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10-31-2007, 05:36 PM
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#21
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Full time employment: Posting here.
Join Date: May 2007
Posts: 984
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$1500 per month is about what I have averaged the last few years......that is with no mortgage (I do live on a large lake with a house valued around $550K). This is while working so with planned travel in retirement the expenses will go up some. Helps to have low property taxes (around $1200 a year) -- one good thing about Alabama.
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10-31-2007, 05:46 PM
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#22
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Full time employment: Posting here.
Join Date: Oct 2007
Posts: 642
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 Quote:
Originally Posted by Dawg52
I can easily live on 25k per year. That includes country club dues, taxes and all. Pretty much my basic budget.
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Questions:
1. How much of that is health insurance?
2. How much is housing cost?
(Explanation: I'm not trying to say your numbers are bunk. I'm trying to understand retirement costs and net worth... assume a $150,000 house with 20% down... a mortage calculator shows that P&I on a $120,000 30 year fixed 6% home loan is $719.46. Taxes & insurance would be the same either way, so discount them. At a SWR of 4%, that's ~$216,000 before taxes... if a 20% marginal tax rate, then that's ~$270,000. $270,000 / 0.04 = $10,800, or $900 / month. That's a 43% increase in budget, or, owning the house outright, again assuming a SWR of 4%, $120,000 * 0.04 = $4,800, a 19.2% increase in assets. The other thing is health care... at $500 / month, that's 24% of your budget.)
TickTock, trying to FIRE as early as possible! 
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10-31-2007, 05:54 PM
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#23
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Full time employment: Posting here.
Join Date: Oct 2007
Posts: 642
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Quote:
Originally Posted by Lakedog
$1500 per month is about what I have averaged the last few years......that is with no mortgage (I do live on a large lake with a house valued around $550K). This is while working so with planned travel in retirement the expenses will go up some. Helps to have low property taxes (around $1200 a year) -- one good thing about Alabama.
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Lakedog,
These are the kind of factors I'm trying to evaluate.
$1,500 / month = $450,000 at a SWR of 4%. Pre-tax? Assuming an effective tax rate of 10%, that equates to $500,000 assets.
Health care? Maybe $500 /month paid by the company? (guessing) Another $167,000, again assuming 10% tax.
So a person scanning through the forum thinks "Gee, all I need is $450,000 and I can FIRE", but misses taxes, home equity, and health care. Suddenly the assests needed go from $450,000 to $1,217,000.
(Again, I'm not trying to challenge numbers here, just trying to evaluate what I need to FIRE...)
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10-31-2007, 06:02 PM
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#24
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Full time employment: Posting here.
Join Date: May 2007
Posts: 984
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My health plan is $125 per month -- my share of the plan provided by my employer and will be the same when I retire at yearend. I do expect that my post-retirement expenses will be more like $2000 per month.
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10-31-2007, 06:32 PM
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#25
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Recycles dryer sheets
Join Date: Jan 2006
Posts: 346
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That's tight for two people. I spend 1350 a month excluding my mortgage right now.
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10-31-2007, 06:50 PM
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#26
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Full time employment: Posting here.
Join Date: Mar 2007
Posts: 577
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We could do $1,500 a month in crisis mode with the house paid off and both kids out of the house. Just like OP said wouldn't pick that as my plan but does give some comfort to know you can operate there if things turn ugly.
__________________
I highjacked a rainbow and crashed into a pot of gold - Bon Jovi
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10-31-2007, 08:30 PM
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#27
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Thinks s/he gets paid by the post
Join Date: Apr 2006
Posts: 1,490
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10-31-2007, 09:48 PM
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#28
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 9,072
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Quote:
Originally Posted by TickTock
Questions:
1. How much of that is health insurance?
2. How much is housing cost?
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1. $175/mo
2. Small house 1100 sq feet, no mortgage, low property taxes in MS, utilities around $150/mo.
Everyone can't live on a budget like mine and do not wish to live in a small house. But for a single person, it's plenty. My previous house was 2,500 sq feet. Didn't need it but was a good investment. I'm not going without anything I want, it's just an inexpensive lifestyle I guess. Looks like a couple of others here have chosen a similar path.
