60k

[ivanhoe]

Ok, my first post. I don't want to waist anyone's time.
My wife and I have visited TV twice...looks a bit high end for us even though we loved it.
Can two people make it on 60k? We're willing to work also if work is available in the area.
Sorry if "talking turkey" is not the way to ask questions here.

[Bogie Shooter]

With some left over!

[skip0358]

Yes you can without a doubt. In fact you'll be enjoying the lifestyle several night a week.

[bkcunningham1]

Welcome to Talk of the Villages (TOTV) ivanhoe. When you did your visits, did you look at the preowned homes in The Villages (TV) or explore on the older areas like Orange Blossom Hills? The area is older and absolutely beautiful. The homes are not expensive and there is not the additional bond payment that the new homes require. The area offers golf courses, pools, clubs, dog parks, archery ranges, tennis courts, churches, etc. Everything the newer more expensive areas offer.

To me, it is hard to answer a question about how much it takes to live. The answer is different to each person you would ask. Like what bills you have and such. The cost of buying a home in TV includes so many extras it is unbelievable to me.

Good luck. I'm sure you'll get many, many answers here at TOTV.

Again welcome.

[Yoda]

Ok, my first post. I don't want to waist anyone's time.
My wife and I have visited TV twice...looks a bit high end for us even though we loved it.
Can two people make it on 60k? We're willing to work also if work is available in the area.
Sorry if "talking turkey" is not the way to ask questions here.

If you cant make it here on $60k, get rid of your wife. Seriously, with no mortgage you should be ok with 2 ss checks. Any added, like a small pension is gravey.

Yoda

[NJblue]

Can I assume that you are making it on $60K in NYC? If so, I can't imagine having any trouble here. First, figure out what you pay for NY and NYC income tax and add that back into your budget since there is no state or municipal income tax here. Then, I imagine your car insurance will also drop appreciably (ours did coming from NJ). I don't know what NYC property taxes are, but I expect that they are more than here in TV (ours are a third of what we paid in NJ). I know that gas taxes are high in NY, so you will be paying less for gas here as well. Want to go to the movies? It's $6.75 here, how about NYC? Same thing with going out for dinner, especially in the off-season. One thing that we did not see any savings on was groceries. In fact, soft drinks, beer, wine and liquor is a bit more expensive here than in NJ.

[Floridagal]

I don't think you will have a problem on 60k a year with no mortgage, if you just watch your spending. The money will go much farther here then in NYC.

[EdV]

Not sure why having a modest mortgage would be a deal breaker. At the present rate of interest, even a mortgage on $110k would be less than $7k a year and most of that would be tax deductable.

[champion6]

ivanhoe, take a look at the Nuts and Bolts of The Villages section. When you first come into the forum, it's at the bottom. In it are three Moving to the Villages messages. You will learn a lot about expenses.

Good luck.

[Army Guy]

We figured it out when we where going through the buying process a little over a year ago, that with a paid off house & bond, if we put back some each month also for the annual things like taxes, assessment, Insurance, etc, plus all the normal monthly bills, our monthly living expense total without food is $730. With that being said, the grand total of a TV Life style per year for us will be $8,760. So with your $60K you can live like a king and even afford a morg.!
TV is VERY affordable.

Army Guy

[dfn8tly]

Talking "turkey" is what we do at TOTV. Don't ever be afraid to ask the hard questions, we've heard all the easy ones.

As most people have said previously, it all depends on whether you're carrying a mortgage and in what amount. There is a new home currently for sale at about $1.7 mil.
If this is your life style and you want to carry a $1 mil. mortgage your $60K is not going to make it. However, there are many pre-loved and new homes/villas far more reasonably priced. There are so many advantages to TV that you don't pay for but are worth a lot. You should be able to find a lovely home and live comfortably on that income. When you move in you'll receive a very warm welcome (no pun intended as it is a little toasty today).

[The Great Fumar]

On 60K a year you can live like a KING .......

HERE KING !! HERE KING !! ...:doggie:


Seriously , you will do very well here on that income.....
besides there's always grits..........

fumar

[ivanhoe]

OK, first waist = waste...it wouldn’t be me without a misspelling.

Thanks to all of you good TV people; you’re all more helpful than a financial advisor!
I dislike a post that begins, “...so what do you pay for...” and I’m very glad you are all so amenable and that I can get some sound advice here.

