Join Early Retirement Today
Thread Tools Search this Thread Display Modes
I'm back...
Old 07-28-2020, 03:08 PM   #1
Confused about dryer sheets
bigriver's Avatar
Join Date: Feb 2020
Posts: 8
I'm back...

I stopped in a while back and was asked a few questions on my spending. I was guessing at what I needed, and I know that I was wasting money.

54 Single no kids

Burned out from work its more caustic now.
House is paid for, I have no debt, good heath besides Blood pressure, over weight (not too bad) from sedentary job.
House 180K in the current market.
401k 480k
Cash 98k
Stocks/Mutuals in Brokerage 750k
IRA -430k
Small pension at 65 4k year with no COLA.
Over the last 2 years I have lived and paid bills spending 40-50k without budgeting. This year I am expecting to spend about 30k covering all my bills, taxes and vacations. I am estimating $12k a year on health insurance if I pull the plug, from what I've seen. I plan to live year 1 and part of 2 off cash and probably try consulting part time and/or work winters for the first few years because I feel like I'm close, but I'm also scared to take the big step. And they probably won't let me go part time.

Any suggestions, or what I am missing? Firecalc says at 50k a year and SS at 65 along with pension I should be good til I'm 90.

Appreciate it!!
bigriver is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 07-29-2020, 01:52 PM   #2
Thinks s/he gets paid by the post
HI Bill's Avatar
Join Date: Dec 2017
Posts: 2,176
Welcome! A 3.5% WR gives you $61K annually, so if that budget is solid and includes contingencies (such as replacing roofs, HVAC, cars, etc), it looks like you may be good to go. Have you gone to Health Sherpa or another website to determine actual health care costs? What if the ACA is terminated? Does your budget include any travel, hobbies, or purchases that you'd like to pursue? Once you RE, if you didn't budget for things that you really want to do, you may regret RE.

Instead of spending all cash up front, when the markets are up, I'd look at selling some of the stocks/MFs to fund ER every year, to reduce the later tax rates when you start tapping the 401(k) and have taxable pension and SS income. Best wishes!
Balance in everything.
HI Bill is offline   Reply With Quote
Old 07-29-2020, 03:44 PM   #3
Recycles dryer sheets
Join Date: Feb 2019
Location: Tampa Bay
Posts: 209
Originally Posted by bigriver View Post
Over the last 2 years I have lived and paid bills spending 40-50k without budgeting. This year I am expecting to spend about 30k covering all my bills, taxes and vacations. I am estimating $12k a year on health insurance if I pull the plug

This concerns me a bit... while you have some idea how much money you spent within a 20% range, you are only now budgeting at at only 30K (it isn't clear if the $40-50K included health costs). Until you lived off 30K, I wouldn't trust an estimate lower than your prior outflow... What are you not going to spend on to the tune of $10-20K/yr?

I don't "budget" but have tracked my expenses since adulthood and so have a very good idea what I spend for my projections. For the last year and a half, I have had my pay direct deposited into my investment account and pay myself an allowance from that account. Very easy to see if my allowance will be enough to live off of when I FIRE myself/test my comfort spending at that level. You may want to try the same but if not, really scrub your expenses and read some retirement horror stories for contingencies you may have missed.

Good Luck!
FLSUnFIRE is offline   Reply With Quote
Old 07-29-2020, 04:02 PM   #4
Aerides's Avatar
Join Date: Nov 2015
Posts: 7,992
If you have over $1.5m in assets, plus your home, you're probably fine as a single person (assuming you're staying that way). Your HC estimate of $12k is about right also in most states, but do check healthsherpa for better ideas.

Either way if your budget is 40 or 50 you're fine with that amount, but better certainty would help. I know I could easily estimate something at 50 and then turn around and see oops no I missed a couple things it was 70.
Aerides is offline   Reply With Quote
Old 07-31-2020, 05:05 PM   #5
Confused about dryer sheets
bigriver's Avatar
Join Date: Feb 2020
Posts: 8
Thanks, I'll check out Health Sherpa.

While I haven't really budgeted, I have been aware of what I spend. I've saved and invested my whole life and spent as I needed for some luxuries but not for junk. I do a lot of nice things for family and friends and drive a 15 yo truck.
The 50k a year will include health insurance.
30k/yr will cover all the bare necessities. The other 20k cover vacation/roof/HVAC/hobbies, etc...

BTW, I've never been a FIRE person, I've just saved and invested and took a hard look at the end of 2019 and thought it seems possible to retire early.

Thanks for the feedback, I've got a little more to consider.
bigriver is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Trip Cancellation/Interruption Insurance for multiple back-to-back tours overseas audreyh1 Travel Information 38 10-29-2019 05:45 PM
BigMoneyJim is Back BigMoneyJim Hi, I am... 21 10-07-2019 11:04 PM
ORP is back! dory36 Other topics 34 10-03-2003 02:20 PM

» Quick Links

All times are GMT -6. The time now is 07:16 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.