# Reducing expenses in retirement



## K&PFitz (Mar 23, 2012)

I have a question for the retired Tuggers out there:

I'm 55, so I spend a good bit of time calculating when I'll be able to retire.  Most of the online retirement calculators project that you will reduce your expenditures in retirement, so that you can live on say 75 or 85% of your current income.  

I'm wondering how realistic that is.  I can think of two things I might save money on.  One, I won't be buying suits and ties.  Two, I'll stop putting money away for retirement, which actually is a significant amount.

But, at the same time, my golfing expense should increase, and no doubt health expense will, too.  One thing that concerns me is the cost of health insurance, which my employer pays now.

So, retired folks, were you able to live on less after retirement?  Thanks!


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## Passepartout (Mar 23, 2012)

I also retired early (62). Between paying all my health insurance, more traveling. I haven't experienced a reduction in spending. That was about what we expected, though. We have kept up our lifestyle choices. Large house, cable, yard care, occasional housekeeper, dining out a couple times a week, etc. I suppose the time may come when we downsize to a condo, move to a different locale, stay home more, but so far that hasn't become necessary.

Your age (55) and going forward should be about your highest earning years. Time to sock away for your retirements, not fussing about where to cut back.

Develop a plan and stick with it. You'll be fine.

Jim


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## bogey21 (Mar 23, 2012)

IMO if you have your house paid for, no car payment, and no credit card debt, you should be able to get by on 75% of prior pay *unless* you take a lot of trips, eat out a lot, play a lot of golf, etc.

George


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## ronparise (Mar 23, 2012)

when you vist Florida and shop at Publix, you will note the the average age of the bag boys is about 75. These are the guyes that cant afford to retire

Im  65, and I keep working because I have too and want to..

As you suggest in retirement certain expenses go away, like the business suits you mentiond (although my brother the retired UPS driver found his clothing budget increased...no more company provided uniforms) others will increase...travel for example....I think the secret would be to pay off the mortgage. Then you could get by on less


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## kool_kat (Mar 23, 2012)

While I'm a long way from retirement, I always assumed the 75 - 85% was due to having your house paid off too.  The mortgage payment alone will decrease my expenses by the 15-25%

Then I would think the other things would balance out.  Yes, you spend more on a hobby, but less on work stuff.  Not putting money into retirement anymore, but increased health insurance cost, etc...


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## zinger1457 (Mar 23, 2012)

It's best to forget about percentages of income that others recommend since everyone's situation is different.  The key to me is knowing what your current expenses are and work on a good estimate of what they will be in retirement.  Always be on the high side when estimating future expenses.  I use an Excel spreadsheet but pencil and paper will work.  There are some good expense spreadsheet templates online if you need some help. The biggest expense changes for me in retirement are; expense increases (golf, travel, health insurance), expense decreases (debt, retirement contributions).  I retired in my 50's and what allowed me to take the leap was getting rid of all my debt (mortgage, credit cards, loans, etc.) before retiring.  

I've plugged this site several times on TUG for those looking for retirement advice/assistance, I've got no ties to it other then that it's been a valuable resource for me (http://www.early-retirement.org/forums/).


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## sue1947 (Mar 23, 2012)

I retired early at 53.  Before making the final decision, I went on 'retired' mode for a year and cut all expenses down to the bone while still maintaining the things that make life enjoyable.  I budgeted for $10000/year more than that amount and have found that I am living on $10000/year less than that amount.  I'm pretty darn thrifty, which is the reason I could retire at 53, but still manage to work the timeshare angle for 84 nights this year.  I travel with others who split those expenses so I can get more for less.  

My recommendation:  pay off your mortgage.  It's huge peace of mind.  
  Second:  think about what is important to you and spend your money accordingly.   How much you need for retirement will be different for each individual.   You won't know until you figure out how much money you need (not want) to live on and then add a cushion.   One thing that spurred me to retire was realizing that I could buy individual health care cheaper than the company retirement version.  That made me realize that many of my assumptions on what I needed to retire were wrong.  I've been retired for 5 years and wouldn't change a thing. 

Sue


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## isisdave (Mar 23, 2012)

You might find the price of health insurance surprising, particularly after 60. Ours (two of us and one child) costs more than our house payment, and our deductibles are $3500 each. Figure about $600 a month each at today's prices. I don't know what will happen in 2014, but I don't expect rates to decrease.

The other thing I found is that dental problems accelerated after 55; I had quite a few big fillings from my 20's and one by one they cracked and/or broke and had to be crowned at about $900 each. (I'm on my dentist's Smiles Plus plan, and both his kids are in really good colleges.)

I actually made a spreadsheet with our projected income and expenses. That helped, but you have to get everything into it or you'll have a false sense of security.


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## funtime (Mar 24, 2012)

*Part time job at golf course*

I have a tenant who is retired and he works part time at a golf course.  He loves it.  He opens up and gets the carts ready for the first round.  He of course meets lots of golf buddies and gets to play for free.