I’d really like to answer each post individually but will not in an effort to keep it simple...but I‘m thinking of you.

We didn’t take the tour when we visited in 2008 which I believe was a mistake, so we plan on doing so in the summer of 2011.

It was my wife who actually “discovered” TV and brought it to my attention and she hasn’t stopped talking about it since.

It seems that we would be interested in a courtyard villa, pre-loved (I like that) is fine with us. My wife would like to access things via golf cart as she is a non-driver so that will be a factor, however, we have learned that you can virtually get everywhere with only a short interval in traffic.
As I’ve said we haven’t gotten the complete layout of TV so we're in the blind just now.

Our common charges for our condo here in NYC include many of the things listed separately in the pdf under “the cost of living in TV” on the Website i.e. sewage, trash, water etc so I think that threw me a bit. I do see average taxes of $240 but this is on a $250,000 home. Our taxes on a small one bedroom are a little over $2000 a year, car insurance $1000 so it will only be health insurance that could crimp the budget.

I’ll be “lurking” at Nuts and Bolts; seems like someone has really done a great deal of very helpful work.

Thanks again for your time...I’d leave today if I could.

[LisaJ]

Can you live a comfortable life on 50k with the mortgage paid off?

[Russ_Boston]

Can you live a comfortable life on 50k with the mortgage paid off?

My best advice would be to visit the nuts and bolts section and determine for yourself what your required monthly costs will be. And then add up your optional costs from there: Will you be paying for championship golf - do you need to dine out every meal - do you have health related costs? Etc.

Plan your monthly budget with room for unknowns and compare against your expected income.

[TrudyM]

[QUOTE=ivanhoe;270300].

My wife would like to access things via golf cart as she is a non-driver so that will be a factor, however, we have learned that you can virtually get everywhere with only a short interval in traffic.
As I’ve said we haven’t gotten the complete layout of TV so we're in the blind just now.

so it will only be health insurance that could crimp the budget.

QUOTE]

A couple of thoughts. And they are worth what I am charging ie maybe nothing.

Driving a golf cart although easier than a car is driving. I went around in one when we were in TV and it was fun but I drive. So you will probably want to be pretty close to a market and whatever activity your wife likes. When I went on the villages web site and filled out the info link they sent me a big packet of stuff that included an overall map.
We have also only physically visited once, we are trying to fit in another visit between now and when we retire however even with that, we plan to put our stuff in moving cubes and store it, and rent for the first 6 months, that way we can get the lay of the land. A furnished rental will include utilities and I figured a six month stay would help me refine my buget. (especially if I could get what was acctually spent info from the landlord or utilities for a place I am actually in)
(6 month rentals don't have to pay the FLA tax. When checking rentals alot include the tax in the monthly rent be sure to adjust before signing a lease)

My husbands unions retirement counselors have told me to figure $500 a month for medical insurance for myself during the gap between when I am covered under his pension and when I hit medicare eligible. I have no idea if this is correct and with the new legislation still being amended I don't think anyone knows.

Comparitive cost of living estimators I have used as an overall guide in our past moves are at.
http://www.bestplaces.net/COL/?salary=60000&city1=53651000&city2=51250750
Compares Manhattan with Ocala as follows:
A salary of $60,000 in New York, New York could decrease to $31,967 in Ocala, Florida There is a breakdown by catagory on the site.

http://www.bankrate.com/calculators/savings/moving-cost-of-living-calculator.aspx Only compares to Orlando but has NYC broken out by bourghs.

I also find good misc info and calculators on the AARP website.

Hope this helps.

Trudy the number cruncher.

[ivanhoe]

Thanks for the suggestions.

My concern is with draw-down of assets. All things being equal without big curve-balls (health care? taxes? illness?) we can achieve the 60k, however 50k would be more comfortable given that I have some longevity.

My father who just passed away this December was 101 years old and rather spry.
He was still swimming and walking around etc just before the stroke that brought him down. He only had to keep that up a few more years and he would have been broke.

We do not have health issues. My wife and I take better care of ourselves then our parents did i.e. no smoking, exercise, less stressful live choices, so I expect we will be in good health and active for a solid 20-25 years. (Or maybe I just put the whammy on it right there!)
Personally, a good book and a dip in the pool are all I need.

