Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 04-22-2013, 02:33 PM   #21
Moderator
rodi's Avatar
 
Join Date: Apr 2012
Location: San Diego
Posts: 8,796
We're in process of doing some big item maintenance on our house - replacing the 50 year old windows, updating the 50 year old bathrooms. So that's money we can spend now rather than in retirement when cash isn't as free flowing. Since we're DIYers - all materials will be purchased before retirement, (or funded), but not necessarily installed. It's up to my husband to organize the work flow. I just fund it and lend a hand when asked. (I work on it too - but he's the boss of these projects... I'm just the unskilled labor.)

Cars - we've got a fund set aside - and will continue to fund it. Our cars are older (mine was purchased in 2005, his in 1995) but both are in excellent mechanical shape... so no need to replace them till they start needing more repairs. At this point we're hoping the old truck will continue to be super reliable... and will become a vehicle for our sons to use when they start driving.
__________________

__________________
rodi 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 04-22-2013, 02:55 PM   #22
Recycles dryer sheets
EllisWyatt's Avatar
 
Join Date: May 2010
Posts: 233
We're currently trying to get our "ducks in a row" and take care of the foreseeable (??) major expenses prior to retiring.

As an example: Just noticed that the big brick chimney in our recently purchased house is pulling out from the wall. Got a structural engineer out to take a look at it and -surprise, surprise - when the house was built, only 2/3 of the fireplace is on it's foundation. This didn't get caught by the home inspector.... So now have an estimate from the foundation guys to jack up the fireplace, put steel I-beams and piers (pier and beam house) and otherwise upgrade the foundation for.....$8500. Hadn't planned on that, but prefer to take care it now, w*rk a little bit longer, rather than take an early hit to the stash.
__________________

__________________
EllisWyatt is offline   Reply With Quote
Old 04-22-2013, 03:30 PM   #23
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,446
I bought a new vehicle before retiring - one more matched to our outdoor lifestyle.

We had paid off the house two years prior.

I had set aside extra funds for travel for the first two years - expecting there would be a lot of pent-up demand. And there was.

I padded, and padded, and padded the retirement fund.

We sold some excess "assets" - like some land DH had bought 15 years prior as an investment. This got rolled into the retirement fund.

We were pretty much up to date on home maintenance items.
__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is online now   Reply With Quote
Old 04-22-2013, 04:29 PM   #24
Recycles dryer sheets
 
Join Date: Feb 2013
Posts: 377
I'm going to have to purchase a w/d and refrigerator for my new place upon retirement but I don't know the dimensions of where I'm going. I mean - I know the place I'm going, but I won't be inside until I retire...also, will need mostly all new furniture. I've set aside $10k for new laminate floors, the above appliances and furniture. I plan on decorating simply and sparsely - so sick of clutter. I won't have a garage so I plan of getting rid of most STUFF prior to retirement.
__________________
LinCella is offline   Reply With Quote
Old 04-22-2013, 07:41 PM   #25
Dryer sheet aficionado
 
Join Date: Jun 2011
Posts: 36
Wow! Thanks for all the great responses, and the variety of thoughts and actions. Keep them coming!
__________________
Retire44 is offline   Reply With Quote
Old 04-22-2013, 08:37 PM   #26
Recycles dryer sheets
Cat-tirement's Avatar
 
Join Date: Mar 2013
Posts: 188
I am budgeting some funds for house repairs (e.g. new roof) that will need to be done before we can sell the house after retirement. Also a good chunk of money for relocation expenses, as we will be moving to the opposite coast. I doubt I can convince MegaCorp to pay to move me away as they did to move me here in the first place.
__________________
How can you tell when a cat is retired?
Cat-tirement is offline   Reply With Quote
Old 04-22-2013, 09:42 PM   #27
Recycles dryer sheets
inky's Avatar
 
Join Date: Apr 2009
Posts: 125
Apply for any new rewards credit cards you want while you still have your job. I've heard the credit card deals requiring excellent credit can be picky about income.
__________________
inky is offline   Reply With Quote
Old 04-22-2013, 09:45 PM   #28
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Sep 2005
Location: Northern IL
Posts: 18,255
Quote:
Originally Posted by Retire44 View Post
Just curious if there has been discussion here about purchases to make in the year or two leading up to RE? Do people replace appliances, AC, vehicles and some of those type of expenses in the year or two before retiring?
Why would you do this? What would be the benefit?

Take a car for example. What is the difference between spending $20,000 (or whatever) in the year before you retire, or the year after? It's still $20,000.

Delaying it if you can stretches your dollar. As others have said, when retired you have more time to shop around for deals, or maybe some DIY repairs.

I fail to see ANY advantage to spending money early versus later, when there is a choice.

I am curious as to why are you even considering it, since you didn't provide any pros/cons from your POV? If these costs would delay retirement, I see that as a totally different decision - but these seem to be expenses that will occur in a few years either way .