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## funtime (Mar 24, 2012)

*Cutting down expenses - like timeshare expenses*

Another thought - does this need to be said?? My sister and I look forward to retiring in a year or two and we have given away 7 timeshares in the last two years on the Bargain Deals Board here on TUG  in order to reduce maintenance fees on units that just no longer fit in our retirement visitation plans including a lot of potential ski weeks.  However, we have not gone bare bones as we love timeshares and plan to use the ones we keep in our retirement.  Funtime


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## LisaH (Mar 24, 2012)

sue1947 said:


> One thing that spurred me to retire was realizing that I could buy individual health care cheaper than the company retirement version.  That made me realize that many of my assumptions on what I needed to retire were wrong.  I've been retired for 5 years and wouldn't change a thing.
> 
> Sue


Sue, could you elaborate on this? I would like to retire when I am 55 but health insurance is one big issue that prevents us from doing so. IsisDave mentioned how expensive it can be and that was also my general understanding. I wonder if you could provide some insight and details for how to obtain affordable insurance.


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## Talent312 (Mar 24, 2012)

ronparise said:


> When you vist Florida and shop at Publix, you will note that the average age of the bag boys is about 75.



At the Publix's where I shop, the average age of bag boys seems to be ~ 14.

Getting my ducks in a row to retire at age 62...
1. Paying off car loans and swearing off any new debts.
2. Refinancing my house (10 yrs. @3.125%), reducing payments and term.
3. Shelling a few $$ to improve energy efficiency, reducing utility payments.
4. Handing bill-paying to DW, so she can see how trips to The Mall affects things.


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## bogey21 (Mar 24, 2012)

LisaH said:


> Sue, could you elaborate on this? I would like to retire when I am 55 but health insurance is one big issue that prevents us from doing so. IsisDave mentioned how expensive it can be and that was also my general understanding. I wonder if you could provide some insight and details for how to obtain affordable insurance.



My oldest Son (age 40) just bought a policy with a $5,000 decuctible for something line $180 a month.  Sounds rediculous, but that is what it cost.

George


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## Blues (Mar 24, 2012)

bogey21 said:


> My oldest Son (age 40) just bought a policy with a $5,000 decuctible for something line $180 a month.  Sounds rediculous, but that is what it cost.



It certainly does sound ridiculous.  How on earth did he manage to get it so cheap?  That's a tiny fraction of what I was paying when I was a consultant, before I went back on employee status (partially for the health insurance).  Kudos to your son.

-Bob


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## talkamotta (Mar 24, 2012)

Have only been retired for a month.  The biggest expense will be health insurance.   For 28 years never had to pay anything for healthcare for me and my 5 children.  Last 3 years $30/month.  I had real good insurance.  


Now its $500/month.  Union contracts dont include retirees.  

Make sure you have lots of buckets.  I remember during my lifetime my family and I lived on 35k/yr and other years 100K   We still made it work.  The only thing about retiring the income usually doesnt get better.


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## funtime (Mar 24, 2012)

Talkamotta - how are you enjoying your retirmement - i recall your countdown!! Funtime


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## aliikai2 (Mar 24, 2012)

*I retired from my day job*

On the 27th of last month at almost 64, We sold our printing company, and received a fraction of it's previous worth.

 Wise?? Probably not, but my wife needs full time care, and I can do it, collect SSI and it will cost less than paying a healthcare pro.
We are also selling off the big home, and moving to Yuma where we have a paid for family home so no mortgage payment.
We will be living on around $49K per year, plus what ever our timeshare business nets.

I must say so far, it is working well, of course we are in Mazatlan, so it had be great so far. 

I have posted some photos on facebook, here are a couple of links. 
http://www.facebook.com/media/set/?set=a.316266548437490.77137.100001624422760&type=1&l=781635f713

http://www.facebook.com/media/set/?set=a.317446601652818.77370.100001624422760&type=1&l=0b8c0b515e

http://www.facebook.com/media/set/?set=a.316505821746896.77177.100001624422760&type=1&l=3556a80766
Greg


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## IngridN (Mar 24, 2012)

zinger1457 said:


> It's best to forget about percentages of income that others recommend since everyone's situation is different.  The key to me is knowing what your current expenses are and work on a good estimate of what they will be in retirement.  Always be on the high side when estimating future expenses.  I use an Excel spreadsheet but pencil and paper will work.  There are some good expense spreadsheet templates online if you need some help. The biggest expense changes for me in retirement are; expense increases (golf, travel, health insurance), expense decreases (debt, retirement contributions).  I retired in my 50's and what allowed me to take the leap was getting rid of all my debt (mortgage, credit cards, loans, etc.) before retiring.
> 
> I've plugged this site several times on TUG for those looking for retirement advice/assistance, I've got no ties to it other then that it's been a valuable resource for me (http://www.early-retirement.org/forums/).



+1 on both counts. I retired late last year and DH will retire within the next 2 years (he loves his job  ). We just updated our retirement plan yesterday and once we get within 1 year of DH's retirement we'll focus in excruciating detail on the retirement income stream. The key is your projected expenses in retirement as well as your income stream to make sure you don't end up as a greeter at Walmart.

