Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 02-01-2021, 01:03 PM   #181
Recycles dryer sheets
MrBig1's Avatar
 
Join Date: Nov 2017
Posts: 74
I want to thank you fine folks for responding to this thread. I somehow assumed that my wife and I were the only couple here living and thriving on 56k. We lack for nothing and save money monthly simply living off Social Security and a small VA disability. We have never in the 4 years after my forced retirement had to dip into our TIRA. We will both be 65 in March. No debt is essential in our lives. Pre Covid we traveled 8 months of the year all around the west chasing cool weather and beautiful scenery.
We live in South Carolina and here we pay no income tax state or federal. Property taxes on home and vehicles runs about 4k a year. We travel to escape the brutal summer heat and humidity. Life is good.
MrBig1 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 Early-Retirement.org 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 02-01-2021, 02:48 PM   #182
Recycles dryer sheets
aleabo's Avatar
 
Join Date: Jan 2012
Posts: 62
Quote:
Originally Posted by MrBig1 View Post
I want to thank you fine folks for responding to this thread. I somehow assumed that my wife and I were the only couple here living and thriving on 56k. We lack for nothing and save money monthly simply living off Social Security and a small VA disability. We have never in the 4 years after my forced retirement had to dip into our TIRA. We will both be 65 in March. No debt is essential in our lives. Pre Covid we traveled 8 months of the year all around the west chasing cool weather and beautiful scenery.
We live in South Carolina and here we pay no income tax state or federal. Property taxes on home and vehicles runs about 4k a year. We travel to escape the brutal summer heat and humidity. Life is good.
May I ask how you manage not to pay federal or state taxes? Especially if you younger than 65? Also how to you pay for medical/dental insurance?
aleabo is offline   Reply With Quote
Old 02-01-2021, 02:57 PM   #183
Administrator
Gumby's Avatar
 
Join Date: Apr 2006
Posts: 19,541
Quote:
Originally Posted by aleabo View Post
May I ask how you manage not to pay federal or state taxes? Especially if you younger than 65? Also how to you pay for medical/dental insurance?
MrBig1 may come back to answer for himself, but, in the meantime, I note that VA disability payments are not taxable at all - federal or state. Social security is only federally taxable if 1/2 of your social security + your other taxable income exceeds $32k (MFJ) If their only potentially taxable income is $56k in social security, then 1/2 of that ($28k) is below the threshold for federal taxation. And South Carolina does not tax social security at all.
__________________
Living an analog life in the Digital Age.
Gumby is online now   Reply With Quote
Old 02-01-2021, 04:44 PM   #184
Thinks s/he gets paid by the post
 
Join Date: Mar 2011
Location: North TX
Posts: 1,086
Living in a nice place in Dallas, we live on minimum of $24k annually. Add in all the taxes, insurance and travel, $45k. After FIRE, add in some for health insurance.

Forgot to mention, debt free on cars & home makes a big difference...
Attached Images
File Type: jpg Screenshot_20210201-163851.jpg (159.1 KB, 44 views)
Surewhitey is offline   Reply With Quote
Old 02-01-2021, 04:48 PM   #185
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jan 2018
Location: Tampa
Posts: 9,842
Quote:
Originally Posted by aleabo View Post
May I ask how you manage not to pay federal or state taxes? Especially if you younger than 65? Also how to you pay for medical/dental insurance?
My question too on the Federal side with having SS payments.
__________________
TGIM
Dtail is offline   Reply With Quote
Old 02-01-2021, 05:04 PM   #186
Recycles dryer sheets
 
Join Date: Nov 2004
Location: SF Bay Area
Posts: 214
Quote:
Originally Posted by Surewhitey View Post
Living in a nice place in Dallas, we live on minimum of $24k annually. Add in all the taxes, insurance and travel, $45k. After FIRE, add in some for health insurance.

Forgot to mention, debt free on cars & home makes a big difference...
How is your health insurance/costs so low?
anothercog is offline   Reply With Quote
Old 02-01-2021, 05:09 PM   #187
Dryer sheet aficionado
 
Join Date: Feb 2013
Posts: 47
Late to this conversation but it does provide for some escapeism to think about it. If I had to I could get my nut down to $1500/month. So that's $18,000/year which makes for about $450,000 total at the 4% rule.

