36k a year to live on with no debt...I believe I can make a go of this as the life style of my wife and I is quite simple, don't demand much...some golf and a little travel will work just fine for us..health is good and expect to get medicare at age 65 12k per year my SS 10k per year wife SS 14k per year from savings Live in Wisconsin , cost of living is reasonable... Thoughts?????
$3,000 a month can be plenty assuming you do not have catastrophic health care and you do not eat in expensive restaurants every day and buy new designer clothes every month.
I don't know how big a portion groceries or clothing is for your budget, but there is a huge gap between extremely affodable (but not very fancy) products and the really expensive ones. China and Walmart have made it possible for the average and low income Americans to be able to clothe themselves for a very small amount of $. Same for most high tech products and household appliances. Honda and TOyota offer mid-priced, affordable cars with quality you do not find even in luxury Euro imports, and Reliability unmatched by cars costing 10 times as much.
It is great for the consumer, if one shops wisely.
Long term care could be a challenge though, if needed, that is why the best policy is PREVENTION by intelligent Diet (throw away that butter and all fats that are solid at room temp, increase olive oil use, eat (NOT Fried!) fish, not beef, etc etc!) and regular exercise.
rjk514, this is a lofty goal. You and your spouse are to be congratulated.
It's easier if you have already been living THE $3000 life style (or close to it) if you can be without the many "stuff" Madison Avenue would have you believe are necessities. Fifteen years ago there were no high speed internet, bottled water, 200 channel cables, flat screen TV, $5+ coffee, and cell phones. And a typical family did not didn't feel they were lacking because they didn't have these.
While we are unable to run our household on $3000 a month, we congratulates those who can. Last year we first obtained cell phones services but still get television from a roof antenna. From 12 feet, our "old" television looks good enough. No guest have ever walked-out because it is not a flat screen television. And we had to get use to the idea of keeping our cars for 10-15 years. You are probably doing the same?
Lots of good friends, tennis, a clean community library and nice surroundings. Much of what's valuable doesn't cost much.
UPDATE--- Will be retiring in about 21 days and 3K is still in play at this time....Wife is continuing to work for 2 more years ( she is 3 yrs younger,) and will carry health ins....Will attempt to get her out sooner if we can find some type of affordable health insurance. Will not yet draw Social Security , but will instead withdraw about 10k per year from taxable CD's ( won't be penalized for early with drawl) I will be getting elected to our village board on April 1, (Its a lock) so that will give me something to do and also pay 3.5K per year... Judging from the way things are going with the market and the general economy, I believe 3K will be just fine... RJ-out
Sure you can. But before you actually retire, try to actually live on this amount for a year or two and save the rest for later. This will give you a good idea if you can make it on $36k a year. DW and I live on less than that and used this as a way to see if we could make it. Everyone is different, expanse wise, only by accurately testing yourself will you know for sure. Good luck.
Important questions everyone needs to ask themselves about retirement. These will help you really think through what you want now and future facing reality, limiting surprises. Maybe you can live for a few years, taking some from your savings each year. But...
1. How will you live in the long term, retired 5, 10, 20 years or longer, or when there is only 1 of you living (with half or less of the money resources)? Will you be able to afford even the basics and necessities? 2. Health care premium costs are rising substantially already now will increased expenses of people as they grow older. Mine (very reputable plan) went up $70/month just now due to increasing costs greater than premiums coming in. 75 million boomers growing older will explode the costs. And we will have to pay, as there's nothing for free. Your choice then to pay yourself, or not get the care you need...the results are not nice. 3. Inflation has always been here, higher at times, and will likely increase more as demand is more by China, India, and countries around the world using the same amount of resources we have now for oil, gas, food, health care and everything. Have you thought what that will do to your fixed income and how you will have to decrease your lifestyle to live within your money? 4. What about senior care living arrangements - likely we will need them with extended lives we are living. Assisted living and nursing home ranges TODAY are $3,600 to $6,000 per month. Home Care is $75 to $120 per hour. 5. Is living with purpose important to you? volunteering, giving back of your wisdom, time. What resources do you need to accomplish that?
The life you live is your choice, the lifestyle, how long you desire to live... we have all or some control over all of that. If you have substantial savings to draw from (don't count on the Retirement plans as they are questionable at best) where your annual income can include as much annual drawdown on that as you wish, without jeopardzing future years, you're probably OK.
Just make sure you acknowledge the huge changes coming in this world with aging of 77 million baby boomers, globalization of the world, limited resources. And prepare yourself to be able to meet the changes these situations WILL cause.
We live in this great free country. That requires that we take responsibility for ourself (each of us needs to do that). We can't expect the government or other free or minimal pay programs to fund what you need and desire, or we will destroy our country and the lives of our future generations.
Best to you, enjoy and plan for YOUR great retirement.
I have read the pros and cons of living on $3,000 monthly income after retirement. I am 56 years old this year and I am planning on retiring in December 2010 at 58. I will be receiving approximately $3,100 monthly pension, I will also have health insurance paid for by my employer. I plan to move to Texas, God willing and getting part time work. I do not plan to sit at home. At 62 yrs old, I will receive approximately $1,500 from SS. That will be a total of $4,600 monthly approximately. I have some money in my 401K and will probably withdraw $400 monthly although Vanguard claims that I can safely withdraw $800 or more monthly. I have confidence that i will do well without being a millionaire. I presently live with my husband in a private home, but plan to leave him then. I will get my portion of the home when it is sold. Of course, monthly income would be double if I stayed with him, but it is not worthed. Peace of mind and good health is needed in retirement.
It is possible. My wife and I will be retiring pretty soon and we have made our calculations and we believe that if you have a simple life and watch your dollars and cents you can have a good life with $3,000.00 a month which is exactly what we shall receive once we decide to retire which we have decided to do in about 2 years and go to Arizona to live near our oldest son, his wife and two sons (our grandchildren). Let us keep our fingers crossed!!!
Coming in at 30K earned and spent this year (2008) all going well...NO DEBT is the key...went on two trips in 08- Fla. for 3 weeks in Feb and Bristol Tenn for Nascar race in Aug...all expenses are taken care of with the 30k,,,I think prices for most things will be coming down or staying flat in 09, example, our golf membership is staying the same and gas has really come down...economy is bad, lots of lost jobs thus prices will come down...Just need to find all the shortcuts that are available to you. Thats my story and I'm stickin to it.. RJK
I think it is very possible-I am going to try it. I have no debt-that is the most important factor. I am moving from Pa(Taxylvannia) to South Dakota to be close to my son and his family. No state tax and none of the taxes I pay here. The rents are much lower. I should be able to live very simply on social security plus some of my dividend income for health insurance from 62-65. Once I get Medicare-the cost will drop. Single-another big factor. Have a super diversified income investing scheme which is producing good income-should be able to keep re-investing dividends so that income keeps growing over time(more than just a cost of living increase). I biggest problem is going to be keeping myself occupied-once I find some new friends and a girl friend to keep me warm during those cold winters-I will be just fine.