Ingrid


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## zinger1457 (Mar 24, 2012)

Blues said:


> It certainly does sound ridiculous.  How on earth did he manage to get it so cheap?  That's a tiny fraction of what I was paying when I was a consultant, before I went back on employee status (partially for the health insurance).  Kudos to your son.
> -Bob



For someone 40 years old and in good health $180/month is expensive for a policy with a $5K deductible, at least where I live.  I'm in my mid-50's and that's about what I pay for a similar policy.


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## sue1947 (Mar 24, 2012)

LisaH said:


> Sue, could you elaborate on this? I would like to retire when I am 55 but health insurance is one big issue that prevents us from doing so. IsisDave mentioned how expensive it can be and that was also my general understanding. I wonder if you could provide some insight and details for how to obtain affordable insurance.



Bottom line, investigate the options available where you live (or where you want to live after retiring).  

I live in the Seattle area and use Group Health.  My  individual account with $5000 deductible cost $120/mo when I started and is now (5 years later) double that, but still less than the group rate via my company's retiree plan.  I recently added in dental coverage for another $600/year to cover those old fillings.  Back in 1999, I changed careers and found that I could do an individual policy cheaper (again through GH) than COBRA for the 6 months between jobs.  Group Health is an HMO that focuses on preventative medicine; you have to go to their doctors but pretty much everything is covered with a copay.  I like it because they keep it simple.  I'm very fortunate to live where it's available. 

Sue


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## funtime (Mar 24, 2012)

Greg has the right idea - start a little side business or hobby business while you are still working and use that both to occupy yourself in retirement and to bring in a little extra income.  There are many of us who could make a little hobby business out of our timeshares - at least enough to subsidize our travels.  Other ideas -  ebay business selling antique items (assuming there is an area of expertise there), making crafts and selling online, part time consulting or whatever.  Funtime


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## LisaH (Mar 24, 2012)

aliikai2 said:


> On the 27th of last month at almost 64, We sold our printing company, and received a fraction of it's previous worth.
> 
> Wise?? Probably not, but my wife needs full time care, and I can do it, collect SSI and it will cost less than paying a healthcare pro.
> We are also selling off the big home, and moving to Yuma where we have a paid for family home so no mortgage payment.
> ...



Greg, You are a great, loving husband! Joyce looks good in the pictures and I hope her health continues to improve. May I  ask why you decided to move to Yuma, AZ? Because of the weather, the cost of living, or both?


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## LisaH (Mar 24, 2012)

sue1947 said:


> Bottom line, investigate the options available where you live (or where you want to live after retiring).
> 
> I live in the Seattle area and use Group Health.  My  individual account with $5000 deductible cost $120/mo when I started and is now (5 years later) double that, but still less than the group rate via my company's retiree plan.  I recently added in dental coverage for another $600/year to cover those old fillings.  Back in 1999, I changed careers and found that I could do an individual policy cheaper (again through GH) than COBRA for the 6 months between jobs.  Group Health is an HMO that focuses on preventative medicine; you have to go to their doctors but pretty much everything is covered with a copay.  I like it because they keep it simple.  I'm very fortunate to live where it's available.
> 
> Sue



Thanks Sue. I will look into it in CA but I suspect that the cost of health insurance differs from state to state. What you quoted sounds low to me here. I know a couple in their late 50s who were forced into retirement due to the layoffs can't find anything that costs less than $1000 per month with similar deductibles.


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## aliikai2 (Mar 24, 2012)

*Weather was a big deal*

Our propane heat this winter ran over $700 a month, and it wasn't a real cold winter. Joyce has become sensitive to cold, so 80+ is where she feels good. Add that to the no mortgage home and it became a real easy decision. The cost of supporting that home including all utilities, taxes, insurance, phone, tv, internet and food will be about what our heat cost during the winter. 
Add that the fact that we can drive to Mazatlan in 2 days, makes it an even better move. 

Greg



LisaH said:


> Greg, You are a great, loving husband! Joyce looks good in the pictures and I hope her health continues to improve. May I  ask why you decided to move to Yuma, AZ? Because of the weather, the cost of living, or both?


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## bogey21 (Mar 24, 2012)

aliikai2 said:


> Our propane heat this winter ran over $700 a month, and it wasn't a real cold winter. Joyce has become sensitive to cold, so 80+ is where she feels good. Add that to the no mortgage home and it became a real easy decision. The cost of supporting that home including all utilities, taxes, insurance, phone, tv, internet and food will be about what our heat cost during the winter.


Good, clear, consise planning.  As others have said, there is more to it than some magical percentage of previous income.  Understand your expenses and work them down.

George


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## sue1947 (Mar 25, 2012)

LisaH said:


> Thanks Sue. I will look into it in CA but I suspect that the cost of health insurance differs from state to state. What you quoted sounds low to me here. I know a couple in their late 50s who were forced into retirement due to the layoffs can't find anything that costs less than $1000 per month with similar deductibles.



Look at Kaiser Permanente.  I was directed to them when I got sick while in CA last year.  From the little I saw at the time, they looked like a similar HMO.  

Sue


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## talkamotta (Mar 26, 2012)

funtime said:


> Talkamotta - how are you enjoying your retirmement - i recall your countdown!! Funtime



THANKS  for thinking of me. 

