View Full Version : could you retire on this?
A friend who is 49 wants to retire now. He gets a military pension of $1250/month (his ex spouse gets the other half for life), has low cost medical coverage via military Tricare, has $300k in bank, is single, debt free, no kids, and rents. By my minimalist standards I can't see why he couldn't retire asap. Maybe move to a less expensive area and buy an inexpensive house for under $150k or just continue renting but in a less expensive area, and just live off his pension and suppiment it as needed from his savings. He doesn't think it's doable at all. What do you guys think? Would you be able to retire if you were him?
I think any plan that requires a change in lifestyle to work isn't a plan. The plan would be to change the lifestyle first (while still working) and then do the calculation as to whether this new, well-demonstrated lifestyle affinity yields a trigger to retire.
He *could* retire on that, I see plenty of people around where I live doing much the same.
But he'd have to be motivated and inspired to do so to make it work out.
"The lightbulb has to want to change."
By my standards, I think it might be workable, but pretty close to the edge. His pension and medical are similar to mine, but my house was paid off at early retirement. I don't quite live the minimalist life that you do Spartana, but my lifestyle is fairly basic. I need to pull from savings a few times a year to cover expenses. I meet basic day to day costs, but need extra for car and home insurance, property tax, new car fund, and other larger ticket items that come up during the year. At 49 with $300k in savings and housing expenses I can see a high risk of not having enough to get to social security age before running out. I could see doing it with parttime or seasonal work.
ApatheticNoMore
7-15-13, 1:45pm
I'd probably go with the compromise solution of working part-time at something not necessarily high paid. I think he maybe could do it because he has a monthly check coming in. I find that situation impossible to even relate to really - having a regular monthly check to rely on that doesn't come from working - but I think that is the WHOLE of what may make his situation possibly doable (money in the bank is a joke and doesn't make anything doable unless it's millions), that and the low cost medical - that's huge - without the low cost medical I'd say no way, but with it yea his situation may be doable, but I'm not sure I wouldn't go with a compromise solution. What I'd worry about if I were him: INFLATION.
Gardenarian
7-15-13, 2:06pm
49 is a great age to follow some of those dreams you may have neglected. It seems to me that people who retire young, STAY young - a lot longer than those who keep on working.
If he owned his own home, I'd say go for it. But that it a pretty teeny income to squeak by on, and 300k is probably not generating enough income to make a significant impact. If he has to dip into his capital whenever the car breaks down, it's going to disappear really fast. I'd feel more comfortable working part-time or knowing that I had some skills that could provide ready cash if need be.
I was just reading about a woman who built a (somewhat) tiny home behind her kid's house (http://www.houzz.com/ideabooks/14060095/list?utm_source=Houzz&utm_campaign=u311&utm_medium=email&utm_content=gallery1). Now something like that, where you don't have to worry about rent going up and you have family near at hand, that sounds doable.
BTW, I have a larger pension, more capital, and own my own house - and still am dithering about retirement. For me, the health care costs are a huge issue, but I am also concerned about inflation.
He should budget on living for another 50 years and assume that the pension/retirement income will increase much more slowly than the cost of living over that time.
A friend who is 49 wants to retire now. He gets a military pension of $1250/month (his ex spouse gets the other half for life), has low cost medical coverage via military Tricare, has $300k in bank, is single, debt free, no kids, and rents. By my minimalist standards I can't see why he couldn't retire asap. Maybe move to a less expensive area and buy an inexpensive house for under $150k or just continue renting but in a less expensive area, and just live off his pension and suppiment it as needed from his savings. He doesn't think it's doable at all. What do you guys think? Would you be able to retire if you were him?
It depends on what matters to him. It's certainly plenty if what he wants is to live indoors and eat food. Some people have been forcibly retired by the current economy and would be thrilled to have anything like the assets and income and healthcare this guy has.
ApatheticNoMore
7-15-13, 3:26pm
He should budget on living for another 50 years and assume that the pension/retirement income will increase much more slowly than the cost of living over that time.
