Comments on: Retiring Early – Part 1 (The Expenses) http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm Building Wealth through Saving and Investing Fri, 19 Mar 2010 15:56:00 -0400 http://wordpress.org/?v=abc hourly 1 By: NIL http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm/comment-page-1#comment-110357 NIL Wed, 03 Feb 2010 20:31:16 +0000 http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm#comment-110357 Interestingly, I did a calculation before I discovered this, and came up with almost the same result (I got $44,700. per year). Nice to see it confirmed. Interestingly, I did a calculation before I discovered this, and came up with almost the same result (I got $44,700. per year). Nice to see it confirmed.

]]> By: 50 Personal Finance Bloggers To Watch In 2010 | Finance, credit, debt, insurance, investing, leasing, loans and mortage http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm/comment-page-1#comment-109460 50 Personal Finance Bloggers To Watch In 2010 | Finance, credit, debt, insurance, investing, leasing, loans and mortage Tue, 12 Jan 2010 01:40:54 +0000 http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm#comment-109460 [...] Million Dollar Journey: Another Canadian blogger, the frugal trader gives solid investment and finance advice.  Recent post: Early Retirement Series [...]

[...] Million Dollar Journey: Another Canadian blogger, the frugal trader gives solid investment and finance advice.  Recent post: Early Retirement Series [...]

]]> By: -> 50 Personal Finance Bloggers To Watch In 2010 | Bible Money Matters http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm/comment-page-1#comment-109439 -> 50 Personal Finance Bloggers To Watch In 2010 | Bible Money Matters Mon, 11 Jan 2010 20:10:06 +0000 http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm#comment-109439 [...] Million Dollar Journey: Another Canadian blogger, the frugal trader gives solid investment and finance advice.  Recent post: Early Retirement Series [...]

[...] Million Dollar Journey: Another Canadian blogger, the frugal trader gives solid investment and finance advice.  Recent post: Early Retirement Series [...]

]]> By: 100 Inspiring Personal Finance Posts for the New Year | Accounting Degree.com http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm/comment-page-1#comment-109084 100 Inspiring Personal Finance Posts for the New Year | Accounting Degree.com Tue, 05 Jan 2010 18:07:36 +0000 http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm#comment-109084 [...] Retiring Early – Part 1 (The Expenses): Learn how to budget for your retirement by reading this blog. [...]

[...] Retiring Early – Part 1 (The Expenses): Learn how to budget for your retirement by reading this blog. [...]

]]> By: The 4% Retirement Rule | Million Dollar Journey http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm/comment-page-1#comment-80756 The 4% Retirement Rule | Million Dollar Journey Sun, 03 May 2009 23:48:19 +0000 http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm#comment-80756 [...] my Retiring Early Series, I determined that we would need around $45,000 / year to live comfortably (in todays dollars). If [...]

[...] my Retiring Early Series, I determined that we would need around $45,000 / year to live comfortably (in todays dollars). If [...]

]]> By: The New Retirement Book Review and Discussion | Million Dollar Journey http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm/comment-page-1#comment-70902 The New Retirement Book Review and Discussion | Million Dollar Journey Wed, 18 Feb 2009 11:30:48 +0000 http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm#comment-70902 [...] written about early retirement before and even about the safe 4% withdrawal rule before which this book touches on.  The [...]

[...] written about early retirement before and even about the safe 4% withdrawal rule before which this book touches on.  The [...]

]]> By: AL http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm/comment-page-1#comment-52006 AL Sun, 14 Sep 2008 03:56:23 +0000 http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm#comment-52006 It takes a lot of money to be capable of spending and retiring early. It takes a lot of money to be capable of spending and retiring early.

