How much to do need to live off of in RE

REW, the format sure came out different that what I sent. You remined me I forgot to put in for spare house keys.

Shok,
Very good point about the rent.

For the $600,000 condo that I'm renting for 2750, the owner pays:

2600 mortgage (after huge down payment)
650 tax (7900/12)
700 condo fee

3950 total

I looked at buying when I first got here and the $1,600 mortgage was just barely higher the the $1,300 tax/fee.
 
Next year will be my first full ER year with no more income coming from my former employer.
I have a pretty good multiple sheet excel file forcasting my budgets for the next 40 years. I have a decent amount of fat in my budget with a inflation rate of 4.8% for general expenses and 11% for medical expenses.
My personality requires that I track all my expenses and anticipated taxes. If that becomes unnecessary and a burden, I'll stop after several years.

I am single and my forcasted 2006 average monthly budget will be $3800 plus income tax, which breaks down as follows,

Food 270
Groceries
Eating out

Personal 400 (clothing, gifts, charity, health club, misc. and emergency)

Utilities 200
Electricity
Gas Cooking
Phone
Cellular Phone
Internet Access
Cable TV

Living in private house 800
Home insurance
Security Alarm
Neighbordhood patrol
Real Estate Tax
Gas Heat
Water
Home maintenance

Transportation 180
Auto insurance
Inspection & Register
Gas
Subway
Bicycle Usage Credit
Miscellaneous

Medical 750
Health Insurance
Long term care insurance
Medicine
Dental
Medical bills

T & E 1,200

Since I plan to do a fair amount of travelling some of above expense will get reduced like transportation, food, etc. as these will be coming out of the T & E budget.

Should be an interesting experience since I have been extra frugal most of my life (shades of unclemick). I will do my best to counter my frugal life style and use up the quality of life portion of my budget.
The unpleasant burdens of life. Time will tell.
 
Martha said:
This is a tough question depending on individual circumstances, but I do think rules of thumb, like 70% of pre-retirement income, are next to useless.  I have seen ranges here from $12,000 to $100,000 plus a year.

It is helpful to look at your specific circumstances, like:
Click to expand...

Hey JC,

I think Martha got it right-it's subjective. One ER needs 100k; another needs less (maybe much less...)

For me, $1,000 per month, on a 12 month rolling budget.

I really don't try to save, it's just so cheap to live in Thailand  :D.

Lance   
 
jimmycarter said:
I am curious to get some answers as to how much money one needs in retirement.
Click to expand...

Ka Ching! This question launched the Certified Financial Planning industry. Super advice above. Just more proof that you can figure it out for yourself!
 
Martha and Co are right, it really is subjective with no right answer. Depends upon your motivation to retire at all costs and do so at a "survival only" budget or whether greater aspirations prevail.

Reading a lot of the previous posts, I think a few people have retired on a smaller pile than I have now (at 35), and if it is to be believed, JG has retired on a nest egg of not much more than my household income this year. It is all a question of aspiration, motivation and your personal assessment of quality of life issues.

Just my humble view.
 
Like Lancelot my Thailand living budget is in the $1000-$1500/mth range. A bit higher when travelling or visiting Scandinavien home country. Cheers!
 
As posted before, our 25K (no real budgeting) could be reduced easily.
Low cost of living area. Lots of scrounging and dumpster diving.
No debt (except for no-brainer short term investment)
Budget traveling, etc. Getting loose as I get older and with SS on the horizon, but can always cut back a lot further if we need to.

