Can retire, but what will it be like?

[mountainsoft]

I'm hoping to find some people who live on a withdraw of between $50K and $75K who'd be willing to discuss what life is like.

We're still a few years from retirement but we live on a 50K gross income now. A good chunk of that goes to work related expenses and saving for retirement. We're planning for less than 40K after retirement, and that's living comfortably by our standards.

Our home and cars are paid off, we have no debt. We pay off our credit card balances every month. We live a fairly simple life, cooking our own meals, driving older vehicles, etc. However, we still eat out occasionally and do quite a bit of "budget" traveling. There are still many sights to see within a two day driving radius from our house. However, we still take bigger trips once a year or so to places like Alaska, Hawaii, or Mexico. We typically spend under $3500 for the bigger trips for the two of us, including lodging and flights. We tend to stay at inexpensive rentals through VRBO or Airbnb instead of expensive luxury hotels. Finding unique places to stay is part of the fun of traveling.

For general recreation we enjoy hiking and the occasional movie date. Those cost a lot less than fancy concerts, plays, huge boats, jet ski's, or airplanes. Good shoes and a backpack and we're good to go.

We really enjoy DIY projects too. Woodworking, crafts, home improvements, etc. We save money doing things ourselves, and find happiness in the process.

Of course, a lot depends on where you live. I'm sure you would need a lot more money to get by in Seattle, New York, or Los Angeles.

 

[Aiming_4_55]

I'm hoping to find some people who live on a withdraw of between $50K and $75K who'd be willing to discuss what life is like.

Hmmm ok, here are a few things for a family of 4 in the $60 - 70k spend range. No mortgage or no car payments.

In 2016, besides fixed costs, i.e. property taxes, insurance, utilities, cable, 2 cell phones, standard groceries (non-organic), etc. here are a few things we enjoy as discretionary:

- 3 vacations, 7-9 days each, 1 cruise & 2 road trips (3-4k miles each). We stayed with family or friends, $$ saved from hotels, contributed to food or bought a few meals for everyone or paid for kids activity.
- 3 extended weekend trips (100-300 miles each), we stay in mid tier hotels like Days Inn or Fairfield, usually with breakfast included
- monthly YMCA family membership, nothing fancy but gym/pool access and various classes included
- 2 - 4 kids activities per week, i.e. advanced swimming classes, cooking class, chess class
- 1 - 2 professional sporting events per year
- 2 - 3 take out meals per week, estimate $20 - 30 each
- 1 - 2 meals out per week, estimate $50 - 60 each
- many hiking and beach days since it's all close as we are by the coast
- don't drink much alcohol nor smoke

I admit we look for deals, coupons, and such to max our buying power, but won't spend hours searching. I do set alerts online for travel deals for the bigger expenses. We stock up on kid's clothes at the end of season and in no tax state.

We budget xmas and birthday gifts to $30 - 50 each, with 12 or so nieces/nephews, etc. we try to not go over $1200 a year.

You can exchange any of the activities that I mentioned for your hobbies, i.e. golf, etc. This is where your personal desires impact your budget. I'm happy, but plan to increase spend for milestone events since we are FI.

 

[Nightcap]

Retired two years ago. We have a budget that's just a bit higher than yours, but I'm trying to live beneath it. My fear is sequence-of-returns risk. We have a condo in our version of paradise, surrounded by wonderful neighbors and friends. Thus far, we've been homebodies. (Did I mention we live in paradise?)

I'm sure the purse strings will loosen in a few years, but right now I'm like a dragon jealously guarding my hoard.

 

[Nemo2]

(Did I mention we live in paradise?)

Detroit?

 

[Ronnieboy]

Detroit?

LOL

Paradise, Wyoming?

 

[brucethebroker]

What would retirement be like? At 75k a year, most likely whatever you would want it to be like.

As for me, and mine, 3.5 years in Day after day in Paradise, either up north, or down south.....

Best wishes....

 

[FI_RElater]

Detroit?

Sure it isn't Paradise, Texas?

 

[daylatedollarshort]

We've tried to keep the low six figure lifestyle but spend less. I find it kind of a fun hobby to bargain hunt. Our biggest splurge is probably entertainment but I've made it a hobby to figure out where to get free or discount tickets in our area so we go out a lot and it doesn't cost much.

If I'd known how well we could live while spending less I would have retired a decade sooner than we did.