We’ll be fine on the executive courses and do not expect to dine out more than once or twice a week. Believe it or not I plan on taking up cooking (hear that laughing sound...my wife).

It’s my belief that people of our generation must be a bit more exposed in the financial market however what I’m learning here is that we can perhaps reduce that exposure and still expect a good lifestyle.
I’d like to finance just to establish a credit line with a bank and perhaps an equity line of credit on the unit we purchase (if that’s the case with these homes). That was going to be my next question but I should be doing my own homework over at Nuts $ Bolts, so I appreciate your patients.

[ivanhoe]

Trudy,

The sites are very good, in fact I'm feeling more confident now.

Thanks

[TrudyM]

Thanks for the suggestions.

My concern is with draw-down of assets. All things being equal without big curve-balls (health care? taxes? illness?) we can achieve the 60k, however 50k would be more comfortable given that I have some longevity.

My father who just passed away this December was 101 years old and rather spry.
He was still swimming and walking around etc just before the stroke that brought him down. He only had to keep that up a few more years and he would have been broke.

I’d like to finance just to establish a credit line with a bank and perhaps an equity line of credit on the unit we purchase (if that’s the case with these homes). That was going to be my next question but I should be doing my own homework over at Nuts $ Bolts, so I appreciate your patients.

I was told that if you currently have decent credit, that if you put allot on your credit card (all our utilities go on it so we get miles) and then pay it off in total every month before the due date that your credit score goes way up, and guess what they were right. When we rented for awhile in Atlanta and deposited 10K in a Cd with the bank they offered us a line of credit. When we then bought for cash they offered us a larger home equity line of credit. We never used either but we had them for emergencies. This may have changed since the bank failure mess but I would check with the banks first before I start paying interest I don't have to. That said if I couldn't buy without leaving my self a nice heafty cash cushion for emergencies I would get a Mortgage, just me and my parinoid thinking. By the way banks usually have the worst interest rates on mortgages, someone on this site suggested I check bankrate.com for rates and I saved a bundle.

[ivanhoe]

This may have changed since the bank failure mess but I would check with the banks first

Yes indeed things have changed. I thank you for you information but I will say this...banks today see moving things like your utilities to your credit card as the road to insolvency, so I'd be hesitant to use that to boost your credit score.

Really appreciate your help.

[l2ridehd]

I know a couple who live on 32K per year. They paid cash for their home, paid off the bond, and live what I would consider a frugal but comfortable life style. They have one car, one golf cart, only play on the executive courses, go out to eat only once a week (usually an early bird special) and only take one two week vacation a year to someplace else. I am not sure if they have health insurance expenses or not. They figure the total expenses of living in TV at about $1000 a month. That includes taxes, insurance on house and car, fees and utilities. That leaves them another $1500 a month for everything else and 2K each year for vacation. They own a small designer home and are careful what they spend. They also have a small emergency fund put away. No idea how big that is. So I would believe if you can not have a mortgage that 50K a year would be comfortable. A life style that is not for everyone, but works well for some.

Everyone does things differently and therefor costs are different. Do you go to the bar and have 3 drinks after a round of golf, or go back home? Do you have wine with dinner every day? Do you buy new golf clubs every year? Do you have a new car every 3 years? Do you go to the square every night and spend money? Do you buy lots of cloths or shop at the thrift store? Lots of ways to spend money if you want to look for them. Also lots of ways to save money if you need to. Look at your current life style. What do you want to continue and what can you give up. Make good decisions and you will be very surprised how far your money goes in TV.

[LisaJ]

Thank you so much for your insight. When most of the posters were saying you could live like a King for 60k I was wondering if you could live comfortably on 50k. Does anyone one know what the average couple at TV lives on?

[cybrgeezer]

[QUOTE=l2ridehd;270555]I know a couple who live on 32K per year. They paid cash for their home, paid off the bond, and live what I would consider a frugal but comfortable life style. They have one car, one golf cart, only play on the executive courses, go out to eat only once a week (usually an early bird special) and only take one two week vacation a year to someplace else. I am not sure if they have health insurance expenses or not. They figure the total expenses of living in TV at about $1000 a month. That includes taxes, insurance on house and car, fees and utilities. That leaves them another $1500 a month for everything else and 2K each year for vacation. They own a small designer home and are careful what they spend. They also have a small emergency fund put away. No idea how big that is. So I would believe if you can not have a mortgage that 50K a year would be comfortable. A life style that is not for everyone, but works well for some.[QUOTE]

Sounds like this couple should be on here, answering questions like this.