Slightly off topic. Been doing a lot of driving and on Sunday I
was listening to Bob Brinker (boredom?). He actually said 3
things I agreed with. He expressed concern about whether
Greenspan knows when to stop raising rates, doubting if
he really knows (I think he is just guessing like us). He opines
there is no national RE "bubble", just local bubbles, and finally
he called the recent supreme court decision on eminent domain
(taking of private property) "just dreadful" about 5 times.
I think it is way beyond "dreadful' but then I expect this sort of
thing (rampant big-brotherism/erosion of private property
rights) to accelerate. When it comes to "the Supremes",
I'd prefer Diana Ross making these decisions. At least we might
get some good music along with the leftist nonsense. BTW,
our friend Bob also pointed out that 2 justices who voted with the majority were Bush and Reagan appointees, which confirms my suspicion that we need bedrock constitutional conservatives
on the court (like Thomas and Scalia). Bush II doesn't have the cojones and no one else will either. I hope after I am gone
(from the earth or just this forum) you youngsters will recall
"Old John" predicted this stuff. I know a lot of you welcome
"womb to tomb" governmental intervention. You won't like it too
much when the camel's nose is under your particular tent.

JG
 
Honkie said:
Martha and Co are right, it really is subjective with no right answer. Depends upon your motivation to retire at all costs and do so at a "survival only" budget or whether greater aspirations prevail.

Reading a lot of the previous posts, I think a few people have retired on a smaller pile than I have now (at 35), and if it is to be believed, JG has retired on a nest egg of not much more than my household income this year. It is all a question of aspiration, motivation and your personal assessment of quality of life issues.

Just my humble view.
Click to expand...

Hi Honkie. Not honkin' my own horn, just posting my thoughts, views,
experiences, results, etc. I enjoy it. If it helps or amuses, that's nice.
An aside, and I know that I repeat here. My "pile" was not even considered
back in 1993 when I up and quit. I figured to work PT indefinitely and
anyway (being extremely confident) I figured I would work it out
"on the fly". Worked out fine for me. I have no quarrel with those
who feel they need a couple mil in the bank. They don't, but it depends a
lot on how bad you want it. I wanted it real bad and whatever I want
real bad I get. My ex. opined that "Whatever you want, you just go get it!"
True! You only go around once.

JG
 
JG - I agree that it is down to the individual and his motivation and guts - I didn't mean to offend by comparison (though I don't think you would take offence even if I did! You seem that sort of guy!)

Re-reading my post I wrote "..if it is to be believed..." - that's not to infer scepticism at the voracity of your posts, but imply kudos that you have the character to "just do it". With a young daughter, another on the way soon and education, health care and college costs a mere dot on the horizon, I need a little more padding in my pile to take the foot of the gas.
 
I think it is way beyond "dreadful' but then I expect this sort of
thing (rampant big-brotherism/erosion of private property
rights) to accelerate. When it comes to "the Supremes",
I'd prefer Diana Ross making these decisions. At least we might
Click to expand...

John,

The folks that are taking this property is big business. They are currently buying their way into government decisions. When the government is eliminated, the corporations will just eliminate the middleman. They'll just take your property!
 
Rather than "How much do we need to live off in RE?", the question for us has always been, how much are we "going" to live off in retirement, although since I've been a member here I now call it ER or FIRE. We didn't know about such things 7 years ago when the planning began; we just knew we wanted out! Our theory was we'd each end up with $1,250 per mon, so call it 30k per year, and that would simply be the number we'd HAVE to live with, period.

As we got behind the concept and into the spirit of the enterprise that is FIRE we started reducing expenses in an overt way by forced savings via tax deferred 457 plan thru the workplace. Hit a major bump in the road a few years ago that wiped out half of that, but ya know, stuff happens! Move on... In the end DW is drawing her 30K, and when the ticker stops, I'll start drawing mine, so even with the set backs, we're going to end up just about twice as nice as where we expected to be, not counting any taxes we may be creeping into being eligible for at that level.

Still all in all, we're back to every 1st of the month our good friends back at the plant will deposit some sheckles in our bank account, and then it's our job to make 'em last thru the end of that same month without dipping into the reserves. Should be a cakewalk based on all the testimonials I've read on this thread alone, and that included some fellow Kalleeefornians.

Can't wait to join you so I can stop talking about it and start Just Doing It. 8) :LOL: :D :D
 
Ah yes, I agree - 1993 - getting layed off at 49 - the question was how were we going to live - while I was half heartedly looking for a job.