 

[unno2002]

[FONT=&quot]Lifestyle at any stated annual dollar amount depends on the expenses of your retirement zone, your discretionary spending pattern, and “life support” requirements. We retired to a paid for house, solar power, rain collection, lower cost area.[/FONT]

 

[traineeinvestor]

I'm a bit outside your target expense bracket + live in a different country were cost structures are a bit different but FWIW, I've found that I like to be reasonably busy and that there is no shortage of things that I enjoy doing which cost relatively little. Some examples:

1. Wednesday morning hikes with a friend who FIREd at about the same time I did

2. Half priced movie tickets on Tuesdays

3. Books from the public library

4. Running/gym

5. Study (I'm paying full fees for my degree but there are plenty of free/low cost study options available)

6. Writing another novel

7. There is no shortage of free or cheap events to go to - book launches, art gallery events, poetry readings etc

8. Volunteer activity can be a lot of fun if done in moderation

The lesson: I could have FIRE'd on less and be living pretty much the same lifestyle as I am now

 

[Out of Steam]

We budget about $8,000 a month for expenses (could be higher for SWR but we don't need more) but that includes a mortgage $2,200 so we are in the same ball park.

Our anticipated income at 62, assuming we retire completely and both take Social Security, is just above that. We would have a similar house payment if we stay put after retirement, but we plan to move if we fully retire.

We're comfortable with retirement at 62. Full retirement at 60 will require a closer eye on expenses.

 

[daylatedollarshort]

FWIW, I've found that I like to be reasonably busy and that there is no shortage of things that I enjoy doing which cost relatively little.

This is our experience as well. Senior club activities, hiking, festivals, concerts in the park, Groupons, museum and garden membership programs like NARM and ROAM (buy one annual membership for $100 - $200, get in free at all other member organizations), library passes, $5 movie day, seat filler memberships, happy hours, Taco Tuesdays, etc. are all fairly inexpensive. We find we could go out every day if we chose to on a modest entertainment budget. If we wanted to see a particular play, concert or ballet in a given week we might not always be able to get discount or comp tickets. But instead if we're happy viewing it as here is a list of 100 activities we can do this week from my various newsletters, seat filler subscriptions and Facebook feeds that are free or inexpensive, lets pick the most interesting 3 - 6, we can do a lot without spending huge amounts of money.

We're seeing a concert tonight with Groupon tickets bought during a sale.

 

[NW-Bound]

The OP asks: "Can retire, but what will it be like?"

I will say that it can be terrible. You stay home all the time, surf the Web, join a forum and argue with strangers about trivial things.

I'm hoping to find some people who live on a withdraw of between $50K and $75K who'd be willing to discuss what life is like.

Seriously, we are spending more than that. We spend way too much, but our expenses include a lot of discretionary things that can be cut out without degrading our lifestyle, such as expenses for a 2nd home, generous gifts and donations.

Without the above discretionary expenses, I would like to think we would be fine with $50-75K. The only wildcard is health insurance.

 

[REWahoo]

...join a forum and argue with strangers about trivial things.

Wrong!

 

[NW-Bound]

Hi there, REWahoo! Have not seen you posted much about your RV trips recently.

Come on, tell us some stories, and stop arguing.

 

[travelover]

............Come on, tell us some stories, and stop arguing.

Right, let's discuss something we all agree on like self driving cars and trucks or alternative energy source policy.

 

[W2R]

You stay home all the time, surf the Web, join a forum and argue with strangers about trivial things.

Seriously, we are spending more than that. We spend way too much

I could afford to spend about that much ($50K-$75K), but most years I don't. I bought a house in 2015 and moved, and that year I spent more than that, but all other years it has been less.

On the other hand, I'm enjoying recent efforts to ramp up my spending, since I can't take it with me. Amazon is my new best friend.

I enjoy discussing trivial matters with strangers on the internet, too.

 

[NW-Bound]

Right, let's discuss something we all agree on like self driving cars and trucks or alternative energy source policy.

Eh, I am not going there. At some point, a guy needs to know to walk away. I walked away from 3 megacorp jobs, and that was about some conflicts and involved a lot of money for me.

I could afford to spend about that much ($50K-$75K), but most years I don't. I bought a house in 2015 and moved, and that year I spent more than that, but all other years it has been less.

On the other hand, I'm enjoying recent efforts to ramp up my spending, since I can't take it with me. Amazon is my new best friend.

I enjoy discussing trivial matters with strangers on the internet, too.

There's a difference between discussing and arguing. When it is getting to sound too much like politics or religion, well, you know...

About spending even less than $50-75K and still be happy, sure, I know one can do that easily when he/she is on Medicare and does not have to pay mucho for health insurance.

 

[Gotadimple]

Such anguish! I mean about arguing with strangers about meaningless trivia when on the internet.

Seriously, OP. What's it like? Get yourself to the library, or to Amazon.com: borrow/buy Ernie Zielinski's "How to Retire Happy Wild and Free." When you first retire there too many options and your entire routine is off-kilter. So, you need to know what appeals to you and what you will capture your enthusiasm. Above all, you need to be happy within yourself, or retirement will be a drag.