I love being retired.  I dont miss work at all. I called in sick on my last day at work?  I had a stomach ache.  This week I will be going in for gallbladder surgery.  It doesnt hurt all the time so during those times I have been loving life.  

In a week or so things will be get lots better.  The weather is starting to change and my flowers are wanting to bloom.  I cant wait to start working in the yard.  Weather permitting I sit outside and read.  

Next month I will be going to see  my grandchildren in Dallas.  At the end of May we are going for 2 weeks up to Northern Washington and then drive down to Oregon (Mt. Hood).    

My friend said I would need a day planner when I retire.  I think she is right. Hopefully it wont be filled with doctor appointments, etc but with other fun things.


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## Rose Pink (Mar 26, 2012)

talkamotta said:


> THANKS  for thinking of me.
> 
> I love being retired.  I dont miss work at all. I called in sick on my last day at work?  I had a stomach ache.  This week I will be going in for gallbladder surgery.  It doesnt hurt all the time so during those times I have been loving life.


Will be thinking of you and keeping a prayer in my heart for your speedy recovery.  Went to the City Creek opening Thursday and thought of you then, too.


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## pedro47 (Mar 26, 2012)

Save, save, and invest your money wisely and you will be ok.  The one major factor is health care in retirement.  I retired at age 54 and retirement have been great so far.

No mortage and no credit card debt.  Stay healthy, relax and eat the right foods.  
Good Luck !!


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## Rose Pink (Mar 26, 2012)

pedro47 said:


> Save, save, and invest your money wisely and you will be ok.  The one major factor is health care in retirement.  I retired at age 54 and retirement have been great so far.
> 
> No mortage and no credit card debt.  *Stay healthy*, relax and eat the right foods.
> Good Luck !!


We have no mortgage and no credit card debt and staying healthy is definitely more doable if you eat a healthy diet and stay active.  However, although a healthy lifestyle increase the odds in one's favor, it is no guarantee that major, catastrophic health care costs won't arise.  Although they do have a better chance of escaping debilitying disease, otherwise healthy people do sometimes get heart disease, cancer, Alzheimer's Dementia, arthritis (needing replacement surgery) and so on.  They also may fall victim to accidents not of their own making.

Our medical insurance is $1003.34 per month for the two of us (a bluecross policy).  DH's employer pays $687.08 leaving us an out-of-pocket expense for insurance of $316.26.  Our out-of-pocket share for dental insurance is $27.26.  Add to that the costs of deductables and co-pays and medicines.  It can really add up.  And then, DH's employer has discontinued medical for retirees.  We don't know what we will do when he retires.  Will Medicare still be there?  Will we have to be 80 years old before we can qualify?  Anybody know the future of healthcare in the USA?  

It's the unknowns that keep DH employed.  Even though the house and cars are paid for, repairs come up.  Repairs can cost tens of thousands on a house.  This year we will need a new roof and a new water heater.  We are still working on remodeling the inside as well.  Don't forget homeowner's insurance--which will only go up and up as the years and natural disasters take their toll.  Don't forget auto insurance which will also increase over the years.  Just don't forget inflation in general.

Don't forget the costs incurred when you die.  Funeral, burial/cremation--there are so many add-ons and local mandates such as whether or not you must be embalmed, type of casket, type of headstone, opening and closing of the grave, plot, flowers, obits (which used to be free but can now be very costly), and so on.  I suggest you decide what you want to happen to your remains when  you die then contact a local mortuary to see how much that will cost.


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## ILuv2Travel (Mar 26, 2012)

LisaH said:


> Thanks Sue. I will look into it in CA but I suspect that the cost of health insurance differs from state to state. What you quoted sounds low to me here. I know a couple in their late 50s who were forced into retirement due to the layoffs can't find anything that costs less than $1000 per month with similar deductibles.



My husband had switched jobs when I was pregnant with my youngest child.  The cobra cost was astronomical ($1200/month) but I was able to secure 2 policies directly through Horizon BCBS which were equal (if not a tad better) for less money ($800/month) by separating myself from my husband and children.  Same plan but two policies. 

Also not sure on your age but if you are old enough for medicare the supplements really vary.  Do your homework.  Check out joining an organization (professional or age restricted) which you can join their group plan at a discounted rate.


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## Janette (Mar 26, 2012)

We are fortunate that we were educators and have 60% of our best five years as income plus SS. We also have health insurance from our state. We own several timeshares and travel to see family so our life style is wonderful. We don't eat out often even when we are traveling. We prefer our normal meals and enjoying a relaxed vacation. Hubby plays golf often but it is wonderful for his health and attitude to be outside each morning. I walk, straighten the house, and then it is time for him to be home. We are very blessed!


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## retailman (Mar 26, 2012)

Debt is what needs to be looked at. In this day in time, I do not see anyone
retiring that has any house payment, car loan or credit card balance.
If thoses are good, you might consider it.


