spending and net worth ratio

[daylatedollarshort]

I would choose a house in an area where there are people your age with the same interests. Personally I would find 365 days a year van life kind of lonely. Many happiness studies point to social connections and being part of a community as happiness factors. In fact social connections was the #1 happiness factor from the longest running happiness project - https://www.ted.com/talks/robert_wal...ss?language=en

[teetee]

Quote:

Originally Posted by NW-Bound You seem to be a frugal guy who does not have expensive habits. It makes me curious why you need that much money to retire.

I really want to travel in all kinds types to as many places as possible. Cruises and stuff and not have to worry about the finances.

[RunningBum]

Quote:

Originally Posted by teetee I just noticed that I have about 5.7% ratio of past 10 yr of total spending divided by current net worth and was wondering if it means something to you guys.

Quote:

Originally Posted by teetee My current living situation (and hence the low expense) is not permanent. My company's reimbursement and low rent go away if I stop working.

No, you have an unusual situation with some unspecified amount of subsidized living, so it means nothing to me.

Is there something you are looking to get out of this thread?

[finnski1]

Quote:

Originally Posted by RunningBum No, you have an unusual situation with some unspecified amount of subsidized living, so it means nothing to me. Is there something you are looking to get out of this thread?

Yeah and he only spends $8k per year. Must be a lot of subsidizing?


"I am normal too. But for the past few years I think I may be frugal out of habit. I spent less than 8k per year as living expense in a mid living expense state in the US with 6 figure income."

[Aerides]

If your .77 per year is based on a lot of employer-subsidizing, then it's meaningless as a budgetary expectation once you retire. That's why most of us add back in the healthcare costs as those are almost always more once we aren't getting job-benefits. It sounds like you have a lot of other benefits so you need to factor what those mean in your future expenses.

However, once you bake in those reasonable expenses, and have an actual plan (vs. past numbers that won't continue) and still come in under 3.5% per year, you should still be golden. Under 3% if you wish to be more conservative.

[daylatedollarshort]

Instead of a van, I would look at land in a pretty area, maybe near a college town, without a lot of zoning laws, and put a modular home on it with a septic tank and solar panels. One of our kids is considering this and it is quite affordable, even in California. There are Sear's catalog kit homes still standing today - Sears Catalog Homes We Love - Bob Vila.

With no mortgage, low utilities, electric car, solar panels, permaculture or xeriscaped yard, maybe grow some of your own food, and the ACA for health care, you can have a home and retire when you want or work part-time, with very low overhead. Then buy a camper van for travel but you still have a house, community and a home base to return to.

[Major Tom]

Quote:

Originally Posted by kgtest I get the whole idea of "9 to 5" isn't for everyone...but it sure does provide a solid means to an end.

+1

I mentioned in another thread this morning, that I'm glad I dropped out of the world of conventional work at the end of my career, and not near the beginning of it! Once one gets used to the lack of a 9 to 5, it can be hard to get back into that mindset. Your friend seems to have committed himself to a rougher time in later life, in exchange for following his desires earlier on. I was lucky enough to be able to follow my interests, and still make money from them. I never stopped thinking about money and the future though. Whether we like it or not, money makes our world go round. In the world we live in, it's important stuff.

[Sojourner]

Quote:

Originally Posted by teetee I just noticed that I have about 5.7% ratio of past 10 yr of total spending divided by current net worth and was wondering if it means something to you guys.

Quote:

Originally Posted by teetee I really want to travel in all kinds types to as many places as possible. Cruises and stuff and not have to worry about the finances.

OP, I'm not sure I understand what this thread is really about. Have you sat down and figured out what your expenses would be if you decided to live a nomadic lifestyle, full of "cruises and stuff"? Once you determine roughly what your annual expenses will look like (including things like medical insurance, along with lumpy/occasional costs), then you'll know how big of a nest egg will be required to fund it. Your goal of $4MM might be plenty, or it might not be enough to cover your desired lifestyle. I mean, "travel... all kinds... all types" can mean a lot of different things to different people and can be done cheaply or extravagantly. You need to figure out what you want it to be for you. It doesn't matter that you've spent only 5.7% of your net worth over the past ten years. That's irrelevant.

[teetee]

Thanks for all the discussions, questions, and ideas. I have to admit that I did not expect much response in my original post so now with all the questions which are built on top of other earlier questions and information, the thread kind of got lost. I don't really know what I want in the next couple of years so I am just going to stick to the original RE goal and hopefully when things settle on the back of my head, I will revisit the plan.