Nah, if he really wants to retire and finds it feasible it should. If he wants to retire enough, the thought of another 50 years working some job he hates is like, gah why even survive that long anyway in that condition, for what? The 50 years more of life comes to seem less like a blessing (to live that long) and more like a curse - to have to live that long. It's survival but it's not necessarily living. I personally might reduce risks by working part-time though if I was him.
It depends on what matters to him. It's certainly plenty if what he wants is to live indoors and eat food. Some people have been forcibly retired by the current economy and would be thrilled to have anything like the assets and income and healthcare this guy has.
Yes, that thought occured to me. That most people are going to retire in reality, in this real world, ON FAR FAR LESS. However, they might be closer to SS age and so on, and that is something to think about.
I don't know if the military pension is taxable income. If one uses the 4% rule of withdrawal from the 300K, then he'll be grossing about $27,000 a year. If the pension is taxable, he's looking at losing a quarter or so to taxes. So he'll be netting about $1700 a month. The number gets better if the pension is not taxable. Is it doable? It's up to him. ANM is right in that many people end up retiring without 300K in the bank. And if your friend is not picky about where he lives and is in good physical/mental health, $1700 a month should be a good start. It might even be enough to finish.
I would tell him to start living on the income he will have and see if he can do it. I tell people thinking of buying a house the same thing. If you cannot afford the pretend budget, how will you ever be able to do it for real?
Mominlaw lives on that amount of income. She is retired on Medicare and it is pretty limiting. She also is over 80 so her money does not need to last as long. She has a nice apartment with a bus service and can go downtown on the city bus (she has no car).
What about a middle ground of working part time?
try2bfrugal
7-15-13, 7:30pm
Personally, I wouldn't quit work and then worry about money or living too close to the edge. If it were me I'd work part time or go back to school to learn a job skill for something I found interesting.
Plus there are many odds and end money making ideas at places like slickdeals and the fatwallet forum that could bring in an extra $1K a month or so if a person could just do that full time and didn't have a regular job (credit card sign up bonuses, credit card rewards, reselling free after rebate items, etc.)
Houses can be kind of money pits beyond the initial cost. Renting may come out cheaper of if he really wants low expenses, or maybe a tiny house like this would be inexpensive -
http://faircompanies.com/videos/view/shotgun-shack-redux-mortgage-free-in-320-square-feet/
I don't know if the military pension is taxable income. If one uses the 4% rule of withdrawal from the 300K, then he'll be grossing about $27,000 a year. If the pension is taxable, he's looking at losing a quarter or so to taxes. So he'll be netting about $1700 a month. The number gets better if the pension is not taxable. Is it doable? It's up to him. ANM is right in that many people end up retiring without 300K in the bank. And if your friend is not picky about where he lives and is in good physical/mental health, $1700 a month should be a good start. It might even be enough to finish.
A 4% withdrawal is the old textbook rate. Current thinking I'm seeing over on the early retirement.org forum is somewhere around 3 percent or less as a pretty safe rate. And that's if you take a little risk with some equities in you portfolio. I've found that forum some what useful for several years, though there are what seems like a lot of high rollers with big bucks there.
At any rate, I can definitely see getting by on that amount. It would just take some resourcefulness. I think I would want to define what living standards would be affordable and acceptable and realize that they might be long term. I get a huge amount of comfort knowing my housing is paid in full and home expenses are affordable in most any financial outcome or turn of health into old age. Others don't need that level of security in their lives.
That little house is droolworthy. Mid-century modern!
Blackdog Lin
7-15-13, 9:26pm
Umm, I pretty much DID retire on what he's considering, only less, and with differences.
It is so doable, if you're into a Simple-Living lifestyle.
ToomuchStuff
7-16-13, 12:34am
Depends on HIS definition of retirement; his goals and dreams. Can't tell if he wants to live a simple life, or travel all over the USA.
Umm, I pretty much DID retire on what he's considering, only less, and with differences.It is so doable, if you're into a Simple-Living lifestyle.
Past performance is not an indicator of future results. Unfortunately, affording retirement is getting more and more difficult every decade.
