With so much interest about planning for the future in terms of dollar needs, here's a simple exercise that looks into the future... not with calculators that project what you'll need, but with simple logic.
So here's the challenge...
Look ahead to yourself at my age... 80. What do you see yourself spending... for one year? At today's money value, not projecting inflation.
Make some reasonable assumptions.
-Reasonable health
-With housing that you may live in at that age
-With travel and entertainment you think you'll be enjoying
-Consider other current expenses that may be less::
---Clothing
---Automobile expenses (miles driven, replacement)
---Housing
---Entertainment
---Home upkeep expenses.. remodeling, furniture, decor,
---Taxes.. Federal, state, homestead exemptions, tax freezes etc.
No right or wrong answers. When I look around at my age peers, there are some in their original homestead, in Florida Condo's, in CCRC villas (like us), in assisted living, in nursing homes, and some doing world traveling... while about half of those who were born when I was... are dead.
While we were planning our retirement back in 1989, with spread sheets (not calcuators) we projected decreased spending as we aged. It's what I now call Phase II, though didn't look at it that way back then.
So here are some current numbers for DW and I, living in our Liberty Village Villa, still owning in our FL over 55 community at Lake Griffin Harbor, and our lakeside Park Model at Woodhaven Lakes... both of which we'll sell within the next year or two.
Current expenses $40K
After divesting Woodhaven and Florida $30K
If you have a mom , dad or other relatives today you might look at their status... where they live, what they do, where they go, what they spend.
One of the nicest parts of getting older, is that there is less need for planning... less anxiety about whether we'll have enough, wondering whether we'll die before being able to enjoy our retirement . It's much easier getting up in the morning without the overhang of worries about the future. We're very happy and grateful to be where we are, and we DO look forward to many more years, while accepting whatever the future may bring.
The regulars here at ER have already dragged themselves thru our story, but for newcomers, maybe a peek at what is now 28 years of being unemployed.
http://www.early-retirement.org/forums/f27/sharing-23-years-of-frugal-retirement-62251.html
So here's the challenge...
Look ahead to yourself at my age... 80. What do you see yourself spending... for one year? At today's money value, not projecting inflation.
Make some reasonable assumptions.
-Reasonable health
-With housing that you may live in at that age
-With travel and entertainment you think you'll be enjoying
-Consider other current expenses that may be less::
---Clothing
---Automobile expenses (miles driven, replacement)
---Housing
---Entertainment
---Home upkeep expenses.. remodeling, furniture, decor,
---Taxes.. Federal, state, homestead exemptions, tax freezes etc.
No right or wrong answers. When I look around at my age peers, there are some in their original homestead, in Florida Condo's, in CCRC villas (like us), in assisted living, in nursing homes, and some doing world traveling... while about half of those who were born when I was... are dead.
While we were planning our retirement back in 1989, with spread sheets (not calcuators) we projected decreased spending as we aged. It's what I now call Phase II, though didn't look at it that way back then.
So here are some current numbers for DW and I, living in our Liberty Village Villa, still owning in our FL over 55 community at Lake Griffin Harbor, and our lakeside Park Model at Woodhaven Lakes... both of which we'll sell within the next year or two.
Current expenses $40K
After divesting Woodhaven and Florida $30K
If you have a mom , dad or other relatives today you might look at their status... where they live, what they do, where they go, what they spend.
One of the nicest parts of getting older, is that there is less need for planning... less anxiety about whether we'll have enough, wondering whether we'll die before being able to enjoy our retirement . It's much easier getting up in the morning without the overhang of worries about the future. We're very happy and grateful to be where we are, and we DO look forward to many more years, while accepting whatever the future may bring.
The regulars here at ER have already dragged themselves thru our story, but for newcomers, maybe a peek at what is now 28 years of being unemployed.
http://www.early-retirement.org/forums/f27/sharing-23-years-of-frugal-retirement-62251.html
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