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Post by Foggy on Feb 18, 2019 11:54:14 GMT -6
Travel, Vacations, Auto expense and replacement, Golf cart, Trips to see grandkids, Trips "up north" (cause its too hot to stay here all summer), I doubt your dental costs are right, I would wager that you will eat out and spend more on groceries than that listed. Gifts, Giving to charity, Kids expsese? Casino, horse track gambling??? (dont cost me much - if any - but some spend allot here) Sports betting? Vegas shows? Entertainment? Movies? Hunting trips? Licenses.
If you go out to eat 3x a week @$60 = 180 x 52 = $9,360. PLUS weekly groceries. <-----THAT is how you blow a budget. You just dont go to the local VFW for burgers around here. Dont work that way. Also, I know of couples that go out EVERY night to eat. THAT DOES COST MONEY!.....and the restaurants are full.....both here and in MN. Also, $60 with a couple of drinks is cheap these days......that's likely the cost at a beer and burger place. Go to an Italian restaurant. or steakhouse once in a while.....and the costs are higher.
My wife and I occasionally keep track of every penny we spend and put it in categories. We have done so for 40 years. (but not in the past 5 years) We always surprise ourselves with what it costs to live.
Keep track for 3 months or so.....and it will open your eyes. I would not expect my cost of living to go down in retirement.
Just saying.
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Post by MoBuckChaser on Feb 18, 2019 12:01:29 GMT -6
Travel, Vacations, Auto expense and replacement, Golf cart, Trips to see grandkids, Trips "up north" (cause its too hot to stay here all summer), I doubt your dental costs are right, I would wager that you will eat out and spend more on groceries than that listed. Gifts, Giving to charity, Kids expsese? Casino, horse track gambling??? (dont cost me much - if any - but some spend allot here) Sports betting? Vegas shows? Entertainment? Movies? Hunting trips? Licenses. If you go out to eat 3x a week @$60 = 180 x 52 = $9,360. PLUS weekly groceries. <-----THAT is how you blow a budget. You just dont go to the local VFW for burgers around here. Dont work that way. Also, I know of couples that go out EVERY night to eat. THAT DOES COST MONEY!.....and the restaurants are full.....both here and in MN. Also, $60 with a couple of drinks is cheap these days......that's likely the cost at a beer and burger place. Go to an Italian restaurant. or steakhouse once in a while.....and the costs are higher. My wife and I occasionally keep track of every penny we spend and put it in categories. We have done so for 40 years. (but not in the past 5 years) We always surprise ourselves with what it costs to live. Keep track for 3 months or so.....and it will open your eyes. I would not expect my cost of living to go down in retirement. Just saying. I was just looking at fixed costs. All the items you listed above are extras that of course would take more money. I think my thinking $60K after taxes will be on the low end of wwhat we will need.
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Post by badbrad on Feb 18, 2019 12:20:16 GMT -6
$38 a week on booze? For you? Bwhahaahahahahahahahahahahaha I am going to try and cut back Asshole...... $38 bucks buys you two rounds at the bar. Or 2 30 packs. Seems low even cutting back. JMHO.
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Post by MoBuckChaser on Feb 18, 2019 12:22:23 GMT -6
I am going to try and cut back Asshole...... $38 bucks buys you two rounds at the bar. Or 2 30 packs. Seems low even cutting back. JMHO. I had some factored in the grocery line as you pick up the beer at the grocery store. But being off a grand or two won't kill me either way.
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Post by Freeborn on Feb 18, 2019 12:29:23 GMT -6
Travel, Vacations, Auto expense and replacement, Golf cart, Trips to see grandkids, Trips "up north" (cause its too hot to stay here all summer), I doubt your dental costs are right, I would wager that you will eat out and spend more on groceries than that listed. Gifts, Giving to charity, Kids expsese? Casino, horse track gambling??? (dont cost me much - if any - but some spend allot here) Sports betting? Vegas shows? Entertainment? Movies? Hunting trips? Licenses. If you go out to eat 3x a week @$60 = 180 x 52 = $9,360. PLUS weekly groceries. <-----THAT is how you blow a budget. You just dont go to the local VFW for burgers around here. Dont work that way. Also, I know of couples that go out EVERY night to eat. THAT DOES COST MONEY!.....and the restaurants are full.....both here and in MN. Also, $60 with a couple of drinks is cheap these days......that's likely the cost at a beer and burger place. Go to an Italian restaurant. or steakhouse once in a while.....and the costs are higher. My wife and I occasionally keep track of every penny we spend and put it in categories. We have done so for 40 years. (but not in the past 5 years) We always surprise ourselves with what it costs to live. Keep track for 3 months or so.....and it will open your eyes. I would not expect my cost of living to go down in retirement. Just saying. I was just looking at fixed costs. All the items you listed above are extras that of course would take more money. I think my thinking $60K after taxes will be on the low end of wwhat we will need. If these are fixed costs that are only incremental to AZ you have some duplicates like Cell phone, groceries, car insurance and car repair as well as your health insurance. You will have these costs in AZ and MN but they don't go up just because you are at one location and not the other.
