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Old 12-29-2020, 08:19 AM   #21
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Fed and State income taxes were way more than our next highest spending category (Roth conversions), and will be for another 5+ years. Otherwise about the same, we compare to budget monthly so no year end surprises.
Do you consider the conversion itself to be an expense, or just the taxes due on it? I have a method that treats conversion as a wash, as long as I had estimated taxes correctly. It's just moving money from one account to the other, and paying taxes that you'd have to do before withdrawing the money later down the line.
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Old 12-29-2020, 08:19 AM   #22
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I don't categorize anymore. I just figure spending as difference in checking account balance. I was at $51k of annual spending end of November, so I'll be below planned $60k for the year. No travel and no snowbird condo cut spending by about $20k. I don't monitor DW spending. That's a whole other accounting measure that I don't want to do.
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Old 12-29-2020, 08:31 AM   #23
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We spent about 17% less than expected, mainly because we called off a big vacation that we had planned for late September and because we did not dine out after March 16th. We had a couple of unexpected household repairs (furnace and dishwasher) but I always budget a contingency amount for that. The only large unexpected and unbudgeted expense was cancer surgery and chemotherapy for one of our cats. But she is doing quite well now, so it was money well spent.
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Old 12-29-2020, 08:34 AM   #24
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aaronc879 did you move out of the bay area?
Never lived in the bay area. I live in Wisconsin in a growing but still relatively small and low cost area.
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Old 12-29-2020, 08:36 AM   #25
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Originally Posted by RunningBum View Post
Do you consider the conversion itself to be an expense, or just the taxes due on it? I have a method that treats conversion as a wash, as long as I had estimated taxes correctly. It's just moving money from one account to the other, and paying taxes that you'd have to do before withdrawing the money later down the line.
Just the taxes due, Fed and State.
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Old 12-29-2020, 08:37 AM   #26
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Never lived in the bay area. I live in Wisconsin in a growing but still relatively small and low cost area.
Sorry I must be thinking of another aaron. Yeah big saving in those small towns.
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Old 12-29-2020, 08:59 AM   #27
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Haven’t looked in a looong while, but considering no restaurant dining, and travel restricted to car trips and US “Hampton Inn” type hotels I expect it to be quite low relative to last year. Not counting the huge gifting we did in Jan which had already been carved out and set aside from other short-term funds.

I usually look in Jan after my credit card statements all come in.
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Old 12-29-2020, 09:15 AM   #28
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We spent about $34K in 2019 and about $28K in 2020, difference between the two is mostly travel. This year is the lowest expense year since we started tracking our spending 6 years ago. On average we'd expect annual expense of $30K. The spending doesn't include costs associated with rental properties since they are cash-flow positive. We include our contribution to HSA and medical spending about $8K-10K per year, which we expect to be the premium plus deductibles once we switch to ACA next year.
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Old 12-29-2020, 09:15 AM   #29
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in 2020 I spent a total of $41,292*. Single, highish COL area in Europe, own my home outright.

Groceries: $4,932
Gas: $1,875
Insurance: $1,428 (home, auto, umbrella)
Health: $1,888 (HI premiums & out of pocket costs, including vision and dental)
HOA fees: $2,361 (including heating)
Electricity: $158
Water: $182
Property Taxes: $856 (includes sewer and trash collection)
Home maintenance: $1,301
Bank fees: $205
Auto Maintenance: $718
Parking, tolls: $147
Internet: $864
Gifts and financial support: $3,990
Discretionary spending: $21,087 (includes home improvement, furnishings, clothing, restaurants, vacations, hobbies, sport, books, movies, subscriptions, electronics, etc...).


* all amounts converted to USD at the current exchange rate.
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Old 12-29-2020, 09:47 AM   #30
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I track everything we spend, but not categorized, but I do keep a summary year on year.

In 2020 we spent 49.9% of last year's spend. We usually travel extensively and in 2020 we had to cancel 4 booked vacations, including a cruise to New York from Southampton followed by 3 weeks in the USA.

2010 $79,486 First full year of retirement
2011 $78,752
2012 $73,886
2013 $85,222
2014 $109,368
2015 $108,680
2016 $121,802
2017 $123,309
2018 $92,419
2019 $94,387
2020 $47,262 Covid year
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Old 12-29-2020, 09:54 AM   #31
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Our spending is down 8% this year if we don't count one-time home repairs we made in preparation of selling our primary house. Almost all the travel budget went to tools category!
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Old 12-29-2020, 10:01 AM   #32
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All in we're around $134K for the year. If I subtract college (last year!) and one-time gifts to kids, we end up at a more reasonable $68K.