[l2ridehd]

Interesting point cybrgeezer. However one of the items that is not in their budget is internet access. Remember, that is $45 a month. That is a decent dining out cost. Like I said, they make choices and live frugal. They go to one of the free access points when they need to use the internet and I would guess TOTV is not that critical for them. For them that works great. Not for me and also not for everyone.

[Rag Bagger]

OK, first waist = waste...it wouldn’t be me without a misspelling.
health insurance that could crimp the budget.

I’ll be “lurking” at Nuts and Bolts; seems like someone has really done a great deal of very helpful work.

Thanks again for your time...I’d leave today if I could.

Watch your health insurance. If you presently buy your own major medical and you have pre-existing conditions you may be refused by Florida carriers.

We had BCBS in our previous state. It did not transfer here and BCBS of Florida refused us coverage.

Possible big problem.

[iandwk]

Suppose you sell your house for 25,000 less than you wanted. My wife and I are looking for a house in TV right now. We just looked at one today on Cajon in Lake County that was priced at 189,000. We looked at www.sumterpa.com and saw that the owner had bought in 2008 for 217,000. So you lose some, he loses some, and it all comes out the same. If the market were better where you are from, the odds are great that you would pay more here, also, so when all is said and done, it all equals out. The important thing is to be in TV. Take the money and runnnnn to TV.


I meant to post this in another thread. Please excuse me and my grandchildren for the mistake.

[ivanhoe]

Yes Rag ******, health care insurance is one of the “curve balls” of which I mentioned earlier. It is perhaps the biggest curve ball.

My company went chapter 11 a few years ago and my pension was turned over to the PBGC (the Pension Benefits Guaranty Corporation...I can thank God for this small gift). This act comes with a small perk. I get HCTC (health care tax credit) for two years after I hit 65 and begin Medicare (new law Jan 2010!). With it I can protect my wife (one year younger) using a participating provider...and there in lies the rub!

Who’s participating and how good are they? And how much will supplemental insurance cost after we’re out of the loop.
I keep reading about doctors dropping Medicare patients and that scares us big time.
We have to imbed some wiggle room for these unknowns. I allocate $1000 a month for supplemental healthcare insurance alone.

To move into TV only to learn that we have to leave due to increasing costs is a failure of foresight I prided myself in anticipating.
To live below your financial situation is easy; it’s an art form to look good on a budget.
Living frugal is a challenge I actually enjoy. The Internet is a necessity as it provides items to assist in this endeavor to be frugal; online bill paying saves a fortune in stamps. I plan to pdf tax preparation to my good tax guy, etc. to say nothing of coupons and much other Internet entertainment...so that is a must. I’ve calculated for that.

Thanks again for the information...it’s better than Prozac.

[sschuler1]

The only things that we have noticed to be more expensive here than in Michigan is the water bill and the cable bill. Had Comcast in Michigan also, but they had competition up there and were much cheaper. They kind of stick it to us down here! And the water bill is easily triple what we paid in Michigan! We had an acre and a half of land there, and a postage stamp here....know we aren't watering more here!

[brostholder]

I sure hope so because that is what I am budgeting.

[LisaJ]

Me too! That is why I asked if anyone knew what the average villager's budget is. Does anyone know the answer?

[Ohiogirl]

as individuals vary so widely. I'm sure someone's already said to check the Nuts n Bolts forum for zcaveman's great info.

But, SSchuler, I also find groceries to be quite a bit more expensive than in Columbus, OH, and I do shop when in TV mostly by checking the Wednesday flyers. But, admittedly, when only there for short times, I usually don't take the time to do the smarter shopping I do when in Ohio.

Ivanhoe, what coupon sites do you like on the Internet? I used one recommended on a frugal website one time and immediately saw a huge increase in spam email.