Some of the things Foggy mentions are lifestyle choices which are variable to what you want to spend.
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Post by MoBuckChaser on Feb 18, 2019 12:34:54 GMT -6
I was just looking at fixed costs. All the items you listed above are extras that of course would take more money. I think my thinking $60K after taxes will be on the low end of wwhat we will need. If these are fixed costs that are only incremental to AZ you have some duplicates like Cell phone, groceries, car insurance and car repair as well as your health insurance. You will have these costs in AZ and MN but they don't go up just because you are at one location and not the other.
Some of the things Foggy mentions are lifestyle choices which are variable to what you want to spend.
My plan hopefully will be no MN when I fully retire. For now the income from the business can support 3 homes and the costs involved. Just looking at one place for retirement and the hunting shack. Missouri hunting shack is cheap for taxes, insurance, heat, electric and water. Less than $3K
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Post by terrifictom on Feb 18, 2019 12:38:53 GMT -6
^ The other thing not mentioned is taxes. If you have income from stocks, bonds, Social Security, Contract for deed on your old property, or other investments......your going to pay taxes. Taxes, dental and medical expenses, and health care costs are huge wild cards. Then too....family members may need help, etc. It all happens. Foggy, since you are living the dream right now, place in Zona paid for. Give us a run down on some of the costs we don't know about. These are the ones I can guess about for a year. About $40,000 off the top of my head, what else am I missing?
Property taxes, $3,000
HOA fees $2500
Electric $$2000
Gas $1000
Garbage service $300
Cable TV $1200 Landscape services $1000 Upkeep $2000 Groceries, eating out $4000 Golf Fees/costs $4000 House insurance $1500 Cell Phone $1500 Car insurance $1000 Car repair, oil changes, fuel $2000 Medicare $3000 Supplement insurance $2000 Dental Insurance $500 Medical out of pocket $8000
Edit: I forgot water $1000? Booze $ 2000?
Living in Minnesota may be different but I just went on medicare as of Jan 1, 2019. The supplement is the best I could get. My costs:
Medicare Part B 1636 per year Supplement 1704 per year Prescription Part D 168 per year
I retired at 57. Started collecting my pension at that time. Had to watch my spending habits but nothing too serious. When I turned 62 I started collecting SS. Once my SS checks started rolling in, we have started actually saving money as we had adjusted on what we spent on. I don't live a lavish life style but I have not had to change the life style that I had when I was working either. I have a brother-in-law that worked until he was 70, always worrying that he didn't have enough money, when he had plenty to retire. 2 months after he retired he was told he had terminal cancer. He isn't doing well as I type this.
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Post by MoBuckChaser on Feb 18, 2019 12:49:31 GMT -6
Foggy, since you are living the dream right now, place in Zona paid for. Give us a run down on some of the costs we don't know about. These are the ones I can guess about for a year. About $40,000 off the top of my head, what else am I missing?
Property taxes, $3,000
HOA fees $2500
Electric $$2000
Gas $1000
Garbage service $300
Cable TV $1200 Landscape services $1000 Upkeep $2000 Groceries, eating out $4000 Golf Fees/costs $4000 House insurance $1500 Cell Phone $1500 Car insurance $1000 Car repair, oil changes, fuel $2000 Medicare $3000 Supplement insurance $2000 Dental Insurance $500 Medical out of pocket $8000
Edit: I forgot water $1000? Booze $ 2000?
Living in Minnesota may be different but I just went on medicare as of Jan 1, 2019. The supplement is the best I could get. My costs:
Medicare Part B 1636 per year Supplement 1704 per year Prescription Part D 168 per year
I retired at 57. Started collecting my pension at that time. Had to watch my spending habits but nothing too serious. When I turned 62 I started collecting SS. Once my SS checks started rolling in, we have started actually saving money as we had adjusted on what we spent on. I don't live a lavish life style but I have not had to change the life style that I had when I was working either. I have a brother-in-law that worked until he was 70, always worrying that he didn't have enough money, when he had plenty to retire. 2 months after he retired he was told he had terminal cancer. He isn't doing well as I type this.