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## bogey21 (Mar 26, 2012)

Rose Pink said:


> Don't forget the costs incurred when you die.  Funeral, burial/cremation--there are so many add-ons and local mandates such as whether or not you must be embalmed, type of casket, type of headstone, opening and closing of the grave, plot, flowers, obits (which used to be free but can now be very costly), and so on.  I suggest you decide what you want to happen to your remains when  you die then contact a local mortuary to see how much that will cost.



IMO all of this is a waste of money.  A couple of years ago I signed up with an old established funeral home for cremation at a guaranteed cost of $675 no matter where in the US I may die.  I figure it is cheaper to ship ashes than a body.  I pay something like $55 a year to keep this current.  My instructions are no service , no casket, no viewing, etc.  On the other hand I have a separate $10,000 life insurance policy whose sole purpose is to fund a big party for all of my friends to celebrate my life.

George


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## K&PFitz (Mar 26, 2012)

Thanks for all the good answers to my original question.  Loads of good advice on these pages.  The expenses for health care is a real concern.  We'll have the mortgage paid off at retirement time, but looks like we'll be swapping a mortgage payment for a health insurance premium.  Oh, well.  That's life.

We're all a lucky group to be able to have such a discussion, or maybe we're just smart.  I can tell you that, having worked in the banking world for three decades, I have seen many people that have virtually nothing saved for retirement.  They're counting entirely on SS.  I'm glad I've been throwing money into a 401K since my first opportunity ages ago.


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## ace2000 (Mar 26, 2012)

I think to fully have the answer to your original question, you'll have to consider what health care is going to look like in five years.  At this point, who really knows, but with Obamacare it should be significantly cheaper than today.


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## PigsDad (Mar 26, 2012)

ace2000 said:


> I think to fully have the answer to your original question, you'll have to consider what health care is going to look like in five years.  At this point, who really knows, *but with Obamacare it should be significantly cheaper than today*.


:hysterical: :hysterical: :hysterical: 
Thanks for the Monday morning laugh!  I needed that!

Kurt


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## hypnotiq (Mar 26, 2012)

ace2000 said:


> At this point, who really knows, but with Obamacare it should be significantly cheaper than today.



:rofl: :rofl: 

That's cute that you think that.


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## ace2000 (Mar 26, 2012)

PigsDad said:


> :hysterical: :hysterical: :hysterical:
> Thanks for the Monday morning laugh!  I needed that!
> 
> Kurt


 
I'm talking out of pocket expenses to the individual.


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## Rose Pink (Mar 26, 2012)

bogey21 said:


> IMO all of this is a waste of money.  A couple of years ago I signed up with an old established funeral home for cremation at a guaranteed cost of $675 no matter where in the US I may die.  I figure it is cheaper to ship ashes than a body.  I pay something like $55 a year to keep this current.  My instructions are no service , no casket, no viewing, etc.  On the other hand I have a separate $10,000 life insurance policy whose sole purpose is to fund a big party for all of my friends to celebrate my life.
> 
> George


DH wants to be cremated.  I  haven't decided.  We don't want viewings.  We don't want embalming. I don't want an obituary. However, if that is part of someone's wishes, he/she should consider the cost. DH's father had a prepaid funeral plan and it saved us (meaning me) the headache of having to make those arrangements and pay for it.  DH took his brother to the same mortuary and used part of his brother's inheritance money to buy a prepaid funeral for said brother.

Of course, one can always donate his/her body to science and spend his/her money on life.

I'm just reminding people to think about this as part of retirement planning.  You are going to die someday.  Don't saddle your children and grandchildren with the cost when they are already grieving your loss. And don't underestimate the costs of your wishes.  It can easily cost $10K for a basic funeral and burial.  Many places it is much, much more.


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## hypnotiq (Mar 26, 2012)

ace2000 said:


> I'm talking out of pocket expenses to the individual.



edited - this would have violated the TUG rules on politics. my bad.


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## Passepartout (Mar 26, 2012)

Sheesh! You guys are morbid. Oh, I know none of us are getting out of this alive, so pre-pay for the sendoff of your choice. 

Me, I'm saving by getting the daily free coffee at McD's and walking to the store for the buy-it-today specials at the meat department. 

House is paid for. Health insurance is budgeted for. I had intended to go into retirement with a new pickup-paid for, but my former employer had a different idea of timing my departure.  

Sometimes you just have to go with the flow. You can't plan every detail from the last time you punch the clock to the grave, but you can reduce the unpleasant surprises.

On the whole, retirement is pretty good.

Jim


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## vckempson (Mar 26, 2012)

ace2000 said:


> I think to fully have the answer to your original question, you'll have to consider what health care is going to look like in five years.  At this point, who really knows, but with Obamacare it should be significantly cheaper than today.



It's impossible to know.  Even by today's standards it's impossible.  Health insurance rates are so specific as to where you live.  On this thread alone, we've got one who thinks that $180 is expensive.  We haven't seen those kind of rates rates here in NJ for over 20 years.  We're at the opposite side of the spectrum, with individual rates at $600 or more.  My family rate (I'm self employed) is over $20,000 a year, not including my dental coverage.