Turned out - the answer was - just fine. I was never 'official' until 55 and the first pension check. Used a lot of monikers inbetween.

Now - even though I'm old (61 - going on 62) - ER is just ducky with me.
 
Cut-Throat said:
John,

The folks that are taking this property is big business. They are currently buying their way into government decisions. When the government is eliminated, the corporations will just eliminate the middleman. They'll just take your property!
Click to expand...

Man, that is even darker than my view (of our future). Anyway, even if you
are correct, I will be long gone by then :)

JG
 
Nobody is taking anybody's property. They are buying it for top dollar. Anyone who doesn't sell when the development tsunami hits will wish they had. Making a sale legally enforceable is troubling at least.

Our town is developing overnight. We are in name-your-own-priceville. Longtime residents are selling out for huge bucks. Resort hotels and monster condos are springing up like sea oats. Get this: The town is afraid to put a height restriction on buildings because, "We couldn't survive a huge lawsuit." These bastards can't be stopped - not here.
 
Not that bad here - yet - but yuck! - gentrification is underway here in the swamp also.

Here's hoping the RE bubble pops soon - not wanting to move in 1993 was one of the big reasons I ER'd.

The emotional ties to a spot vs the forces of change and development - heh, heh, heh - now why can't 'they' just hold still NOW THAT "I" HAVE RETIRED. Pesky humans!

And the property taxes have risen 3 - 4 fold in the last five years. Prior to that the assors office hadn't been out this way in probably 30 yrs. when 10k was an expensive fish camp.

First cup of coffee - grump, grump grump.
 
I hope to hell this goes through.
Click to expand...

Imagine this scenario: the major news media pick this up, and there's a story on the evening news programs. Some deep pocket backers get interested, add sweeteners for the town ("let us build this hotel, and we'll give the city a million dollars for playgrounds and infrastructure improvements"). Thousands of people reserve their night in the hotel even before it's built, so that they can thumb their noses at this new ruling, and the city is forced to approve it since it's for the public good.
 
MRGALT2U said:
25K (gross) for 2 people and 4 dogs. No problem.  $50 per day is
still doable.

JG
Click to expand...

Let me get this straight in my head that's $50 x 365 days or $18250 a year? That's all? Then if you are making it on 25K with two people I should make with one person on 40K ! :)

I will have two pensions plus SS starting next year total gross pensions above plus what I can reap from my Gov thrift savings. Hmmm maybe I should stop worrying.  :D

Kitty
 
Kitty said:
Let me get this straight in my head that's $50 x 365 days or $18250 a year? That's all? Then if you are making it on 25K with two people I should make with one person on 40K ! :)

I will have two pensions plus SS starting next year total gross pensions above plus what I can reap from my Gov thrift savings. Hmmm maybe I should stop worrying.  :D

Kitty
Click to expand...

Hello Kitty. All of the regulars know my story and yes..........you have it right. The quote of mine you posted is literally 100% accurate. Not only is 25K annually comfortable for us, we own two (2) residences, three (3) boats and
two (2) vehicles all free and clear. My personal net worth has
increased significantly since I semiretired in 1993 (no stocks). And..............
I have not yet started drawing on SS or my IRA. So, yeah, you should
"stop worrying" :)

JG
 
unclemick2 said:
Ah yes, I agree - 1993 - getting layed off at 49 - the question was how were we going to live - while I was half heartedly looking for a job.

Turned out - the answer was - just fine. I was never 'official' until 55 and the first pension check. Used a lot of monikers inbetween.

Now - even though I'm old (61 - going on 62) - ER is just ducky with me.
Click to expand...

Yup, yup. Me too. Got laid off at 44 and started to look for another job (not very hard though). We've been ER'd since then - everything just kinda came together. The worst part was the health insurance - I did not know how we would make it without company paid health insurance - it turns out, we're making it just fine with some catastrophic insurance - just pay for the docs and the meds.

This ER thing is hard to get your mind around - you've really got to be a rugged individualist. Nobody else out there doing this (except for you guys).
 
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