-ERD50
__________________
ERD50 is online now   Reply With Quote
Old 04-22-2013, 09:52 PM   #29
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
Quote:
Originally Posted by ERD50 View Post
Why would you do this? What would be the benefit?

Take a car for example. What is the difference between spending $20,000 (or whatever) in the year before you retire, or the year after? It's still $20,000.
I think the difference is: If you think there may be a new car purchase needed for $30,000 a couple years down the road and you want to retire, you might just work long enough to raise the extra $30K and then buy the car and retire, perhaps putting off a retirement by a few months or a year, give or take.

One can also rationalize that if they know a big expense is coming soon, we might as well work long enough to pay for it without depleting retirement savings. Judgment call, based on personal preference and comfort levels.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 04-22-2013, 10:16 PM   #30
Full time employment: Posting here.
 
Join Date: May 2007
Posts: 530
I had some dental work done while I still had dental insurance.

For the first year or two after I RE, I thought it would have been nice if I'd taken care of a couple of modest home improvements while I was still working and drawing a paycheck. As time has passed, I feel more comfortable to spend the money now if I want to, but the desire to make the improvements seems to be dwindling. I suppose this is a good thing.
__________________
ksr is offline   Reply With Quote
Old 04-22-2013, 11:06 PM   #31
Thinks s/he gets paid by the post
 
Join Date: Apr 2006
Location: North Bay
Posts: 1,026
Quote:
Originally Posted by ERD50
Why would you do this? What would be the benefit?

Take a car for example. What is the difference between spending $20,000 (or whatever) in the year before you retire, or the year after? It's still $20,000.

Delaying it if you can stretches your dollar. As others have said, when retired you have more time to shop around for deals, or maybe some DIY repairs.

I fail to see ANY advantage to spending money early versus later, when there is a choice.

I am curious as to why are you even considering it, since you didn't provide any pros/cons from your POV? If these costs would delay retirement, I see that as a totally different decision - but these seem to be expenses that will occur in a few years either way .
+1
Unless you are buying information that might change your decision about when to retire, there is no value in spending money early. So I could see getting that last thorough physical and getting your teeth/gums taken care of before you lose your dental coverage and go down to high-deductible medical coverage. But otherwise money spent next year instead of this year has one more year to work for you earning interest/dividends/capital gains.
__________________
scrinch is offline   Reply With Quote
Old 04-22-2013, 11:37 PM   #32
Thinks s/he gets paid by the post
 
Join Date: Sep 2009
Location: Hong Kong
Posts: 1,571
Among the items on my pre-retirement list:

1. medical check up and new glasses - my retirement date is locked in, but I still wish to maximise my recovery under the medical policy which will partly pay for them

2. buy a shredder - currently I do all my personal shredding in the office. Post-retirement, I'll have to do it at home

3. copy all my personal stuff off my work computer

4. transfer my accumulated points on my corporate Amex card to my Asia Miles account

5. delete all work stuff off my home computer
__________________
Budgeting is a skill practised by people who are bad at politics.
traineeinvestor is offline   Reply With Quote
Old 04-23-2013, 12:32 AM   #33
Thinks s/he gets paid by the post
 
Join Date: Mar 2004
Posts: 1,988
Not a purchase list but an excellent pre-retirement prep list (Post #9 by Nords is excellent): How do/did you prepare for ER?

omni
__________________
omni550 is offline   Reply With Quote
Old 04-23-2013, 03:09 AM   #34
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 1,152
Yeah, I forgot about the medical stuff. In the 18 months before I retired, I got all my dental work done and eye checks and glasses/contacts. This was partly because I had that kind of insurance which I would not have after retiring. And partly because I planned to travel immediately after retirement and just wanted to have it taken care of.
__________________
kramer is online now   Reply With Quote
Old 04-23-2013, 09:33 AM   #35
Full time employment: Posting here.
martyp's Avatar
 
Join Date: Sep 2010
Location: Bangkok
Posts: 963
We had the house painted, roof replaced, and replaced a skylight the first few months into ER. We have a budget for occasional expensive items such as appliances, house repairs, and cars.
__________________
Happy, Wild, and Free
martyp is offline   Reply With Quote
Old 04-23-2013, 09:36 AM   #36
gone traveling
 
Join Date: Jul 2007
Posts: 333
Quote:
Originally Posted by Retire44 View Post
Just curious if there has been discussion here about purchases to make in the year or two leading up to RE? Do people replace appliances, AC, vehicles and some of those type of expenses in the year or two before retiring?
In our case we had a custom home built about two years before I retired so everything in the house was still pretty new. I did buy a new tractor and a new car the year before I retired so we started off with most major items as new. (except me ) We had planned this for several years before retiring along with the most important thing, which was to retire with "zero" debt.
__________________
HighRoller is offline   Reply With Quote
Old 04-23-2013, 09:47 AM   #37
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Sep 2005
Location: Northern IL
Posts: 18,255
Quote:
Originally Posted by ziggy29 View Post
Quote:
Originally Posted by ERD50
Why would you do this? What would be the benefit?