]]> By: Cannon_fodder http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm/comment-page-1#comment-50573 Cannon_fodder Wed, 03 Sep 2008 01:49:15 +0000 http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm#comment-50573 FT, I've gone through this a few times, and here is what I came up with for our situation in retirement. (Of course, I went through what we no longer would have to direct money to just like you did - the remainder is to follow.) In 2008 dollars on an annual basis.... Property Tax - $4,500 (what we currently pay - perhaps we will move to a smaller home or in a less expensive community) Auto (down to 1 vehicle): Gas - $2,400 Insurance - $1,200 Maintenance - $1,200 New car fund - $6,000 Home Insurance - $500 Upkeep/Big Fix Fund - $1,800 Utilities Internet / Cable - $1,800 Cell phone - $600 (never owned my cell -always got it through work!) Water Tank - $250 Gas/Water/Elec - $2,800 Vacation - $6,000 Gifts - $2,000 Food - $3,500 Entertainment - $1,800 Clothes - $1,500 Charity - $500 Now, you put down gym membership. That made me think of golfing - something I'd love to do when I retire since I only get out 1 or 2 times per year now. I'd say there are some big differences between our two lists - food (both groceries and eating out) and miscellaneous spending. (The new car fund was discussed earlier in the follow up comments. If we retire when I'd like, we would be halfway through the life of our car at that point giving us another 5 years to save up for the next one.) I hope I'm being realistic with my numbers - it will be easier once the kids have grown up and we can see what it is like with just the two of us. FT,

I’ve gone through this a few times, and here is what I came up with for our situation in retirement. (Of course, I went through what we no longer would have to direct money to just like you did – the remainder is to follow.)

In 2008 dollars on an annual basis….

Property Tax – $4,500 (what we currently pay – perhaps we will move to a smaller home or in a less expensive community)

Auto (down to 1 vehicle):
Gas – $2,400
Insurance – $1,200
Maintenance – $1,200
New car fund – $6,000

Home
Insurance – $500
Upkeep/Big Fix Fund – $1,800

Utilities

Internet / Cable – $1,800
Cell phone – $600 (never owned my cell -always got it through work!)
Water Tank – $250
Gas/Water/Elec – $2,800

Vacation – $6,000
Gifts – $2,000
Food – $3,500
Entertainment – $1,800
Clothes – $1,500
Charity – $500

Now, you put down gym membership. That made me think of golfing – something I’d love to do when I retire since I only get out 1 or 2 times per year now.

I’d say there are some big differences between our two lists – food (both groceries and eating out) and miscellaneous spending. (The new car fund was discussed earlier in the follow up comments. If we retire when I’d like, we would be halfway through the life of our car at that point giving us another 5 years to save up for the next one.)

I hope I’m being realistic with my numbers – it will be easier once the kids have grown up and we can see what it is like with just the two of us.

]]> By: Reader Mail: Babe in the Woods II | Million Dollar Journey http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm/comment-page-1#comment-22240 Reader Mail: Babe in the Woods II | Million Dollar Journey Thu, 10 Jan 2008 07:32:31 +0000 http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm#comment-22240 [...] will require and work backwards from there.  If you haven't already, check out my "early retirement series".  I did a number of calculations there that help determine the numbers required to [...]

[...] will require and work backwards from there.  If you haven't already, check out my "early retirement series".  I did a number of calculations there that help determine the numbers required to [...]

]]> By: Book Review: The Lazy Investor | Million Dollar Journey http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm/comment-page-1#comment-22002 Book Review: The Lazy Investor | Million Dollar Journey Tue, 08 Jan 2008 07:49:25 +0000 http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm#comment-22002 [...] That is, when you retire, you'll have fewer expenses to contend with.  My early retirement series is based on this conclusion [...]

[...] That is, when you retire, you'll have fewer expenses to contend with.  My early retirement series is based on this conclusion [...]

]]> By: Retiring Early - Part 2 (The Income) | Million Dollar Journey http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm/comment-page-1#comment-18156 Retiring Early - Part 2 (The Income) | Million Dollar Journey Tue, 27 Nov 2007 12:52:30 +0000 http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm#comment-18156 [...] FrugalTrader05:02 am4 Comments To continue from Part 1 of the Retiring Early series, we need to determine how our income and savings will pay for our expenses, and how early we can [...]

[...] FrugalTrader05:02 am4 Comments To continue from Part 1 of the Retiring Early series, we need to determine how our income and savings will pay for our expenses, and how early we can [...]