I currently have Illinois BC/BS via Cobra when my office closed, and checked that there are providers in/near TV, as I expect to have it thru June of 2011, but will need to shop around after that in Florida. Am concerned about developing any pre-existing conditions, and the new health law won't help until 2014, if I am interpreting it correctly. Just trying hard to stay healthy and maybe lose a few pounds (why is that so hard)??? right now, but it's a worry.

Met someone in the pool recently who thought they were set - he and his wife both had serious pre-existing conditions, but had retirement healthcare thru his former employer - got a letter after a year or two stating new policy had $100,000 cap! He ended up working full-time to get benefits, but luckily his condition was in remission - very sad what would have happened had he not been healthy enough to work.

[spk7951]

Me too! That is why I asked if anyone knew what the average villager's budget is. Does anyone know the answer?


Not sure how that question could get completely answered.
But I can give a rough idea of our necessary expenses for our house. We have a Lantana and in 2009 it cost about $9,500 for utilities, amenities and house cleaning. When you add in insurance for house, car and golf cart along with taxes and bond then that is about another $7,000.

[ivanhoe]

Ivanhoe, what coupon sites do you like on the Internet? I used one recommended on a frugal website one time and immediately saw a huge increase in spam email.



Met someone in the pool recently who thought they were set - he and his wife both had serious pre-existing conditions, but had retirement healthcare thru his former employer - got a letter after a year or two stating new policy had $100,000 cap! He ended up working full-time to get benefits, but luckily his condition was in remission - very sad what would have happened had he not been healthy enough to work.


Actually I was thinking of the emails that we get from our grocery store that offer discount coupons; also Radio Shack and the local pharmacy...not a site dedicated to coupons. I think my wife tried that and ran into the same problem with spam.

Speaking of that unfortunate couple...my father retired with LIFETIME health care then received a letter when he reached 80. They had defined LIFETIME as twenty years! So who can figure whats in store over the next few years. I can't calculate for everything but I do appreciate all the input.

[ivanhoe]

We have a Lantana

spk7951: What style is the Lantana...I can't find it on the Web site.

[spk7951]

spk7951: What style is the Lantana...I can't find it on the Web site.

Lantana is largest home in the Designer series, about 2,030 sq ft. I did find one that is avail in Buttonwood, http://www.thevillages.com/homes/new/homefeatures/qsearch.aspx

[2BNTV]

If 60k allows a couple to live the life of kings, does that mean a single person would only need 30K? Medical cost are covered with the Medicare Complete
program thru AARP which administers the plan for Social Security. My understanding is this plan is available in Florida or so I'm told by AARP.

I assume that were talking about net income. I haven't looked at the cost lately but I believe in a couple of post that a villa would cost about 9,300 per
year to be run, assuming no mortgage.

That should leave another 20K to party. I haven't crunched the numbers for a while. Am I missing something?

[l2ridehd]

I don't think you can take the 60K for a couple and divide by 2 to get what a single person would need. Most basic costs are the same for single or couple. It costs about $1000 a month to support an average home weather one or two people live there. That is for all utilities, amenity fee, lawn service, and a few other requirements. Maybe one person uses a little less water and electric, but not much. Most other expenses like health care, eating out, cloths, golf, entertainment, food, might be divided by 2. Mortgage, bond and taxes are the same for a house regardless of the number of people living there. Smaller home, smaller amounts, larger home, larger amounts for those items.

You really need to look at fixed expenses and variable expenses to determine how to build your budget. As I have posted before, a couple can live on 30K with no mortgage, a smaller home, being very frugal and meet all basic needs. But my guess would be that a single person would need almost that same amount and have the same frugal lifestyle. To be more comfortable, 50K would be better. If you have a mortgage, probably 60K to 75K is needed. And with 100K you can live very nice.

If you take the 1K a month for basic home support, add any mortgage you have, bond and taxes, that gives you a total to open the door and say I am home. (fixed costs) Add to that your desired lifestyle cost. (variable costs) How much do you travel, eat out, health care, other entertainment, car, golf cart, food, clothing, movies, etc. etc., you should be close to your actual required budget.

[TrudyM]

I have crunched these numbers so much I have 12 tabs on the spreadsheet. I have taken the current cost of our fixed home expenses, mtg, taxes , utilities,etc. and deducted them from our current annual net income, figured the balance was a guessmimate of our variable expenses.

