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12-28-2013, 01:06 PM
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#61
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Dryer sheet wannabe
Join Date: Dec 2013
Posts: 21
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Quote:
Originally Posted by explanade
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)?
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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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12-28-2013, 01:07 PM
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#62
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2008
Posts: 7,438
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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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12-28-2013, 01:22 PM
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#63
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Thinks s/he gets paid by the post
Join Date: Mar 2009
Posts: 2,985
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Quote:
Originally Posted by Dager
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.
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Is this an early April Fools joke?
__________________
Took SS at 62 and hope I live long enough to regret the decision.
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12-28-2013, 01:23 PM
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#64
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,726
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Quote:
Originally Posted by REWahoo
Can you say the same for how you performed in the three years prior to the past three?
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+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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12-28-2013, 01:24 PM
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#65
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Thinks s/he gets paid by the post
Join Date: Aug 2004
Location: St. Louis
Posts: 2,179
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Quote:
Originally Posted by Dager
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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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.
__________________
Dryer sheets Schmyer sheets
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12-28-2013, 01:27 PM
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#66
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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 Dager
... 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...
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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.
__________________
"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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12-28-2013, 01:28 PM
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#67
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2008
Posts: 7,438
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Where do you check for Medicare credits?
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12-28-2013, 01:57 PM
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#68
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Thinks s/he gets paid by the post
Join Date: Aug 2012
Posts: 1,862
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Quote:
Where do you check for Medicare credits?
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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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12-28-2013, 02:15 PM
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#69
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Thinks s/he gets paid by the post
Join Date: Apr 2012
Posts: 2,929
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12-28-2013, 02:37 PM
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#70
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Quote:
Originally Posted by REWahoo
Can you say the same for how you performed in the three years prior to the past three?
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Under Chuck Norris' beard is... another fist!
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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12-28-2013, 03:23 PM
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#71
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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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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.
__________________
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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12-28-2013, 03:46 PM
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#72
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Full time employment: Posting here.
Join Date: May 2011
Location: Marco island
Posts: 815
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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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12-28-2013, 03:54 PM
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#73
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Thinks s/he gets paid by the post
Join Date: Mar 2013
Location: Southern California
Posts: 3,999
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Quote:
Originally Posted by Dager
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.
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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.
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12-28-2013, 04:12 PM
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#74
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Quote:
Originally Posted by Ready
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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Twinkies: the other white meat.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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12-28-2013, 04:13 PM
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#75
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Dryer sheet aficionado
Join Date: Jul 2013
Posts: 46
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Quote:
Originally Posted by FUEGO
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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Can you PM the link to your budget? Thanks
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12-28-2013, 04:32 PM
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#76
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2013
Posts: 9,358
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Quote:
Originally Posted by Dager
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.
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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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12-28-2013, 04:36 PM
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#77
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Thinks s/he gets paid by the post
Join Date: May 2007
Posts: 1,251
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Quote:
Originally Posted by brewer12345
Twinkies: the other white meat.
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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.
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12-28-2013, 05:59 PM
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#78
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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 kikechico
Can you PM the link to your budget? Thanks
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Done!
__________________
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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12-28-2013, 06:49 PM
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#79
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Thinks s/he gets paid by the post
Join Date: Mar 2013
Location: Southern California
Posts: 3,999
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Quote:
Originally Posted by Letj
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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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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12-28-2013, 08:02 PM
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#80
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2011
Posts: 8,421
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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'
__________________
Living well is the best revenge!
Retired @ 52 in 2005
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