This would be a safe but modest 1br apartment in Tucson and local based activities like cycling, skateboarding, tennis, gaming, minor league and college sports attendance etc... Food would have to be mostly home cooked. Medical could be swung with a bronze plan at about $100/month. Yearly dental work would be an easy bus ride south to one of the Mexican border towns once or twice per year.

An economy car might be doable in that budget but one would have to be able to get by on the local bus system if needed. My biggest issue would be cutting down the carousing budget, lol.

I could do it if I had to and be reasonable happy.
MatatuPuncher is offline   Reply With Quote
Old 02-02-2021, 12:10 AM   #188
Recycles dryer sheets
 
Join Date: Nov 2004
Location: SF Bay Area
Posts: 214
Quote:
Originally Posted by UKadventurer View Post
I used to live in the USA (Brit with greencard) but now my Mongolian wife and I live in Nha Trang, Vietnam.

We live on about $800-1000 per month, so letís say $12k per year. We just rent, pay no taxes, hold no debt. I only ride 2 wheelers which were paid for in cash. We donít have health insurance in Vietnam but are covered in our home countries. Our current rental is a very nice big studio in a beachside hotel but we could cut that down substantially by living in an apartment. However, the hotel is our one extravagance because we like the amenities pool and gym). We mainly cook at home but occasionally eat out but thatís cheap too. Thereís no opportunity for international travel at the moment so thatís saving us a lot.

We plan to move to Turkey when the pandemic has eased off. Weíll rent for up to a year (about $150 pm) and possibly buy our own place for $50k. Monthly Expenses should be less in Turkey than Vietnam so we can use some discretionary buying for things like more e-bikes and trips. $12k per year is 4% of my cash assets but we do some online work too, mostly she does.
Iím surprised Turkey will be less expensive than Vietnam. Do you have a kitchen in you studio? I heard it us very inexpensive to dine out in Vietnam. I donít think we would move overseas permanently but wintering in Southeast Asia or Philippines could be a early retirement option for us.
anothercog is offline   Reply With Quote
Old 02-02-2021, 06:22 AM   #189
Thinks s/he gets paid by the post
 
Join Date: Mar 2011
Location: North TX
Posts: 1,086
Quote:
Originally Posted by anothercog View Post
How is your health insurance/costs so low?
DW is with mega-Corp insurance who gives us a nice boost for the HSA choice and subsidies the premiums too. In the end, we pay approx $150 / mo for insurance we don't really use as we're both pretty healthy.

If/when she wants to RE again, we'll likely sign up with the ACA...
Surewhitey is offline   Reply With Quote
Old 02-02-2021, 08:07 AM   #190
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 32,251
Quote:
Originally Posted by Dtail View Post
My question too on the Federal side with having SS payments.
But if you don't have significant income other than SS then SS is not taxable so it sounds very feasible if his VA disability isn't taxable income.... it would be like only having SS.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56
pb4uski is offline   Reply With Quote
Old 02-02-2021, 10:43 AM   #191
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Teacher Terry's Avatar
 
Join Date: Jun 2014
Posts: 6,056
The IRS has a withholding calculator on it’s website. When I put in my pension and SS which equals 30k for just me it shows I don’t owe federal taxes. Now if I withdraw from investments that will obviously change.
Teacher Terry is offline   Reply With Quote
Old 02-02-2021, 01:15 PM   #192
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jan 2018
Location: Tampa
Posts: 9,842
Quote:
Originally Posted by pb4uski View Post
But if you don't have significant income other than SS then SS is not taxable so it sounds very feasible if his VA disability isn't taxable income.... it would be like only having SS.
True, was assuming the VA income was taxable.
__________________
TGIM
Dtail is offline   Reply With Quote
Old 02-02-2021, 08:31 PM   #193
Recycles dryer sheets
 
Join Date: Nov 2020
Posts: 56
Quote:
Originally Posted by Teacher Terry View Post
The IRS has a withholding calculator on itís website. When I put in my pension and SS which equals 30k for just me it shows I donít owe federal taxes. Now if I withdraw from investments that will obviously change.
I figured even with investments it should be tax free if you can stay below 80k, because long term capital gains are at 0% up to 80k... I'm just asking to make sure because I frequently make mistakes around taxes!

