What's the smallest amount you can retire on?

[jay-pee]

See if he will give you an interview which you can share with us. To me this feat sounds about as likely as me running 100m in sub 10 seconds.

Ha

I understand what you are saying, everyone else in my family wonders/worrys how he is doing it(going to continue doing it). If you noticed I purposely stated that he "left work", not that he retired, although he states he won't go back to work. All I can say is " he is a "master of frugality", never made more than $15.00 an hour, and never had a job with benefits (overtime, vacation, healthcare). He lives in an inherited house, and has survived on his $65,000 savings for 5 years now. I don't know what will happen to him in his old age, this remains to be seen. He does not ask me about my finances, so I don't question him about his. I do know one thing: If the stock market goes south, I will be seeking alot of advice from him.

 

[wildcat]

I have a brother who left work 5 years ago at age 49 with $65,000 in the bank. He is single, lives in a "paid for" house, drives a 15 year old vehicle, and pays his own health insurance . I asked him, just last week, if he was going to have to go back to work and he said "no way".

What kind of projected CAGR is he using - 1,000%? No seriously, what kind of life is your bro living? Is he one of those types who works a few months to get by and then quits for the rest of the year?

 

[Trek]

I'm interested to know the smallest annual income folks have retired on. I'm assuming that the big ticket items are paid for, ie. you've paid off the mortgage so that the only housing expense is taxes and repairs and you have no car payments.

I'm able to do it comfortably on less than $10K a year, but I live in Eastern Europe so my COL is just a fraction of what it would be in the U.S.

 

[jay-pee]

What kind of projected CAGR is he using - 1,000%? No seriously, what kind of life is your bro living? Is he one of those types who works a few months to get by and then quits for the rest of the year?

Before he "left work" he worked steadily at mostly part time jobs, the last one lasted 15 years. Now, he will help friends who have small businesses occaisionally, has bought repaired/restored a few motorcycles and sold them for a profit, but other than that I see no evidence of income.

 

[retire@40]

I understand what you are saying, everyone else in my family wonders/worrys how he is doing it(going to continue doing it). If you noticed I purposely stated that he "left work", not that he retired...

Chances are he's getting a stream of income from somewhere and he's not telling anyone. Maybe some disability? Maybe getting paid under the table?

There is no way someone can "retire" at 49 with only $65K in the bank and pay for his own health insurance, food, gas, and other bare-bone necessities.

 

[tryan]

With a DW and 2 young kids anything under 40k would be like poverty here ... healthcare alone is 1k/month; housing expenses (utilities, insurance, taxes) $1500/month; add in 2 vehicles and the fact that 2 kids want to "do something today" or "go someplace today" ... you get the point.

 

[dumpster56]

Well 6 months into my so called ER I still do part time things, looks like this.

3300 Real estate tax
3000 Mortgage To be paid in full less than 4 years
3000 All Insurance Home Auto Life
2200 utilities Electric Gas
800 water sewer trash
2200 Phones dsl cable
600 medical prescriptions, med deductables
1000 Dental insurance and basic costs
1500 Gasoline
1000 auto maint tires etc
8000 groceries
2000 entertainment
3000 Misc

Total 30,600

Add Taxes Federal And State 7000

37,000K a year

Pension is 33K my part time substitute teaching and coaching add 20 k

Total 53K

Wife will get a small pension in a year of an additional 3000 a year.

SS in 8 years for the wife 11 years for me.

The fact that I do not have to work in the bad situation in NJ is a big deal. I do not consider my part time work work, yes an oxymoron, with the emphasis on Moron, that I sometimes act like.

My track Coaching at a great private school is fun I get to do my workouts with the team, kinda getting paid to exercise. sub teaching 100 dollars a day to read a book for 4 hours, and I can walk to most of the schools.

My stress level is so much lower. But to enjoy living that extra 20 K makes it all work. Savings is only in the 100K range my Cola Pension is the baby that makes it all work. You live a month they send me a check ....You live another it goes on and on and on...

