Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For us, about $250K pre-tax initially for first 10 years of retirement; falling to $175K - $200K when we reach early to mid 70s.

Anticipated monthly expenses in retirement:

-$2K home insurance + taxes on primary residence (plan to keep for first 8-10 years of retirement, then downsize)
-$2.5K misc. other expenses (auto insurance, utilities, cell phones, streaming, lawn service, 2x/mo houseclean, etc.)
-$2K food
-$1K entertainment/leisure
-$3K periodic capital expenditures (home repairs, new cars, new clothes, furniture/appliance replacement when necessary, etc.)
-$1K out of pocket medical (guesstimate)
-$1K kids (presents, plane tix to visit us, etc.)

= $12.5K/month = $150K/yr. base expenses

Factoring in estimated taxes and travel, $250K is our number.

That’s extremely high and filled with so many unnecessary items. $1000 a month to your kids for presents/travel expenses? $2k on food??

I get that you’re wealthy and don’t want to be frugal. But it’s not a good general guide for others who are looking for advice.

Not np. Who do you think you are? The thread asks what would it take for a couple to retire to a comfortable lifestyle and this poster listed and apparently has prepared for, the costs in their mind that would represent comfort and stability. Just because this is not your income objective does not mean that you can berate someone on not being frugal enough. JFC, you're a real prize.

+1

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For us, about $250K pre-tax initially for first 10 years of retirement; falling to $175K - $200K when we reach early to mid 70s.

Anticipated monthly expenses in retirement:

-$2K home insurance + taxes on primary residence (plan to keep for first 8-10 years of retirement, then downsize)
-$2.5K misc. other expenses (auto insurance, utilities, cell phones, streaming, lawn service, 2x/mo houseclean, etc.)
-$2K food
-$1K entertainment/leisure
-$3K periodic capital expenditures (home repairs, new cars, new clothes, furniture/appliance replacement when necessary, etc.)
-$1K out of pocket medical (guesstimate)
-$1K kids (presents, plane tix to visit us, etc.)

= $12.5K/month = $150K/yr. base expenses

Factoring in estimated taxes and travel, $250K is our number.

That’s extremely high and filled with so many unnecessary items. $1000 a month to your kids for presents/travel expenses? $2k on food??

I get that you’re wealthy and don’t want to be frugal. But it’s not a good general guide for others who are looking for advice.

Not np. Who do you think you are? The thread asks what would it take for a couple to retire to a comfortable lifestyle and this poster listed and apparently has prepared for, the costs in their mind that would represent comfort and stability. Just because this is not your income objective does not mean that you can berate someone on not being frugal enough. JFC, you're a real prize.

But what they posted is an upper class budget. Lower upper class, perhaps, but certainly not UMC when you live in reality (I guess you don't?)

Why does it matter?

OP can look at the budget and decide which parts are applicable/relevant.

What’s the point of your pedantic quibbling?

Anonymous wrote:how does a retired couple eat $2K worth of food in a month?

I think you'll be putting on the pounds quickly.

Asked and answered. Read the thread.

Anonymous wrote:how does a retired couple eat $2K worth of food in a month?

I think you'll be putting on the pounds quickly.

+1

Maybe some of these posters are assuming a retired lifestyle where they are fat and happy for 8 years and then disabled with skyrocketing medical costs and low quality of living for the rest of their lives? Or maybe you think you can shave 10 years off your life with this behavior, and thus afford to live more extravagantly in your 60s?

I was just reviewing finances with my parents, who are in their mid-70s and are UMC to UC. Dad still technically works (he owns several businesses and works probably 15 hours a week checking in on them and making major decisions) so their income situation is different than I think most people here are envisioning -- he takes a healthy income from his businesses and they basically don't touch their retirement accounts except for travel.

The eat very well at home, bi-weekly deliveries from Whole Foods with lots of proteins, fresh vegetables, some prepared foods to make life easier. Plus dinners out probably twice a week and then lunch out maybe 3x a week? They are spending around $500/mo on groceries and then maybe another 600-700 on restaurants, the bakery, etc.? And eating very well. I simply do not understand how you get to $2k for two people. Is it alcohol? My dad drinks but my mom doesn't, and realistically my dad should not be having more than one drink a night, tops, but I know he sometimes exceeds that. And I worry about his health.

I don't know how you double their food intake. Personal chef? UMC people don't have that kind of in-home help.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For us, about $250K pre-tax initially for first 10 years of retirement; falling to $175K - $200K when we reach early to mid 70s.

Anticipated monthly expenses in retirement:

-$2K home insurance + taxes on primary residence (plan to keep for first 8-10 years of retirement, then downsize)
-$2.5K misc. other expenses (auto insurance, utilities, cell phones, streaming, lawn service, 2x/mo houseclean, etc.)
-$2K food
-$1K entertainment/leisure
-$3K periodic capital expenditures (home repairs, new cars, new clothes, furniture/appliance replacement when necessary, etc.)
-$1K out of pocket medical (guesstimate)
-$1K kids (presents, plane tix to visit us, etc.)

= $12.5K/month = $150K/yr. base expenses

Factoring in estimated taxes and travel, $250K is our number.

That’s extremely high and filled with so many unnecessary items. $1000 a month to your kids for presents/travel expenses? $2k on food??

I get that you’re wealthy and don’t want to be frugal. But it’s not a good general guide for others who are looking for advice.

Not np. Who do you think you are? The thread asks what would it take for a couple to retire to a comfortable lifestyle and this poster listed and apparently has prepared for, the costs in their mind that would represent comfort and stability. Just because this is not your income objective does not mean that you can berate someone on not being frugal enough. JFC, you're a real prize.

