costs to retire "comfortably" in each state

[kgtest]

At first glance our future ER budget looks safe on 118k less than now if you consider commute costs 1k, FICA 30k and IRA contributions 40k, Mortgage Payment 27k and daycare 20k.

Then again, Early retiree healthcare, and college bills for 2 when we FIRE will probably put a cramp on our ER a little....hopefully the markets are kind and we FAT FIRE.

 

[karen1972]

Based upon my past research before I retired, these amounts seem OK. For instance, around 2010 the Elder index came out with what amount of gross income was needed (by county) to stay off any sort of public assistance for the elderly. Those amounts were typically (IIRC) in the range of $40 to $55K per year. Add some inflation and some extra fun money, and the total seems to be in the ballpark for this summary.

edit: here is the aforementioned elder index, and I did not recall correctly. A spot check showed the annual minimum income to be in $35K to 45K https://www.ncoa.org/economic-security/money-management/elder-index/

Thanks, this link is way more helpful than that article as it breaks down single/couple w and without mortgage, etc. It creates a much better comparison. In our area it would take $30k for a couple w/o a mortgage to meet their needs and the article says $58k to be comfortable so then one can debate if $28k of disposable income is 'comfortable'.

 

[Teacher Terry]

Here it says 67 but the median income is 47. It said Kansas is 55 but living in even a bigger city like Wichita is cheap. That seems too high.

 

[ExFlyBoy5]

A couple of things that sends up red flags before I even read the article.

1) It's a Marketwatch piece. Enough said.
2) If #1 above wasn't enough, then the article headline tells you all you need to know that this is nothing more than click-bait.

This is exactly how much it will cost to retire well in every state in America

Exactly? Really? Right....

 

[Dtail]

A couple of things that sends up red flags before I even read the article.

1) It's a Marketwatch piece. Enough said.
2) If #1 above wasn't enough, then the article headline tells you all you need to know that this is nothing more than click-bait.



Exactly? Really? Right....

Although I do like the Marketwatch retirement calculator.

 

[ExFlyBoy5]

Although I do like the Marketwatch retirement calculator.

It might be OK, but I don't have much of a need for that.

 

[brett]

The only things that matters to most people are COL and the tax situation where you happen to live and whether you own or rent.

 

[PatrickA5]

Dang! I spend double what I'm supposed to be spending. Or, perhaps I'm just above average.

 

[Offgrid Organic Farmer]

There's a lot variance even in one state. The article says it costs $67,810.61 to live comfortably in Washington state. We've never spent much over $40,000 even now while working, but someone living in Seattle would probably have a difficult time living on that.

I agree.

The article says that for Maine it takes $72,579.03, but I only bring in around $19,000/year.

In Portland Maine you might need $50k but nobody within 2 hours of my town needs any more than $20k/year.

 

[FreeBear]

edit: here is the aforementioned elder index, and I did not recall correctly. A spot check showed the annual minimum income to be in $35K to 45K https://www.ncoa.org/economic-security/money-management/elder-index/

Thanks for the Elder Index link! Seems very useful to establish a minimum budget.

It's showing $48K for a survival budget for a couple with a mortgage in our area. Seems realistic for a "typical" couple who is not super frugal. Would probably require 2 strong SS streams or pension/savings to make it w*rk. Or maybe renting a small apartment...

We plan for a $55K minimum because, well, we want to have some fun even if we have to tighten up. In reality, we live very comfortably on $70-80K/yr.

 

[24601NoMore]

Now we get into philosophy. Is a mortgage an "expense" (like rent) or is it more an "investment" (like monthly contribution to a 401(k))?

The interest part of a mortgage payment is an expense. The principal portion is a liability reduction. At least from a pure accounting perspective.

 

[unclemick]

There's a lot variance even in one state. The article says it costs $67,810.61 to live comfortably in Washington state. We've never spent much over $40,000 even now while working, but someone living in Seattle would probably have a difficult time living on that.

Things haven't seemed to change. I lost UW Seattle two college roommates in the early 60's. One to Central and one to Eastern due mainly to cost of living room and board.

Fast forward to the 90's a niece rented a 'studio' apartment in Seattle for ? 1200/mo.

heh heh heh - I suspect depending on the area one could find wide variations.

 

[Teacher Terry]

Chart says 42k for survival budget for our area.