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## Beefnot (Mar 26, 2012)

Rose Pink said:


> DH wants to be cremated.  I  haven't decided.  We don't want viewings.  We don't want embalming. I don't want an obituary. However, if that is part of someone's wishes, he/she should consider the cost. DH's father had a prepaid funeral plan and it saved us (meaning me) the headache of having to make those arrangements and pay for it.  DH took his brother to the same mortuary and used part of his brother's inheritance money to buy a prepaid funeral for said brother.
> 
> Of course, one can always donate his/her body to science and spend his/her money on life.
> 
> I'm just reminding people to think about this as part of retirement planning.  You are going to die someday.  Don't saddle your children and grandchildren with the cost when they are already grieving your loss. And don't underestimate the costs of your wishes.  It can easily cost $10K for a basic funeral and burial.  Many places it is much, much more.




I do not want cremation, and I want a viewing.  I want folks to see my body and wail loudly.  My life insurance will be plenty hefty enough to cover those burial expenses.


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## KauaiMark (Mar 26, 2012)

*Choosing when...*



K&PFitz said:


> I have a question for the retired Tuggers out there:
> I'm 55, so I spend a good bit of time calculating when I'll be able to retire...
> So, retired folks, were you able to live on less after retirement?  Thanks!



If you can choose when, then start practicing now. The additional money you save will come in handy. 

I was retired (laid off) at 55 (9yrs ago) so the "practice" started almost immediately since no one was hiring and while the severance pay held out. 

We looked at every expense and compiled lists of "don't need" and "could live without". Everything else went to "is there a less expensive alternative" list. 

Paid off the house loan and secured a home equity loan for an emergence source of low interest cash if needed. 

To maximize income, our investments strategy changed from "growth" to "income". If it didn't pay a regular dividend, it was on the "sell" list while looking for long time dividend generators. 

This isn't as easy as it sounds. Mistakes in picking winners/losers and world politics can change things over night, but we had some good luck dumping all the HiTech non-dividend stocks just before crash. Not every income investment worked out but for the most part it's covering a big chunk of our monthly expenses.

Like everyone else has already mentioned, health care was the big ADDITION to the expense side. $755/mo for a high deductible ($5400) HSA plan. No bargains hear as we were turned down (because of age in my opinion) from the two big "Blues" before enrolling with Kaiser. 

I'm currently working part time in a school district substitute teaching to offset the medical insurance payments.

-- Mark


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## KauaiMark (Mar 26, 2012)

*Beware cheap plans*



bogey21 said:


> My oldest Son (age 40) just bought a policy with a $5,000 decuctible for something line $180 a month.  Sounds rediculous, but that is what it cost.
> George



We had a "cheap" $5000 deductible plan and thought that as long as nothing major happened, we could come up with $5k to pay for anything major.

My wife fainted at a store, ambulance was called, emergency room and discharged later that same night. 

Diagnosis? She fainted. 

The bill: $15,000!! 
-- Insurance payout: $1k 
-- What I had to pay: $14k

Lots of fine print about what the definition of "Hospital stay (overnight)" and "required treatment" (no cause found). Ambulance bill alone was $1500.

We dropped them and went looking for a "real" insurance plan


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## KauaiMark (Mar 26, 2012)

*Little debt as possible*



retailman said:


> Debt is what needs to be looked at. In this day in time, I do not see anyone
> retiring that has any house payment, car loan or credit card balance.
> If thoses are good, you might consider it.



Agreed! Credit card debt is a killer.


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## Rose Pink (Mar 26, 2012)

Passepartout said:


> Sheesh! You guys are morbid. Oh, I know none of us are getting out of this alive, so pre-pay for the sendoff of your choice.
> 
> Me, I'm saving by getting the daily free coffee at McD's and walking to the store for the buy-it-today specials at the meat department.
> 
> ...


Not trying to be morbid, Jim.   Just reminding folks to plan ahead.  Unless by morbid you are referring to the cost of healthcare and healthcare insurance.  Then I agree, it is morbid or at least the worry over it contributes to morbidly.  I like your approach to just go with the flow--just as long as the flow isn't caused by catastrophic flooding taking you out to sea.    (isn't there a song about a dog being swept away?). Just looked it up.  Shannon


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## Rose Pink (Mar 26, 2012)

KauaiMark said:


> If you can choose when, then start practicing now. The additional money you save will come in handy.
> 
> -- Mark


good idea!  Now if DH could just agree on what isn't a necessary expense.


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## Patri (Mar 26, 2012)

Beefnot said:


> I do not want cremation, and I want a viewing.  I want folks to see my body and wail loudly.



And if they don't, you'll never know.  

We are really leaning away from the traditional funeral. People have no time to think rationally and spend way more than they can afford.


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## Beefnot (Mar 26, 2012)

Beefnot said:


> I do not want cremation, and I want a viewing.  I want folks to see my body and wail loudly.





Patri said:


> And if they don't, you'll never know.



D'oh. I guess you're right.


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## RX8 (Mar 26, 2012)

ronparise said:


> when you vist Florida and shop at Publix, you will note the the average age of the bag boys is about 75. These are the guyes that cant afford to retire



I am in my 40's with a six and two year old.  I guess I will be working forever.  

