But ballpark, 4% of 900k is 36k/year (before taxes) so you'd likely be fine, assuming some SS. But, again, a lot can happen in 15 years. That will tell you if 900k is enough, or if you need to A) save more or B) plan to spend less. If you will get 2/3 of your 90k from a pension, AND you are eligible for SS, then you should be able to make an educated guess about what you'll need to draw from your portfolio. So, we may end up spending more early in retirement.Ħ-7 years from retirement now if all goes well. Note that, upon reaching SS, our pension and SS payments will pay for the vast majority of what we need and reduce our withdrawal rate to 2% or less. $10k/month will provide a "do anything we want" (more or less) lifestyle. Likely we will be somewhere in between, depending on how much we help our kids out. I am likely considered HNW, and have budgeted $60k/year spending, after taxes, at the low end (base expenses, minimal travel) and $130-140k at the high end. Similarly, if you plan to buy a second home, you'll have that to pay for. If you plan to fly business class 3x per year, well, you'll need more than if you go camping. The things you can foresee and make guesstimates for are 1) pension and SS cashflows 2) mortgage or paid off house 3)Medicare or some other form of heath insurance 4) costs for food/entertainment/travel. 15 years out, it's difficult to estimate your retirement expenses, though it's not impossible. So, what others may do (or plan to do) should have no bearing on your plan. There are retired posters here who have $20m, and others who have much less than $1m. We've got a number of years (more than 15, but less than 20) to correct things if it isn't going to work. I guess my main question is: Does anybody spend significantly more than $90k/year in retirement? OR, maybe you don't but you see some giant holes in my projections and how I'm hoping our retirement will play out. We're hoping to travel quite a bit and/or get a second home to enjoy when our kids have kids and pass down to them once we're gone. ![]() And I've conservatively assumed we'll have $900k in our investments at age 55 when I retire. I'll have health insurance for me and my husband in retirement so that should save us a bit. ![]() I always assume $30k in addition to my projected pension which should be about $60k. What does everybody spend annually in retired not including your mortgage. I'm working through my projections and always get hung up on how much to assume I'll spend annually once I'm done working. Good morning! This is my first post, but I'm a long-time lurker. We also like to rent cars and drive around so it could cost quite a bit, and also some cruises are more expensive than others. We did however travel a lot and more than half of the time international - sometimes half way around the world e.g. ![]() Nothing extravagant, we monitor for “good deals” and acted swiftly since time is what we have. We've got some international travel on our bucket list and I'm wondering if $24k is a good baseline for that type of vacation? Are you traveling extravagantly to get to that $24k price point? I don't expect to fly business class, but I was hoping to be able to at least book a trip when we felt like a vacation. ![]() In our 4th year of retirement with neither mortgage nor debt, averaging: 12k for property taxes + 72k for regular expenses + 24k for travel (when applicable) for a total of roughly 108k/yr after taxes and donations.Īfter working out our current monthly expenses and what I'm *thinking* they'd be in the future, this seems like it would be similar to our situation.
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