Retired in Dec 2024; Tracking Monthly Expenses for One Year After FIRE

[Surewhitey]

Spending for us is all over the place, but I have 9 years of pretty accurate #s. We have averaged $63k for 9 years & since travel is back in full swing for a couple of years, we're closer to $74k. Granted we are part timer RE, but we will reduce expenses in some places and increase in others when the time comes. In those 9 years, we've bought & sold a home and then bought another & we've purchased 2 new (to us) Toyotas. Also some minor remodeling. So all in all, pretty frugal.

We are in a mcol now, big city life, but live pretty simple outside of travel.

 

[COcheesehead]

I have tracked expenses as a percentage of portfolio value since I retired almost 5 years ago. The number is all in with lumpy included. The first year it was 2.55%. It now stands at 2.3%.

 

[Errollyn]

Spending for us is all over the place, but I have 9 years of pretty accurate #s. We have averaged $63k for 9 years & since travel is back in full swing for a couple of years, we're closer to $74k. Granted we are part timer RE, but we will reduce expenses in some places and increase in others when the time comes. In those 9 years, we've bought & sold a home and then bought another & we've purchased 2 new (to us) Toyotas. Also some minor remodeling. So all in all, pretty frugal.

We are in a mcol now, big city life, but live pretty simple outside of travel.

I've been focusing on getting into shape for the last few months, so I haven't traveled yet. It'll be interesting to see how that affects my numbers.

 

[Surewhitey]

I've been focusing on getting into shape for the last few months, so I haven't traveled yet. It'll be interesting to see how that affects my numbers.

Ours went up due to 3 weeks in Europe ea year, the past 2 years. Also multiple Mexico trips & domestic.

We probably do 8 weeks ea year total.

 

[Errollyn]

Update #3 (continued), March 2025

Here are our total investable assets and NW numbers as of 31 March. Our investable assets have fallen $70k (almost 4%) since I quit my job in December 2024. Bad month for the stock market, and I'm bracing for it to get worse as tariffs push prices higher.

 

[Errollyn]

Finally, here's the Boldin projection using updated March 2025 numbers.

The decrease in our portfolio last month shaved about $700k off our projected final net worth at the end of our lives.

 

[Exit 2024]

Errollyn, great to see you started to document your retirement spending.

In next couple years before we pull the plug I hope to learn a lot from your experience. Really appreciate detailed budget and monthly updates!!!

 

[Errollyn]

Errollyn, great to see you started to document your retirement spending.

In next couple years before we pull the plug I hope to learn a lot from your experience. Really appreciate detailed budget and monthly updates!!!

Hopefully I'm not a Walmart greeter by the time you pull the trigger!

 

[Koolau]

Hopefully I'm not a Walmart greeter by the time you pull the trigger!

Nope. Before YOU get to Walmart to get a greeter j*b, there will be 100 others in front of you wanting that j*b!

 

[Errollyn]

Nope. Before YOU get to Walmart to get a greeter j*b, there will be 100 others in front of you wanting that j*b!

No doubt. Good thing I didn't tally my numbers today...it's a bloodbath.

 

[Koolau]

No doubt. Good thing I didn't tally my numbers today...it's a bloodbath.

Only if you need to sell.

 

[Errollyn]

Update #4, April 2025 Expenses
Actual: $5,391
Expected: $4,722
I overspent in April; 114% of my expectations.

We took our first "vacation" since I quit working in December 2024, with a week-long road trip to the Rocky Mountains. This boosted our expenses in the Travel, Public Charging, and Eating Out categories. Honestly our monthly overage was less than I expected given the travel costs.

Breakdown by category:

Here are our total investable assets and NW numbers as of 30 April. Our investable assets have fallen ~$11k since I quit my job in December 2024, but our net worth hasn't changed at all after accounting for a 5% increase in house prices in my zip code over the last year.

Finally, here's the Boldin projection using updated April 2025 numbers. Important to note that Boldin made a change this month, replacing my own expected growth numbers with a series of selectable historical market-based growth numbers. I was using very conservative numbers, so the change boosted my expected long-term growth (a lot). As a result, my net worth at death went from $13 mil up to $18 mil...which I'm taking with a grain of salt.

 

[TheWizard]

So far, so good, I guess.
But what happens when you buy a new car for $40,000?
Or certain major housing expenses (new roof)?
Or a European river cruise for $10,000 or more?

A grain of salt regarding NW at death sounds about right.
In year 13 of retirement, my focus has been more on monitoring my income and spending year by year.
Where my assets end up 10 or 20 years from now is of little concern...

 

[Errollyn]

So far, so good, I guess.
But what happens when you buy a new car for $40,000?
Or certain major housing expenses (new roof)?
Or a European river cruise for $10,000 or more?

A grain of salt regarding NW at death sounds about right.
In year 13 of retirement, my focus has been more on monitoring my income and spending year by year.
Where my assets end up 10 or 20 years from now is of little concern...

I have big purchases budgeted into my strategic plan on Boldin, but they're not reflected in this one-year budget. I agree with you about stepping back and not being so in the weeds over the long term, and these monthly checkups are more for me to better understand what my baseline spending will be.