__________________
Retired 3/31/2007@52
Investing style: Full time wuss.
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10-31-2007, 10:23 PM
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#29
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Thinks s/he gets paid by the post
Join Date: Oct 2007
Location: Willamette Valley, Oregon
Posts: 1,979
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Quote:
Originally Posted by Dawg52
1. $175/mo
2. Small house 1100 sq feet, no mortgage, low property taxes in MS, utilities around $150/mo.
Everyone can't live on a budget like mine and do not wish to live in a small house. But for a single person, it's plenty. My previous house was 2,500 sq feet. Didn't need it but was a good investment. I'm not going without anything I want, it's just an inexpensive lifestyle I guess. Looks like a couple of others here have chosen a similar path.
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"Fulltime golf bum"---how much are your monthly greens fees?
__________________
Dreams Worth Dreaming are Dreams Worth Planning For. I Spent a Career Planning for Early Retirement.
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10-31-2007, 10:33 PM
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#30
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 9,072
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Quote:
Originally Posted by RetireeRobert
"Fulltime golf bum"---how much are your monthly greens fees?
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Basic dues with cart path fees and storage(own my cart) is $200/mo. Not something Tiger would play, but not a bad club.
__________________
Retired 3/31/2007@52
Investing style: Full time wuss.
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10-31-2007, 10:54 PM
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#31
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Thinks s/he gets paid by the post
Join Date: Oct 2007
Location: Willamette Valley, Oregon
Posts: 1,979
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Quote:
Originally Posted by Dawg52
Basic dues with cart path fees and storage(own my cart) is $200/mo. Not something Tiger would play, but not a bad club.
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As long as that is covered in your budget, then you're living the life you want to live. Good for you.
__________________
Dreams Worth Dreaming are Dreams Worth Planning For. I Spent a Career Planning for Early Retirement.
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10-31-2007, 11:07 PM
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#32
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Thinks s/he gets paid by the post
Join Date: Apr 2007
Posts: 1,305
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Quote:
Originally Posted by Dawg52
I can easily live on 25k per year. That includes country club dues, taxes and all. Pretty much my basic budget. But plan to spend more as time goes on for travel. Haven't done much my first few months of retirement other than a few quick trips to the gulf coast.
Ahhh the good life. Just back from taking my dog on a 3 mile walk at the reservoir. Beautiful day. Didn't cost me a thing other than a couple of bucks for the gas to get me there and back. Wish I had a picture of the sweet thing I saw jogging. |
Country Club? on 25K? Wow where do you live ... and do you know a good real estate agent? I'm moving! 
__________________
Life is GREAT!
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11-01-2007, 07:28 AM
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#33
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 9,072
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Small town of 40k in central Mississippi. Not for most but it's where I grew up. All my friends are here so I'm satisfied.
Just opened up my monthly news letter from the country club. Dues going up $15/mo. There goes the old budget. Now.....where can I cut back?
__________________
Retired 3/31/2007@52
Investing style: Full time wuss.
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11-01-2007, 11:34 AM
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#34
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Thinks s/he gets paid by the post
Join Date: Apr 2007
Posts: 1,305
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Quote:
Originally Posted by Dawg52
Small town of 40k in central Mississippi. Not for most but it's where I grew up. All my friends are here so I'm satisfied.
Just opened up my monthly news letter from the country club. Dues going up $15/mo. There goes the old budget. Now.....where can I cut back? |
hmmmm... guess I'll pass. Nothing against Mississippi ... We're big city folk.
__________________
Life is GREAT!
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11-01-2007, 02:49 PM
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#35
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 9,072
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Quote:
Originally Posted by megacorp-firee
hmmmm... guess I'll pass. Nothing against Mississippi ... We're big city folk.
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I understand. It's not for all.
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Retired 3/31/2007@52
Investing style: Full time wuss.
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