Quote:
Originally Posted by geko29
So based on today's costs, which will only go up:
Federal taxes on $100k, MFJ: $8.6k (my current state does not tax retirement income. If it did add another $4.8k)
Property taxes: $10k
Home/Auto/Umbrella Insurance: $5k
Medicare A+B+D+G, for 2 people: $16.5k (not paying this right now, obviously)
So $40k/yr is already out the door, right from the jump. And I haven't paid my utilities, bought any food, done any home improvements/maintenance, bought any toys, gone on any trips, or done any car-related things.
And since we're on a board dedicated to $100k cars, let's say we want two of those in the driveway/garage. Even if we only replace them every 5 years, there's another $20k/year right there (assuming 50% depreciation). So now there's "only" $40k left for all that other stuff. I don't think we'll actually do this, but just to illustrate how quickly stuff adds up.
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Your Medicare costs seem extremely high. My 76 y/o mother isn't paying anything like that and she carries supplemental as well.
I too look at SS as gravy, but it will be there. They've been saying SS might disappear since the 1980s. Nothing as changed. If SS wasn't there, a vast majority of Americans would in serious trouble seeing that most people retire with less than $200K in retirement savings thus most retirees are dependent on it.
Once most are in their 70s, they are driving their last car. Sad, but true. Point being, you've only a small window of buying cars when retired.
Same with insurance and property tax. Many in their 70s will sell their homes and cars and enter retirement communities or elderly care so your insurance and property tax costs disappear.
To me, less is more and that's what probably sets me apart from many on a forum like this and why I think needing $100K per year to live is a bit bonkers. I love cars and have two amazing rides at 48. But I have no desire for super expensive cars and more importantly a big house, a second home, etc. Once our kids are out in 4 years, my wife and I are building or renovating a ~1,200-sq ft 3 bedroom, energy efficient, easy to maintain home on some land that needs minimal maintaining and has lots of outdoor living space. We'll travel a lot too. My wife and I are done with managing "stuff" which consumes so much of one's life.
Again, the linked retirement calculator below has been so useful in helping me project out when I can retire. Once we hit $2 million in investment assets and I'm over 52, I'm done working. The house is already paid off and the kids college costs are fully funded and then some. The odds are we'll hardly touch our principal in retirement and kiddos will be quite well off when we're gone and hopefully they can continue to pass it down to their kids and so on.
https://engaging-data.com/will-money-last-retire-early/