 

[wildcat]

Chances are he's getting a stream of income from somewhere and he's not telling anyone. Maybe some disability? Maybe getting paid under the table?

There is no way someone can "retire" at 49 with only $65K in the bank and pay for his own health insurance, food, gas, and other bare-bone necessities.

Yeah whatever. JG for one....

 

[FinanceDude]

Yeah whatever. JG for one....

Where is the "exalted Mr. Galt" these days??

 

[Spanky]

Well 6 months into my so called ER I still do part time things, looks like this.

3300 Real estate tax
3000 Mortgage To be paid in full less than 4 years
3000 All Insurance Home Auto Life
2200 utilities Electric Gas
800 water sewer trash
2200 Phones dsl cable
600 medical prescriptions, med deductables
1000 Dental insurance and basic costs
1500 Gasoline
1000 auto maint tires etc
8000 groceries
2000 entertainment
3000 Misc

Total 30,600

Add Taxes Federal And State 7000

37,000K a year

Pension is 33K my part time substitute teaching and coaching add 20 k

Total 53K

Wife will get a small pension in a year of an additional 3000 a year.

SS in 8 years for the wife 11 years for me.

The fact that I do not have to work in the bad situation in NJ is a big deal. I do not consider my part time work work, yes an oxymoron, with the emphasis on Moron, that I sometimes act like.

My track Coaching at a great private school is fun I get to do my workouts with the team, kinda getting paid to exercise. sub teaching 100 dollars a day to read a book for 4 hours, and I can walk to most of the schools.

My stress level is so much lower. But to enjoy living that extra 20 K makes it all work. Savings is only in the 100K range my Cola Pension is the baby that makes it all work. You live a month they send me a check ....You live another it goes on and on and on...

Having a COLA pension plus a part-time position that can cover all your expenses is great. The amount of savings is almost irrelevant.

 

[maddythebeagle]

Where is the "exalted Mr. Galt" these days??

Probably, sueing, divorcing, or in a dumpster somewhere....

 

[Bigritchie]

It totally depends on where you live also. Where I live, people with no debt can live a pretty peaceful life for 800 bucks a month. Plenty of nice country areas left in America, that are even close to a small/medium size city.

 

[Sam]

Where I live, people with no debt can live a pretty peaceful life for 800 bucks a month. Plenty of nice country areas left in America, that are even close to a small/medium size city.

Hmm..., ok, sure...

o Can you define "pretty peaceful life"?

o What town are we talking about in Tennessee?

 

[Bigritchie]

Hmm..., ok, sure...

o Can you define "pretty peaceful life"?

o What town are we talking about in Tennessee?

I have several retired uncles that live in Bluff City, TN that are retired and their actual living expenses are 5-600 bucks per month.

My own living expenses are around 600 per month and I live on the outskirts of Knoxville. I am very frugal albiet, about the only spending I have done for myself the last several years is buying a few games every now and then.

Also, a peaceful life is different for everyone. For alot of people it may just be walking down to the lake everyday and rowing a boat, doing a little fishing. Many people do not need to Pay money to be entertained. Or even if they do go see a movie or something they can go to a dollar theatre. There is also no income tax here, although we do have a pretty high sales tax, but in reality that only really taxes people that spend alot, and a person's food. I see people on the board with monthly expenses of 2-5k, and it blows my mind, just as I am sure that my expenses blow theirs.

We have transplants from all over the US here, many from places like NY where a apartment may cost 1500 bucks a month for a small one, but here you can rent a descent house out in the country for 4-500 dollars.

It is kinda like how many people move out of the country for a cheaper cost of living, you can do the same in the states, and even states very from city to city.

Alot of people can come and buy a house here for 150k that would cost them 600k+ somewhere else. In fact my own house which is out in the country, has 4 bedrooms, 3 baths, 3 car garage, finished bathroom, 2 acres of fenced in land, and it cost me around 130k when I bought it. But if I went 10 miles up the road a house like that would have cost me a fortune.

And there are counties here that are even cheaper to live in then my own, where you can buy acres for a few thousand.

