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Old 12-28-2013, 02:06 PM   #61
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How much of the wife's income can support a higher budget?

What about taking the kids to Disneyland or amusement parks for the adults (Europe, Asia, etc)?
In my vision of ER, I look to whether necessities can be covered with existing savings. All extraneous matters can be paid with extra income, if there is such. It's as all families live... luxuries are enjoyed with the extra money that exists. Based on my calculations, I have at least $1k/mth of extra money, and even if I used $24/yr (double current expense) on necessities, there will be occassions where extra income is earned from investments or consulting work to pay for luxeries. If not, then we forgo luxuries that year, but the fact we couldn't splurge on luxuries doesn't mean we cannot ER if we can at least pay necessities.
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Old 12-28-2013, 02:07 PM   #62
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Most people probably made money in equities the past 3 years.

How about around 2007, 2008 and early 2009?
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Old 12-28-2013, 02:22 PM   #63
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Depends on how good you are at investing. A good investor makes money in both up and down markets. I don't buy funds and let my money sit only to watch it tanked three months later. I buy individual stocks after thorough research and watch them daily. In three years, I've bought and sold over 100 stocks and not lost a penny on a single one. I suspect you are buying funds/indexes and letting others make allocations/decisions for you.
Is this an early April Fools joke?
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Old 12-28-2013, 02:23 PM   #64
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Can you say the same for how you performed in the three years prior to the past three?
+1

When I was first retired I did very well in the down market of '00 and the first part of '01. So much so, I increased my stock allocation to around 80% ... and got crushed. Almost ended my early retirement before it started.

It's a lot easier to make money in bull markets.
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Old 12-28-2013, 02:24 PM   #65
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Originally Posted by Dager View Post
In my vision of ER, I look to whether necessities can be covered with existing savings. All extraneous matters can be paid with extra income, if there is such. It's as all families live... luxuries are enjoyed with the extra money that exists. Based on my calculations, I have at least $1k/mth of extra money, and even if I used $24/yr (double current expense) on necessities, there will be occassions where extra income is earned from investments or consulting work to pay for luxeries. If not, then we forgo luxuries that year, but the fact we couldn't splurge on luxuries doesn't mean we cannot ER if we can at least pay necessities.
Two other things to keep in mind:

1) make sure you both have enough credits to qualify for Medicare at 65

2) be aware that if you get free healthcare through the Medicaid program, not only will you have limited choices of medical professionals that take Medicaid, but if you and/or spouse gets sick and has Medicaid pick up the tab (after 55?), then when the first spouse passes on, Medicaid may come back and take assets from the estate to pay for previous medical expenses. That has the potential to be a giant whammy to the surviving spouse and to the portfolio! It's essentially making you 'self-insured' for medical care after 55 - albeit, with a delayed payback.
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Old 12-28-2013, 02:27 PM   #66
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... A good investor makes money in both up and down markets. I don't buy funds and let my money sit only to watch it tanked three months later.

... In three years, I've bought and sold over 100 stocks and not lost a penny on a single one...
I will say that you do not need advice from any of us here. You can certainly retire anytime you like, and still get richer every year.
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Old 12-28-2013, 02:28 PM   #67
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Where do you check for Medicare credits?
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Old 12-28-2013, 02:57 PM   #68
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Where do you check for Medicare credits?
I believe it's on your Social Security statement, which you can get online.

my Social Security ? Sign In Or Create an Account
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Old 12-28-2013, 03:15 PM   #69
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......As for food, I suggest you try using coupons and shop at Stater Bros instead of Trader Joes and Whole Foods, and avoid the pricey steaks and seafood (I didn't grow up eating that, so I'm not missing out)......
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Depends on how good you are at investing. A good investor makes money in both up and down markets......I suspect you are buying funds/indexes and letting others make allocations/decisions for you.
Oh my. If hubris could be used as currency, you'd be financially set for life.
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Old 12-28-2013, 03:37 PM   #70
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Can you say the same for how you performed in the three years prior to the past three?
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Old 12-28-2013, 04:23 PM   #71
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Dager, I don't think you are way off, but make sure to put together an all inclusive detailed budget that includes taxes, insurance, any extra healthcare or dental expenses, and capital replacement items (big house maintenance like roof/siding and new(er) cars for example).

I recently ER'd at age 33. I have put together a pretty comprehensive retirement budget of $32k/yr for our family of 5 (3 kids from age 2 to age 8). That number includes a paid off house and all taxes, insurance premiums, core expenses, and discretionary expenses. I'll PM you a link to my budget I've posted elsewhere (that also includes how I developed that early retirement budget). Obamacare subsidies will pick up most of our HI costs.

