We live in a CCRC, which provides shelter, food, and medical care. The CCRC is our biggest expense.
This points out the major issue with most polls in TMF. I dare say more than 75% of people here would consider food, shelter and medical as separate items. Maybe CNC could breakout those three from his total CCRC - but if so, it most likely would be an average for the community – he likely does not know the exact costs of his medical care for example.
Another poll recently that seem silly was what part of the country to retire in – people are different. We moved from Atlanta to Gainesville, GA. We grumble about the lack of good restaurants - we don’t eat out 20 times a year. Last Friday we drove 45 miles north and had a fabulous meal in the small town of Clayton, GA.
Some people care a lot about fishing or hunting or classical music and some even dislike neighbors. Instead of making snide remarks about somebody’s likes/- be thankful there are not 10 million retirees who want exactly what you have and move there.
Another poll recently that seem silly was what part of the country to retire in – people are different. We moved from Atlanta to Gainesville, GA. We grumble about the lack of good restaurants - we don’t eat out 20 times a year. Last Friday we drove 45 miles north and had a fabulous meal in the small town of Clayton, GA.
I retired 16 miles from where I was hatched! Sonoma County, CA, wine country, was at times, milk, eggs, rabbits, chickens, prunes, berries, apple, cherry, hops, and even string bean country… Today the vineyards have made the rolling hills green at times when in the old days, they be just golden dry grass… Population has climbed, we’re too close to the SF Bay Area for it to not climb… But we moved eventually off the the farm to the fringe of town that was all of 13K, now over 60K… Home used to be an onion field, hay before that… Changes, sure, but my job took me all over Northern California as well as the valley, Sierras, as well asa bit overseas and Hawaii… But this is home, always will be, maybe 25 miles to the Coast, a few hours to the Sierras, perfect base to wander from and return to… Hopefully will stay in our home to the end game, whenever that comes along…
Lately, the last couple years, the biggest expense has been remodeling, upgrading, fixing problem areas as they come along…
We are starting some home renovations which will redo 3 bathrooms and the kitchen to make
the house more accessible for DW. If she needs to use a wheel chair following back surgery next year
she will be able to stay in the house.
The back surgery may become a greater expense next year. But you have interactions between food -
medical care - and housing. DW was told she needed to lose weight before back surgery - and
she needed help for that and joined a weight-lose program which cost a pretty penny. But she has
lost 55lbs over 8 months and is doing wonderfully. She also needs to improve her bone density which
is also diet and medicine related.
Howie52
Life tends to be more complex than polls can possibly allow.
She also needs to improve her bone density which is also diet and medicine related.
Howie, forgive the assumption that you may need this information, but it is amazing to me how few doctors understand the roll of Vitamin K2 in getting calcium to the bones. Make sure to discuss it with your doctors and look into it yourself if it’s not part of her supplements. K2 is critical in getting calcium out of the soft tissues and into the bone. Over the counter lost cost product. Anyone who consumes calcium or takes supplements should be taking it. You want that calcium getting to the bones, not causing calcification of the arteries.
Inadequate calcium intake can lead to decreased bone mineral density, which can increase the risk of bone fractures. Supplemental calcium promotes bone mineral density and strength and can prevent osteoporosis. Recent scientific evidence, however, suggests that elevated consumption of calcium supplements may raise the risk for heart disease and can be connected with accelerated deposit of calcium in blood-vessel walls and soft tissues. In contrast, vitamin K2 is associated with the inhibition of arterial calcification and arterial stiffening. An adequate intake of vitamin K2 has been shown to lower the risk of vascular damage because it activates matrix GLA protein (MGP), which inhibits the deposits of calcium on the walls.
I answered other. Taxes by a long shot are my biggest expense.
I also had to select other. Taxes have been my biggest expense since retiring in 2013. The other expense categories aren’t even remotely close to taxes (Federal, state, and foreign income taxes; local property taxes; and sales/use taxes).
What is the range one can expect to cost for medical and dental (and vision) insurance during retirement?
Currently, with a good contribution from my employer, I am still paying 7 or 8K per year for those for a small family, not counting the out of pockets.