It depends on what matters to him. It's certainly plenty if what he wants is to live indoors and eat food. Some people have been forcibly retired by the current economy and would be thrilled to have anything like the assets and income and healthcare this guy has.
Precisely my take as well.
rodeosweetheart
7-16-13, 8:42am
I think if he can think creatively, like the shotgun house people, he can do it! But it so depends on his comfort with risk and his ability to think outside the box. The reason I think he can do it is because he has the Tricare. Otherwise, I would not do it myself.
What do you guys think? Would you be able to retire if you were him?
I'm almost 47.To answer your question,yes,I would be able to comfortably retire on that.I'm in midwest where cost of living is some of the cheapest in the country.I'm sure that would help.
I would eventually pick up a money making hobby because I think I'd become bored after a while and that could help cover some travel expenses.
A 4% withdrawal is the old textbook rate. Current thinking I'm seeing over on the early retirement.org forum is somewhere around 3 percent or less as a pretty safe rate. And that's if you take a little risk with some equities in you portfolio.
Yeah, there have been several discussions on bogleheads about how 2.5% is the new 4% -- or how it isn't. I see valid arguments both ways. What I don't see, in the current environment, is how one manages to stay ahead of inflation without equities. But that's another discussion. :)
At any rate, I can definitely see getting by on that amount.
Same here. I just don't see it as a paltry amount if one is not dead set on a high standard of living in an expensive area.
flowerseverywhere
7-16-13, 12:46pm
Just a thought. will the Tricare premiums rise? As local, state and federal budgets face more pressure I personally would plan for the worse and hope for the best. I strongly support the posters that suggest living on a monthly budget that he will have in retirement. Not everyone wants to do live on that unless they are forced to.
Gardenarian
7-16-13, 1:01pm
Maybe he should try living for a year or two strictly on that income, and put the rest away in savings. Then he'd have a a bigger piggy bank and a better idea of what his life would be like.
rodeosweetheart
7-16-13, 1:29pm
Maybe he should try living for a year or two strictly on that income, and put the rest away in savings. Then he'd have a a bigger piggy bank and a better idea of what his life would be like.
That;s a really good idea, because he is not burning any bridges that way, and he can save the difference.
I don't know if the military pension is taxable income. If one uses the 4% rule of withdrawal from the 300K, then he'll be grossing about $27,000 a year .Yes the military pension is taxable but at only $1250/month I think it will only be a tiny amount after both Fed and Calif standard deductions (maybe a few hundred/year). My taxable income is similiar (a bit less) and I am often in the zero % or 10% brackett after standard deductions. I think his goal is to live off just his pension (and live simply as possible) and I don't think he wants to touch any of that $300K except for emergencies and want to just invest it or let it sit and grow for the most part. so wouldn't need to plan on using the 4% rule - or anything like that - for awhile. Not having kids or really much family he doesn't mind "dying broke" and spending down his savings though. I also think his Tricare medical coverage is free and so there would be no premium increase or additiona costs (I'm not sure how Tricare for military retirees works exactly though so may be wrong) but, as some pointed out, there will be other inflationary increases in other areas besides medical, so his annual pension increases (3% currently) may not keep up with inflation.
I should add that he is currently unemployed after getting laid off and has been thinking of trying to retire rather than going back to work. He recently went thru a divorce and his ex bought him out of their house (which was paid for) so now he rents a one bedroom apt and lives off his share of his pension (ex spouse gets the other $1250/month) and what he gets in unemployment while he job hunts. I've suggested that he look into just renting a shared place for half his current rent, or moving somewhere he likes better (maybe Oregon) that has a lower cost of living and buying a place. He has a pretty low cost life in terms of his day to day interests and activities (no costly hobbies or interests) so really can probably get by with little money and enjoy his life to the fullest.
