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-   -   ER - Am I ready? (https://www.early-retirement.org/forums/f26/er-am-i-ready-18221.html)

robls 10-14-2005 10:34 AM

Re: ER - Am I ready?
 
Quote:

Originally Posted by retire@40
I never questioned what you saved or how you saved it. I was only interested in your $15K a year budget because even with a paid off home, it appears lower than what most people need to live on.

I wasn't trying to be a pain-in-the-you-know-what. Everyone is different on how they spend and save.

Quote:

Originally Posted by Andre1969
HELOC: $600/month. I'm at the point now that I only have to pay the interest. However, I'd usually try to round up to the nearest $100. With the way rates have been creeping, chances are this will go to $700/month soon, if I continue to round up.
Homeowner's insurance: ~$68/month ($800/year)
Property taxes: ~$217/month ($2600/year, and will most likely go nowhere but up :( )
Electric: ~$115/month
Oil: ~$125/month (probably overexaggerating here, but I'd rather err on the side of caution, and with the way prices are going, who knows?)
Directv: ~$86/month (two Tivos, extra channels, etc)
Home phone: ~$60/month
Cell phone: ~$110/month (my two roommates are on my plan where we share minutes, and they chip in for their part of this)
Car insurance: ~$170/month (this sounds bad, but I have 7 cars, with some of them on an antique policy. Will probably go down, as I plan on switching one or two of them from my regular policy to the antique one)

Andre1969 broke down his budget. I will give some comparables in my case:
Property taxes $133/month.
Electric $60/month.
Gas $85/month. Sure it will go up.
Basic cable. $75/month
No cell phone.
Broadband. My company pays for this. Big saver here. I sometimes work from home, and they pick up the tab.

Rob

robls 10-14-2005 10:37 AM

Re: ER - Am I ready?
 
Quote:

Originally Posted by justin
The median household income for 2004 was around $44,000 according to the US Census.*

I am assuming this is "two" people living in the same household??? Possibly with children???

SteveR 10-14-2005 10:41 AM

Re: ER - Am I ready?
 
Quote:

Originally Posted by robls
I will give some comparables in my case:
Property taxes $133/month.
Electric $60/month.
Gas $85/month. Sure it will go up.
Basic cable. $75/month
No cell phone.
Broadband. My company pays for this. Big saver here. I sometimes work from home, and they pick up the tab.

Rob

How about food, water, sewer, phone, insurance, medical, Rx, car repairs, home repairs, entertainment, gas (for car), taxes, other? *Also, when your boss stops your broadband are you going to get it on your own?

Not trying to be a pain the rear here...just trying to focus on the true cost of living. *

SteveR 10-14-2005 10:50 AM

Re: ER - Am I ready?
 
Quote:

Originally Posted by justin
The median household income for 2004 was around $44,000 according to the US Census.*

I guess I need to be more specific when I post approx. values. The intent was to show an average of male and female earnings for 2004 for "real" median household income. This is from the US Census website.

"Real median earnings of men age 15 and older who worked full-time, year-round declined 2.3 percent between 2003 and 2004, to $40,798. Women with similar work experience saw their earnings decline by 1.0 percent, to $31,223. Reflecting the larger fall in the earnings of men, the ratio of female-to-male earnings for full-time, year-round workers was 77 cents on the dollar, up from 76 cents in 2003. "

The $35,000 approx. figure was a rough estimate based on this data.

justin 10-14-2005 10:56 AM

Re: ER - Am I ready?
 
household = people living together as one economic unit. The average household size was 2.59 people per household in 2000. Per capita incomes are less than the household income. That 2.59 might include one or more parents, and children or fifty-nine one hundredths of a child.

Also, robls, I believe you 100% re: living good on $15k/yr. Health care will be an increasing expense, but there are ways to save. Don't be discouraged by those here who think it is impossible to live on that much. Just because they live on $50-100k/yr (for two people) doesn't mean you can't do it for much less. Look at the bottom rung of our social ladder. Somehow they're making ends meet on $15k per year (or less).

SteveR,
I don't want to be trite, but you're citing the average individual income for a working male or female, the average of which is $35k (ballpark). That isn't household data. The average working household (that would have greater than one and less than two income earners, on average) would combine incomes from both income earners (if applicable) to arrive at the household income. In this case though, we ought to discuss individual income levels, since robls is a household of one person.


