need help with budget projection

[caligas]

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One of the my favorite ways to deal with pending burnout is to project the number of years till achieve f-u money status. One thing I am struggling with is projecting our spending in retirement. With our one young child we are spending just under $100k. Any older folks able to comment on how their budget changed at/near retirement? On the one hand mortgage and college funds will have been covered and we won't have certain insurance costs and we will do more of our own house and yard work, but on the other hand we will likely travel more and pay much higher health premiums. I am thinking that we should just assume that spending will stay the same overall. Any thoughts?

 

[pjl]

Go to bogleheads.this is most of what they talk about there, and there are links to calculators. I'm in the same time of life as you so no other advice.

 

[IlDestriero]

I think you'll pay less health care premiums than we do now as we will all have the Hillary Card for our care by that time, though you may have to pick up some expensive supplemental long term care insurance, etc. The failing system will certainly be broken in 20 years when I retire.
Look at your current spending and remove your retirement planning, life and disability insurance, child education and college planning costs, mortgage(s), etc. You'll be surprised at how little you need to take out to maintain your current lifestyle. Think about how much money you're paying into these things above every year. Most calculators are designed for average people making average money, they need to have 60+ percent of their income to stay afloat. When you're making 500k, you can survive just fine on far less.

 

[pjl]

Yes, definitely don't use anything with %income. Most say you can get ~30-40k per year for each million invested. I'm super cautious so I am shooting for 2x current expenses (without all the stuff mentioned above), at 30k/million. I will be working for quite a while.

 

[Wiscoblue]

I'm thinking 25k per million if you're going to have a mix of . If you can live on 125k a year (it's taxable) then five mil should do the job. You must have another 2-4 mil in growth stocks to counter inflation over a 20 year period.

 

[deleted171991]

There are a ton of countries where one could live like a prince for $100k per year, some of them in the Caribbean. Start learning Spanish.