Follow up to WHY DO WE INVEST with some retirement #'s

[Rich Weese]

I posted a thread a few days ago called why do we invest? There were a lot of good replies on that thread with many bigger pockets members listing their goal of 5000, 10,000, 12,000, or $20,000, per month for retirement purposes. I've always felt these annual magazine articles stating you need X amount in assets and x amount in monthly income a joke. They always seem extremely high to me. I realize your location for retirement and also your housing can cause this to vary greatly. What I don't want to see is young investors on bigger pockets thinking they have this giant mountain to climb before retirement is possible. As many know, I retired at a very early age and have been able to travel extensively and spend lots of money. That was my choice and I had the ability to do it. Others will make that same choice. I just want you to know from a personal experience, there are other ways and goals to shoot for. These require much less in funds and can be very enjoyable.

I am currently retired and living a possible lifestyle for less than $3000 per month. This is by choice, not by necessity. I choose to be frugal and place most discretionary funds in a trust for grandkids.

In the previous thread, most of the responses were to create assets, and passive income to live the life we want with only working when and if we choose.

Here is a tried and proven lifestyle on less than $3000 per month. This is NOT for everyone, but the process will work. No need for 5000, 10,000, 12,000, or $20,000 cash per month and still have a great time. No daytime TV and no rocking chair!

I decided to spend six months a year in northern California near Eureka California.NOT FOR EVERYONE!!!

Retirement should be enjoyable and for that you must remain healthy. I'm a lousy eater – recovering food addict. My avatar on bigger pockets does not lie. At one time I weighed 362 pounds and now 148. I need to stay active to keep the weight off. Currently, I participate in softball, golf and pickle ball – at least two of the 3 sports 6 days a week. My weight stays under control. For me, this is most important.

Why Eureka California? I found a spectacular private golf course, Redwood Empire golf and country club and the best part is the cost! With less than 400 members you never really need a tee time and 80° or less 365 days a year. The costs will follow for unlimited golf.

I also play for an over 60-year-old softball team with games twice a week and also play on a weekend traveling softball team when asked, and travel to other parts of California and Southern Oregon. Pickle ball is 2 to 3 hours every day six days a week. Google it – it is the fastest growing sport in the United States and it is great for all ages and easier on knees and hips for old farts like me.

You didn't see any daytime TV or a rocking chair in my activities!

What does this retirement cost? Since I only spend six months here, (it could be full-time if I didn't want to be married any longer than 43 years) I wanted a place in a retired community for security while home is vacant and selected a mobile home park.(NOT FOR EVERYONE). I purchased a 1200 ft.² double wide for $19,000 and added $5000 in additions and repairs for a total investment of $24,000. My space rent is $419 per month and my monthly utilities including cable and Internet dish TV etc. is $400 a month average. It is less than 1 mile to golf course and I play every morning at 6:30 to start my day!

Here are my monthly prorated expenses for this lifestyle.

$419 space rent
$400 utilities
ZERO golf one time fee
$170 unlimited golf monthly dues for family (wife and I)Includes a Pool.
$55 golf cart unlimited usage
$15 unlimited driving range usage
$600 food – this is a guesstimate and may be considerably less.
$100 entertainment
$400 insurances and medicine (now on medicare with the extras included)
$30 property taxes (remember this is personal property so taxes are very low)
$12 mobile home annual registration
$9 pickle ball indoor club
$150 fuel (I just bought a 1990 Suzuki's Swift on craigslist for $2200 – 44 mpg)
$35 vehicle registrations in South Dakota(only counting two of five vehicles)

$2395 (this is based on two people, two vehicles etc.)
I know I've missed some items since I did this quickly. Feel free to point those out and I'll add them. There is still $605 remaining of the $3000. This is assuming no federal income taxes (on low income of 36,000 per year) and no state income taxes (domiciled in South Dakota).

This is not hell where I live. I should add this location is 20 miles from the redwoods area and national parks on the coast of CA (they are all over my golf course) 1/2 mile from the Eel River for fishing, and 7 miles from the Pacific Ocean. Again, NOT FOR EVERYONE. I know that many on bigger pockets would never consider a mobile home but I'm having a ball! I don't actually spend much time in my Taj Mahal but prefer to spend the time outdoors. It can be done.

If I didn't mind the Arizona summer heat, I could do the same thing there in a place located in Casa Grande Arizona for a bit less and have better access to airports for travel. I'm not as interested in travel anymore having been to 47 United States, 105 foreign countries, and fully enjoyed 42 cruises. People all have different travel interests. That would certainly cause a difference in monthly expenses in your retirement. I don't have a lot of time for it anymore either!

I wanted to follow-up the previous thread with these numbers because I don't want novice investors thinking the retirement mountain is impossible to climb. A higher retirement number is certainly a great goal and if reached, as some have mentioned, you may choose to not spend it all on your self and use a good portion for church, humanitarian purposes, donations, or a trust for your future generations, etc. I find this extremely rewarding.

Feel free to chime in on my numbers or your own or your aunt like Jeff S did about his 94-year-old aunt. There are many folks living like that here in the community I live in. More active than most neighborhoods I've seen.

In six years of full-time RVing, two years living with snowbirds in South Texas, two years living with snowbirds in Fort Myers Florida, and seven years of living in the winters with snowbirds in Casa Grande, Arizona, I can assure you that I have found hundreds if not thousands of couples that are extremely happy living on much less than $500,000 in assets and much less than $5000 per month of passive income. It completely depends on the type of retired lifestyle you look for and how much you plan to spend on your Taj Mahal. Rich