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Nine Years of Retirement - Actual spent and Projections

Dex
edited October 2015 in Off-Topic
No debt, own home
26,585 - average spent over 9 years, includes 2015
38,218 - average estimated to spend over next 11 years, includes a new truck

Basic
Living Extra$ Total
24,024 5,076 29,100 2016
26,504 5,196 31,700
55,438 5,262 60,700
26,657 5,343 32,000
28,344 5,456 33,800
29,383 5,517 34,900
30,685 5,615 36,300
32,216 5,784 38,000
33,645 5,855 39,500
35,319 5,981 41,300
37,056 6,044 43,100

Health Ins is a big part - 2016 est $5,700, 2017 $7,200
Real Estate, Income Taxes - 2016 $3,200


Comments

  • DanHardy
    Thank you for that. I find it interesting. So many discussions about retirement do not provide real world experience.
  • Derf
    Dex , I'm missing something ? Can you give a little more detail ? When you start at bottom & add up 9 years Living$$'s / 9 , it's got to be more than 26,585 average Hell's bell's I'm seeing only one year $26,504 & that's year 10 so to speak. ! I must be missing something ?!
    Derf
  • Dex
    edited October 2015
    Derf said:

    Dex , I'm missing something ? Can you give a little more detail ? When you start at bottom & add up 9 years Living$$'s / 9 , it's got to be more than 26,585 average Hell's bell's I'm seeing only one year $26,504 & that's year 10 so to speak. ! I must be missing something ?!
    Derf

    Past - 26,585 - average spent over 9 years, includes 2015
    Future - the numbers below - 38,218 - average estimated to spend over next 11 years, includes a new truck
  • tlmtlm59tlmtlm59
    Interesting. I plan on going April 1. Might work a small job to keep me out of trouble and bring in a little bit of spending money. I was figuring to spend about $25k/yr then.
  • MJG
    edited November 2015
    Hi Guys,

    When and where to locate in retirement is a complicated and worrisome decision. Many factors influence that decision, and most of them are loaded with uncertainty.

    I applaud Dex’s daring for providing his current retirement budget and his projections for the next decade. I don’t know what I’ll be spending next week.

    But I would caution MFO members who are considering a retirement option to be leery of any direct comparisons or to use Dex’s numbers as a guideline. Such comparisons are hugely corrupted by personal living styles and by geographic impacts. My live style is likely not nearly equivalent to Dex, and my selected geographic location is surely more costly. These dissimilarities will be the norm and not the exception.

    Family proximity and climate considerations dominated my easy decision to remain at my current location. Cost of living was a minor factor in my deliberations although it dominated the thinking of 3 other folks who retired the same day that I did. All three opted for Phoenix over LA because of a real cost of living reduction.

    All kinds of websites exist that permit a comparison of cost of living in cities around the world. Here is a representative Link that summaries a cost of living index measurement for many cities in the USA:

    https://www.expatistan.com/cost-of-living/country/united-states

    Using today’s data measurement, it is obvious why my 3 other retirees selected Phoenix. LA has a 215 index number while Phoenix currently scores 169. Forming a ratio of those values (215/169), LA’s cost of living is 27% higher than Phoenix. You can make similar comparisons.

    Cost of living is only one factor when making a geographic retirement decision. All kinds of websites also exist that attempt to measure a state’s attractiveness for retirees. These measurements all include a cost of living component, but also add other factors to their equation. Frequent factors added are health facility access, crime rate, climate, and senior citizen poverty rate statistics.

    Here is a Link to a recent Kiplinger article:

    http://www.kiplinger.com/article/retirement/T037-C000-S001-how-every-state-ranks-for-retirement-2015.html

    In the Kiplinger rankings, Delaware rated highest. I have seen other rankings that positioned Wyoming in that top spot. In the Kiplinger scheme, Arizona was awarded the number 6 slot while California was way down in the number 50 position.

    A final choice all dependents on your specific circumstances, priorities, preferences, and constraints. We all weight retirement decision factors differently. Viva la difference.

    For those nearing retirement, I hope you find these references useful.

    Best Wishes.
  • Dex
    MJG said:



    But I would caution MFO members who are considering a retirement option to be leery of any direct comparisons or to use Dex’s numbers as a guideline. Such comparisons are hugely corrupted by personal living styles and by geographic impacts. My live style is likely not nearly equivalent to Dex, and my selected geographic location is surely more costly. These dissimilarities will be the norm and not the exception.


    Best Wishes.

    Definitely true. Before I retired I was estimating spending $40,000/year. Also, I traveled the world previously and do not have plans for that.

    FYI - the basic number = staying home and local travel
    The extra$ is for travel and other things.
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