Anonymous wrote:

Anonymous wrote:We are budgeting $350,000. But we have 2 homes so home maintenance, RE taxes, etc factor in to that budget.

We are budgeting $250K and also have 2 homes. But our homes will be fully paid off, and the kids will (hopefully!) be largely off the payroll. Kids mortgage and savings aside we spend less than that now, I think.

Why do you kids have a mortgage?

Anonymous wrote:My brother and I just discussed this because he is 67 and retired. Their budget is $15K/month in retirement.

Their house is paid off.

Where is that money going?

Lol to these people who think you need 250k in income in retirement while living in a paid off home. That's is bizarre. What are you getting a personal chef and a private yoga instructor? What on earth.

My DH and I currently live on about 140k, and that pays for our mortgage, retirement/pension contributions, and college savings for DC, none of which we will have in retirement. We live pretty frugally but still take vacations and go out to eat once a week, DC is in activities and goes to summer camp, etc. But without mortgage and retirement/college savings, we could easily live off of half (or less) of our current income.

Right now we have enough for an annual income of about 75k/yr starting at 55. If we retire at 60 instead, we could get that closer to 85k. If one of us continues to work PT (which I think I would like to do -- I have a job I enjoy and that I could easily do in my 50s/60s), that could go up to 110-120k per year for at least the time that work is going on.

We also have a home currently worth 850k, we'll see what it's worth when we retire. It will be paid off. We are not sure yet if we will want to just live in it and then leave it to DC (to sell, most likely), or if we would sell it and downsize. Could add another 500k+ to retirement savings if we do the latter.

In any case, I feel pretty good about where we are at. But we have zero desire to spend our retirement in some huge house with high property taxes and bills, or to suddenly start flying first class and getting biweekly house cleanings and whatever other lifestyle expenses get you to needing 250k a year despite owning your home and already paying for your kid's college. I can't imagine burning through that much money annually in retirement.

My brother and I just discussed this because he is 67 and retired. Their budget is $15K/month in retirement.

Their house is paid off.

OP, how much are your annual living expenses? We'll wait.

Anonymous wrote:Health care is the big unknown, but with the house paid off, I could see living perfectly comfortably on $50,000. Other than property taxes (ours are about $12,000) and food (cooking at home, say another $10,000), I don't see any true fixed costs, so everything else - entertainment, hobbies, eating out, travel, is pretty much discretionary. Personally, I'd add a chunk for travel, but again, that's not needed for a comfortable lifestyle, and it will vary greatly.

I am also modeling 50k as absolute base including medicare but not additional unexpected health care costs. In addition to property taxes you mention above, include 5k for fed and state taxes if that 50k income is not taxfree, and maybe 3k for property/auto insurance.

Health care is the big unknown, but with the house paid off, I could see living perfectly comfortably on $50,000. Other than property taxes (ours are about $12,000) and food (cooking at home, say another $10,000), I don't see any true fixed costs, so everything else - entertainment, hobbies, eating out, travel, is pretty much discretionary. Personally, I'd add a chunk for travel, but again, that's not needed for a comfortable lifestyle, and it will vary greatly.

Anonymous wrote:We are budgeting $350,000. But we have 2 homes so home maintenance, RE taxes, etc factor in to that budget.

We are budgeting $250K and also have 2 homes. But our homes will be fully paid off, and the kids will (hopefully!) be largely off the payroll. Kids mortgage and savings aside we spend less than that now, I think.

Anonymous wrote:We are hoping $150K as we won't have college or mortgage.

This.. on the low end, assuming you can get medicare.

We are hoping $150K as we won't have college or mortgage.

Since we will be mortgage free and no longer saving for college or retirement, our minimum is $10k/month in today dollars. We hope to be above that but will easily meet the $10k using the 3% rule.

We are budgeting $350,000. But we have 2 homes so home maintenance, RE taxes, etc factor in to that budget.

Anonymous wrote:$250,000

per year I assume

$250,000

I know its going to be different for everyone but how much do you think would be needed for a UMC lifestyle in DC?