 

[TheWizard]

I have big purchases budgeted into my strategic plan on Boldin, but they're not reflected in this one-year budget. I agree with you about stepping back and not being so in the weeds over the long term, and these monthly checkups are more for me to better understand what my baseline spending will be.

I think it's fine to have a good idea what your basic expenses are, as listed in the breakdown in #62, which is after income tax. I did something very similar before cutting loose back in 2013.

Beyond that, I've always thought it best for pre-retirees to define their Desired Income in retirement before cutting loose.
For the $4700/month shown, an effective after-tax income of $6700/month ( or more) might be a decent Desired Income target.
That excess $2000+ each month would then be stashed in savings or your taxable investment account for those large future purchases, discretionary or otherwise...

 

[Errollyn]

I've always thought it best for pre-retirees to define their Desired Income in retirement before cutting loose.

FWIW, I did track expenses for a year prior to retiring. What's happening now is a post-retirement test of those numbers.

But yeah, nobody should retire without having a good idea of their spending ahead of time.

 

[Koolau]

FWIW, I did track expenses for a year prior to retiring. What's happening now is a post-retirement test of those numbers.

But yeah, nobody should retire without having a good idea of their spending ahead of time.

Yeah, a good handle on spending is arguably as important as having a more than adequate stash. I was wrong about the spending that I would have in the early part of my retirement. It wasn't a huge problem as I had excess funds in my stash. BUT my mix of funds was an issue. I did not have enough non-qualified funds and it hurt me tax-wise. YMMV

 

[Errollyn]

Update #5, May 2025 Expenses
Actual: $4,942
Expected: $4,722
I overspent in April; 105% of my expectations.

I'm happy so far with how close my projected spending has been. Especially since I'm not trying to pinch pennies, and instead just doing what I want to do (within reason).

Breakdown by category:

Here are our total investable assets and NW numbers as of 3 June. Our investable assets have increased ~$92K since I quit my job in December 2024, and our net worth has increased ~$103 during the same time. The last month has been a great for stocks, which accounts for a significant bump in my numbers.

Finally, here's the Boldin projection using updated May 2025 numbers. This projection is up ~$1.3 million since last month. I understand this is making a lot of market assumptions, so I take this with a grain of salt.

 

[Koolau]

Update #5, May 2025 Expenses
Actual: $4,942
Expected: $4,722
I overspent in April; 105% of my expectations.

I'm happy so far with how close my projected spending has been. Especially since I'm not trying to pinch pennies, and instead just doing what I want to do (within reason).

Breakdown by category:
View attachment 56120View attachment 56121View attachment 56122

Here are our total investable assets and NW numbers as of 3 June. Our investable assets have increased ~$92K since I quit my job in December 2024, and our net worth has increased ~$103 during the same time. The last month has been a great for stocks, which accounts for a significant bump in my numbers.
View attachment 56123

Finally, here's the Boldin projection using updated May 2025 numbers. This projection is up ~$1.3 million since last month. I understand this is making a lot of market assumptions, so I take this with a grain of salt.
View attachment 56124

I love the shape of that curve!! Good going.

 

[Exchme]

At your projected spending level of 2.9% of portfolio, you should be fine, but those projections can't be inflation adjusted, so they don't mean much. To get to those numbers would require higher returns than the inflation adjusted S&P 500 historical average and that's before counting your expenses. I suggest you look around in the program for a way to see inflation adjusted numbers.

 

[Errollyn]

At your projected spending level of 2.9% of portfolio, you should be fine, but those projections can't be inflation adjusted, so they don't mean much. To get to those numbers would require higher returns than the inflation adjusted S&P 500 historical average and that's before counting your expenses. I suggest you look around in the program for a way to see inflation adjusted numbers.

Yeah, I have it set up to show me the value of my assets in "future dollars." But if I switch the settings to show it in the value of today's dollars, it looks like this...

So a bank account with $19 million at the end of our lives is assumed to be worth $6 million in today's money.

 

[Errollyn]

For full transparency, in my Boldin settings I also use the "Average" inflation and return assumption.

Obviously if the American or world economy dissolves into unprecedented chaos, these projections won't hold up. But at some point we've gotta play the averages.

 

[imjustawarrior]

Looks like a 8% nominal return and about 5% real. What is your asset allocation?

 

[Errollyn]

Looks like a 8% nominal return and about 5% real. What is your asset allocation?

Of my NW, it's about 5% cash, 4% annuity, 14% in my home, 1% other (vehicles), and 76% in stocks/funds. A good chunk of my mutual funds are target retirement date funds, so those are slowly being shifted from stocks to bonds as time goes on.

 

[Errollyn]

Update #6, June 2025 Expenses
Actual Spending: $5,496
Expected Spending: $4,722
I overspent in April; 116% of my expectations.

Overspending can mostly be attributed to adding rock to our gravel driveway, and lots of travel/eating expenses related to the volunteer work I'm doing for animal rescues.

Breakdown by category:

Here are our total investable assets and NW numbers as of 1 July. Our investable assets have increased ~$156K since I quit my job in December 2024, and our net worth has increased ~$169K during the same time.

Finally, here's the Boldin projection using updated June 2025 numbers. This projection is up ~$790K since last month. I understand this is making a lot of market assumptions, so I take this with a grain of salt.