I guess there are other kinds of investments, but for stock index at least it seems to be almost all capital gains, with a trickle of dividends. Come to think of it I'm not even sure how to get Vanguard to show how much in a year was due to dividends, short of add up all the individual "reinvested" messages.
Bullwinkle is offline   Reply With Quote
Old 02-03-2021, 05:30 AM   #194
Dryer sheet wannabe
Mauser's Avatar
 
Join Date: Jan 2021
Location: High Mountains in the Southwest
Posts: 22
Wow - I'm new here, and I cannot believe how fast these threads grow! But here's our situation:

We live on 20 acres in the mountains, fairly remote. Mortgage is about $2,000/mo (includes insurance and taxes). Other than that, we have ZERO debt. Healthcare is VA and Medicare.

When we are not traveling, such as all of 2020, our total spend every month is about $1,000, and that includes somewhere around $1,000 on liquor every four months or so when we finally come down off the mountain to get to Sam's. Travel is 100% discretionary, so I consider anything spent on travel is meaningless as long as we can afford it.

I cannot say what our "budget" is - we do not use one. I used to obsessively record every penny in Quicken for 20+ years, but I quit that when they tried to force me to start paying an annual license for their software. The stats and reports I got from Quicken were interesting, but unnecessary. Now I just track what we spend only by how much I have to transfer into our checking account every month to keep the balance steady. I have never made a budget, simply because I find it a waste of time when I already manage money without a problem - I have always spent much less than I made, even way, way back when I was paid minimum wage to build mobile homes. I can pretty much buy whatever I want without worrying about the price, but I DON'T. I compare prices on a box of toothpicks, and I buy anchovies in bulk because the 4oz cans cost too much. etc. It has never seemed difficult to me to live frugally. And I guess that is why we do not have to worry about money now.

I will admit that DW wishes we wasted more money - she would rather spend $12 lb on meat at the store than eat the elk I put in the freezer - the same with vegetables at the store vs what I grow in the garden. But she is one of those who doesn't feel she is rich unless she can spend it and be seen (sigh). She eats out 2-3 times a week with her friends; I almost never do.

I am totally happy with my 28 yr old truck, but we will break down and buy her a new car this year, just so she can feel better spending some money. I guess that will effectively increase our "monthly" spend, even tho we will pay cash for it.
Mauser is offline   Reply With Quote
Old 02-03-2021, 08:59 AM   #195
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
SecondCor521's Avatar
 
Join Date: Jun 2006
Location: Boise
Posts: 6,778
Quote:
Originally Posted by Bullwinkle View Post
I figured even with investments it should be tax free if you can stay below 80k, because long term capital gains are at 0% up to 80k... I'm just asking to make sure because I frequently make mistakes around taxes!

I guess there are other kinds of investments, but for stock index at least it seems to be almost all capital gains, with a trickle of dividends. Come to think of it I'm not even sure how to get Vanguard to show how much in a year was due to dividends, short of add up all the individual "reinvested" messages.
As long as your regular income is less than your standard deduction and your total income is less than the 0% LTCG bracket for your filing status, and you don't have self-employment income, and your provisional income is less than the threshold level and you don't create any taxes or penalties by early or non-qualified withdrawals from IRAs and 529s, then you'll generally have no federal taxes. State taxes may apply.

To see how much you've received in dividends throughout the year at Vanguard, you can log in, then go to "My Accounts", then "Tax Center", then "Quarterly summary" then pick the account you're interested in. At the end of the year (well in January actually), Vanguard should send you a consolidated 1099, and your total dividends will show up there on your 1099-B in boxes 1a and 1b.
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
SecondCor521 is online now   Reply With Quote
Old 02-04-2021, 03:38 AM   #196
Thinks s/he gets paid by the post
gayl's Avatar
 
Join Date: Jun 2004
Location: Diablo Valley (SF Bay Area)
Posts: 2,540
Quote:
Originally Posted by RunningBum View Post
You've been on this board for 16 years, even if you have mostly lurked, and have not seen people who live on a small amount of income?