Dry Socks 10-14-2005 11:01 AM

Re: ER - Am I ready?
 
Quote:

Originally Posted by ex-Jarhead
Whatever decision you make, I hope it will be your decision, and not overly influenced by a forum that, in the final analysis, has not a whole lot in common with your situation.

Well said.

SteveR 10-14-2005 11:04 AM

Re: ER - Am I ready?
 
Quote:

Originally Posted by justin
household = people living together as one economic unit.* The average household size was 2.59 people per household in 2000.* Per capita incomes are less than the household income.* That 2.59 might include one or more parents, and children or fifty-nine one hundredths of a child.

Also, robls, I believe you 100% re: living good on $15k/yr.* Health care will be an increasing expense, but there are ways to save.* Don't be discouraged by those here who think it is impossible to live on that much.* Just because they live on $50-100k/yr (for two people) doesn't mean you can't do it for much less.* Look at the bottom rung of our social ladder.* Somehow they're making ends meet on $15k per year (or less).

SteveR,
I don't want to be trite, but you're citing the average individual income for a working male or female, the average of which is $35k (ballpark).* That isn't household data.* The average working household (that would have greater than one and less than two income earners, on average) would combine incomes from both income earners (if applicable) to arrive at the household income.* In this case though, we ought to discuss individual income levels, since robls is a household of one person.*

In the case of robls, it is relevant. *He is the head of his household of one so the figure would be appropriate for him in this case. *We are discussing his individual income as a household of one. *A little flexibility might be appropriate here. *

Andre1969 10-14-2005 11:09 AM

Re: ER - Am I ready?
 
Ooh, that's something else I just thought of...water! *I forget about that bill, because it only comes every quarter. *And when I lived in my condo for years, it was in the condo fee. *The water bill usually isn't too bad, but I did have it break $100 once, when I had a toilet that kept running. *It's amazing how much water a little run can waste!

robls 10-14-2005 11:23 AM

Re: ER - Am I ready?
 
Quote:

Originally Posted by ex-Jarhead
Whatever decision you make, I hope it will be your decision, and not overly influenced by a forum that, in the final analysis, has not a whole lot in common with your situation.

Good luck, Jarhead

Thanks, Jarhead.

I was just throwing out the question in general. There are so many variables involved in a decision like this, that it truly comes down to the individual making his or her own decision. Not looking for approval. Just input from others on the board. Thanks to everyone who has responded.

Rob

robls 10-14-2005 11:29 AM

Re: ER - Am I ready?
 
Quote:

Originally Posted by SteveR
How about food, water, sewer, phone, insurance, medical, Rx, car repairs, home repairs, entertainment, gas (for car), taxes, other? *Also, when your boss stops your broadband are you going to get it on your own?

Not trying to be a pain the rear here...just trying to focus on the true cost of living. *

I already wrote that I would not give out a detailed budget. Just gave a few lines from my budget.

Rob

haha 10-14-2005 11:34 AM

Re: ER - Am I ready?
 
Quote:

Originally Posted by robls
I already wrote that I would not give out a detailed budget. Just gave a few lines from my budget.

Rob

Rob, I've read what the others had to say, and your responses, and I want to change my former perhaps overly cautious stance. Obviously you are in good shape and have things well in hand.

You are the guy who knows best what is best for you.

Ha

SteveR 10-14-2005 11:48 AM

Re: ER - Am I ready?
 
Quote:

Originally Posted by robls
I already wrote that I would not give out a detailed budget. Just gave a few lines from my budget.

Rob

I was not asking you to give out details of your budget; only to consider all expenses in your long term plans. I understand not wanting to give up personal information in a public forum.

justin 10-14-2005 11:50 AM

Re: ER - Am I ready?
 
Quote:

Originally Posted by SteveR
A little flexibility might be appropriate here.

Steve, sorry if it seemed like I was being a troll. Not my intent! I'll leave that for other esteemed members of this board. :)

I think I was arguing over semantics.

SteveR 10-14-2005 12:01 PM

Re: ER - Am I ready?
 
Justin,

No foul, no harm. Sometimes in our zeal to participate in an exchange of information and opinion, we become too focused on finding fault that we forget about context. ;)


justin 10-14-2005 12:08 PM

Re: ER - Am I ready?
 
