DoingHomework
Recycles dryer sheets
- Joined
- May 28, 2010
- Messages
- 254
I've got a long term plan to allow us to retire in about 7 years. I've got hard data on several years expenses from Quicken and that sort of thing that I use to forecast expenses in retirement. Now, I'm fully aware that extrapolating 10+ years into the future is likely to produce huge errors but I think having some estimate is better than none.
I've had this model for several years, not necessarily targeting a particular retirement date, just to track and forecast expenses. I have modeled some expenses based on the price of oil (airline tickets for travel, utilities) and others using a general inflation model.
It occurs to me that a much higher proportion of our expenses in retirement will be affected by the oil price, mostly because of travel and utilities because where we will live the electric rates fluctuate widely with oil prices. Many retirees must be in a similar boat. Does anyone incorporate things like this in their projections? Do you try to hedge the price of oil by owning certain kinds of stocks?
I've had this model for several years, not necessarily targeting a particular retirement date, just to track and forecast expenses. I have modeled some expenses based on the price of oil (airline tickets for travel, utilities) and others using a general inflation model.
It occurs to me that a much higher proportion of our expenses in retirement will be affected by the oil price, mostly because of travel and utilities because where we will live the electric rates fluctuate widely with oil prices. Many retirees must be in a similar boat. Does anyone incorporate things like this in their projections? Do you try to hedge the price of oil by owning certain kinds of stocks?