A budget to "Do it all?"

[Bster13]

Hello.  I am nearing retirement and trying to forecast my nomadic and sedentary budgets.  I aim to use a Prius V for my vehicle and stealth camp most of the time, and my sedentary budget is focused around costs near Albany, NY.  

https://docs.google.com/spreadsheet...wv_aYMk2KFonJTOjj56_zr-_4/edit#gid=1213790492

My goals with the budget:

- Over estimate costs.  When I retire, I don't ~ever~ want to work again, so if I need to work a year or two more to support it, so be it.
- Make sure I have enough funds to live a sedentary life if the need ever arose.
- Account for ~all~ costs I can think of. I've read a bunch of budgets for folks out there this is my best guess.

 One area I'm especially having trouble in, is the entertainment area.  When I retire to the road full time, though I know the # of miles covered in a year will slow over time, I still want to experience a lot.  Expensive dinners or possessions mean little to me, but if there is a fee to a museum, or a day of whitewater rafting, or a movie I want to see, by golly, I don't want my budget to hamper me.  Hiking, sitting on a public beach, and surfing free wifi at Starbucks with a cup of coffee is great, but I personally feel like I would be missing out a bit (though it beats working ).  So that's my mindset. Please have a look at the budgets and point out any holes or problems you might see given your real experience out there.  Many thanks!

 

[IGBT]

Why a $600 a month platinum health plan instead of a subsidized silver plan with cost sharing?

Figure you can keep your taxable income down around $15K or so?  Then you can save $400 a month on health insurance and have the same level of coverage.

 

[Every Road Leads Home]

I live in a sticks and bricks in one of the more expensive parts of the country for less than the cheaper budget and I do lots of road trips, going out to eat, etc so I think that budget would work and leave more than enough cushion for a nomadic lifestyle. I'd not want to rely on "Soylent" (Never heard of it, had to google it) as my main source of food though and i'd put the $216 dollars allotted for it towards real food.

 

[Bster13]

Why a $600 a month platinum health plan instead of a subsidized silver plan with cost sharing?

Figure you can keep your taxable income down around $15K or so?  Then you can save $400 a month on health insurance and have the same level of coverage`.

I'll need a knee replacement eventually (otherwise in good health), but I definitely could do with a lower level health care plan, but I was just planning for worst case.

As for subsidies, though I'm new to the ACA, it looks like even at my Nomadic budget, I would received little to no subsidies:
http://rootofgood.com/affordable-care-act-subsidy/

 

[Bster13]

I live in a sticks and bricks in one of the more expensive parts of the country for less than the cheaper budget and I do lots of road trips, going out to eat, etc so I think that budget would work and leave more than enough cushion for a nomadic lifestyle.  I'd not want to rely on "Soylent" (Never heard of it, had to google it) as my main source of food though and i'd put the $216 dollars allotted for it towards real food.

Thanks for your experience.  Is your dwelling paid for?  Obviously if I went into retirement with no mortgage on a house/apartment, I would pay less than the rent I've allocated in my sedentary budget, but I ~never~ want to own a home (or repair it, or take care of it!) again.  Haha.

As for Soylent, I've taken care of 85% of my food needs with Soylent for the past two years and then I eat out maybe once or twice a week for dinner.  So far so good with how I feel, and how my bloodwork looks, but of course if I went off Soylent that $ would be pushed into the real food budget.  I really like Soylent for a few reasons:

- Cost per meal
- Ease of cooking (there is none!)
- Ease of cleanup (just rinse out the shaker bottle)
- No refrigeration needed in the Prius
- No additional power needs to store food

 

[Bster13]

Why a $600 a month platinum health plan instead of a subsidized silver plan with cost sharing?

Figure you can keep your taxable income down around $15K or so?  Then you can save $400 a month on health insurance and have the same level of coverage.

I forgot, I also need to build a "Roth IRA Conversion Ladder" when I retire and my income tax rate is low.  So that is treated as "income" each year and I pay taxes on it.  That "income" from the conversion ladder plus living expenses (where I have enough $ for lots of fun!) will put me over $15k.

http://rootofgood.com/roth-ira-conversion-ladder-early-retirement/

It's a balance between converting $ with the conversion ladder and keeping healthcare subsidies. *sigh*

 

[gcal]

I live in a sticks and bricks in one of the more expensive parts of the country for less than the cheaper budget and I do lots of road trips, going out to eat, etc so I think that budget would work and leave more than enough cushion for a nomadic lifestyle.  I'd not want to rely on "Soylent" (Never heard of it, had to google it) as my main source of food though and i'd put the $216 dollars allotted for it towards real food.

Oh, dear. I had to Google "Soylent." The first thing that came to mind was ... uh ... something else.

 

[IGBT]

I forgot, I also need to build a "Roth IRA Conversion Ladder" when I retire and my income tax rate is low.  So that is treated as "income" each year and I pay taxes on it.  That "income" from the conversion ladder plus living expenses (where I have enough $ for lots of fun!) will put me over $15k.

http://rootofgood.com/roth-ira-conversion-ladder-early-retirement/

It's a balance between converting $ with the conversion ladder and keeping healthcare subsidies. *sigh*

You keep linking rootofgood, who I know is on the MMM forum (a good place also for budget advice).  I post there under Roland of Gilead occasionally.

Where is the bulk of your income coming from?   It takes several years to get a Roth pipeline flowing if that is what you mean by conversion ladder (converting an IRA or 401K to Roth then withdrawing the conversion after 5 years).

For me the subsidies are a no brainer.   The money you save now on subsidies is money that is allowed to grow in investments.  I have engineered our income to be right at maximum subsidy and cost sharing.  About $12000 a year in saving, which if invested at 8% return for 20 years will give you $570,000.   That is a lot of money you are passing up.