Then, you need to find a new routine. See Zielinski above.

You need to comfortable with your budget and make sure it meets your needs without feeling like you have to give up something in order to live the retired life. That includes planning for how you will fund retirement until Medicare and Social Security kick in.

If you have that down, then, plan on enjoying your life style. Don't limit yourself. You can always find a way to make more money, but you cannot find a way to make more time.

- Rita

 

[NW-Bound]

Come to think of it, what is worse than arguing with strangers on the Internet? Your spouse? That's how divorces start. So, strangers it is.

OK. Enough of this, and sorry to the OP for the jokes.

About what's life is like with $50K-75K, it can be fine. If you are LBYM as you mentioned, have your house paid for, and not into expensive new cars every few years, what will be your major expenses other than health insurance? Once you have that, then what's next?

Food does not cost that much, nor do geezers eat that much. Well, unless one is into caviar, Dom Perignon, and $1500 XO Cognac, or expensive clothes, what does he spend money on? Actually, one can even indulge in the above things, as long he does not do it weekly. As mentioned earlier, I spent more than the above range, but it was not really because I had to.

The last few years have seen me spend way too much money on home improvements and repairs, my daughter's wedding, gifts and donations. Once these subside, I should be spending a lot less, and still have my travels and the two homes too.

Well, that's what it should be, but something may just happen. My insurance premium may get even higher, and wipes out all the surplus cash I think I will have.

 

[mamadogmamacat]

The budget needs to be based on actual spending, not some lofty goal like a weight loss plan that most all of us myself included fail to meet. Tracking spending for at least the past three years is the best way to arrive at whatever is reasonable for you as a couple. Then, one should add in whatever will change, such as increased health care costs at least until medicare kicks in (this may well be a quite significant addition especially if like me you have been sheltered from paying very much by having a good mega corp plan) Then anything that can reasonably be deleted without affecting lifestyle in retirement (for example, I no longer pay for daily pet care but have a bit more to pay for care during more frequent travel, the net however is a reduction). As a single, my retirement budget is towards the lower end of the 50k to 75k range and so far my actuals have been right in the middle of my range. Then either include a prorated amount for big infrequent expenses such as a new roof (these may not have been fully captured in the three yr look back), or set aside funds for this that you do not include for retirement income generation/spend down. My budget includes a significant amount for charity as that is something that makes me happy in retirement just as much if not more than while working, as I have more time to research/visit where I distribute those funds. Obviously this is something I could, if I ever really really have to in a severe downturn, temporarily stop doing or reduce. YMMV.

 

[Out of Steam]

The OP asks: "Can retire, but what will it be like?"

I will say that it can be terrible. You stay home all the time, surf the Web, join a forum and argue with strangers about trivial things.

That's OK as long as it's not overdone, but even that's way better than than staying home, watching 24 hour cable news, and arguing with the TV set.

 

[Jerry1]

Seriously, OP. What's it like? Get yourself to the library, or to Amazon.com: borrow/buy Ernie Zielinski's "How to Retire Happy Wild and Free."

Feeling kind of scolded, I just went to Amazon and bought the book. Appreciate the advice.

 

[audreyh1]

We didn't bother with a budget per se while working, but we religiously tracked spending so knew exactly where our money was going, and were living well below our means while working and saving like crazy. From that I had some confidence about projections as to what we might spend once retired. I wanted room for a generous travel budget and even set aside extra funds for quite a bit more travel during the first three years, figuring we would want to do a bunch immediately upon retiring.

We ended up retiring with more than we needed to cover even my generous projections, but I'm glad I did all the careful planning and modeling and knew our expenses well. If we'd ended up having to cut back some, this historical data would have been really important.

We still track spending in great detail, easy because Quicken automates most of it. And I do have a gross budget for planning purposes, even though we usually underspend it.

My point is that even if you don't have a budget, knowing exactly what your spending is, is really important before trying to live off your investments.

 

[brucethebroker]

We live in a low cost of living area. When you don't have a large house payment (low mortgage or paid off), reduce your transportation costs (own only one car), and control your health ins. costs (Obamacare subs, or Medicare), it is quite easy in a LCOL area to get by on $50k or less. Others have mentioned cheap entertainment options. I would add Senior discount days at department stores to that list. I like to thrift/yard sale shop-may not be your bag, but you can REALLY save $ on gently used clothing.
Because you have nearly unlimited TIME, you can fix things your self, cook your own meals, negotiate better (cable, internet fees) and sniff out great deals. You can travel in the off season, etc. No more retirement saving. No more FICA taxes. Reduced property taxes in many states for seniors......
I continue to laugh at "experts" telling people they need a million $ or millions to retire. Maybe in NYC, LA or Seattle, but not in St. Louis, Cincinnati, or dozens of other cities.