Scott Burns -- You're Saving Too Much to Retire

[unclemick]

Jarhead

Perhaps so, perhaps so - I forget my past tendency to get a tad overzealous on frugal. My one year 12k budget early on - caused a minor rebellion and things like rebuilding the front porch from scrap hurricane debris MIGHT not be the approach of some ER's.

Although - given statistics - there HAS to be more than one left handed, INTJ, mildly insane ER out there - can't just be me.

BTY - the porch lasted two years before I gave in to 'suggestions' to remodel - tossed in a sun porch and spare room with it.

I miss that old porch - had a real homey - Ma and Pa Kettle look - definately stood out - even in our neighborhood.

 

[Billy]

MJ,
I tell people it's either wet and hot, or hot and wet. The rains do cool things down a bit. Also, it depends on where you are in Thailand. If it's rainy we just wait it out. What's the rush?  This being your first trip, your in for a great experience.

Sure Ben let's knock down a few Beer Changs. If there are 3 or more ER's in a Beer Garden does that qualify as a convention This could be a first!

Billy
www.RetireEarlyLifestyle.com

 

[TromboneAl]

The "Hemingway exit" avoids many many problems.

Any statistics on how often this occurs?

 

[Mr._johngalt]

Any statistics on how often this occurs?

I don't, but in Hemingway's case it ran in the family.

JG

 

[Mr._johngalt]

Jarhead

Perhaps so, perhaps so - I forget my past tendency to get a tad overzealous on frugal. My one year 12k budget early on - caused a minor rebellion and things like rebuilding the front porch from scrap hurricane debris MIGHT not be the approach of some ER's.

Although - given statistics - there HAS to be more than one left handed, INTJ, mildly insane ER out there - can't just be me.

BTY - the porch lasted two years before I gave in to 'suggestions' to remodel - tossed in a sun porch and spare room with it.

I miss that old porch - had a real homey - Ma and Pa Kettle look - definately stood out - even in our neighborhood.

Interesting how you can get attached to an old piece of crap. Right now our deck has an old wooden table (I got it free somewhere) with most of the finish gone. Even DW (whose eye tends to be less easily offended) wants me
to get rid of it. I love that old table. Spent many happy times out there
with an adult beverage and "Old Man River" flowing by.

JG

 

[Mr._johngalt]

Unclemick:  Can't speak for the other posters, but my point when I posted was that due to the
change of both myself and my wife's tastes, and spending habits, over the last 19 years since I retired, we find ourselves spending just about the same monthly amount that we started out with when we first retired.  Actual amount, not adjusted for inflation.
Probably beating this point to death, but the change was an evolution, and not a self-imposed tightening up of the purse strings.

Regards, Jarhead

Also taking a chance on beating this to death................

My semiretirement income was next to nothing. Lots of non-income producing
investments and I worked about 20 hours a week for maybe $12 an hour.
Then, I took a fairly lucrative PT gig whcih lasted 4 years. It helped the net worth but my spending jumped right back up to pre ER levels. Then, I retired
for good in 1998 and squeezed every expense down to poverty levels
(nervous about it). As I aged and remarried (2001), spending crept
back up. Bottom line, I went from bare bones to livin' large, back to bare
bones and then with a gradual increase to where we are today. Expect
our total spending to flatten along with NW which has already. Like Jarhead,
none of this was planned, it just morphed into what it is. You can
overplan these things

JG

 

[maddythebeagle]

---I think that this post is worth reposting here from dory. It was in another section from a few years ago. I had figured all except didnt think of the income tax differences (consider that if you take 15k out of a 401k/457, etc, it knocks your taxes down once you take out the standard deduction, etc.



Without any spreadsheet, you can make some back-of-envelope calculations about your needs. I suggest this can be much more accurate than a planning tool or a percentage suggestion from anyone who doesn't know the intimate details of your finances.

For a start, your health insurance costs may have changed. Add/subtract that from your preretirement gross income.

Next, subtract that percentage of gross currently going to 401k, Social Security, and after-tax savings and investments. You'll be withdrawing, not contributing, so this goes to zero.

Subtract the percentage of gross currently going to work-related expenses such as commuting, business attire and laundry, and so forth. Maybe costs of a no-longer-needed second car. (Be sure to tell your car insurance people that you no longer commute -- that often saves insurance $$!)

Subtract the income taxes you were paying on your gross income. You'll likely take out the maximum from your IRA (taxable upon withdrawal) to exhaust your standard deductions -- something like $15,000 or so -- and probably take much of the rest from after-tax savings and investments, so you'll only pay tax on the interest and growth, not the principal. So your tax will be probably in the neighborhood of 10% of your spending, or perhaps 2-4% of your preretirement gross income, rather than 20-30%. Add the estimated tax back to your income requirement.