Then I added back in the cost estimated by you guys for fixed in TV., the cost of airfare back every summer, golf cart and golf cart insurance, medical insurance, and a two month sublet somewere cooler than FLA for July and Aug. It all looked ok. Then I added an inflation escilator to the expenses and also to the no fixed portion of our income based on the history of the last 30 years. Ouch the whole thing goes tilt.

We finally decided that we can't predict the future or live in fear the way our depression era parents did. We will live modestly but comfortable the way we want and if we are running out of money 20 years from now we will take the last of the money book a cruise and jump off the back of the boat.

[aljetmet]

as individuals vary so widely. I'm sure someone's already said to check the Nuts n Bolts forum for zcaveman's great info.

But, SSchuler, I also find groceries to be quite a bit more expensive than in Columbus, OH, and I do shop when in TV mostly by checking the Wednesday flyers. But, admittedly, when only there for short times, I usually don't take the time to do the smarter shopping I do when in Ohio.

Ivanhoe, what coupon sites do you like on the Internet? I used one recommended on a frugal website one time and immediately saw a huge increase in spam email.

I currently have Illinois BC/BS via Cobra when my office closed, and checked that there are providers in/near TV, as I expect to have it thru June of 2011, but will need to shop around after that in Florida. Am concerned about developing any pre-existing conditions, and the new health law won't help until 2014, if I am interpreting it correctly. Just trying hard to stay healthy and maybe lose a few pounds (why is that so hard)??? right now, but it's a worry.

Met someone in the pool recently who thought they were set - he and his wife both had serious pre-existing conditions, but had retirement healthcare thru his former employer - got a letter after a year or two stating new policy had $100,000 cap! He ended up working full-time to get benefits, but luckily his condition was in remission - very sad what would have happened had he not been healthy enough to work.

Regarding health car. I don't know the laws of OH or FL. Each state has their own laws, but in NY and TN ( where we live now) If you had group insurance through an empolyer and now need private insurance, as you do, pre-existing conditions does not matter! The insurance carrier must take you with no changes to the policy. Check your state medicare office, they should give you the skinny... Any peeps younger than 65 with pre existing out there in TV? I have a few more years to go but if I get canned, I'll be calling FL , get my insurance then buy in TV!

[Ohiogirl]

Regarding health car. I don't know the laws of OH or FL. Each state has their own laws, but in NY and TN ( where we live now) If you had group insurance through an empolyer and now need private insurance, as you do, pre-existing conditions does not matter! The insurance carrier must take you with no changes to the policy. Check your state medicare office, they should give you the skinny... Any peeps younger than 65 with pre existing out there in TV? I have a few more years to go but if I get canned, I'll be calling FL , get my insurance then buy in TV!

I won't be on medicare for five plus years, but I believe that pre-existing conditions do matter. In 2014, they just won't be able to charge you more than twice or three times (I can't remember which - I think it's 3 times) their lowest premium for the same coverage, if I am remembering correctly. They can't deny you when you've had continuous coverage but they sure can charge you more. That was the issue for the couple I talked to at the pool. Couldn't afford the horrendous premiums for their pre-existing conditions.

[SoHumble]

According to city-data the median household income for the Villages in 2009 was about $61k. So it it appears about half the households live on that amount or less and the rest on that amount or more.

http://www.city-data.com/city/The-Villages-Florida.html

[Ohiogirl]

According to city-data the median household income for the Villages in 2009 was about $61k. So it it appears about half the households live on that amount or less and the rest on that amount or more.

http://www.city-data.com/city/The-Villages-Florida.html

This has been covered before somewhere but I can rarely find this stuff when I do a search - however, these median income reports are skewed because a significant percentage (don't think anyone even knows for sure - but maybe 5-20%)? who buy are still working, are either snowflakes or landlords for awhile. And is this number a pre-retirement income figure or post?

Plus, where do they get these numbers? From the mortgage lender? If so, then that's skewed because there's another large percentage who pays cash. As far as I know, if you're paying cash, no one is asking you what your income is.

I'd say don't pay so much attention to statistics and just do the math for yourselves. If you're really uncertain about being able to retire, live where you are while either working or retired and start keeping track of your expenses and get a good handle on future expenses, with an inflation figure in mind. Read all you can about retirement (see Boomer's posts, lots of good stuff there, and good books recommended). THEN make the decision.