I think if one really wants to retire, then one can probably fit one's lifestyle into one's income (as long as both income and lifestyle are reasonable). For myself, I just turned 69 years old and I am semi-retired; and hoping to be fully retired by end of this year. I get approx $1,900 monthly social security and I am on Medicare. I have about $200k in retirement savings and I will tap into my annuity for a lifetime monthly amount to add to my social security. My mortgage is is $630 monthly. Mortgage, taxes, insurance, and association dues total less than $1,200 a month. I have no other debt. My lifestyle is fairly simple - grandchildren close by, beach an hour away, my dad 10 minutes from me, friends close by, etc. If I want to take a trip, I'll tap into retirement. Life is good.
I think any plan that requires a change in lifestyle to work isn't a plan. The plan would be to change the lifestyle first (while still working) and then do the calculation as to whether this new, well-demonstrated lifestyle affinity yields a trigger to retire.
I completely agree with this.
If he would have to move/etc, then his best bet would be to move while still working, settle in, mind his budget closely, and see how it goes -- while still accruing wealth. And then from there, he could choose to retire.
If such a move requires a new job, I would recommend working that job for 5 years in order to vest, and during that time, put as much into investments/401k as possible. Once vested -- and if he can swing it -- then he could definitely retire. Though, it's also fine not to vest if he wants to retire before the 5 yr mark.
That's what I would do, anyway. :)
BUU, that's what I'm doing, late in the game. But it's the only convincing way for me to proceed.
rodeosweetheart
7-17-13, 12:10pm
BUU, I don't quite understand what you are saying. Don't most plans for early retirement require a big change in lifestyle if you have not already saved a ton of money?
We are still working but are moving in direction of sustainable decisions post retirement, i.e., trying to set up a way of living now that will not need to change in retirement, but we have to spend less to do this.
BUU, I don't quite understand what you are saying. Don't most plans for early retirement require a big change in lifestyle if you have not already saved a ton of money?The distinction is that you should change your lifestyle first, prove to yourself that you can maintain that lower standard-of-living with contentment, then you factor the new (lower) expense budget into your calculations determining whether you have enough saved in order to retire. Many people say, "Oh I can live without XXX once I'm retired," but then cannot manage it and end up overspending their SWR right from the start.
For example: My spouse has an XXX that my spouse claims to be able to live without after retirement. The cost of XXX is $3125 per year. My spouse will retire first, so if my spouse cannot do without XXX, it will mean I will literally have to work an extra 12-15 months to generate enough extra savings to generate a $3125 revenue stream throughout our retirement. If I made my spouse do as I am preaching, above, then I could perhaps make my spouse work the extra 12-15 months before my spouse retires, to fund that necessary revenue stream for XXX.
:)
I think any plan that requires a change in lifestyle to work isn't a plan. The plan would be to change the lifestyle first (while still working) and then do the calculation as to whether this new, well-demonstrated lifestyle affinity yields a trigger to retire.
Good point. I think he is actually wanting to make a big change in his lifestyle and that is part of what is propelling him in the ER direction. He recently went thru some pretty big life changes already - divorce, moving out of his house, lay off - and seems to really like the simple laid back life of being a minimalist, non working, apt dweller - at least for now :-)! I think that all those big changes have made him realize that, for him, life isn't all about working and making money but more about doing the things that give him joy now. Don't know if this "wanna retire now" additude is merely a temporary reaction to his recent circumstances or a genuine long term change he wants to embrace. He is a simple liver type who just wants to live small and spend his days mountain biking and "playing" (sort of a male version of me :-)!). But I am blinded by my own simple living ways and think everyone would be happy living like I do with minimal money and stuff. So getting different perspectives here is really helpful.
money in the bank is a joke and doesn't make anything doable unless it's millions
??? I think having some money, even if it's not millions, in the bank makes retirering early much more doable - especially with a pension and affordable health insurance coverage. Even if he didn't count on any interest and just reduced the principle by $10K/year that money would last 30 years (until he was close to 80). Or if he bought a $100K place with cash somewhere rather than rent, he's still have $200K left over to suppliment his pension. Again, even without interest that $200K could last hom quite a while. Now if he were a big spender or had big "wants" you're right - that $300K wouldn't be much and he'd need a lot more. Millions :-)!!
