Thoughts on retirement budgeting - Page 4 - Fiberglass RV


Reply
 
Thread Tools Search this Thread Display Modes
 
Old 11-21-2014, 06:12 PM   #43
Senior Member
 
Dudley's Avatar
 
Name: David
Trailer: 1998 Casita 17 SD
Alberta
Posts: 664
Registry
I love the statement, about retirement date being 5 years too late. I retired this April at 57 and yes the BS I put up with the last 5 years, probably cut 10 years off my life. The new "management structures and the damn spreadsheet toting supervisors" are what is killing us. I took pride in my job and tried to help the customers but that's not what they want now.

We are lucky as the wife has a good pension and we have good retirement savings that we can pull from. I paid off the house at about 3 years in and have stayed out of debt. That is the key. I am lucky as we don't have BIG wants and I can fix just about anything. I don't need the newest car or the 40' motorhome to have a good time.
__________________

__________________
Dudley is offline   Reply With Quote
Old 11-21-2014, 06:48 PM   #44
Senior Member
 
honda03842's Avatar
 
Name: Norm and Ginny
Trailer: Scamp 16
Florida
Posts: 7,300
Empty Nester

Quote:
Originally Posted by Jim Bennett View Post
I do realize that to some degree I will need to spend less money upon retirement. I do still hope to do a bit of destination travel, as well as spend a horde of time towing my trailer about. I guess I just want to plan for the worst, and best, case scenario.

I know I do need to right-size my house, as I have renovated and added on lots over the years, but as empty nesters we sure do not need 3,500 sf of living space, and a 1/4 acre of yard (at least a manicured one), though my oversized double garage (which is really a workshop), does need to be upsized a wee bit .
Jim,

As soon as both our sons were off to college, we moved to our 600 square foot beach cottage with about 4000 sq feet of grass to cut.

We sold our 3000+ home with two acres of grass, 55 windows to wash and 4 car garage with pit. We found ourselves spending time in only 3 rooms except to dust. Just too much space and grass.

Both of our kids have told us to spend 'it' and we are. As to the worse case situation, I live for the brighter side assuming I will be able to handle the darker side.

At 72 the statistics say I have about 10-15 years to live. I'm focusing on having as much fun as possible, doing things I like to do, and spending my time with people I really like. I really have stopped worrying about what I can't fix, nothing has been able to entice me back to work, neither money or exciting projects.

We, in a sense, stumbled into the rv life style and need little else.

Life can end all too quickly.
__________________

__________________
Norm and Ginny

2014 Honda Odyssey
1991 Scamp 16
honda03842 is offline   Reply With Quote
Old 11-21-2014, 07:38 PM   #45
Senior Member
 
Carol H's Avatar
 
Name: Carol
Trailer: 22' Airstream Formerly 16' Scamp
British Columbia
Posts: 11,731
Registry
Quote:
Originally Posted by Franswa View Post
it don't take long around here....


Yup got a pic text sent to me earlier today.. amazing transformation in 24 hours. LOL

I also dont like buying any big ticket items on a credit these days either. Took a lot of years for me to learn that lesson though - actually had to live with an account for a few years before I really got! But I agree there are times when its better to borrow if your being offered a much lower rate than what you are currently making on the money in a different investment.
Carol H is offline   Reply With Quote
Old 11-21-2014, 10:50 PM   #46
Senior Member
 
accrete's Avatar
 
Name: Thom
Trailer: Chevy AWD Van Conversion
Astoria Oregon
Posts: 1,015
Registry
enjoyed the read through the thread.
Cari & I ponder these questions often. Our biggest issue/concern is what medical insurance costs will be pushed on us for compliance sake. We've both had good health over the years with little fuss and really don't use (on an annual basis) any of it except Dental. That said, and talking to some of our friends, i'm still thinking of working till Cari turns 65 and that same year i'll turn 68. We have easy on the mind/body jobs for our employer (Costco, me since 1993, her since 2000). As for funds we should be fine as i was buying stock in the company back when i started for 8 bucks a share, have several thousand at this point and well...it's doing ok at $130+ a share. But it all really comes down to what we are forced to purchase for insurance, crazy as that might sound. And for several of my baby-boomer friends who have recently retired, it is a really big, if not the biggest expense for them, and they are healthy!