]]> By: FrugalTrader http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm/comment-page-1#comment-18021 FrugalTrader Mon, 26 Nov 2007 13:47:22 +0000 http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm#comment-18021 JD, it really depends on what you want your lifestyle to be like during retirement. If your pre-retirement lifestyle is extravagant (like you claim), then most likely you'll want your retirement lifestyle to be the same. Thus, you'll need to save for it. Really, to each their own, if materials and extravagant spending make you happy, then more power to you. JD, it really depends on what you want your lifestyle to be like during retirement. If your pre-retirement lifestyle is extravagant (like you claim), then most likely you’ll want your retirement lifestyle to be the same. Thus, you’ll need to save for it. Really, to each their own, if materials and extravagant spending make you happy, then more power to you.

]]> By: George http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm/comment-page-1#comment-18020 George Mon, 26 Nov 2007 13:40:14 +0000 http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm#comment-18020 JD: Malcolm Hamilton, an actuary and frequent commentator in this field, has looked at the spending habits of actual retirees. One of the things he's found is that a 50% "replacement ratio" is probably pretty close to the norm for people once they retire. More interestingly, he also found that those same people were spending 10-20% of their gross income on gifts and charitable donations. If you can earn 50% of your pre-retirement income and still afford to give that much of it away, you're hardly just "surviving". If your goals are to blow large amounts of money in retirement, then it's probably a good thing that you're saving half of your net income. Like the vast majority of people in Canada and the USA, I plan on living a retirement lifestyle that's pretty similar to the one I'm living while working, just with more time available for hobbies, volunteering, and being with family. Perhaps it is a Canadian thing, but I don't see how spending gobs of money would make me happier once I retire. JD: Malcolm Hamilton, an actuary and frequent commentator in this field, has looked at the spending habits of actual retirees. One of the things he’s found is that a 50% “replacement ratio” is probably pretty close to the norm for people once they retire.

More interestingly, he also found that those same people were spending 10-20% of their gross income on gifts and charitable donations. If you can earn 50% of your pre-retirement income and still afford to give that much of it away, you’re hardly just “surviving”.

If your goals are to blow large amounts of money in retirement, then it’s probably a good thing that you’re saving half of your net income. Like the vast majority of people in Canada and the USA, I plan on living a retirement lifestyle that’s pretty similar to the one I’m living while working, just with more time available for hobbies, volunteering, and being with family.

Perhaps it is a Canadian thing, but I don’t see how spending gobs of money would make me happier once I retire.

]]> By: JD http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm/comment-page-1#comment-18003 JD Mon, 26 Nov 2007 10:59:34 +0000 http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm#comment-18003 What about the fun?? The reason people preach the numbers of 50% or 70% of your current income for retirement is they are just focusing on the amount you will need to SURVIVE. But the whole point of retirement is to enjoy life without the hassles of a full-time job. I currently save around 50% of my net income but for retirement I would actually want MORE than my current income because I plan to travel much more, buy some toys, give some large gifts to children and/or grandchildren, and basically not have to spend my "golden" years pinching pennies. You say you want to travel quite a bit in retirement but you are only budgeting $500/month for it. That is $6k per year which is virtually nothing if you plan to do any considerable amount of travel. Even if you don't plan to travel internationally and enjoy the finer things it is not much at all. Even if your travel is bare-bones throughout the US/Canada (mostly driving) and staying in cheap motels it is not much. Even a bare-bones vacation with no luxuries for 2 people would cost at least $200 per day, so you're talking about a whopping 30 days a year of travel at an extremely tight budget during what are supposed to be the most relaxing years of your life??? I don't get it. It must be a Canadian thing, hehe. What about the fun?? The reason people preach the numbers of 50% or 70% of your current income for retirement is they are just focusing on the amount you will need to SURVIVE. But the whole point of retirement is to enjoy life without the hassles of a full-time job. I currently save around 50% of my net income but for retirement I would actually want MORE than my current income because I plan to travel much more, buy some toys, give some large gifts to children and/or grandchildren, and basically not have to spend my “golden” years pinching pennies. You say you want to travel quite a bit in retirement but you are only budgeting $500/month for it. That is $6k per year which is virtually nothing if you plan to do any considerable amount of travel. Even if you don’t plan to travel internationally and enjoy the finer things it is not much at all. Even if your travel is bare-bones throughout the US/Canada (mostly driving) and staying in cheap motels it is not much. Even a bare-bones vacation with no luxuries for 2 people would cost at least $200 per day, so you’re talking about a whopping 30 days a year of travel at an extremely tight budget during what are supposed to be the most relaxing years of your life??? I don’t get it. It must be a Canadian thing, hehe.

