I started wondering this after seeing recent threads about how much people spend in retirement / have in retirement / medical billing versus actual payments / etc.
How much do you keep in reserve for unknowns?
My retirement budget has a yearly amount that covers normal spending / vacations / taxes / insurance / healthcare (insurance and out of pocket). Then I have monies set aside for future car replacement / major household appliances replacement - house maintenance (roof / hvac). Finally, I have an extra amount for big unknowns (issues that I do not think insurance may cover completely (medical issues (we have no known issues) / hurricanes / something I just haven't envisioned).
I realize I am cautious but sometimes I wonder if I am being too cautious. My current reserve for unknowns is $700k. I also realize the right amount should allow you to sleep at night, but sometimes I wake up wondering if it is over kill.
How much do you keep in reserve for unknowns?
My retirement budget has a yearly amount that covers normal spending / vacations / taxes / insurance / healthcare (insurance and out of pocket). Then I have monies set aside for future car replacement / major household appliances replacement - house maintenance (roof / hvac). Finally, I have an extra amount for big unknowns (issues that I do not think insurance may cover completely (medical issues (we have no known issues) / hurricanes / something I just haven't envisioned).
I realize I am cautious but sometimes I wonder if I am being too cautious. My current reserve for unknowns is $700k. I also realize the right amount should allow you to sleep at night, but sometimes I wake up wondering if it is over kill.