The only thing else is probably based on changes you make. Did/will you pay off the mortgage? Get rid of the 2nd car? Those common changes at retirement time will also reduce your income requirements.

Finally, allow yourself something for spending more time at those hobbies, and maybe some new ones.

Hope this helps!

Dory36

 

[Martha]

Any statistics on how often this occurs?

--The highest suicide rates of any age group occur among persons aged 65 years and older.

-- The suicide rate among adults aged 65-69 was 13.1 per 100,000 (all rates are per 100,000 population), the rate among those aged 70-74 was 15.2, the rate for those aged 75-79 was 17.6, among persons aged 80-84 the rate was 22.9, and among persons aged 85+ the rate was 21.0.

--Firearms (71%), overdose [liquids, pills or gas] (11%) and suffocation (11%) were the three most common methods of suicide used by persons aged 65+ years. In 1998, firearms were the most common method of suicide by both males and females, accounting for 78% of male and 35% of female suicides in that age group.

From www.mentalhealth.org/suicideprevention/elderly.asp 1998 figures.

 

[Mr._johngalt]

--The highest suicide rates of any age group occur among persons aged 65 years and older.

-- The suicide rate among adults aged 65-69 was 13.1 per 100,000 (all rates are per 100,000 population), the rate among those aged 70-74 was 15.2, the rate for those aged 75-79 was 17.6, among persons aged 80-84 the rate was 22.9, and among persons aged 85+ the rate was 21.0.

--Firearms (71%), overdose [liquids, pills or gas] (11%) and suffocation (11%) were the three most common methods of suicide used by persons aged 65+ years. In 1998, firearms were the most common method of suicide by both males and females, accounting for 78% of male and 35% of female suicides in that age group.

From www.mentalhealth.org/suicideprevention/elderly.asp  1998 figures.

Interesting......no real surprises.

JG

 

[Jarhead*]

That's exactly why I never carry a firearm when I play golf.

 

[tozz]

Count in another who will very probably be in Thailand this fall.  I also plan to return to Burma/Myanmar and visit Laos for the first time, but Bangkok will probably be more or less a base of operations in October/November.  October 3 is my last day at work, and I want to poke more around southeast Asia and central/south America before I launch the gameplan. 

I find this thread quite interesting.  I've always had a "gut" feel, based on observation and discusssions with family and friends, that retirement costs decrease dramatically as you bump along in decades.  My retirement income will effectively be 100% COLA'd pension--not enough in my 40's and 50's; probably way more than adequate in my 70's and 80's.  I'm trying to bend my inflexible pension to meet my income needs.  The default strategy is to sell the bubbled-out house, chill out as an ex-pat in a low cost of living area for a few years, then buy a home outright when the foreclosures peak in a couple of years.

Sure Ben let's knock down a few Beer Changs. If there are 3 or more ER's in a Beer Garden does that qualify as a convention This could be a first!

 

[Patrick]

Perhaps so, perhaps so - I forget my past tendency to get a tad overzealous on frugal. My one year 12k budget early on - caused a minor rebellion and things like rebuilding the front porch from scrap hurricane debris MIGHT not be the approach of some ER's.

Good for you! You cleaned up some mess and saved a tree in the process. I hear that old barns are being torn down and the wood sold at high prices for its "rustic" appeal. Maybe there is a side industry there in hurricane debris . . . . ?

 

[Billy]

Tozz,
Cool! We usually base out of Chiang Mai, but do move around when ever we get the bug. Laos is very laidback. Now it's offical, we have the first ER Convention scheduled for Thailand, 2005.

Maybe we can qualify for discounts!...

Billy
www.RetireEarlyLifestyle.com

 

[MooreBonds]

Perhaps so, perhaps so - I forget my past tendency to get a tad overzealous on frugal. My one year 12k budget early on - caused a minor rebellion and things like rebuilding the front porch from scrap hurricane debris MIGHT not be the approach of some ER's.

Although - given statistics - there HAS to be more than one left handed, INTJ, mildly insane ER out there - can't just be me.

Don't worry Uncle...you've got a relative to make it at least two INTJs that are ultracheap bastards out here in one of the most affluent countries in the world. I just love getting by on as little as possible.

Unfortunately, I never got around to keeping track of my budgets until last year. If I had kept track, I know the first few years out of college would have been much less than just 10% of your 12k record (hey, living at home, driving a company car with company-paid gas/oil/maintenance/health insurance and not pissing away my money at the bars sure does help in some exponential growth of the savings stash...now the fun begins in trying to meet my better half ).

--Peter

 

[preben]

And tozz too! Billy and Lancelot; looks like we gotta arrange for a bus soon!