Quote:

Originally Posted by SteveR
Justin,

No foul, no harm. Sometimes in our zeal to participate in an exchange of information and opinion, we become too focused on finding fault that we forget about context. ;)

True enough. It is nearly impossible for a stranger to tell one's intent in a short one paragraph statement. No emotion, no context, no chance to say, "yeah, that's what I meant".

And we all know more than everyone else and our egos are huge ;)


acg 10-14-2005 02:26 PM

Re: ER - Am I ready?
 
Quote:

Originally Posted by ex-Jarhead
acg: *First off, if you think you can come to this, (or any other forum), and expect to have "approval" from all posters, on your situation or any other situation, that's not going to happen.

Whatever decision you make, I hope it will be your decision, and not overly influenced by a forum that, in the final analysis, has not a whole lot in common with your situation.

Good luck, Jarhead...

Thanks Jarhead,

Much too old myself for the approval thing...and been
contemplating major life changes for some time, definitely nothing to be taken lightly.

A wise ('ole) man once said to me, "Work as hard as you can, make as much money as you can the first half of your life...and for the second half, give it all away!"* It's all relative.

I just want to be certain I am the one who will making the decisions on where it goes!!! Not just sure yet what to do with it.

That is why I thought it appropriate to join the forum. In the final analysis, who cares? We all live with our choices and decisions thru out life.

A lot of wisdom and real life experience here.


HFWR 10-14-2005 04:24 PM

Re: ER - Am I ready?
 
Quote:

Originally Posted by Andre1969
Ooh, that's something else I just thought of...water! *I forget about that bill, because it only comes every quarter. *And when I lived in my condo for years, it was in the condo fee. *The water bill usually isn't too bad, but I did have it break $100 once, when I had a toilet that kept running. *It's amazing how much water a little run can waste!

That wasn't a small leak... I water my lawn in the summer for less than that!

In the end, many people live on $15000yr; that's lower than I'd like, but it could be done.

GTM 10-14-2005 07:25 PM

Re: ER - Am I ready?
 
Quote:

Originally Posted by robls
What do you think about my chances on ER'ing now?

50-year old, single male
$400,000 in IRA/401k accounts
$70,000 in savings
No mortgage-own home free and clear
Property taxes are $1,600 per year
No car payment-2003 Toyota Highlander paid off early
No credit card debt-I only have one card that I pay off each month
Currently live on about $15,000 per year. Probably can cut this down considerably.
But with paying my own health insurance it will be about the same.
Am I missing anything?

Thanks.

Rob

With the numbers you are providing you can do it.

If your investments can return 2% more than inflation.

$470,000 in cash minus a $1500 per year penalty for early IRA withdrawal for a few years will provide income for 48 years.
You will go broke at age 98.


MRGALT2U 10-15-2005 06:10 AM

Re: ER - Am I ready?
 
Here's an angle. Rob has more now than I ever had
(as a single or a couple) and spend more than he does,
obviously.

I have not worked in a long time and will/can not any more.

I believe the largest safety net I/we have is the ability to cut
way back even from the relatively low spending level we
occupy now. Or look at it this way, compared to what we know we
could adjust to (I have taken into account the age factor)
we are living pretty high on the hog spending 25K per year.
It really is all relative.

JG

dex 10-15-2005 06:38 AM

Re: ER - Am I ready?
 
Quote:

Originally Posted by dex
What do you think about my chances on ER'ing now?
Am I missing anything?
I think you are missing a lot.
First, RE should be about enjoying life (in my opinion) can you enjoy life on 15K a year or are you just existing?
Second, Financially you are in good shape if you continue working. But you have 12+ years until Social security. You will need to spend down your 70K after tax savings and then eat into your retirment savings. You retirement savins will most likely be hit with a early withdrawl penity if you withdraw before 59 1/2.

I'm guessing your house is worth apx 100K so you have a net worth of $570K but no mention of a pension or other income streams.

Others have mentioned that they figured a minimum of $20K for their annual expenses and still others will chime in that they RE'd with less than you.

Rob,
I've changed my mind - go for it and let us know how you do.

Giving advice is sometimes only showing our wisdom at the expense of others.--Anthony Shaftesbury

It is an easy thing for one whose foot
is on the outside of calamity
to give advice and to rebuke the sufferer.--Aeschylus (Prometheus Bound)


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