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Re: What is the most common ER budget?
Old 12-19-2004, 02:34 PM   #41
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Re: What is the most common ER budget?

So John, you're the dude wearing camouflage, driving a 4x4, shotgun in the door, ammo belts over your shoulder, and rabbits and squirrels on the roof-rack.
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Re: What is the most common ER budget?
Old 12-19-2004, 06:19 PM   #42
 
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Re: What is the most common ER budget?

Close enough!

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Re: What is the most common ER budget?
Old 12-19-2004, 07:32 PM   #43
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Re: What is the most common ER budget?

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Re: What is the most common ER budget?
Old 12-20-2004, 01:16 PM   #44
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Re: What is the most common ER budget?

Zipper, it truly is unfortunate how partisan politics has worked to keep Canadian beef out of the USA. No longer any bonafide basis to do so but we all know which states are Red. Will be returning to and retiring to Alberta (summers only maybe) in 6-18 months.

Following up on John's comment regarding my $23k credit card category being almost equal to his whole budget, we are intentionally incurring more costs now (perhaps ~$5-8k) in certain areas before retirement:
1) getting more dental and medical work done here stateside before reduced benefits come retirement and to take advantage of accessible health care (MRI's, etc. available here on a week or two's notice)
2) the Missus has been overhauling her wardrobe in a big way to take advantage of better prices in south Texas (I won't win that argument)
3) taking the opportunity to see a lot of the South, Southwest and Southeast we wouldn't normally do from a Northern location.

Our goal is to comfortably live on $50-55k per year including appliance and vehicle accruals, health care, property taxes and 2-3 months in a warm climate condo in winter. We think that is doable while still enjoying the lifestyle we do now.
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Re: What is the most common ER budget?
Old 12-20-2004, 02:23 PM   #45
 
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Re: What is the most common ER budget?

Just a quick note re. MRI's and "accesssible health care".
I had an MRI recently and when I called to make the
appointment, I honestly think I could have called in
the morning and gotten in that same day. Maybe a
local aberration.

JG
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Re: What is the most common ER budget?
Old 12-21-2004, 05:52 AM   #46
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Re: What is the most common ER budget?

Maybe this is already obvious in previous postings, but are "budgets" posted here assumed BEFORE tax or AFTER tax ?

My retirement withdrawls from 401K I'm assuming will be mostly/all taxable. So I'm assuming I'l need 75K of withdrawls to equal 50K of post-tax consumable income.

Is this consistent with postings/common thought ?

Thanks !
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Re: What is the most common ER budget?
Old 12-21-2004, 06:47 AM   #47
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Re: What is the most common ER budget?

Quote:
Maybe this is already obvious in previous postings, but are "budgets" posted here assumed BEFORE tax or AFTER tax ?

My retirement withdrawls from 401K I'm assuming will be mostly/all taxable. * So I'm assuming I'l need 75K of withdrawls to equal 50K of post-tax consumable income.

Is this consistent with postings/common thought ?

Thanks !
Good point DD, my intent was to find out actual post-tax spending or living expenses. You can't be too specific around here...

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Re: What is the most common ER budget?
Old 12-21-2004, 07:31 AM   #48
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Re: What is the most common ER budget?

I purposely said in my post that the budget did not include income taxes. Income taxes can vary a lot for different reasons and that judgement should be made by the reader for his or her own situation.
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Re: What is the most common ER budget?
Old 12-21-2004, 10:43 AM   #49
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Re: What is the most common ER budget?

We have 4 members in our family - me, wife, 2 kids.

Our expense is $50K per year. This will go up when the kids start college.

Spanky
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Re: What is the most common ER budget?
Old 12-21-2004, 02:37 PM   #50
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Re: What is the most common ER budget?

If you are taking all your living expenses as SWR from your portfolio (as opposed to pension income), then I'll bet most ERs could keep federal taxes at least to a bare minimum -- less than 5% of the SWR, and probably zero.

The reason is that over the years you organize your taxable fixed income and other stuff into the 401k part of your portfolio, or just let it ride in the normal taxable savings but keep interest to a level low enough to keep you in the low tax brackets after your exemptions, deductions etc.

You sell appreciated assets for long term capital gains if you need to raise more cash for your SWR, and you let the bulk of your capital gains ride, unsold. *(since you only trade to rebalance once a year). *You should never assume you are paying income or even Cap Gains tax on 100% of your SWR. *Some of the SWR willl be return of capital, untaxed (when you sell an appreciated asset.) If your cash flowing out of taxable bonds is enough to live off (SWR) your bond allocation is probably too high, but even so, you have deductions/exemptions which lower overall tax.

You'll have some distributions from the funds, but hopefull they won't kill you. (although this year they probably are high.) *Anyway, since you do pay income tax on those distributions, it means you can take that money out and spend it, without paying more tax on it. *So you might choose to have those distributions funnel into a money market account all year, instead of always reinvesting in the fund. *Or you can just let it raise your basis.

Any Divs or LT Capgains you pay should be taxed at 5% in any case-- the special minimum category for those with under 75k (approx) of taxable income (married couple), who still qualify for the 15% tax bracket.

State taxes are a separate issue, but often fall in line with Federal tax.

All this is legal realignment within the current tax code. *You get taxed like the 'working poor'.



