Expecting the unexpected expenses

[calico1597]

Our blacktop driveway is overdue for resurfacing. It's long, two separate entrances within two acres. Costing $14K next month. Ouch

 

[mountainsoft]

Other family situations where you may want to help.

Other than unplanned healthcare expenses for ourselves, the biggest unexpected expense I am planning for is caring for my mom. She is in assisted living now and will run out of money in eight years or so. She may or may not outlive her money, so I'm factoring in several years of helping her our in our own retirement plans.

 

[CoolRich59]

Looks like a good list. The only "curveball" I see is timing.

It's on my mind because so far this month (only 10 days in), I've had a big unexpected vehicle repair expense, a very large unexpected medical bill, and my son is getting married in NY during the high season next year, so I'm renting a house for that week and need to put down 50% up front to reserve the place we want.

 

[DatumPoint5]

I placed some "one off" items in my budget forecast that would need to be replaced over time in my retirement plan. Currently totals up to 123,940. I update it from time to time, but, since I don't know "when" any of these will be needed, I try to ensure I have enough "buffer cash" set aside for any given event.

Occasional expenses over 30 years
		$$ per	Total
2	Car	15,000	30,000
1	Furnace	6,000	6,000
3	Washer/Dryer	2,800	8,400
2	Water Heater	800	1,600
2	Stove/Refrigerator	3,000	6,000
3	Dishwasher	800	2,400
4	Televisions	500	2,000
3	Microwave	300	900
4	Other Appliances - Coffeee Maker, etc	500	2,000
10	Minor Appliances - Blender, Hair Dryer, Wireless Routers, Computers, etc	100	1,000
1	Roof		12,000
2	House Painting	3,000	6,000
2	Emergency Repairs - Plumbing, Drainage, House, Yard (old water main)	5,000	10,000
2	Emergency - Medical, Dental, Optical	5,000	10,000
30	Car Trips - Sightseeing	500	15,000
3	Showerhead	100	300
4	Faucets	150	600
2	Gutters	120	240
2	Mattress	600	1,200
4	Vacum	300	1,200
2	Carpeting Inside	2,000	4,000
2	Carpeting Outside	200	400
2	Pool Pump	600	1,200
2	Pool Liner	150	300
4	Air Conditioners	300	1,200
		Total	123,940

 

[ivinsfan]

Are you on well water or city water? We had the water line from the street to the house start leaking a few years ago, a completely unexpected $3,400 repair. If on a well, plan on maintenance expenses for that and for whatever type of sewage system the house has, be it septic or sewage line. Fortunately we haven't had that but I'd wager that isn't cheap either.

Bingo on that just had to drill a new well, perfectly fine water until one day it started showing a little fine sand in it and then 4 weeks later ended up with a new well. The well was old enough it had a metal casing the new PVC casings they use now should last forever or way longer then we need it.


Well water it very low cost until it isn't....

 

[misterantsypants]

Slightly dislocated jaw from an accident. $30,000 oral surgery quote in LA. Ouch, words like "re-break", "repositioning appliance for months", still resonate.

Luckily someone with near perfect teeth advised Dental Tourism which combines a long vacation with dental work. Mexico, Thailand, Hungary charge 10%, so after a great trip to Mexico, after a week of beach enjoyment went into Tijuana and got fixed, no braking, no lift. I got 2 days of TMJ massage, a mouthguard devise and 2 more days of massage. $2,800.

 

[REWahoo]

...went into Tijuana and got fixed...

Similar thing happened to a buddy of mine when he was in the military back in the 70's. He later regretted not being able to have children.

 

[Rustic23]

Toys!

I did not realize I was going to 'Need', two Honda Scooters, a couple of Kayaks, no boar or airplane (yet), and more travel than we use to take. Buy new car more often than we use to, maybe this will slow down. I justify this on new safety features.

 

[MrsHaloFIRE]

I see other have added dental as a wildcard. Also don't forget meeting insurance deductibles. 2pct on a homeowners policy is an option some people have. And ours has 2 separate deductibles, wind/ hail and other. That could be a bundle before your ins pays a dime. Also burial. We feel like a bill will likely be ours when a parent goes to the beyond so we had to build that in. Bodies don't bury themselves. Orthodontia for anyone? Are you in a HOA and could find yourself with a special assessment bc the board cant do mathematics? Are you likely to get sued based on prior professional work? Do you have adequate umbrella and prof liability coverage? Also any other items you "traditionally" gift (my husband traditionally writes a big check when the nieces/nephews get married so Im counting heads as more and more are born.) Weddings to fund etc and so forth. Unexpected incoe tax liability is a stock poops out an unplanned gain, or property taxes begin to turn up the heat. They switched to digital metering in my area and everyone SWEARS their bill went up just from that with no change in consumption. Maybe it did, maybe it didn't. Also, had I retired 30 years back I ay not have anticipated carrying a computer in my pocket and those assoc expenses. 30 years from now will you be able to pay for your time travel service, or whatever is the going technology at the time?

 

[Teacher Terry]

In the past 3 years have spent 44k on implants. Until a year ago we had 4 old dogs and the monthly medications alone were 400/month. Now we have 2 left and just had surgery on both to the tune of 1500. Young dog needs to be spayed and have a dental. She is 3 and is a retired show dog that was given to us.

 

[marko]

I know one has to allow for non-recurring large expenses, but itemizing them and estimating the costs takes too much work for me.

.

+1
And you really can't anticipate everything.

We find that our unexpected expenses are fairly the same year to year, just for different things.

We just set aside about $10k for it. Some years better than others.

 

[Big_Hitter]

Pretty comprehensive list of retirement "shocks"

https://www.soa.org/Files/resources/research-report/2017/shocks-inexpected-factor-retirement.pdf

 

[Mdlerth]

Title redacted

In the past 3 years have spent 44k on implants.

Good manners prevent me from giving voice to the unworthy thoughts this comment inspires.