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05-18-2017, 01:36 PM
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#21
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2007
Posts: 13,202
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Quote:
Originally Posted by David1961
Good points. By " fairly typical" I mean that the expenses for the last year were typical of the expected expenses going forward.
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So that means you had some of the unusual (non-annual) expenses, or only the predicted annual expenses? That's the point I'm trying to make, to see if you were really $10K under or if you were just able to defer ~$10K of expenses that are coming down the line. My action would depend on that, because I sure wouldn't blow extra money if I just happened to have a fortunate year with the unusual expenses.
This is also why when I hear people talking about tracking expenses for two years, I take it with a grain of salt because you don't know whether those two years included any of those irregular expenses.
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05-18-2017, 03:43 PM
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#22
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Moderator
Join Date: Nov 2015
Posts: 13,879
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To me the key in your scenario is "at 60". So you probably have SS coming as well as medicare in a few years. So 3 or 4.
At 50, more between 1 and 2, then go back to the 3 and 4 scenario if the lower spend is a true pattern after say 3 years.
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What would you do in this scenario?
05-18-2017, 05:15 PM
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#23
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2008
Posts: 5,178
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What would you do in this scenario?
Personally, It's only been two years and I haven't come up with anything definite yet, but I am thinking of doing a modified 2&4. Left over money from the budget made for emergencies, auto maintenance, house maintenance, medical, 1/2 travel, 1/2 hobby to go into a rainy day reserve fund, and move the left over money from groceries/living expense/entertainment/eating-out to become extra "spend on anything I want" fund the following year. Or something like that.
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05-18-2017, 05:18 PM
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#24
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,266
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None of the alternatives has a downside... what does David1961 think?
__________________
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
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05-18-2017, 05:24 PM
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#25
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2005
Posts: 10,252
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#1 and #2 are really the same: You ain't spending the money unless you have to.
Sometimes spending money on frivolous stuff is not satisfying. I would probably let my wife make some more charitable donations. Those can always be cut back if one couldn't afford it. Or spend $10,000 on taxes for a Roth conversion.
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05-18-2017, 07:09 PM
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#26
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Thinks s/he gets paid by the post
Join Date: Aug 2004
Location: St. Louis
Posts: 2,179
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I would do a hybrid of 1 and 2. Since the first 10 years are the critical years, I would continue to spend as I thought I would be spending (between $50k/$60k), and continue to accumulate any leftovers for the first 10 years. At about year 8 or 9, I would see how my portfolio is doing, and what my expenses continue to be. I would then likely spend that accumulated excess (assuming the portfolio is still at least as large as when I started on Year 1), perhaps spending it over the next year or 2 on something fun and special.
__________________
Dryer sheets Schmyer sheets
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