Maybe, maybe not. My dad's 80.5, and is going to Greece around his 81st birthday. He'd be doing a lot more travel than he is, if he had more funds! He's on this second serious girlfriend since the divorce about 9 years ago!I think spending will decline big time when you hit 80. Hard to spend a lot of dough watching TV all day.
I read an article yesterday, written by a young millenial 'finance writer' on Yahoo! Finance. It defined FAT FIRE as someone who's planning to bring in >$75K annually from their investments. LEAN FIRE was <$40K, and Barista Fires is <$30K, still working gig jobs. The writer clearly doesn't understand what the FI in FIRE means!
After the five stages of grief, we apparently now have the 11 stages of wealth.
The 11 Stages of Wealth: Which Stage of Wealth are You at?
So my question is really after you live it up for a number of years, do many of the FatFires hit a wall in all that discretionary spending and see their spend go down significantly?
My in-laws were still up for road trips with us which included some tent camping when they were in their 80s.I think spending will decline big time when you hit 80. Hard to spend a lot of dough watching TV all day.
In 2017 our largest expense was income taxes, about $83k for state and federal. We own 3 residences and have zero debt. Our next largest expense was travel, followed by health insurance and property taxes. But these are a small fraction of our income taxes. Our total expenses were under $180K in 2017. To get to $300K per year, we would need a drug and gambling addiction, or eat dinner 3 times a week at the French Laundry or charter private jets. And no we don't fly coach or eat at crummy restaurants or stay at sh!thole hotels. You need to recheck your numbers.
Again, I think it depends upon where one lives and how one defines "Fat".
Unless I read it incorrectly, if $83K of your $180K spent is taxes that leaves you with less than ~$90K (after health insurance) living in an LA suburb.
WADR it just sounds a bit lean to me but maybe I'm missing something.
Again, I think it depends upon where one lives and how one defines "Fat".
Unless I read it incorrectly, if $83K of your $180K spent is taxes that leaves you with less than ~$90K (after health insurance) living in an LA suburb.
WADR it just sounds a bit lean to me but maybe I'm missing something.
Our current experiment is going with Hampton Inn instead of Super 8 or Comfort Inn.Have been experimenting with spending quite a lot on travel and entertainment.
His income is $300k / year. $83k taxes, $180k expenses. So he has some left over each year.
Yes we have about 90k left over for living in an LA suburb, Downtown West Palm Beach FL, and Lausanne Switzerland where we are now. We are saving about $127k annually in our taxable accounts. The number one expense for most households where we have our residences is mortgage (P&I), which we don't have. We have talked about stepping up our spending but we just don't want more material possessions. We have three homes full of them.
It did for us. We deliberately set aside up a slush fund for excess travel when we retired. This was because we had a serious pent up demand for travel, plus we didn’t want to be distracted by market volatility making us feel like we should cut back starting out. That was a good thing, as we retired in 1999!So my question is really after you live it up for a number of years, do many of the FatFires hit a wall in all that discretionary spending and see their spend go down significantly?
Hope that clears it up. Now go out there and lose some weight Fatty!!!
How is the cost of living in Switzerland? My wife and I would love to get a home there.
Our current experiment is going with Hampton Inn instead of Super 8 or Comfort Inn.
I don't think I'll go back. If that makes my trip Fat, I'm all in. We're talking average cost (after taxes) of $140 instead of $80. Life is too short for bed bugs and cold showers.
After the five stages of grief, we apparently now have the 11 stages of wealth.
The 11 Stages of Wealth: Which Stage of Wealth are You at?
There you go.
Hampton Inn is our go to hotel.