally Posted by DrRoy
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?
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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 (8, 13, and 15).
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01-07-2018, 10:18 AM
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#95
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Dryer sheet aficionado
Join Date: Jul 2016
Posts: 26
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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.
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01-07-2018, 10:44 AM
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#96
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 7,677
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Ironically, Danmar and I are looking for ways to increase our spending!
__________________
For the fun of it...Keith
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01-07-2018, 10:56 AM
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#97
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,583
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Quote:
Originally Posted by kcowan
Ironically, Danmar and I are looking for ways to increase our spending!
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Well, if you’re looking for some help, I’m happy to lend a hand.
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01-07-2018, 11:29 AM
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#98
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,472
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Quote:
Originally Posted by kcowan
Ironically, Danmar and I are looking for ways to increase our spending!
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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.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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01-07-2018, 11:42 AM
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#99
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
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Quote:
Originally Posted by street
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
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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 happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
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01-07-2018, 11:58 AM
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#100
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2016
Posts: 8,968
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I could cut 50% easy, but I wouldn't do it even if the market fell 50%.
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