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Re: What is the most common ER budget?
Old 12-23-2004, 06:14 AM   #51
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Re: What is the most common ER budget?

I estimate

3900 net income - 600 personal investment + 800 med insurance = 4100 month to replace

any reduced expenses from property paying off and child leaving home will be used for added travel.
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Re: What is the most common ER budget?
Old 12-28-2004, 09:17 AM   #52
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Re: What is the most common ER budget?

I'll bite. Here is a copy of what I've spent so far this year. I anticipate the home 'upgrade' category to go down next year as I already recarpeted the halls / bedrooms / living room / dining room. New tile floors in all but 1 bath. Converted 2 bedrooms to music room and office <ugh, hate that term but you know what I mean>. Refaced kitchen cupboards. New front entryway ... panel doors throughout. Just have family room / laundry room / bath / front yard to go. .

Your system puts me in the 'frugal' category but that doesn't seem to fit my lifestyle. Here is what MSNmoney spit out:

Automobile 2327.29
Charitable Cash Donations 945
Clothing 420
Coffee Out 266.24
Dining Out 975.39
Grocers 1718.2
Gifts 511.39
Furniture 316.92
Gardener 1080
House Insurance 1400
Prop Taxes 2100
Home Maintainence 351
Home Upgrades 6524
Unknown personal 156.48
Internet access 293.38
Telephone 360
PGE 864
Water 602
Garbage 222
Travels 7144.61
Total spent 28607.98

Monthly income after taxes 1825, 21900 annual
Annual 457 dispersal 5000, well below SWR
Short fall: 1707 taken from non-retirement savings which is now down to under 10k ... never really was that high ... maybe I'll take the full SWR next year :
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Re: What is the most common ER budget?
Old 01-01-2005, 09:59 AM   #53
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Re: What is the most common ER budget?

Quote:

Grocers 1718.2
This figure seems low (esp. in California). Our grocery bill is about $4,800 per year (in Minnesota).
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Re: What is the most common ER budget?
Old 01-01-2005, 03:15 PM   #54
 
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Re: What is the most common ER budget?

Hello Spanky..............our grocery bill is about $4800
per year also. This includes booze, paper products, household supplies, etc. Two (2) people and 4 dogs.

JG
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Re: What is the most common ER budget?
Old 01-01-2005, 05:45 PM   #55
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Re: What is the most common ER budget?

Quote:
This figure seems low (esp. in California). Our grocery bill is about $4,800 per year (in Minnesota).
Actually, given the number of farmers markets and the low cost of fresh fruit and vegetables year around in 'regular' grocers <just picked up a fresh pineapple at the local Safeway for 1.99>, it is common for this area. Cherries are under $2 a pound at the point of origin ... can get corn when I pass their stands outside their farms on my weekly trip to the Delta at unbelievable low prices ... so that's what my annual report showed on MSN. Great isn't it?

I was surprised at the "Dining Out 975.39" total ... thought it would be much higher.
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Re: What is the most common ER budget?
Old 01-01-2005, 08:54 PM   #56
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Re: What is the most common ER budget?

Quote:
Actually, given the number of farmers markets and the low cost of fresh fruit and vegetables year around in 'regular' grocers <just picked up a fresh pineapple at the local Safeway for 1.99>, it is common for this area. Cherries are under $2 a pound at the point of origin ... can get corn when I pass their stands outside their farms on my weekly trip to the Delta at unbelievable low prices ...
I was in the Bay Area and Southern Cal last week. I was suprised that the price of fruit, vegetable and sea food were so much lower than Minnesota. However, household items such as shampoo, paper towel, cleaning products, etc, were 30% higher.
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Re: What is the most common ER budget?
Old 01-02-2005, 03:24 AM   #57
 
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Re: What is the most common ER budget?

In my first marriage, I paid no attention whatsoever
to the cost of groceries (or most anything else really)
right up until the ER idea took hold. Even then I did
nothing about budgeting, at least not seriously.
When I became a bachelor again and retired, I was
pretty careful about my spending, especially in the early
days when I was adjusting to my new life. The point is that even though I thought I was being thrifty, my new wife showed me stuff I hadn't even thought of, and some of it was obvious. She is a very careful shopper
and loves a bargain (me too).
She just finds too many of them, and that's why I can no longer park a car in our garage

JG
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Re: What is the most common ER budget?
Old 01-02-2005, 03:54 AM   #58
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Re: What is the most common ER budget?

Quote:
She just finds too many of them, and that's why I can no longer park a car in our garage *

JG *
Lucky you are't a packrat on a farm with two barns, two outbuildings and a garage and a couple of cousins and an aunt to help fill them. I am going to have the biggest yard sale in a year or two. At least I think I can get more at a yard sale than an auction.
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Re: What is the most common ER budget?
Old 01-02-2005, 08:19 AM   #59
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Re: What is the most common ER budget?

Quote:
I was in the Bay Area and Southern Cal last week. I was suprised that the price of fruit, vegetable and sea food were so much lower than Minnesota. However, *household items such as shampoo, paper towel, cleaning products, etc, were 30% higher.
You've pretty much described my diet ... Store brand shampoo is about a dollar and I avoid paper towels ... I wash and reuse real ones.

I stopped eating beef years ago so maybe that's why it is so low?
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