Spartana,
If I were in his shoes, and I wanted to live in my current location still, I'd:
- Put $60,000 of my $300k to buying a nice inland lot here with good soil and water, and put up a yurt, the climate is temperate enough to live year-round comfortably in such a situation, I have friends living this way who've been at it for decades. If I wasn't *sure* I wanted to go this way, I'd rent such a yurt for a year from someone to try it out.
- Put $10,000 into essential tools for growing/preparing food, and for working part-time jobs.
.
- Get gigs doing seasonal work to supplement my income.
- Kick back and live the good life.
try2bfrugal
7-17-13, 2:31pm
I have wondered about which kind of lifestyle is really the lowest cost. I usually spend about $15 - $20 a week on produce at the local ethnic markets for about 4 - 5 bags of assorted produce. I can see where growing your own food is a great hobby, but is it really a long term money saver? Especially if you need to invest in land and tools.
Other than that I think it would be kind of cool to live in a yurt or tiny house in a temperate climate where the outdoors can be your extra rooms.
We just saw a House Hunter show where a woman had a spectacular house built, right on the beach, in Costa Rica for 300K. I was wondering if a tiny house or two would be enough there like in the Arkansas video I posted earlier. Then the cost would be closer to 30K for two tiny houses instead of 300K and you'd still be retired and living on the beach in Costa Rica.
I have wondered about which kind of lifestyle is really the lowest cost. I usually spend about $15 - $20 a week on produce at the local ethnic markets for about 4 - 5 bags of assorted produce. I can see where growing your own food is a great hobby, but is it really a long term money saver? Especially if you need to invest in land and tools.
In a sense, there is no labor component to growing your own food (assuming you can DIY it all and/or barter the big jobs), so it can be much cheaper to grow your own. But it's work. And it's not always pleasant work. There's a reason planters and combines and harvesters were invented and Americans have been moving off of farms for decades. And there's not always a harvest, either, so counting on a crop or animals is -- well, even career farmers have to deal with that. And that's if you happen to enjoy growing things.
I long ago decided that growing food, like fishing or hunting, was best considered a hobby because I could not put enough time and energy into them to make them pay off for me. Plus I had other talents and things I liked to do. Given the economy of scale of food production today, you'd really have to love gardening/farming to make growing your own a truly economical alternative.
Spartana,
If I were in his shoes, and I wanted to live in my current location still, I'd:
- Put $60,000 of my $300k to buying a nice inland lot here with good soil and water, and put up a yurt, the climate is temperate enough to live year-round comfortably in such a situation, I have friends living this way who've been at it for decades. If I wasn't *sure* I wanted to go this way, I'd rent such a yurt for a year from someone to try it out.
- Put $10,000 into essential tools for growing/preparing food, and for working part-time jobs.
.
- Get gigs doing seasonal work to supplement my income.
- Kick back and live the good life.
Well I DID say he's the male version of me (i.e. LAZY!!) so be off grid and farming/growing isn't his thing. Not unless it's next too subway sandwichs co. :-)!
Well I DID say he's the male version of me (i.e. LAZY!!) so be off grid and farming/growing isn't his thing. Not unless it's next too subway sandwichs co. :-)!
Well, if you pick the correct location, it is pretty low effort, a few hours a day.
And you don't have to be off-grid - I know folks living in yurts who have power, and plumbing.
I love yurts. We talk about living in one a lot, but it's good for me to recognize that it's just not my lifestyle. DH and I do well in condos in city neighborhoods where we can walk to amenities. It means higher cost of living, of course.
But, you know, I think if you pick a good location and buy within your means, you'll do well. :)
Well, if you pick the correct location, it is pretty low effort, a few hours a day.
And you don't have to be off-grid - I know folks living in yurts who have power, and plumbing.A few hours a day?? Oh no - that's too much work :-)!
While he's a roughing it kind of guy, it's more sleeping in the back of his truck in the desert so he can go climbing or mountain biking the early next day kind of thing (kind of reminds me of that guy from the movie "24 Hours") not a do it yourself sustainable kind of guy.