 

[gayl]

Oh wow. I guess I can't afford to retire here in SF Bay Area, California because the MoneyWatch author states:

California: $85,893.44

and I've never earned more than 60k year and currently only get about 50k (50% investments + pension)

 

[ownyourfuture]

And here I thought I was living comfortably, yet what I spend in an average year is only half of what this article thinks I need....

BOOM!

 

[aja8888]

Oh wow. I guess I can't afford to retire here in SF Bay Area, California because the MoneyWatch author states: and I've never earned more than 60k year and currently only get about 50k (50% investments + pension)

Looks like you will have to move to Mississippi or Oklahoma.

 

[joeea]

I agree.

The article says that for Maine it takes $72,579.03, but I only bring in around $19,000/year.

In Portland Maine you might need $50k but nobody within 2 hours of my town needs any more than $20k/year.

I live less than 2 hours south of your town. $20k wouldn't work here.

 

[Badger]

I hope I don't have to move since Florida is $.30 over my budget.


Cheers!

 

[EarlyBirdly]

"I have never understood what people are spending so much money on."


Finally...I am not alone. I must admit when most people confide in me what they spend monthly, I become confused. NONE of their numbers make any sense to me. (?)


Then, one day not long ago, I figured it out. Most people have no idea what they are spending their money on (let alone really have a grip on money management) so they live in some sort of delusional monetary fantasy with nothing actually based in tracking, data, or the basics of financial awareness.

Perfect Example: A Family member lost his job and when I queried him what they needed to live on he promptly responded " about $10,000 a month". That made NO sense due to the house, neighborhood, cars, kids, etc. When I asked how in the Heck he came up with those numbers all was revealed " Well, I make 120k a year so we need $10,000 a month."

Oh, stupid me. It's just that simple.

Isn't it?

 

[Dtail]

I hope I don't have to move since Florida is $.30 over my budget.


Cheers!

When the hurricane hits, you will need to stay inside that day and thus will save the $1 usually spent on coffee at 7-11.
There you go, solved...

 

[Gumby]

"I have never understood what people are spending so much money on."


Finally...I am not alone. I must admit when most people confide in me what they spend monthly, I become confused. NONE of their numbers make any sense to me. (?)


Then, one day not long ago, I figured it out. Most people have no idea what they are spending their money on (let alone really have a grip on money management) so they live in some sort of delusional monetary fantasy with nothing actually based in tracking, data, or the basics of financial awareness.

Perfect Example: A Family member lost his job and when I queried him what they needed to live on he promptly responded " about $10,000 a month". That made NO sense due to the house, neighborhood, cars, kids, etc. When I asked how in the Heck he came up with those numbers all was revealed " Well, I make 120k a year so we need $10,000 a month."

Oh, stupid me. It's just that simple.

Isn't it?

Your relative has enjoyed one of the great privileges of upper middle class life - the ability to be mentally lazy about money. He doesn't know how much he spends or where he spends it because there has always been enough to make that effort unnecessary. By contrast, if you are dirt poor and sweating out the last few days until the SNAP benefits hit your EBT card, you know exactly how much money you spend and where you spend it.

From my long observation, most people are mentally lazy about most things, not just money. Not incapable by any means, but totally unwilling to make an effort unless forced by circumstances to do so.

 

[Spanky]

Yup. Lot's of places here in CA that are brutally expensive, but the central valley is not one of them.

The cost of living in Silicon Valley, for example, is outrageous. The median home cost is over $1M. Thanks for Google, Facebook, Apple, Amazon for their generous pay. A software engineer working at one of those companies with less than 5 years experience makes over $250K.

 

[Teacher Terry]

For Farmer to live on so little I am guessing no vacations, eating out, experiences you pay for and many other things many of us enjoy doing.

 

[gwraigty]

And here I thought I was living comfortably, yet what I spend in an average year is only half of what this article thinks I need....

Ooooh, you'd better double your spending you so can feel even more comfortable!

Ohio: $57,468.72 - have not spent near this much for our household of 4.

 

[ShokWaveRider]

The Numbers for Florida are "Florida: $61,246.30". Based on our own personal expenses for 2019 we spent $28,236.29k on all MANDATORY expenses including insurance, food etc. That leaves $33,010.01 to "Blow That Dough".