Take a car for example. What is the difference between spending $20,000 (or whatever) in the year before you retire, or the year after? It's still $20,000.
I think the difference is: If you think there may be a new car purchase needed for $30,000 a couple years down the road and you want to retire, you might just work long enough to raise the extra $30K and then buy the car and retire, perhaps putting off a retirement by a few months or a year, give or take.

One can also rationalize that if they know a big expense is coming soon, we might as well work long enough to pay for it without depleting retirement savings. Judgment call, based on personal preference and comfort levels.
I understand that, but it sure seems to me that is the answer to a different question, the "Do I have enough to retire?" question.

And actually, that answer doesn't seem to apply anyhow. Whether I spend the $30,000 now and reduce my current portfolio, or plan for an added $30,000 future expense with a current portfolio that is $30,000 larger is mostly a wash (disregarding the time-value of money).

Either way, it is a $30,000 draw from the portfolio. What advantage can there be to spending any sooner than required? If there is a good reason to spend earlier (car maintenance is becoming excessive, reliability is poor), then it is a good idea to replace it independent of retirement date. I just see no meaningful correlation, and plenty of reasons to delay (get more use out the vehicle, appliances, etc), you have more time in retirement to comparison shop, do some DIY repairs etc.


I now see scrinch covered this a few posts back, agree with that -


-ERD50
__________________
ERD50 is online now   Reply With Quote
Old 04-23-2013, 09:58 AM   #38
Thinks s/he gets paid by the post
Nodak's Avatar
 
Join Date: Feb 2010
Location: Cavalier
Posts: 2,317
In the last three years before I retired I replaced the fridge, range, and dishwasher in my kitchen and also replaced the hot water heater thinking that would minimize expenses once retired. However, my plans changed once I retired and I found that I wanted to move closer to relatives in a larger town with more things to do. So now I am working on selling my home. I guess the new appliances may help to sell the house quicker. I guess one should remember the old Robert Burns line "the best laid plans of mice and men oft go astray".
__________________
"Don't take life so serious, son. It ain't nohow permanent." Pogo Possum (Walt Kelly)
Nodak is offline   Reply With Quote
Old 04-23-2013, 10:14 AM   #39
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 5,160
Quote:
Originally Posted by EllisWyatt View Post
We're currently trying to get our "ducks in a row" and take care of the foreseeable (??) major expenses prior to retiring.

As an example: Just noticed that the big brick chimney in our recently purchased house is pulling out from the wall. Got a structural engineer out to take a look at it and -surprise, surprise - when the house was built, only 2/3 of the fireplace is on it's foundation. This didn't get caught by the home inspector.... So now have an estimate from the foundation guys to jack up the fireplace, put steel I-beams and piers (pier and beam house) and otherwise upgrade the foundation for.....$8500. Hadn't planned on that, but prefer to take care it now, w*rk a little bit longer, rather than take an early hit to the stash.
This makes a lot of sense to me. If you've got some unknown expenses, get those figured out. Likewise I agree with a good medical checkup, though pre-PPACA I wonder if it's better to get the new policy with no known health issues, and get a checkup shortly into the new policy. But like W2R says, the overriding factor is your health, not HI expenses.

Other than that, it makes zero sense to me to replace something that works and you are satisfied with just to head off any possible maintenance expense down the line. Similar to others, my budget has car and home maintenance expense items, and a capital replacement item. If your car is a year or two from being ready to replace, pre-fund this. Doesn't matter if you lump it all in the same account or have a separate account. If you need $1.2M to retire and plan to buy a 30K car soon, make sure you have $1.23M. No need to spend that $30K before you need to.
__________________
RunningBum is offline   Reply With Quote
Old 04-23-2013, 10:45 AM   #40
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
Quote:
Originally Posted by RunningBum View Post
This makes a lot of sense to me. If you've got some unknown expenses, get those figured out. Likewise I agree with a good medical checkup, though pre-PPACA I wonder if it's better to get the new policy with no known health issues, and get a checkup shortly into the new policy.
Prior to PPACA, you had to deal with the HIPAA hoops: For example, going from your employer plan while employed to 18 months of COBRA, and then to an individual plan which could not impose pre-existing condition exclusions. You have to maintain essentially consistent "creditable coverage" (with gaps of up to 63 days allowed) for a period of time.

If you didn't go through those HIPAA hoops the right way, and you had a new and significant diagnosis found shortly after starting your new policy (diabetes, cancer, organ failure, et cetera) the insurer could try to fight the claim, saying you already had the condition when the policy was issued and thus excluded from coverage.

Today, for the most part, because of PPACA all you really need to do is make sure you have solid coverage lined up in to January 2014 and you should be "safe" whatever happens between now and then.
__________________

__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 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


 

 
All times are GMT -6. The time now is 10:20 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.