If things ever get crazy-bad i'll just put Kevorkian on speed dial.
Or hope Soylent Green comes into vogue.


Thom

PS...my dad is 94 years young and still ball room dancing. He's the hit on the dance floor at his retirement home.
__________________
Blogging from the WET! Coast of Oregon
Bed, Bath, & Beyond...
2010 Chevy Express 1500 AWD Van
Archive: Parkliner #35 build thread
accrete is offline   Reply With Quote
Old 11-22-2014, 04:21 AM   #47
Raz
Senior Member
 
Raz's Avatar
 
Name: Raz
Trailer: Trillium 2010
Vermont
Posts: 4,058
Quote:
Originally Posted by cpaharley2008 View Post
You deposit 10k and get 3% over 5 years and you borrow 10k @ 5% over 5 years.
Year 1, you receive 300 and you pay 500
year 2, your receive 309 and you pay 400
year3, your receive 319 and you pay 300
year4, your receive 327 and you pay 200
year5, your receive 337 and you pay 100
at the end you now have $11,592 and it cost you $1500- you made $92 profit.
Making payments to myself of $2000/ year
Year1 2000
Year2 4060
Year3. 6181
Year4 8367
Year5 10618

This assumes yearly compounding at 3% on money in the bank for at least a year. Example- Year 2. 4060 = (1.03x2000)+2000 (This makes the math easier.) At the end I have a profit of $618. Where's my error?
__________________
Raz is offline   Reply With Quote
Old 11-22-2014, 07:34 AM   #48
Senior Member
 
cpaharley2008's Avatar
 
Name: jim
Trailer: 2016 2ndGen Escape19 Prairie Schooner pulled by 2014 Dodge Ram Hemi Sport
Pennsylvania
Posts: 6,398
Registry
The difference is the amount of principal, in your case is smaller, 2k, 4k, 6k, whereas in my example the principal is $10k and goes up from there.
__________________
Jim
Never in doubt, often wrong
cpaharley2008 is offline   Reply With Quote
Old 11-22-2014, 07:52 AM   #49
Raz
Senior Member
 
Raz's Avatar
 
Name: Raz
Trailer: Trillium 2010
Vermont
Posts: 4,058
Quote:
Originally Posted by cpaharley2008 View Post
The difference is the amount of principal, in your case is smaller, 2k, 4k, 6k, whereas in my example the principal is $10k and goes up from there.
Yes but after 5 years we both spent 10 k, you have $10092 while I have $10618 ???
__________________
Raz is offline   Reply With Quote
Old 11-22-2014, 08:20 AM   #50
Senior Member
 
cpaharley2008's Avatar
 
Name: jim
Trailer: 2016 2ndGen Escape19 Prairie Schooner pulled by 2014 Dodge Ram Hemi Sport
Pennsylvania
Posts: 6,398
Registry
No, I'll have $11,592 and you only have $10,618, I'm more than $900 a head of you. It is a result of compounding interest, getting interest on interest.
__________________
Jim
Never in doubt, often wrong
cpaharley2008 is offline   Reply With Quote
Old 11-22-2014, 08:45 AM   #51
Moderator
 
Jim Bennett's Avatar
 
Name: Jim
Trailer: 2017 Escape 5.0 TA
Alberta
Posts: 4,725
Registry
Quote:
Originally Posted by cpaharley2008 View Post
No, I'll have $11,592 and you only have $10,618, I'm more than $900 a head of you. It is a result of compounding interest, getting interest on interest.
Yes, you do have $11,592 at the end of your exercise, but you forgot to include the cost of $1,500 to service the debt, a cost Raz did not incur.

In order to make it further ahead with any borrowing scheme, you have to make more of a return in your investment than you pay in the costs to borrow.
__________________
2017 Escape 5.0 TA (January 26)
2015 Ford F150 Lariat 3.5L EcoBoost
2009 Escape 19 (previous)
“Most folks are about as happy as they make up their minds to be.” — Abraham Lincoln
Jim Bennett is offline   Reply With Quote
Old 11-23-2014, 07:57 AM   #52
CPW
Senior Member
 
CPW's Avatar
 
Name: Carl
Trailer: 2015 Escape 5.0TA
Flori-duh!
Posts: 934
Registry
Quote:
Originally Posted by P. Raz View Post
This assumes yearly compounding at 3% on money in the bank for at least a year. Example- Year 2. 4060 = (1.03x2000)+2000 (This makes the math easier.) At the end I have a profit of $618. Where's my error?

