Budget Be Damned

[sailorboy1]

Originally Posted by gonesail

when does the price of the boat get factored into your budget formula?

nowhere!!!! that money is considered gone

[sailorboy1]

Originally Posted by kmacdonald

I'd say at about $4,000,000 in a 401K you could disregard SS without tightening the belt too much.

WHAT!!!!!

no more Grey Poupon

[kmacdonald]

Originally Posted by sailorboy1

someone on the "other forum" asked and it was a good question

My asset $$$$ numbers does not include the boat. I treat the boat finically like some do a mistress, it is a non asset you spend money on.

Well said!!!!!

[kmacdonald]

Originally Posted by sailorboy1

WHAT!!!!!

no more Grey Poupon

No. Eat up, you factored in SS.

[kmacdonald]

Look at it on the bright side, if you are left with only SS you will have to cruise to the South Pacific where you can live like a king on SS.

[valhalla360]

Originally Posted by kmacdonald

The only reason not to factor in SS is if your retirement savings and income dwarfs SS, unless of course you are one of the believers SS may go away. I'd say at about $4,000,000 in a 401K you could disregard SS without tightening the belt too much.

This is a common mistake in a lot of retirement articles. A $3k/month inflation adjusted annuity is a massive retirement resource and drastically reduces the savings required.

[kmacdonald]

Originally Posted by valhalla360

This is a common mistake in a lot of retirement articles. A $3k/month inflation adjusted annuity is a massive retirement resource and drastically reduces the savings required.

Yes it is. I agree 100%. You don't need what the "experts" tell you that you need. They are looking for bigger commissions. And NEVER buy loaded mutual funds. Another factoid: The average mutual fund under performs the market. This PROVES fraud in the mutual fund business. Pick your funds carefully.

[sailorboy1]

Originally Posted by valhalla360

This is a common mistake in a lot of retirement articles. A $3k/month inflation adjusted annuity is a massive retirement resource and drastically reduces the savings required.

mostly used by financial advisors whose interest is in you working longer and longer so they can increase your account balance that they get a % of to "manage" by investing it in mainly some other fund managed by someone else who is also getting a %

[Checkswrecks]

Another saying "thanks" to SB1 for the original post and hanging in there with the inevitable nay-sayers.

I agree with AH64 about the market coming back to "norm" sooner or later (10% for long term? ha), but SB1 seems to be prepared.

[Captain Randy]

SBI, I am always grateful for your budgets and candid posts on budget related discussions. We too are preparing to sail away next year. We forecast to have $400K in IRA and savings and the wife will take early SS at age 64 giving us about $2K a month towards our $3.5K budget forecast for retirement/cruising. The balance ($1.5K a month) will come from savings until I hit 62 a year after taking off giving us a combined SS of about $4K a month. this is our plan to fund cruising retirement. The boat is ready to go and should only require maintenance.

All this discussion on rates of returns for IRA investments is interesting as we chose to pull out of the market in January into a MM fund earning a little over 2% today. So....with this strategy I cannot rely on aggressive earnings in a bull market rather I believe that before long the market will in fact turn bear and I have chosen to ride out this cycle in a cash position so that I don't wake up one morning with a big loss in my IRA etc. I won't make much but then again I wont lose anything.

So simply we plan to dip into retirement savings for a year or so until SS fully funds our monthly budget. Yes we will deplete a portion of our savings retirement however I wont be sitting on the boat watching the market go up or down rather content to live on what we have saved.

thanks again SailorBoy for all you share
Randy

[a64pilot]

Originally Posted by Checkswrecks

I agree with AH64 about the market coming back to "norm" sooner or later (10% for long term? ha), but SB1 seems to be prepared.

Every so often we have those that post, I’ll get me a couple hundred thousand and invest wisely, earn xx% return, and then I’m set, I can Retire in my 30’s.
Then they get upset when others try to show them that xx% isn’t a realistic long term number, and go off trying to prove it is based on how a few stocks they picked have performed historically, usually the history is short.

I’m only trying to say, don’t base upcoming retirement plans based on how the Stock Market has performed the last few years, or even decade.
Myself I have 401K money too, a Military Retirement, and upcoming SS, plus the Wife’s small teacher Retirement and her SS.
In theory we could live off of one of any of mine and two of hers.
However I’ve seen too many old folks who can’t afford much of anything, cause in theory they had plenty to Retire on.

However the almost one universal truth other than death and taxes, is, whatever it is, it’s going to cost more than you thought it would.

I’m not picking on SB, we both were searching the how much does it cost threads about the same time as we were preparing at about the same time.

I’m only cautioning you to have a reserve, before you tell the boss to take this job and shove it . Even if your the boss.

[thomm225]

Originally Posted by kmacdonald

There's no light at the end of this tunnel.

Actually, there's always light at the end of the tunnel for those that can see it.

Sometimes though folks see nothing at all but dollar signs even in retirement which is quite sad

You must have missed my earlier post. I learned that from my uncle who passed last week. He worked into his 70's and enjoyed every minute.

My mom once told me that my uncle's wife told her that they didn't make one dime on the farm one year and here we have this guy counting his dollars anchored out doing nothing

It's definitely a new America

Long story short, we farmed 1000 acres when I worked for him in the 1970's and my cousin is farming 2000 acres now.

That is what you call "light at the end of the tunnel!"

You ever changed a plow blade after a long day with the bugs etc eating you alive? This is how we did it one the Virginia Eastern Shore

Also, it's nice when you make your turns at the end of the field and you can see what the tide is doing

The tractor I drove as a 130lb 16 year old pulled a 7 bottom plow. This one is better. It was all line of site back then. No GPS

https://www.youtube.com/watch?v=lRkB...r7aDrkuQTkBngE

[a64pilot]

Some love their work, many don’t, but do it to live, it’s called work and not play for a reason.
If you love your work, of course don’t Retire, why stop doing what you love.
The rest of us Retire though, hopefully.

I’ve watched too many have dreams, but work themselves to death, literally as in often die at their work place from a heart attack etc.

[kmacdonald]

I retired at 52. Saw too many people slave at a job they hated and drop dead before retirement. You'll never earn your way to early retirement, you need to invest wisely to get there.

Utilities are paying $800/acre with 30 year contract to put solar panels on farmland. 2000 acres @ $800/acre = $1.6 million. You should be able to get by on that.

[sailorboy1]

The market was up today

We went to see the Avengers at a dinner type of movie theater this afternoon where we also had a pitcher of beer and some nachos. On the way back we swung through the discount liquor store.

In the end today I have about $10 more than I started with.

Now I'm grilling chicken for dinner and having a glass of wine. Life is GOOD! and to think someone questioned the point

Till I start seeing a raise in US unemployment rate I'm not all that worried a crash is coming domestic(market had a reset just 4-6 months ago).

BTW - don't investment in any bank making student loans that is a disaster just waiting IMO