"Normal" spending is 33% less than last year as almost every other category is much lower due to Covid.
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Old 12-29-2020, 10:12 AM   #33
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Total $501,264.25
Minus taxes/investing -$223,505.45
Minus boat -$50,000.00
Minus truck -$75,500.00
Minus mortgage payments -$45,355.00

Net spending $106,903.80

Less than 50% of net spending in 2019 - no travel, kids rep sports, lower income/income taxes
Just curious, are property taxes included in your taxes bucket? And why do you take mortgage out? I’d love to see more breakdown of the net spend bucket, mainly because I think our spend pattern is somewhat similar and curious what those kids are going to cost us in a few years!

I tend to ex out big one time expenditures, since they’re usually discretionary, but I think of the property tax and mortgage as key baseline spend items.
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Old 12-29-2020, 10:37 AM   #34
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We spent 88% of our 2019 expenses, including taxes and other extraordinary items, but the make up of the spending was vastly different. We did not take RMD's in 2020, as the Cares Act let us skip a year, so our income taxes were only 32% of our 2019 Fed & State Taxes. And our travel and dining out spending were effectively truncated on March 9th, when we returned early from our winter sojourn and began our hibernation. But we did buy an expensive car for cash and spent another 10K on home improvements and still managed to underspend last year's expenses. This is the first year since 2015, that we spent less than our pensions, and social security.

Hopefully 2021, or the second half of it, will be a more normal spending year, with the associated fun attached.
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Old 12-29-2020, 10:53 AM   #35
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Both retired in 2009. At the time dh was 54 and yours truly 51. DH receives a small non cola'd pension. We own our home and have no mortgage. The WR is based on the portfolio balance at the beginning of each year.

All expenses are included...from marshmallows to federal taxes. We almost tripled our home improvement budget and doubled our booze budget (quality booze over quantity...yeah, that's my story and I'm sticking to it). Spent half of our travel budget. But we still managed to have a negative WR for this year.

2009 Projected WR.....0 (dh worked part of that year, we had to take no reserves)
2010 Projected WR....3%......Actual 2.71%
2011 Projected WR....3%......Actual 3.27% (health issues)
2012 Projected WR....3%......Actual 2.87%
2013 Projected WR....3.5%...Actual 4.94% (new car)
2014 Projected WR....3.5%...Actual 2.68%
2015 Projected WR....3.5%...Actual 3.57%
2016 Projected WR....3%......Actual 2.01% (dh started SS in June)
2017 Projected WR....3%......Actual 1.5%
2018 Projected WR....3%......Actual 4.1% (blow that dough)
2019 Projected WR....3%......Actual l.17%
2020 Projected WR....3%......Actual -.75% (I started SS in January)
2021 Projected WR....3%......Actual TBD


I like to stay under 3% each year, but will not panic if we spend more. Each year brings new 'surprises'....gotta roll with it.
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Old 12-29-2020, 10:54 AM   #36
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We spent 75% of what we spent in 2019, including taxes.
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Old 12-29-2020, 10:56 AM   #37
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Quote:
Originally Posted by Alan View Post
I track everything we spend, but not categorized, but I do keep a summary year on year.

In 2020 we spent 49.9% of last year's spend. We usually travel extensively and in 2020 we had to cancel 4 booked vacations, including a cruise to New York from Southampton followed by 3 weeks in the USA.

2010 $79,486 First full year of retirement
2011 $78,752
2012 $73,886
2013 $85,222
2014 $109,368
2015 $108,680
2016 $121,802
2017 $123,309
2018 $92,419
2019 $94,387
2020 $47,262 Covid year
Wow, you really rolled up the sidewalk in 2020!
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Old 12-29-2020, 11:03 AM   #38
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Since Retirement:

Total Spending
2018 $79k
2019 $72k
2020 $65k

Travel
2018 $25k
2019 $22k
2020 $17k

Percent of Portfolio
2018 2.5%
2019 2.2%
2020 1.5%
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Old 12-29-2020, 11:08 AM   #39
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Join Date: Oct 2015
Location: Indiana/Florida
Posts: 287
 
Taxes $206,263
House 1 Maintenance $29,773 new roof, generator
House 2 Maintenance $10,976 new furnace
Gifts/donations $71,396
Food/dining $18,021
Vices $9,980
Pets $4,686
Utilities $11,268
Auto $6,879
Boat $520
RV purchase $78,909
Entertainment $1,197
Health/fitness/medical $10,283 Bought 2 Peloton bikes @$5,300
Personal care $1,790
Clothes/electronics $4,660 new Apple products Mac, watch, Ipad
Travel $4,747
Insurance $5,747
Total $477,095
Remove one time gifts, RV purchase and taxes = $126,923
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Old 12-29-2020, 11:16 AM   #40
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Wow, you really rolled up the sidewalk in 2020!

Yes indeed. In 2016 and 2017 we also bought 2 cars and a house and then lots of house upgrades. Plus still got nice long trips to Belgium and France those years.
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