Hint: they don't live in the SF Bay area.
Quote:
Originally Posted by Major Tom View Post
I live in the SF Bay area, in Oakland, to be precise. Current annual spend is ~$27,600/year....
I live in SF Bay Area (north side of Mt Diablo) and live on 3120 a month. Quite well actually. House paid off, property tax 3k yr, only travel (pre-pandemic) 3◊ year and always overseas (Europe, South America, Indonesia, and Australia 2019). But then I'm single
gayl is offline   Reply With Quote
Old 02-04-2021, 03:40 AM   #197
Thinks s/he gets paid by the post
gayl's Avatar
 
Join Date: Jun 2004
Location: Diablo Valley (SF Bay Area)
Posts: 2,540
Delete
gayl is offline   Reply With Quote
Old 02-04-2021, 06:30 AM   #198
Thinks s/he gets paid by the post
 
Join Date: Aug 2012
Posts: 1,452
Quote:
Originally Posted by gayl View Post
I live in SF Bay Area (north side of Mt Diablo) and live on 3120 a month. Quite well actually. House paid off, property tax 3k yr, only travel (pre-pandemic) 3◊ year and always overseas (Europe, South America, Indonesia, and Australia 2019). But then I'm single

Sounds perfectly reasonable to me. It seems that the HCOL card is thrown out a lot when people explain why they "can't" live on 40k or 50k or 60k or whatever. To me the only real high cost of these places is RE. I don't think you have to pay $80k for a Toyota highlander, as an example, in Silicon valley that you could by in Fresno for $40k. Same for food etc. but you certainly can pay 2,3,4x or more for a place to live. So if one has inexpensive or paid off housing it can get them way down towards a national average or median. I realize that state and local taxes can be in the same category as the RE but mostly I believe it is still the RE as the main culprit. I have seen several posts of people living in SF that support this.
Obviously this is not some earth shattering observation on my part but felt like stating it anyway.
finnski1 is offline   Reply With Quote
Old 02-04-2021, 11:15 AM   #199
Thinks s/he gets paid by the post
 
Join Date: Mar 2015
Location: the prairies
Posts: 4,200
Quote:
Originally Posted by gayl View Post
I live in SF Bay Area (north side of Mt Diablo) and live on 3120 a month. Quite well actually. House paid off, property tax 3k yr, only travel (pre-pandemic) 3◊ year and always overseas (Europe, South America, Indonesia, and Australia 2019). But then I'm single
There are people here paying $12 - $15k a year in property taxes alone...that's perfectly fine as it appears they're happy and don't have to run to the food bank every week.

There are also people here who pay $3k or less per year on property taxes with a paid off house and don't have expensive hobbies. In those cases it's very possible to live quite well on about $3k a month.
Music Lover is offline   Reply With Quote
Old 02-04-2021, 11:17 AM   #200
Thinks s/he gets paid by the post
Major Tom's Avatar
 
Join Date: Nov 2009
Location: SF East Bay
Posts: 4,005
Quote:
Originally Posted by finnski1 View Post
Sounds perfectly reasonable to me. It seems that the HCOL card is thrown out a lot when people explain why they "can't" live on 40k or 50k or 60k or whatever. To me the only real high cost of these places is RE.
+1. The cost of housing is the factor that seems to differ the most when comparing the COL in different areas. Many of the other differences can be ascribed to lifestyle choices.

If you're in a HCOL area in California, and purchased your home a long time ago, you are most likely in a good place. Prop 13 is the gift that keeps on giving.
__________________
Contentedly ER, with 3 furry friends (now, sadly, 1).
Planning my escape to the wide open spaces in my campervan (with my remaining kitty, of course!)
On a mission to become the world's second most boring man.

Major Tom is online now   Reply With Quote
Reply


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
Blood test : Calcium low, Vitamin D Low, Sodium low Lakewood90712 Health and Early Retirement 16 05-15-2016 05:07 PM
Low cost of living town with low humidity? FANOFJESUS FIRE and Money 111 09-01-2008 03:59 PM
glut of liquidity. low cost of capital. low yields perinova FIRE and Money 3 01-10-2007 05:40 PM
You Can If You Think You Can Eagle43 Other topics 0 02-21-2006 02:39 PM
Warm,Low cost of living,No/Low taxes, inexpensive golf & water sports JohnnieRed Life after FIRE 60 01-16-2006 10:54 AM

» Quick Links

 
All times are GMT -6. The time now is 07:35 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2022, vBulletin Solutions, Inc.