I'm curious what bank is paying 3% on savings. Even the credit unions, which generally pay more than the banks do not seem to be offering 3%. Perhaps a CD?


Sent from my iPhone using Fiberglass RV
__________________
CPW is offline   Reply With Quote
Old 11-23-2014, 08:04 AM   #53
Senior Member
 
Timber Wolf's Avatar
 
Name: Tim
Trailer: '88 Scamp 16, layout 4
North Florida
Posts: 1,440
Quote:
Originally Posted by CPW View Post
I'm curious what bank is paying 3% on savings. Even the credit unions, which generally pay more than the banks do not seem to be offering 3%. Perhaps a CD?
More like three-quarters of a percent.
__________________
Timber Wolf is offline   Reply With Quote
Old 11-23-2014, 08:19 AM   #54
Senior Member
 
cpaharley2008's Avatar
 
Name: jim
Trailer: 2016 2ndGen Escape19 Prairie Schooner pulled by 2014 Dodge Ram Hemi Sport
Pennsylvania
Posts: 6,398
Registry
Quote:
Originally Posted by CPW View Post
I'm curious what bank is paying 3% on savings. Even the credit unions, which generally pay more than the banks do not seem to be offering 3%. Perhaps a CD?


Sent from my iPhone using Fiberglass RV
Yes, a 5 year cd may pay that, the longer the term, the higher the rate. This assumption example is made to demonstrate the cost of borrowing over 5 years to purchase something for $10k and borrow vs pay cash.
__________________
Jim
Never in doubt, often wrong
cpaharley2008 is offline   Reply With Quote
Old 11-23-2014, 08:28 AM   #55
CPW
Senior Member
 
CPW's Avatar
 
Name: Carl
Trailer: 2015 Escape 5.0TA
Flori-duh!
Posts: 934
Registry
Quote:
Originally Posted by Jim Bennett View Post
Yes, you do have $11,592 at the end of your exercise, but you forgot to include the cost of $1,500 to service the debt, a cost Raz did not incur.

In order to make it further ahead with any borrowing scheme, you have to make more of a return in your investment than you pay in the costs to borrow.


Quote:
Originally Posted by cpaharley2008 View Post
Yes, a 5 year cd may pay that, the longer the term, the higher the rate. This assumption example is made to demonstrate the cost of borrowing over 5 years to purchase something for $10k and borrow vs pay cash.

I tend to agree with Jim. After all the expenses and the hassle of having to make monthly payments for the term of the loan, any minuscule amount I might be ahead isn't worth it to me. I would prefer to pay cash and be done with it. I can then rebuild my savings with the monthly amount of what would have been the payment. Plus, there is satisfaction in not owing anyone anything.


Sent from my iPhone using Fiberglass RV
__________________
CPW is offline   Reply With Quote
Old 11-23-2014, 08:56 AM   #56
Senior Member
 
cpaharley2008's Avatar
 
Name: jim
Trailer: 2016 2ndGen Escape19 Prairie Schooner pulled by 2014 Dodge Ram Hemi Sport
Pennsylvania
Posts: 6,398
Registry
Most people do not have the propensity to save but these same people realize if they do make the monthly loan payment they are out of luck, go figure. In addition this exercise was not to demonstrate coming out ahead, it was to demonstrate another alternate to borrowing to purchase something and paying out several $$$ in interest and fees over the life of the installment agreement. Just look at your credit card agreements, 12-21% interest. In 5 years these rates will double the cost of borrowing.
__________________

__________________
Jim
Never in doubt, often wrong
cpaharley2008 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Thoughts on Retirement honda03842 General Chat 65 08-19-2013 09:20 AM
Retirement Fun Lisa H. Jokes, Stories & Tall Tales 3 07-12-2009 07:02 AM
FiberglassRV and Retirement Bigfoot Mike General Chat 40 08-09-2008 11:38 AM

» Upcoming Events
No events scheduled in
the next 465 days.
» Virginia Campgrounds

Reviews provided by


Copyright 2002- Social Knowledge, LLC All Rights Reserved.

All times are GMT -6. The time now is 03:25 AM.


Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.