If all of your money is in pre-tax IRA or 401K and you can't figure out a way to reduce MAGI, then I guess it is what it is.

 

[VanKitten]

Hello.  I am nearing retirement and trying to forecast my nomadic and sedentary budgets.  I aim to use a Prius V for my vehicle and stealth camp most of the time, and my sedentary budget is focused around costs near Albany, NY.  

https://docs.google.com/spreadsheet...wv_aYMk2KFonJTOjj56_zr-_4/edit#gid=1213790492

My goals with the budget:

- Over estimate costs.  When I retire, I don't ~ever~ want to work again, so if I need to work a year or two more to support it, so be it.
- Make sure I have enough funds to live a sedentary life if the need ever arose.
- Account for ~all~ costs I can think of. I've read a bunch of budgets for folks out there this is my best guess.

 One area I'm especially having trouble in, is the entertainment area.  When I retire to the road full time, though I know the # of miles covered in a year will slow over time, I still want to experience a lot.  Expensive dinners or possessions mean little to me, but if there is a fee to a museum, or a day of whitewater rafting, or a movie I want to see, by golly, I don't want my budget to hamper me.  Hiking, sitting on a public beach, and surfing free wifi at Starbucks with a cup of coffee is great, but I personally feel like I would be missing out a bit (though it beats working ).  So that's my mindset. Please have a look at the budgets and point out any holes or problems you might see given your real experience out there.  Many thanks!

That FL registration is a lot more than that. I believe it is running about $80 per year...and the cost of insurance can be really high depending on the county you pick for domicile. Cheapest seems to be Pensacola. Remember you have a $225 first time registration fee too.

Then, what about Internet? Lots of good entertainment there (like this forum).

As for health insurance, I think you may be a bit high...but if you are on the road...you really cannot take advantage of a PPO or HMO.

 

[Bster13]

That FL registration is a lot more than that.   I believe it is running about $80 per year...and the cost of insurance can be really high depending on the county you pick for domicile.    Cheapest seems to be Pensacola.    Remember you have a $225 first time registration fee too.

Then, what about Internet?   Lots of good entertainment there (like this forum).    

As for health insurance,  I think you may be a bit high...but if you are on the road...you really cannot take advantage of a PPO or HMO.

Hello,

I budgeted the FL yearly registration from this page (the Prius is a porker!  haha). I know there is the initial fee and there will be lots of one-time costs when I retire, but I was trying to come up with a regular budget.

I  estimated my ins. with this website using a FLA mail forwarding zip code and a Prius V:
https://www.nerdwallet.com/insurance/auto-policies/rates

As for INET, it would be walmarts, Home depots, Libraries, etc. for free Wifi, then the Verizon plan I selected has 18GB of data per month....I know...I know...it may be tough, I ~do~ like my interwebs.

I picked the highest healthcare plan on the exchange on purpose to make sure I am accounting for worst case scenario (within reason).  But yeah... the fact that I'd need to travel back to my domicile state for healthcare is the pits.  I don't know any other way around it, other than bank on the good MPG of the Prius and drive cost country if need be, or perhaps go to Mexico.

 

[GotSmart]

To me a good investment is the $2 rider on my insurance that covers roadside assistance.  

When traveling, the last thing I desire to do is spend many hours on the web.  Too much fresh air to breath, and too many things to see. 

 

[BC Guy]

I am wondering about the interest rates mentioned. Locally, straight savings pays less than 1%. Yes, term deposits are higher, but you can get a mortgage for 2.9%.

 

[Every Road Leads Home]

Thanks for your experience.  Is your dwelling paid for?  Obviously if I went into retirement with no mortgage on a house/apartment, I would pay less than the rent I've allocated in my sedentary budget, but I ~never~ want to own a home (or repair it, or take care of it!) again.  Haha.

As for Soylent, I've taken care of 85% of my food needs with Soylent for the past two years and then I eat out maybe once or twice a week for dinner.  So far so good with how I feel, and how my bloodwork looks, but of course if I went off Soylent that $ would be pushed into the real food budget.  I really like Soylent for a few reasons:

- Cost per meal
- Ease of cooking (there is none!)
- Ease of cleanup (just rinse out the shaker bottle)
- No refrigeration needed in the Prius
- No additional power needs to store food

My house is paid for but my real estate taxes are almost $700 a month

 

[rvpopeye]

It's very hard to tell you what you'll need for budget.
It will be different for everyone.
Some will "need" several thousand a month and some will manage on very little.

 

[Every Road Leads Home]

I am wondering about the interest rates mentioned.  Locally, straight savings pays less than 1%.  Yes, term deposits are higher, but you can get a mortgage for 2.9%.

     You have to invest in mutual funds and stocks to get higher returns.  I've averaged 8% over the last 5 years. All things considered i'm very diversified in mostly conservative funds.  I'll sometimes do risky investments that show promising signs.  Facebook worked out quite well for me, if not for that, I would probably have averaged 4-5% the last 5 years.  Term deposits make little sense right now as the interest is extremely low and it locks up money for too long in my opinion.

 

[DannyB1954]

I have a platinum health plan that comes out of my pocket, ($815 a month). I am rethinking this for next year. The problem being once you give an insurance company money, it is hell trying to get them to spend it on you. If I go with a disaster plan, it may only cost half that. So $400 a month times 12 is $4,800. If I want to see a specialist I don't have to kiss anybodies behind, just pay the bill out of the 5 grand that I did not give the insurance. If I don't need extra medical attention, that $5k stays with me.