But actually maybe a full time RV or camper van thing for a year or two would be something doable for him. That's what I'd do myself if I were in his shoes. Get rid of the apt, take $25K out of savings and leave the rest alone for the future, buy a small camper van or RV, and then just travel to all those places I'd like to go climb or bike or hike, etc... and stay as long as I want and try to live off my pension alone. Maybe go grundgy backpacking around the world doing the same things for another year or two. Then, once I was ready to settle down, look for an inexpensive condo or tiny house somewhere I loved (which wouldn't be in SoCal where he currently lives) and pay cash for it, and then maybe go back to work either full or part time if needed. I am more of the opposite school of thought than other's here in that I would say to try early retirement first and if it doesn't work out (for whatever reason) then you can go back to work. Make it a temporary sabbatical from work for a few years and try it out. Even if it's financially doable it still may not be something a lot of people enjoy. This is what I did when I quit work - it was just suppose to be a temporary thing for a few years to do some things while I was younger, but turned into full time retirement once I realized I needed much less money than I thought I did for a happy, fulfilling life.
One area that he feels he'll have financial difficulty - according to him - is dating. He feels that most women still expect to be wined and dined (although I told him that isn't always the case) and that can be expensive. or he may want to get married again and that person might have/want a higher standard of living - or maybe have kids. But those are roads you cross when you come to them as he is just as likely to meet, and fall in love, with someone who shares his frugal values and lifestyle as he is to meet, and fall in love, with someone who wants to be taken care of in a style that he would have to go back to work to accomadate.
. Given the economy of scale of food production today, you'd really have to love gardening/farming to make growing your own a truly economical alternative.
This is my feeling as well. I would much rather go back to a 40 hour work week for "The Man" then grow my own food and be semi- or fully - self sustainable. I don't like that kind of "work" and would choose a 9 to 5 gig instead. but I think it's great when people who do enjoy that life can make it happen instead of joining the rat race. And I'll buy their home grown food at the local farmers market too :-)!
I have wondered about which kind of lifestyle is really the lowest cost. I usually spend about $15 - $20 a week on produce at the local ethnic markets for about 4 - 5 bags of assorted produce. I can see where growing your own food is a great hobby, but is it really a long term money saver? Especially if you need to invest in land and tools.
Other than that I think it would be kind of cool to live in a yurt or tiny house in a temperate climate where the outdoors can be your extra rooms.
We just saw a House Hunter show where a woman had a spectacular house built, right on the beach, in Costa Rica for 300K. I was wondering if a tiny house or two would be enough there like in the Arkansas video I posted earlier. Then the cost would be closer to 30K for two tiny houses instead of 300K and you'd still be retired and living on the beach in Costa Rica.
I've also wondered if that kind of life (the self-sustainable life) is actually less expensive than a more traditional life of a small house on city utilities and regular grocery shopping. I agree with you that it does seem more expensive - or at least the same. Even after you pay out the money for the land and equiptment (and of course your hourly "wage" to do all the work to set up a sustainable place), you have to figure in costs to run it (again, in terms of your hourly "wage" for the time you put in) and all the other expenses you may have - like needing a vehicle and fuel to get to town - which could be very far away - water costs if you are in a drought area like the south west, equiptment repair, taxes on the land and buildings, insurances, etc... Living in a small house in the 'burbs doesn't seem like it would be that much more. Plus the social isolation - especially if you are a single, childless, fairly social person - can be pretty hard. So I think, like Steve pointed out, unless that's the kind of life you really want, it's probably not worth doing just to save some money and live frugally. Not for me for sure (or my friend) - I'd/we'd be joining you on the beach in Costa Rica instead :-)!
I have wondered about which kind of lifestyle is really the lowest cost. I usually spend about $15 - $20 a week on produce at the local ethnic markets for about 4 - 5 bags of assorted produce. I can see where growing your own food is a great hobby, but is it really a long term money saver? Especially if you need to invest in land and tools.