 

[Cut-Throat]

In fact my own house which is out in the country, has 4 bedrooms, 3 baths, 3 car garage, finished bathroom, 2 acres of fenced in land, and it cost me around 130k when I bought it.

A "Finished Bathroom" - You are living high on the hog!

Did you even get rid of the Half Moon on the Bathroom Door?

 

[73ss454]

How far from the house in the backyard is the finished bathroom?

 

[Bigritchie]

hehe I meant basement

 

[Sam]

Alot of people can come and buy a house here for 150k that would cost them 600k+ somewhere else.

Thank you Bigritchie for the reply. As far as house price is concerned, Houston is not that much more expensive than your area.

So you have no mortgage on the house. Your health care is free. But you still have to pay for

-Property tax
-Electricity, water, sewer, and natural gas
-Phone, TV
-Food
-Household items
-Health care for your wife (I assume she's not a veteran)
-Car depreciation, insurance, fuel, repair, maintenance
-Clothes
-Misc.

So I'm still completely amazed on how you're able to pay for all those expenses for yourself and your wife (2 people) with $600 a month. We have a few members on this board who have very low expenses, but nothing approaching your level. Don't know about others, but I would love to see the details if you're willing to share.

 

[Bigritchie]

Thank you Bigritchie for the reply. As far as house price is concerned, Houston is not that much more expensive than your area.

So you have no mortgage on the house. Your health care is free. But you still have to pay for

-Property tax
400 bucks a year

-Electricity, water, sewer, and natural gas
maybe 100 if we run the air alot with all things combined

-Phone, TV
Internet/tv around 100 , both of which are expendable (well not the internet Im not a caveman hehe)

-Food
Seeds only cost a few cents, rain is free, you can also get amazing deals shopping at little country farmer markets, I also normally buy in bulk from my store, and plan to still do this when new owners take over, not to mention you can eat a long time off a nice size deer, or you can just fish every day. Man lived for thousands of years without having to pay 400 bucks a month for food. The state stocks the rivers with trout, and a fishing card is like 15 bucks a year or something. What we pay for a month of food, would get some families by for a year in other countries. Chicken eggs are free too.

-Household items
We don't buy crap unless we need it

-Health care for your wife (I assume she's not a veteran)
Tenncare = win

-Car depreciation, insurance, fuel, repair, maintenance
We are hermits, and when we sell the store, I would say the only time we drive will be to travel, insurance is cheap too 400 bucks a year. My neighbor is a mechanic, he is also a disabled veteran, so we fix each others stuff when we can. Car is brand new too, bought a retirement car, and a extended warranty on it

-Clothes
I am still wearing the same clothes my mother bought me in high school, I have worn a uniform for the last decade plus. My father in law actually bought me 2 pairs of shoes several years ago, because I am so cheap, and had taped my old shoes together, still wearing those, and barring my feet getting bigger should get a good 10 years out 2 pairs. Also wore the same thing every day in the service. Relatives usually buy me new clothes for birthdays and Christmas also. I cant really see a pair of shirts and t-shirt costing much in the carribean I can wear alot too

-Misc.

Probably 1-2 used games at 20 bucks every couple of months, and a movie rental. We live in the blue ridge mountains, hiking is free, sitting on the porch and just enjoying our lives is free too (although we do have to buy the coffee hehe)

So I'm still completely amazed on how you're able to pay for all those expenses for yourself and your wife (2 people) with $600 a month. We have a few members on this board who have very low expenses, but nothing approaching your level. Don't know about others, but I would love to see the details if you're willing to share.

So as you can see 600 bucks is actually more then I would really need, depending on how much groceries we buy, and how much I hunt/fish. My insurance will go down too as I will be selling 1 of my vehicles. And I mean sure I gotta buy toothpaste and crap like that, but those are minor things

Edit. I replied to stuff inside the quote box, not real internet forum literate.

 

[CCdaCE]

Damn, Possum Living has struck again.

Possum Living has all the answers that you're probably already aware of.

If you consider this lifestyle a "high quality of life", well then, "more power to ya' ".

