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SB on hold



Well due to taxes and vehicle issues our snowball throwing is on hold. We have to pay into taxes this year, both state and federal so untill we know the exact amount we are not throwing any snowballs. Then on top of that I need 2 new tires. I had some vehicle issues what were fixed back a few months. Those issues caused the tires to wear unevenly and more extinsively then they should. So before we go on any long trips we need to put 2 tires on and we are planning a trip to go see the grandson and his mother and father too of course. So untill those 2 things are done we are saving the ball. I really am hoping to know this before the end of next week.


With having to pay in for taxes it got me and my DH talking about retirement. I know he is not fully all DR like I am but I found out he doesn't think we will ever be able to retire. He was told back in 2001 that he would need 1.5 million in retirement saving to live. Not sure who told him this but I had to remind him that our cost of living will be down since we don't have any debt. He now has my income for another 10 years hopefully after he retires. I need to find a website were I can figure this out so I can show him its not as bad as he thinks it will be. I also don't see him retiring and just sitting at home. He will have to do something even if its part time.


I have to confess I almost went back to being normal the other day. My Dh has been saying I need to get a new to us vehicle evertime something goes wrong. (see he is not fully DR) Well his exact words are "we really need to start thinking about replacing your truck as its starting to cost us". I have learned when he says this to say "the $300 every few months is still better then the $335 every month in payments". But the other day after my heater fan went out AGAIN for the 2nd time this year I just about went and got a new one. But DH took it and did a good checking into why its going out and found out we have some wires that are lose. He rewired them so hopefully it won't happen again and I figure out how stupid it would be to go and spend the money on a new vehicle when mine still runs great and really doesn't cost that much to fix when there is an issue. I have to say I also was looking at $30,000/vehicles. YUP if I was going into debt I was doing it big time. LOL thankfully you guys were in the back of my head telling me to stop and yes the thought of it did make me sick to my stomach.


Well on to another day!!


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What do you expect your yearly budget to be in retirement?  You'll have no debt, a paid off house, and have to pay for health insurance, so factor those things in.


Also, can you downsize in house?  That could reduce your taxes and utility bills.


Then look at Social Security or any pensions.  How much do you expect to receive and when?  Subtract that from your yearly budget to see how much your investments will need to supply.


Whatever number you come up with that's realistic, multiply it by 25 to get a general idea of what you need to have saved up in investments to retire.


An example.  Say you spend about $40,000 a year, $5,000 of that is your mortgage, and you expect that health insurance will be $8,000 a year.  Also, you think you'll get $15,000 in Social Security.


$40,000 minus mortgage, plus health insurance gives you a tentative budget of $43,000.  $15,000 of that will be covered by Social Security, so you need to replace $28,000 in income from investments.


Multiply $28,000 by 25 and you get $700,000.  That's an estimate of what you need to have saved up for retirement in this scenario.  


**Look up the 4% rule for an explanation of why you need 25 times your yearly expenses in retirement savings.  There are articles all over the web.

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I've run through lots of these scenarios.

Iirc, you guys have a good amount of time left to plan.

That time, you'll see can be both deceptive and powerful.

Deceptive in that you probably feel there isn't a bunch of extra room in the budget. If you're estimating from today.

But powerful in that growth over time, especially if you're contributing towards ongoing goals, is astounding.


For a glimpse, think about your budget, exclude debt paydown, exclude mortgage, exclude kid expenses, exclude half of your taxes, exclude half of your commuting expenses and exclude all of your retirement savings.

Talk about trimming a budget.

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