If we moved somewhere cheaper, could we live off principle?

[Anonymous]

I agree... but you could probably find a less stressful job elsewhere and live relatively comfortably on less income.

[Anonymous]

Anonymous wrote:We are a family of 3. Own a condo in DC worth $500 - $600K that is totally paid off. Gross annual rental income is $36k-$38k. We have a house in MD that we could sell for at least $1 mil, and have a $200k mortgage on it. We have combine student loans of $65K at a very low interest rate (less than 3%). Only about $100K in savings, and a combined total of $100k in 401ks. DH is starting business but isn;t earning income yet. I make about $80K a year with ok benefits at a nonprofit. DS is in preschool and can go to great public schools in MD. Sometimes I think we should cash out of our house, maybe keep condo for rental income, and live someplace cheaper where we both could work parttime (or in my fantasy not at all). DH is in early fifties, and I'm early 40s, so we hopefully have some years of living ahead of us. We'd like to be able to pay for kids college, etc.

I'm looking for inspiration of how to make this a go. Would it be possible to stop working, pay for affordable care act medical coverage and just piss around without bankrupting ourselves? Where could we move on the East Coast to live more cheaply?

OP, our situation is not unlike yours in some respects.

We are also looking to move to a less expensive area. The differences are that our children are all done with college. We do have health insurance that is heavily subsidized from prior employment. We have annuity income and other income of about $6K a month. We don't work. We expect to be able to live on $5K a month after paying cash for a smaller house in a less expensive area.

We don't have the ridiculous savings that some on this forum report but quite honestly we don't need it to maintain our lifestyle which includes going on vacation for about three months a year - about half of it is international.

You do plan on continuing to work so figure out what your living expenses would be to maintain your lifestyle, fund your kids college and not draw too much out of your savings and it will let you realize whether it is doable in your case.

[Anonymous]

You can do it if you can live on $66,000 a year. $36K rental income and 3% of the million in savings would be $30K. Seems doable.

[Anonymous]

If you are serious, I'd consider moving to Utila, Honduras or Roatan, Honduras or possibly some of the less developed places in Costa Rica.

There are still many places in the world where $10 buys you dinner, drinks, and a taxi ride home. In places like that, living off even just $1,000 a month is quite reasonable.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We are a family of 3. Own a condo in DC worth $500 - $600K that is totally paid off. Gross annual rental income is $36k-$38k. We have a house in MD that we could sell for at least $1 mil, and have a $200k mortgage on it. We have combine student loans of $65K at a very low interest rate (less than 3%). Only about $100K in savings, and a combined total of $100k in 401ks. DH is starting business but isn;t earning income yet. I make about $80K a year with ok benefits at a nonprofit. DS is in preschool and can go to great public schools in MD. Sometimes I think we should cash out of our house, maybe keep condo for rental income, and live someplace cheaper where we both could work parttime (or in my fantasy not at all). DH is in early fifties, and I'm early 40s, so we hopefully have some years of living ahead of us. We'd like to be able to pay for kids college, etc.

I'm looking for inspiration of how to make this a go. Would it be possible to stop working, pay for affordable care act medical coverage and just piss around without bankrupting ourselves? Where could we move on the East Coast to live more cheaply?

OP, our situation is not unlike yours in some respects.

We are also looking to move to a less expensive area. The differences are that our children are all done with college. We do have health insurance that is heavily subsidized from prior employment. We have annuity income and other income of about $6K a month. We don't work. We expect to be able to live on $5K a month after paying cash for a smaller house in a less expensive area.

We don't have the ridiculous savings that some on this forum report but quite honestly we don't need it to maintain our lifestyle which includes going on vacation for about three months a year - about half of it is international.

You do plan on continuing to work so figure out what your living expenses would be to maintain your lifestyle, fund your kids college and not draw too much out of your savings and it will let you realize whether it is doable in your case.

And what are you going to do if you develop a condition that requires home nursing? Do you realize that 24-7 nursing care costs around 130,000 a year? Who is going to take care of you if you are disabled?

[Anonymous]

Awesome! Do you personally follow this type of lifestyle?

He's a little more hardcore than I could ever be, but I follow his blog and apply the information to my life in the areas where I can. Reducing consumption is something we should all strive for. I do plan on retiring "early" if at all possible. I'm 34 now, and I could see it happening before I'm 45

And what are you going to do if you develop a condition that requires home nursing? Do you realize that 24-7 nursing care costs around 130,000 a year? Who is going to take care of you if you are disabled?

This is the worst argument for continuing to work. Plan for the most likely scenario, not this. Buy some LTC insurance if it makes you feel better. Don't work forever just in case something happens to you. You could be hit by a bus tomorrow. Don't spend your life working. Spend it living.

[Anonymous]

Anonymous wrote:

Awesome! Do you personally follow this type of lifestyle?

He's a little more hardcore than I could ever be, but I follow his blog and apply the information to my life in the areas where I can. Reducing consumption is something we should all strive for. I do plan on retiring "early" if at all possible. I'm 34 now, and I could see it happening before I'm 45

And what are you going to do if you develop a condition that requires home nursing? Do you realize that 24-7 nursing care costs around 130,000 a year? Who is going to take care of you if you are disabled?

This is the worst argument for continuing to work. Plan for the most likely scenario, not this. Buy some LTC insurance if it makes you feel better. Don't work forever just in case something happens to you. You could be hit by a bus tomorrow. Don't spend your life working. Spend it living.