Ron, be sure to say Hi to me as I put your butter and milk in the bag for you.


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## Tia (Mar 26, 2012)

At our local mall there are several older ladies working the cash register at various stores, look to be in their 70's.  The way things are going might be a new trend lots of places.


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## gpurtz (Mar 26, 2012)

During our recent trip to Disney World my wife and I remarked about the number of cast members in their 70s/80s.  Some certainly appeared to be enjoying their work, others...not so much.  I feel sorry for anyone who is over 65 and working because they have to.


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## MelBay (Mar 26, 2012)

I'm 55, DH is 59.  He took early retirement a couple of years ago, and now works for the same company on a part-time basis as a consultant.  It's just enough to keep him busy, and he can come home in the afternoons and putz.

I have been with the same company for 28 years and work from home, and will probably stay at it for another 4-5 years, if they'll have me.  We still have retiree medical coverage, and I hope that holds out for a while.  They cut it off a while back, and luckily I had been there long enough to stay in that magic window. 

Our house is paid for, no debt of any kind, our 401(k)s look pretty good again and I'm putting away the max allowed each year.  I feel pretty darned blessed now that I see all this on paper.  

My father left me some real estate,  and let me just say to everyone:  *If you love your children, you won't leave them real estate of any kind. * In fact, I feel so strongly about this that when we're a little older we will take out a reverse mortgage, squirrel the $$ away, and when we head for the big timeshare in the sky, the bank can come take the house and the kids won't have to fret over it like I've had to.  

This is a great discussion, and it's been fun to read everyone's plans.  We are a savvy bunch!


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## spencersmama (Mar 26, 2012)

MelBay said:


> In fact, I feel so strongly about this that when we're a little older we will take out a reverse mortgage, squirrel the $$ away, and when we head for the big timeshare in the sky, the bank can come take the house and the kids won't have to fret over it like I've had to.



You'd be better off selling while you are alive and living in a rental.  Reverse mortgages rip you off with a high interest rate, so you only end up with a portion of the value of the house.  Personally, it would be more upsetting to me for my parents or in-laws to make unwise financial decisions and run out of $ while they are still alive than to sell real estate and other property later. 

another hint - long term care is very expensive.  Look at getting insurance for it.


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## MuranoJo (Mar 27, 2012)

Great thread and good nuggets in here.  A few comments to some snippets as I think of early retirement myself:


Talent312 said:


> 3. Shelling a few $$ to improve energy efficiency, reducing utility payments.



Great advice.  We've looked at getting big ticket items out of the way and were heating our home with propane (as Greg did), just due to the situation at our location.  Got a thermal heat pump set-up about a year ago and we're closely tracking the major reductions we're already seeing.  



Rose Pink said:


> It's the unknowns that keep DH employed.  Even though the house and cars are paid for, repairs come up.  Repairs can cost tens of thousands on a house....  Just don't forget inflation in general.



Definitely a consideration and what keeps me hanging on, though I so want to join DH who took early retirement a few years back.  I'm just nervous about what may crop up.  Though I would have retiree med today, who knows if they'll pull the plug tomorrow, and I'd have several years to go to get to Medicare.  I'm hoping for an early retirement package offer, but doubt it will happen.



bogey21 said:


> My instructions are no service , no casket, no viewing, etc.  On the other hand I have a separate $10,000 life insurance policy whose sole purpose is to fund a big party for all of my friends to celebrate my life.
> George



This is where I'm leaning, although my family and friends are funny about it.  I told them they can plan their own funerals.


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## MuranoJo (Mar 27, 2012)

spencersmama said:


> another hint - long term care is very expensive.  Look at getting insurance for it.



Absolutely, and I've heard it's best to get it in your 50's when it's less expensive.


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## Htoo0 (Mar 27, 2012)

muranojo said:


> Absolutely, and I've heard it's best to get it in your 50's when it's less expensive.



Not so cheap even then. IMHO. (We recently purchased LTC insurance.) We too are looking at retirement 5-8 years. But it's the health care costs which are the unknown. Obamacare or Nobamacare? What will the costs be whichever occurs? This isn't intended to be a political statement, just that we don't know and can't really plan until the changes are settled. All we know to do is stay out of debt and send the money we could be paying for a nicer home and/or car to retirement savings. Here's hoping it works out for all of us.


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## MelBay (Mar 27, 2012)

> another hint - long term care is very expensive. Look at getting insurance for it.



We've had it for about 15 years.  DH's employer began offering it & for the initial cost we just couldn't pass it up.  It's through John Hancock, and even at our age, the premiums are still ridiculously low so I really feel lucky to have it.  I hear friends talking about quotes they've received and I refuse to divulge what we pay.  :ignore: They'd kick us.  I think in all the years we've had it, the total of all premiums paid to date would just cover one month in a nursing home.  Well worth it, even with their recent "adjustment".  

If you can get this insurance through your employer, jump on it.