Hey Tom, what was the percentage difference taking SS at 62 verses 65? Was it much?
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Post by Freeborn on Feb 18, 2019 12:54:41 GMT -6
Living in Minnesota may be different but I just went on medicare as of Jan 1, 2019. The supplement is the best I could get. My costs:
Medicare Part B 1636 per year Supplement 1704 per year Prescription Part D 168 per year
I retired at 57. Started collecting my pension at that time. Had to watch my spending habits but nothing too serious. When I turned 62 I started collecting SS. Once my SS checks started rolling in, we have started actually saving money as we had adjusted on what we spent on. I don't live a lavish life style but I have not had to change the life style that I had when I was working either. I have a brother-in-law that worked until he was 70, always worrying that he didn't have enough money, when he had plenty to retire. 2 months after he retired he was told he had terminal cancer. He isn't doing well as I type this.
Hey Tom, what was the percentage difference taking SS at 62 verses 65? Was it much? One thing to think about is if one of you is the primary earner and older it might make sense to delay your SS later as your younger spouse can draw the higher single rate if and when you pass. Its not for everyone but if you are worried about a single SS income its something to look at.
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Post by MoBuckChaser on Feb 18, 2019 12:58:25 GMT -6
Hey Tom, what was the percentage difference taking SS at 62 verses 65? Was it much? One thing to think about is if one of you is the primary earner and older it might make sense to delay your SS later as your younger spouse can draw the higher single rate if and when you pass. Its not for everyone but if you are worried about a single SS income its something to look at. Thanks Jerry, We talked about that. I will not be able to take SS if I keep running the business in the summers. She won't be eligible for at least 9 years yet at 62. Was wondering if I did shut the business off, does it pay to wait to pull SS at 65 verses 62?
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Post by leexrayshady on Feb 18, 2019 13:03:17 GMT -6
you got to play the tax game when you can, especially when trying to get into the 0% tax on capital gains.
More people than you might think qualify for the 0% rate on gains from investment securities held for more than one year. Why? Because the 0% bracket for long-term gains covers 2019 taxable income (including the gains) of up to $39,375 for singles, $78,750 for married joint filers, and $52,750 for heads of households. Here’s how this rule works in real life. Say you’re a joint filer and have $70,000 of “regular” taxable income in 2019 and a net long-term gain of $12,000 from stock sales. The first $8,750 of gain ($78,750 - $70,000) will be taxed at 0%. The remaining $3,250 ($12,000-$8,750) will get taxed at the standard 15% rate you hear so much about. Now let’s say your net long-term gain is $8,750 or less. In this case, you’ll pay 0% on the entire gain.
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Post by terrifictom on Feb 18, 2019 13:13:03 GMT -6
Living in Minnesota may be different but I just went on medicare as of Jan 1, 2019. The supplement is the best I could get. My costs:
Medicare Part B 1636 per year Supplement 1704 per year Prescription Part D 168 per year
I retired at 57. Started collecting my pension at that time. Had to watch my spending habits but nothing too serious. When I turned 62 I started collecting SS. Once my SS checks started rolling in, we have started actually saving money as we had adjusted on what we spent on. I don't live a lavish life style but I have not had to change the life style that I had when I was working either. I have a brother-in-law that worked until he was 70, always worrying that he didn't have enough money, when he had plenty to retire. 2 months after he retired he was told he had terminal cancer. He isn't doing well as I type this.
Hey Tom, what was the percentage difference taking SS at 62 verses 65? Was it much? There was difference but don't remember the percentage. I sat down and figured out the amount of cash that I gained by collecting from age 62 vs waiting till age 65. I have to make it to age 85 before I will have lost on total cash collected from SS. Took a little of the SS money that I got from 62 to 65 and invested it and I will be money ahead and this money is in my control not the Goverments.
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Post by MoBuckChaser on Feb 18, 2019 13:15:51 GMT -6
Hey Tom, what was the percentage difference taking SS at 62 verses 65? Was it much? There was difference but don't remember the percentage. I sat down and figured out the amount of cash that I gained by collecting from age 62 vs waiting till age 65. I have to make it to age 85 before I will have lost on total cash collected from SS. Took a little of the SS money that I got from 62 to 65 and invested it and I will be money ahead and this money is in my control not the Goverments. That is kinda what I was thinking. The crossover from taking the money early would be better than playing catch up starting at 65. Good Job!
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Post by mnfish on Feb 18, 2019 13:53:59 GMT -6
Great posts Westbranch!
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Post by Tooln on Feb 18, 2019 14:03:52 GMT -6
Ever think of making your own booze?
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