Finance Dave
Thinks s/he gets paid by the post
- Joined
- Mar 29, 2007
- Messages
- 1,861
Although I do our planning based on pre-retirement spending and then adjusting for increases/decreases, the amount for us comes out to about 55% of pre-retirement income.
The reductions in pre-retirement spending are:
1) Mortgage paid off (the year we re-hire)
2) No more FICA taxes (7.65%)
3) Lower income taxes based on lower tax bracket
4) No more savings (we save 32%, so that's a biggie)
5) Modest reductions in work-related expenses
The additions are:
1) Health costs (we'll be in early '50s and will have to buy insurance on the open market until we're 65)
2) Utility costs since we'll be home during the day
3) LTC
4) Vacations / entertainment (plan to take one additional vacation/year)
5) Hobbies
When you LBYM, the fact that you no longer need to save is a HUGE deal. 15 year mortgages are also awesome.
Dave
The reductions in pre-retirement spending are:
1) Mortgage paid off (the year we re-hire)
2) No more FICA taxes (7.65%)
3) Lower income taxes based on lower tax bracket
4) No more savings (we save 32%, so that's a biggie)
5) Modest reductions in work-related expenses
The additions are:
1) Health costs (we'll be in early '50s and will have to buy insurance on the open market until we're 65)
2) Utility costs since we'll be home during the day
3) LTC
4) Vacations / entertainment (plan to take one additional vacation/year)
5) Hobbies
When you LBYM, the fact that you no longer need to save is a HUGE deal. 15 year mortgages are also awesome.
Dave