Without my employer, I may pay double or more of that.
What is the range one can expect to cost for medical and dental (and vision) insurance during retirement?
I’m sure a high deductible ACA plan is not the best for everyone, but worth considering, particularly if you can keep your adjusted gross income (Technically, your Modified Adjusted Gross Income, or MAGI) low enough to qualify for a subsidy and you don’t expect high out of pocket medical expenses.
Last year, our insurance premiums were negligible, with a subsidized Bronze ACA plan for my wife and I. No Dental and no Vision coverage. We spent around $6k out of pocket, including a Crown, an eye procedure, a few prescriptions, blood work, routine eye and dental and a couple of family practice appointments. One of the more expensive things was a Restasis prescription.
I answered other. Taxes by a long shot are my biggest expense.
My first thought was you must be freaking rich. But our combined Federal plus (CA) State income tax for 2021 is around $10K. I suppose if we add sales tax, gas tax, etc, yes, taxes were our biggest single expense.
Oh course, by now our retirement home has that honor.
I answered other. Taxes by a long shot are my biggest expense.
My first thought was you must be freaking rich. But our combined Federal plus (CA) State income tax for 2021 is around $10K. I suppose if we add sales tax, gas tax, etc, yes, taxes were our biggest single expense. - CNC
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I am not filthy rich but am very comfortable. I live in Texas so high property taxes are a given, mine are about $8K per year, toss in sales tax for another couple thousand a year and around $10K goes to state and local.
The big hitter is federal. I have a good baseline income with SS, Pension, interest income, and a few other things, but whatever that total is, I do a Roth conversion to bring me up to the near top of the 24% bracket. For 2021 and single, that bracket max is $164,925 with an associated tax of $33,603. So that is $43K per year to fed, state and local. I live a pretty simple and low cost lifestyle so that $43K for taxes is more spending than everything else combined.
Y’all who answered taxes are lucky, and/or very well capitalized / successful - I hope you realize that.
I answered Housing, because even with a locked in low interest rate I’m at 24K/year between mortgage & interest, property tax, insurance and HA fee.
We can’t sell because…we can’t. Everything around here is (still) beyond ridiculous price. Nor do we really want to, because for $2,000 a month, try to find a beautiful house with no-build conservation land (woods) behind it. Ha. $2000 a month gets you a studio in Portsmouth or a 2 bedroom in the boondocks 20 miles west of it.
Don’t want to pay off a 3.5% 30 year, certainly not now.
I have observed the most common definition of rich is more than I earn. Why do people with higher incomes avoid saying they are rich?
After looking up the percentile income numbers I decided rich is something in the range of $100,000 from my view point.
Personally, I don’t consider income to be the determination of whether someone is “rich”. Rich to me is measured by accumulated assets/wealth. If you have enough assets to support $100k+ in annual spending indefinitely, yeah you’re rich.
Why do people with higher incomes avoid saying they are rich?
It’s a mind set. Having spent most of our life earning and saving money, often by our frugality, we don’t believe we are rich, even though comparatively we may be so relative to others.
Taxes are our highest cost as well, mostly because we really don’t spend much. That may change some day, when travel becomes easier for us. If you had asked me that question a couple of years ago, it would have been college costs, but Youngest happily has graduated and now costs us almost nothing.
Our vehicles are 18 years old and 9 years old. We don’t let money burn a hole in our pockets and are easily content.
1poorlady was born in the Philippines. The first time I went there I realized there are very few poor people in the USA. By Philippine standards. I’ve also seen that in other places (e.g. Mexico).
By American standards, I’m not particularly rich. I shouldn’t have to worry about having food and shelter ever again, and I can afford medical insurance (thanks to the ACA). If that’s “rich”, then I am. Would I be able to support a boat, RV, a new car every few years, and other “toys” that I see in peoples’ driveways? Probably not. But that’s not important to me anyway.
I hope my biggest expense in retirement is taxes. Taxes are just a portion of income, so that would imply I had a lot of income. I could live with that. House is nearly paid off (about 1 more year), and then it’s just food, utilities, taxes, doctors, and “play” (e.g. travel).