Um, how many old people have you cared for? All the old people in my family except for my grandfather required years of expensive nursing in their old age (could not go to bathroom by themselves, dementia, etc). How do you see your elderly years going?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Awesome! Do you personally follow this type of lifestyle?

He's a little more hardcore than I could ever be, but I follow his blog and apply the information to my life in the areas where I can. Reducing consumption is something we should all strive for. I do plan on retiring "early" if at all possible. I'm 34 now, and I could see it happening before I'm 45

And what are you going to do if you develop a condition that requires home nursing? Do you realize that 24-7 nursing care costs around 130,000 a year? Who is going to take care of you if you are disabled?

This is the worst argument for continuing to work. Plan for the most likely scenario, not this. Buy some LTC insurance if it makes you feel better. Don't work forever just in case something happens to you. You could be hit by a bus tomorrow. Don't spend your life working. Spend it living.

Um, how many old people have you cared for? All the old people in my family except for my grandfather required years of expensive nursing in their old age (could not go to bathroom by themselves, dementia, etc). How do you see your elderly years going?

In a blaze of heroin induced glory. I'm not sitting in some hospital having my ribs broken by nurses as they resuscitate me.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Awesome! Do you personally follow this type of lifestyle?

He's a little more hardcore than I could ever be, but I follow his blog and apply the information to my life in the areas where I can. Reducing consumption is something we should all strive for. I do plan on retiring "early" if at all possible. I'm 34 now, and I could see it happening before I'm 45

And what are you going to do if you develop a condition that requires home nursing? Do you realize that 24-7 nursing care costs around 130,000 a year? Who is going to take care of you if you are disabled?

This is the worst argument for continuing to work. Plan for the most likely scenario, not this. Buy some LTC insurance if it makes you feel better. Don't work forever just in case something happens to you. You could be hit by a bus tomorrow. Don't spend your life working. Spend it living.

Um, how many old people have you cared for? All the old people in my family except for my grandfather required years of expensive nursing in their old age (could not go to bathroom by themselves, dementia, etc). How do you see your elderly years going?

In a blaze of heroin induced glory. I'm not sitting in some hospital having my ribs broken by nurses as they resuscitate me.

Planning on it does not mean it'll happen. You can end up in a Medicaid nursing home or a $10k/month assisted living facility/resort depending on your resources. Most people end up at one way before the hospital being resuscitated.

[Anonymous]

Um, how many old people have you cared for? All the old people in my family except for my grandfather required years of expensive nursing in their old age (could not go to bathroom by themselves, dementia, etc). How do you see your elderly years going?

None. Everyone in my family was relatively healthy until they died. My mom is the only one left, and I expect her to live for a VERY long time. She's only 58, and I can imagine she will be around for another 30 years +. She has LTC insurance.

Planning on it does not mean it'll happen. You can end up in a Medicaid nursing home or a $10k/month assisted living facility/resort depending on your resources. Most people end up at one way before the hospital being resuscitated.

I'm not willing to waste all the time I have on this earth working. I will plan for the future and build in some extra as a cushion, but I will not bother trying to save up so much money that I can spend ten years in a retirement resort. If I can, great. If not, I'll join the PP who plans on going out in a heroin induced blaze of glory. Either way, I will have very much enjoyed life.

[Anonymous]

Pre-medicade health insurance will be EXPENSIVE! I saw someplace that in about 20 years, health insurance will exceed $80K per year.
Could you imagine how expensive it would have grown to be without Obamacare?! Thank God for Obama!

[Anonymous]

Anonymous wrote:You can do it if you can live on $66,000 a year. $36K rental income and 3% of the million in savings would be $30K. Seems doable.

The $36k rental income is GROSS. Deduct taxes (income and property), insurance and maintenance.

[Anonymous]

Anonymous wrote:Pre-medicade health insurance will be EXPENSIVE! I saw someplace that in about 20 years, health insurance will exceed $80K per year.
Could you imagine how expensive it would have grown to be without Obamacare?! Thank God for Obama!

You're kidding, right? A "gold" Blue Cross/Blue Shield plan on the DC small business exchange (with a $2,000 deductible) is over $750 per month for someone 50 years of age. It goes up from there with age. For someone over 60 it's over $900. I guess if op is planning on living at the poverty line, they'll qualify for subsidies, which makes it cheaper for them, which is different from it not being "expensive." (It's still expensive, it's just being paid for by someone else).

[Anonymous]

Do I even bother asking how the eff you own a million dollar home?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Awesome! Do you personally follow this type of lifestyle?

He's a little more hardcore than I could ever be, but I follow his blog and apply the information to my life in the areas where I can. Reducing consumption is something we should all strive for. I do plan on retiring "early" if at all possible. I'm 34 now, and I could see it happening before I'm 45

And what are you going to do if you develop a condition that requires home nursing? Do you realize that 24-7 nursing care costs around 130,000 a year? Who is going to take care of you if you are disabled?

This is the worst argument for continuing to work. Plan for the most likely scenario, not this. Buy some LTC insurance if it makes you feel better. Don't work forever just in case something happens to you. You could be hit by a bus tomorrow. Don't spend your life working. Spend it living.

Um, how many old people have you cared for? All the old people in my family except for my grandfather required years of expensive nursing in their old age (could not go to bathroom by themselves, dementia, etc). How do you see your elderly years going?

In a blaze of heroin induced glory. I'm not sitting in some hospital having my ribs broken by nurses as they resuscitate me.

Hell YEAH!