[ladylake1]

I agree with you ohiogirl. Stay with the reality of required expenses (with a cushion for increases), the lifestyle you want (eating out, bar drinks, purchasing golf cart, etc.) and then let your fingers do the walking on a calculator. $1000 per month is a good starting point for general expenses without mortgage but you have to decide your comfort level for finances. Health insurance may be the bugger here though. I worked here for several years and can stay on health insurance thru my former employer at my own cost for life. It isn't the best coverage and not being on Medicare yet I still have the 20% and other copays to contend with. Check that out thoroughly despite your current good health.

[rjm1cc]

Thanks for the suggestions.

My concern is with draw-down of assets. All things being equal without big curve-balls (health care? taxes? illness?) we can achieve the 60k, however 50k would be more comfortable given that I have some longevity.

My father who just passed away this December was 101 years old and rather spry.
He was still swimming and walking around etc just before the stroke that brought him down. He only had to keep that up a few more years and he would have been broke.

We do not have health issues. My wife and I take better care of ourselves then our parents did i.e. no smoking, exercise, less stressful live choices, so I expect we will be in good health and active for a solid 20-25 years. (Or maybe I just put the whammy on it right there!)
Personally, a good book and a dip in the pool are all I need.

We’ll be fine on the executive courses and do not expect to dine out more than once or twice a week. Believe it or not I plan on taking up cooking (hear that laughing sound...my wife).

It’s my belief that people of our generation must be a bit more exposed in the financial market however what I’m learning here is that we can perhaps reduce that exposure and still expect a good lifestyle.
I’d like to finance just to establish a credit line with a bank and perhaps an equity line of credit on the unit we purchase (if that’s the case with these homes). That was going to be my next question but I should be doing my own homework over at Nuts $ Bolts, so I appreciate your patients.


Drawn down rate. The short answer is 3.8% of your portfolio.

Look at this by the 10th.

http://www.retirementoptimizer.com/

On the left side of the screen click on the Free Download under Books. Next screen is a free 500 page book that will help you a lot. You might guess that in 500 pages the answer is not as simple as 3.8% but this is what I would use as my starting estimate.

Be careful with your health care estimate. I think a lot of us do not realize the true cost that our employers have been picking up for us. The Medicare site has a program that will help you estimate insurance costs.

[Ohiogirl]

I agree with you ohiogirl. Stay with the reality of required expenses (with a cushion for increases), the lifestyle you want (eating out, bar drinks, purchasing golf cart, etc.) and then let your fingers do the walking on a calculator. $1000 per month is a good starting point for general expenses without mortgage but you have to decide your comfort level for finances. Health insurance may be the bugger here though. I worked here for several years and can stay on health insurance thru my former employer at my own cost for life. It isn't the best coverage and not being on Medicare yet I still have the 20% and other copays to contend with. Check that out thoroughly despite your current good health.

I'm not on Medicare yet either, but I believe they still have deductibles and co-pays, and it doesn't cover everything, or else buying a medicare managed care policy or a supplemental policy - those of you who know for sure might want to chim in here.

Anyway, my point is, don't assume you only have to cover health care costs until age 65 - there are some significant costs then too.

[starflyte1]

I think that the one expense that is a big surprise is the cost of medical ins. and meds.

$663.00 per month for insurance premiums. Medicare deducts $96.50 per person each month. Our supplemental insurance is $398 for both of us per month. Our Part D is $35.80 per person per month. And, copay on the prescription drugs add up and then the donut hole. My husband is older (87), but hopefully we all will reach that age, so our insurance costs and meds will all increase.

In 2008 and 2009 we legally claimed a deduction of $11,000 on our federal taxes for medical expenses, all for insurance and prescription copays.

I am not complaining, because it is great to have such wonderful coverage. But, the costs can dent a well planned budget, and could be a real surprise for some.

[rjm1cc]

According to city-data the median household income for the Villages in 2009 was about $61k. So it it appears about half the households live on that amount or less and the rest on that amount or more.

http://www.city-data.com/city/The-Villages-Florida.html

Remember that if you are taking assets our of your investments they are probably not included in the average. Probably the same for tax free interest, maybe non taxable social security etc.