But what they posted is an upper class budget. Lower upper class, perhaps, but certainly not UMC when you live in reality (I guess you don't?)

Anonymous wrote:

Anonymous wrote:For us, about $250K pre-tax initially for first 10 years of retirement; falling to $175K - $200K when we reach early to mid 70s.

Anticipated monthly expenses in retirement:

-$2K home insurance + taxes on primary residence (plan to keep for first 8-10 years of retirement, then downsize)
-$2.5K misc. other expenses (auto insurance, utilities, cell phones, streaming, lawn service, 2x/mo houseclean, etc.)
-$2K food
-$1K entertainment/leisure
-$3K periodic capital expenditures (home repairs, new cars, new clothes, furniture/appliance replacement when necessary, etc.)
-$1K out of pocket medical (guesstimate)
-$1K kids (presents, plane tix to visit us, etc.)

= $12.5K/month = $150K/yr. base expenses

Factoring in estimated taxes and travel, $250K is our number.

That’s extremely high and filled with so many unnecessary items. $1000 a month to your kids for presents/travel expenses? $2k on food??

I get that you’re wealthy and don’t want to be frugal. But it’s not a good general guide for others who are looking for advice.

Not np. Who do you think you are? The thread asks what would it take for a couple to retire to a comfortable lifestyle and this poster listed and apparently has prepared for, the costs in their mind that would represent comfort and stability. Just because this is not your income objective does not mean that you can berate someone on not being frugal enough. JFC, you're a real prize.

Anonymous wrote:For us, about $250K pre-tax initially for first 10 years of retirement; falling to $175K - $200K when we reach early to mid 70s.

Anticipated monthly expenses in retirement:

-$2K home insurance + taxes on primary residence (plan to keep for first 8-10 years of retirement, then downsize)
-$2.5K misc. other expenses (auto insurance, utilities, cell phones, streaming, lawn service, 2x/mo houseclean, etc.)
-$2K food
-$1K entertainment/leisure
-$3K periodic capital expenditures (home repairs, new cars, new clothes, furniture/appliance replacement when necessary, etc.)
-$1K out of pocket medical (guesstimate)
-$1K kids (presents, plane tix to visit us, etc.)

= $12.5K/month = $150K/yr. base expenses

Factoring in estimated taxes and travel, $250K is our number.

NP. I think the mix maybe slightly different for us but the overall amount seems reasonable to me as well. Also, this is post tax amount and so the amount to withdraw will be even more once you account for taxes.

Anonymous wrote:I don't get it. We have two kids and live on less than $250k a year, squirreling away money for retirement and our kids 529, paying for aftercare, other kids' activities, clothing and food. We have a mortgage. We still take an annual vacation and a couple long weekend trips here and there.

How are people planning for $250k in retirement when your kids are out of the house and your mortgage might be paid off?!

Yes healthcare might be more expensive, but still.
Rich people

Same. Outside of housing and healthcare, our biggest expense is our kids. I suspect we will live MUCH cheaper when they are gone.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:People seem to be confused. The question was UPPER MC. Not just maintaining a basic life.

We have 3 paid off properties. They are currently rentals, but when we retire one will be our winter home and the other our summer home. The other will be sold for tax free gains. We would like to have 18k/mo coming in EXCLUDING how much we will need to pay in insurance premiums which is is whole other pot of money.

Why? Because of travel. Plane tickets are not cheap. Travel is not cheap. Good food is not cheap. Additionally we will have to continue to pay taxes and maintain our homes. 18k will be a modes UMC lifestyle.

It's definitely different definitions of "comfortable."

I'm the one who said $50,000 for a comfortable UMC lifestyle in DC. We have a paid off nice house in a nice DC neighborhood. I think we have the markers of UMC ($300k+ family income, graduate degrees). When I think comfortable, I think able to keep the house in good shape, not worrying about going out to dinner occasionally, able to buy tickets to the theater and all the books and magazines and streaming services we want, taking trips to visit family as desired. We certainly plan to spend more, primarily on travel, but I think of that as a luxury. It's certainly a luxury I'm looking forward to, but it's not necessary to be comfortable.

$250k income is top 5% in DC per the 2019 article I posted earlier, doubt that has changed that much in 3 years. You are UC.

True. So that implies that a UMC retired couple should only need $30,000!

Anonymous wrote:For us, about $250K pre-tax initially for first 10 years of retirement; falling to $175K - $200K when we reach early to mid 70s.

Anticipated monthly expenses in retirement:

-$2K home insurance + taxes on primary residence (plan to keep for first 8-10 years of retirement, then downsize)
-$2.5K misc. other expenses (auto insurance, utilities, cell phones, streaming, lawn service, 2x/mo houseclean, etc.)
-$2K food
-$1K entertainment/leisure
-$3K periodic capital expenditures (home repairs, new cars, new clothes, furniture/appliance replacement when necessary, etc.)
-$1K out of pocket medical (guesstimate)
-$1K kids (presents, plane tix to visit us, etc.)

= $12.5K/month = $150K/yr. base expenses

Factoring in estimated taxes and travel, $250K is our number.

That’s extremely high and filled with so many unnecessary items. $1000 a month to your kids for presents/travel expenses? $2k on food??

I get that you’re wealthy and don’t want to be frugal. But it’s not a good general guide for others who are looking for advice.

Anonymous wrote:

Anonymous wrote:

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

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

Why won't get medicare?

assumption was that the OP would retire at 65. Not everyone retires at 65.

how does a retired couple eat $2K worth of food in a month?

I think you'll be putting on the pounds quickly.