]]> By: Sara http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm/comment-page-1#comment-14994 Sara Tue, 23 Oct 2007 15:20:26 +0000 http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm#comment-14994 Oh, that makes sense. Sorry. I am a new visitor - came here from Get Rich Slowly. Thanks for the interesting set of posts. Oh, that makes sense. Sorry. I am a new visitor – came here from Get Rich Slowly. Thanks for the interesting set of posts.

]]> By: FrugalTrader http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm/comment-page-1#comment-14991 FrugalTrader Tue, 23 Oct 2007 14:23:22 +0000 http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm#comment-14991 Hey Sara, here in Canada, our health insurance premiums are much lower than the US. Basically, our health insurance that we purchase covers the medication where the govt pays for the hospital/doctor visit. Hey Sara, here in Canada, our health insurance premiums are much lower than the US. Basically, our health insurance that we purchase covers the medication where the govt pays for the hospital/doctor visit.

]]> By: Sara http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm/comment-page-1#comment-14952 Sara Mon, 22 Oct 2007 20:10:56 +0000 http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm#comment-14952 The estimated cost of your health insurance premium seems impossibly low for a whole family. I would expect it to be closer to $800 - $1000 per month if you don't get it through an employer. At my job, my health insurance is $400 per month (paid for by my employer, but just as an example) - and I am a single, healthy 25 year old! Unless you know something I don't... I can't see how $300 per month would be adequate for a family unless your coverage was totally bare bones. The estimated cost of your health insurance premium seems impossibly low for a whole family. I would expect it to be closer to $800 – $1000 per month if you don’t get it through an employer. At my job, my health insurance is $400 per month (paid for by my employer, but just as an example) – and I am a single, healthy 25 year old! Unless you know something I don’t… I can’t see how $300 per month would be adequate for a family unless your coverage was totally bare bones.

]]> By: Legal Advice WebLog » Blog Archive » Reviews of the Best Internet & Financial Services - 100best.com http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm/comment-page-1#comment-8699 Legal Advice WebLog » Blog Archive » Reviews of the Best Internet & Financial Services - 100best.com Fri, 20 Jul 2007 12:05:11 +0000 http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm#comment-8699 [...] Retiring Early - Part 1 (The Expenses) - Million Dollar Journey Assume that all debt is paid off, kids are moved out or in … 200/month; Car Maintenance: $100/month; Heat/Light: $300/month; Phone/Cell … the savings required to meet our retirement goals at certain pre … http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm [...]

[...] Retiring Early – Part 1 (The Expenses) – Million Dollar Journey Assume that all debt is paid off, kids are moved out or in … 200/month; Car Maintenance: $100/month; Heat/Light: $300/month; Phone/Cell … the savings required to meet our retirement goals at certain pre … http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm [...]

]]> By: Carnival of Personal Finance: Greatest Hits Edition ? Get Rich Slowly http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm/comment-page-1#comment-6493 Carnival of Personal Finance: Greatest Hits Edition ? Get Rich Slowly Mon, 18 Jun 2007 08:49:33 +0000 http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm#comment-6493 [...] The expenses [...]

[...] The expenses [...]

]]> By: Reader Comment: Newborn Baby Expenses! - Million Dollar Journey http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm/comment-page-1#comment-6084 Reader Comment: Newborn Baby Expenses! - Million Dollar Journey Mon, 11 Jun 2007 21:14:47 +0000 http://www.milliondollarjourney.com/retiring-early-part-1-the-expenses.htm#comment-6084 [...] February FrugalTrader05:00 am39 Comments Last week, I posted my early retirement series and within the first article I stated: I also PLAN to have kids, but don’t have any currently so I really don’t know how much they’re going to cost.. [...]

[...] February FrugalTrader05:00 am39 Comments Last week, I posted my early retirement series and within the first article I stated: I also PLAN to have kids, but don’t have any currently so I really don’t know how much they’re going to cost.. [...]

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