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## suzanne (Mar 27, 2012)

I retired at 62 couple of years ago from BJ'S Wholesale Club. My biggest worry was health insurance. DH had forced retirement at 55 as his company closed down. He is 67 now and is on a Medicare Advantage Plan, which is very good and I will enroll in the same plan next year when I'm eligible fore medicare. I have Humana One for coverage now. Its $5000 deductible with $10,000 annual out of pocket. I have 6 visits a year with just my co-pat of $35. I hope I don't need anything major til I reach medicare next year. Every area is different for cost and plans but you can go on their website enter your zip code and hey will give a list of the plans in your area and cost. This way you will have an approximate idea of what your health insurance coverage will cost. As others have posted, you need to be virtually debt free. Every day cost of living goes up but your income doesn't when your retired.

As for the 70 to 80 year olds still working, alot of them have to just to make ends meet but others do it to just stay active and involved. Some do it part time to have extra money for paying for vacations, cruises or extra things. We had quite a few at BJS in all catagories. I applaud companies that hire  Senior workers.

I am enjoying my retirement, but know I can't just go out and spend like I used to.

Suzanne


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## MuranoJo (Mar 27, 2012)

> If you can get this insurance through your employer, jump on it.



Actually, that's what we did about 4 years ago, and ours is through John Hancock, too.  Great price compared to what I hear others are paying, so we feel very, very lucky to get the group rate.  Only hope it continues after retirement.


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## puppymommo (Mar 28, 2012)

Patri said:


> And if they don't, you'll never know.
> 
> We are really leaning away from the traditional funeral. People have no time to think rationally and spend way more than they can afford.



I'm a pastor and have conducted many funerals in over 20 years of ministry.  Had one today.  In my opinion and experience, funerals/memorial services are for the living, not for the deceased.  But it helps the family immensely if most if not all details are arranged/discussed ahead of time.
It also helps prevent the family from getting pressured into expenses they neither need nor really want.

Personally I prefer direct cremation -- no embalming, no viewing. A memorial service/celebration of life can take place at any venue (place of worship, community center, park, etc) at a time convenient for those who wish to gather.  I've had memorial services (like a funeral but without the body/casket present) take place 6 months or more after the death, at a time out of town family can gather.

When my stepmother died, she was adamant about no service.  So my siblings and I (and our families) joined our dad for dinner at her favorite restaurant.  Her ashes were later scattered on a mountain side (her choice).
My MIL, on the other hand, buried FIL's ashes in her backyard.

There is no right way to deal with death and grief issues.  Ignoring is probably the worst.


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## Conan (Mar 29, 2012)

Getting back to the original question, as I'm near retirement I've been using http://www.mint.com to track expenses.  It makes it easy to see where the money goes, so I can anticipate what expenses are work-related and what are ongoing.

Frankly I don't think there's going to be any real reduction in how much I spend in retirement (after tax, since most of the income taxes will go away).  The Medicare, Medicare supplement and drug plan premiums  will be paid from my Social Security checks, so for planning purposes I just value my anticipated Social Security income at the net amount.

We'll be living in the same house, and I expect that whatever commuting and lunch-at-work expense I save will just be redirected to recreation.


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## Sandy VDH (Mar 30, 2012)

I guess I would have to move back to Canada and get their health insurance if things came to that. 

In my late 40s I am having an issue finding insurance as I have a pre-existing condition that prevents me from purchasing nearly any insurance policy.  I am going to have to find some TX state group policy. 

I am very worried about retirement.  I feel I need much more.  I guess I better get going, and need to start socking it away while I am working on a good paying contract.


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## CarolF (Mar 31, 2012)

puppymommo said:


> My MIL, on the other hand, buried FIL's ashes in her backyard.



Just make sure YOU know where MIL has buried FIL's ashes (I do hope your MIL doesn't experience dementia).  

I recall standing, garden fork in hand, explaining to Mummies gardener "I need to find Daddy, he is buried here somewhere".


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## puppymommo (Mar 31, 2012)

CarolF said:


> Just make sure YOU know where MIL has buried FIL's ashes (I do hope your MIL doesn't experience dementia).
> 
> I recall standing, garden fork in hand, explaining to Mummies gardener "I need to find Daddy, he is buried here somewhere".



Actually, neither MIL nor DH particularly care where FIL is buried, that's why she did it! As a veteran, he could have been buried for free at a miliary cemetary, so it wasn't a matter of money.  She had been married and divorced once before and she had promised she would not get divorced again.  So she stayed with him for better or for worse, and there was a lot of worse.

One of the more amusing anecdotes was the time he tried to defrost the freezer with a blowtorch.


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## classiclincoln (Mar 31, 2012)

I would strongly recommend that anyone who is serious about retirement work with a Certified Financial Planner (full disclosure; I happen to be one).  Don't just work with a stock broker, insurance agent or anyone else who calls themselves a "financial advisor" or "financial planner".  Make sure they are a practicing CFP.  Go to http://www.cfp.net/ and find one close to you.  There is a lot of advice given here that I call "advice from the water cooler".  I can't tell you how many times I've had to try and clean up that mess....

You should be prepared to pay a fee for the advice (separate from any investment fees), but it will be well worth it; you'll get accurate advice based on your personal situation, not that of someone else's.


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