-CC

 

[Cut-Throat]

So as you can see 600 bucks is actually more then I would really need, depending on how much groceries we buy, and how much I hunt/fish. My insurance will go down too as I will be selling 1 of my vehicles. And I mean sure I gotta buy toothpaste and crap like that, but those are minor things

I now have a backup fallback plan, in case I can't afford the "Trout Bum in a Trailer Park down by the River lifestyle" - I can become Ernest T. Bass in the Blueridge Mountains of Tennessee.

They even had Al Gore as their Senator, so it can't be all that bad!

 

[Sam]

Bigritchie,

Allright, I bow, bow, bow to you my friend. That's is amazing, especially about the food and the clothes.

Note to myself: Stop calling yourself simple. Stop calling yourself cheap. You don't deserve it.

 

[Bigritchie]

I am not a big fan of possum as their little baby like fingers freak me out.

But yea I kinda wish many times I had been born in a different age, with no taxes, no health insurance, just living off the land and enjoying life.

I have ate as some pretty expensive fish places traveling too, and it is hard to beat fresh catfish and trout out of a clean river.

 

[Bigritchie]

I do not want to sound like nothing but a silly redneck.

The point is though, I think so many people complicate their lives and their retirement by going after material things. Not that 200k a year retirement income is bad, but isn't the point of ER to get away from that chase the dollar mentality.

My goal was to sacrifice all material things, retire at 30 a millionaire, and along the way I realized I don't need material things as they are just vanity, they do not make you happy, and tend to cause even more problems.

it is also a good thing to know how to live off the land, what if a EMP bomb goes off and wipes out everything electric in our country? or Solar Flare, or insert any earth changing event.

We go on vacations to these paradises that are so laid back and simple to relax, and they live even more conservatively then I do.

Another good thing is most people do not think I have a dime, which is great, why would someone rob a poor man? if I get solicited for money at my store I tell them I am disabled and ask them to give me some money and support the troops I dont have to worry about some ass, breaking his leg in my yard and trying to sue me, my family thinks I am dirt poor except my brother, so they leave me alone.

When people ask me why I am selling my store, I tell them I cannot work anymore because I am so disabled (which is true), I do not tell them I am going to go travel the world for the next couple of years.

Thankfully my wife has been my partner during all this, and understood the value of sacrifice, and understood if we gave everything for 10 years, we could goof off the rest off our lives.

When it all boils down to it, money is a tool, nothing more then a hammer, would you be a slave so you can have 10 hammers instead of 1 hammer?

I have never cared what the "jones" thinks. I see them as sheep and slaves. Why would I want to keep up with someone who is going to work till they are 69 and then drop dead 2 months later, and during those 40 years of work were utterly miserable, and divorced 10 times.

I meet so many people who make even more then I do, who are in debt up to their necks, have nothing. How much you make doesn't matter, it is how much you save. Buying silly crap at a store is no different then paying uncle sam to me.

So many people make 20k a year and have 10k a year in bills, blow 4 grand, and then save 1 grand. This pattern continues as they get older, so they may make 500k in a year, but they still only bank 1k a year.

I guess my point is if your expenses are 10k when you make 20k, and you save 9k of that, when you make 500k you should still have 10k in expenses, and bank 580+ k of that.

One of the most best lessons of my life was when I went to my grandfather's house, who was the happiest, wisest man I have EVER met in my life, he owned acres of land, always had a full fridge and lived a full life with all his family living close by. He lived off 800 bucks a month, yet he had people from a 200 mile radius come see his for his advice and wisdom. but anyways, I took my brand new Sebring Silver C5 corvette in 1997 the year the only made a couple hundred and you could not find them anywhere, up to his house to show him that I was moving up in the world. I could tell that he was proud of me, but he gently asked me what special roads they made for my car, that he couldn't take his little 1985 used Buick on. it hit me like a ton of bricks, I sold the Car and eventually invested in Euros.

 

[JustCurious]

$0, assuming I was eligible to draw social security. It would also help if my spouse kept working.