Kid expenses might go up during their teen years, but I bet they will drop off at some point a few years after they are no longer teenagers. It'll all even out most likely.

I haven't ruled out the possibility of picking up some cash doing a little hustling during my ER. Especially if my kids make an honest attempt at bankrupting my ER.
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Old 12-28-2013, 04:46 PM   #72
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I see no reason why you wouldn't be able to maintain your current lifestyle in retirement.
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Old 12-28-2013, 04:54 PM   #73
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As for food, I suggest you try using coupons and shop at Stater Bros instead of Trader Joes and Whole Foods, and avoid the pricey steaks and seafood (I didn 't grow up eating that, so I'm not missing out). We 're not an obese family like many, so that cuts down on food costs as well.
So if you get your fruits and vegetables from your garden, and you don't eat steak or seafood, what are you buying at Stater Brothers? I haven't shopped there in years, but from what I recall, other than produce and meat/chicken/fish, just about everything there is just processed food.
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Old 12-28-2013, 05:12 PM   #74
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So if you get your fruits and vegetables from your garden, and you don't eat steak or seafood, what are you buying at Stater Brothers? I haven't shopped there in years, but from what I recall, other than produce and meat/chicken/fish, just about everything there is just processed food.
Twinkies: the other white meat.
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Old 12-28-2013, 05:13 PM   #75
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Dager, I don't think you are way off, but make sure to put together an all inclusive detailed budget that includes taxes, insurance, any extra healthcare or dental expenses, and capital replacement items (big house maintenance like roof/siding and new(er) cars for example).

I recently ER'd at age 33. I have put together a pretty comprehensive retirement budget of $32k/yr for our family of 5 (3 kids from age 2 to age 8). That number includes a paid off house and all taxes, insurance premiums, core expenses, and discretionary expenses. I'll PM you a link to my budget I've posted elsewhere (that also includes how I developed that early retirement budget). Obamacare subsidies will pick up most of our HI costs.

Kid expenses might go up during their teen years, but I bet they will drop off at some point a few years after they are no longer teenagers. It'll all even out most likely.

I haven't ruled out the possibility of picking up some cash doing a little hustling during my ER. Especially if my kids make an honest attempt at bankrupting my ER.
Can you PM the link to your budget? Thanks
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Old 12-28-2013, 05:32 PM   #76
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Depends on how good you are at investing. A good investor makes money in both up and down markets. I don't buy funds and let my money sit only to watch it tanked three months later. I buy individual stocks after thorough research and watch them daily. In three years, I've bought and sold over 100 stocks and not lost a penny on a single one. I suspect you are buying funds/indexes and letting others make allocations/decisions for you.
Wow, then you are in a position to be giving advice to Warren Buffett instead of asking advice of us lowly thousandaires and millionaires that post here.

Buffett lost billions in the last financial downturn -

Warren Buffett loses 3bn in global financial crisis | Business | The Observer

Glad to hear you are much better at picking stocks than he is. I am surprised with your investing track record you aren't a billionaire, too.
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Old 12-28-2013, 05:36 PM   #77
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Twinkies: the other white meat.
Lol, it's impossible to eat good non-processed food for cheap unless you grow your own fruits and vegetables and raise/hunt your own meat and always prepare your own meals. We prepare most meals at home but find that my children get bored with that and do want to go out occasionally like their friends.
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Old 12-28-2013, 06:59 PM   #78
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Can you PM the link to your budget? Thanks
Done!
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Old 12-28-2013, 07:49 PM   #79
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Lol, it's impossible to eat good non-processed food for cheap unless you grow your own fruits and vegetables and raise/hunt your own meat and always prepare your own meals. We prepare most meals at home but find that my children get bored with that and do want to go out occasionally like their friends.
Agreed. I was shocked to see that I spent over $6,000 for groceries this year for two people. But breaking it down, that really comes out to less than $3.00/meal, or roughly $8.00 per day. So I guess that's not all that bad for eating fresh non-processed food. If I had a large family I suspect economies of scale would allow these costs to go down a bit further.

And yes, I remember the Twinkie quite well from my childhood. I seem to remember they actually tasted quite good, although my tastes for sweets have evolved in the past 40 years or so.
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Old 12-28-2013, 09:02 PM   #80
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Oh my. If hubris could be used as currency, you'd be financially set for life.
After reading the whole thread here, I wonder if the OP actually has a question.

Seems to have all the answers to the caveats posed; doesn't need our help from what I see. That, or his "mind is already made up, don't bother me with facts"

Jus' sayin'
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