I garden for pleasure as well as for food & flowers. It's one of my most dependable forms of both exercise & relaxation. I love sitting out on the patio amidst that wild jungle that is our garden mid-summer. I love gazing out at it from our kitchen/dining table. I made awesome sorrel pesto last night, when I was stumped for dinner options. The sorrel inspired me, and it was FABulous! Our yard is a small, urban back yard, and we've maximized it over the 12 years we've been here. Just as with all aspects of my life, raising food serves many purposes.
try2bfrugal
7-18-13, 1:11pm
Not for me for sure (or my friend) - I'd/we'd be joining you on the beach in Costa Rica instead :-)!
Spartana, we have our differences on other topics but you are welcome to join us on the beach if we ever really end up there. Your lifestyle and posts and how you live valuing free time over money have given us a lot of food for thought.
Spartana, we have our differences on other topics but you are welcome to join us on the beach if we ever really end up there. Your lifestyle and posts and how you live valuing free time over money have given us a lot of food for thought.
Ha Ha! Start making the margaritas :-)! I have thought of doing the ex-pat thing in retirement and it's still a thought. But not sure where I'd go.
One area that he feels he'll have financial difficulty - according to him - is dating. He feels that most women still expect to be wined and dined (although I told him that isn't always the case) and that can be expensive.
Around my neck of the woods, there seems to be a significant gender imbalance amongst those who deliberately live simply/below their means - far more women than men participate in that lifestyle. As a result, on the subject of dating, an accurately-descriptive phrase is popular: "the odds are good, but the goods are odd..."
:-)
Around my neck of the woods, there seems to be a significant gender imbalance amongst those who deliberately live simply/below their means - far more women than men participate in that lifestyle. As a result, on the subject of dating, an accurately-descriptive phrase is popular: "the odds are good, but the goods are odd..."
:-)
That's what we'd say about the men in Alaska. They even have tee shirts with that saying - and it's true of course :-) .
I think he is wrong as there are lots of women that would really embrace an active simple life - I'm one of them . We met at a meet up group for climbers and there are lots of women in that, and similair meet up groups. I think he could easily find someone who shared his interests and lifestyle just by participating in the activities he likes. Not all women want to be wined and dined and gifted with jewels and spa vacations. Some just want a cute guy that likes to ride bikes all day and picnic. :-)
He feels that most women still expect to be wined and dined (although I told him that isn't always the case) and that can be expensive. or he may want to get married again and that person might have/want a higher standard of living - or maybe have kids. But those are roads you cross when you come to them as he is just as likely to meet, and fall in love, with someone who shares his frugal values and lifestyle as he is to meet, and fall in love, with someone who wants to be taken care of in a style that he would have to go back to work to accomadate.
It's possible to wine and dine without spending a fortune. A nice picnic in a park, an interesting and cheap ethnic restaurant, free concerts/movies/museum tours, antiquing, ... One of the best dates I ever had in my life was an afternoon spent in the city, finding statues set up like the Chicago cow statues. It just cost me some fuel and dinner at an inexpensive place we both wanted to try. IMHO inventive beats $$ every time. I'm really not into people who have to flash their cash and their (imagined) status.
And, honestly, by the time I was serious enough to know I wanted to marry someone, I'd have a pretty good idea if our lifestyles would be compatible. There should be lots of opportunities before a proposal for your friend and his date to demonstrate how they like to live.
It's possible to wine and dine without spending a fortune. A nice picnic in a park, an interesting and cheap ethnic restaurant, free concerts/movies/museum tours, antiquing, ... One of the best dates I ever had in my life was an afternoon spent in the city, finding statues set up like the Chicago cow statues. It just cost me some fuel and dinner at an inexpensive place we both wanted to try. IMHO inventive beats $$ every time. I'm really not into people who have to flash their cash and their (imagined) status.
And, honestly, by the time I was serious enough to know I wanted to marry someone, I'd have a pretty good idea if our lifestyles would be compatible. There should be lots of opportunities before a proposal for your friend and his date to demonstrate how they like to live.
Yes I agree - I keep telling him that but I think he is somewhat jaded by some of the SoCal women he has dated since his divorce. A bit more upscale or upscale-wanna-be than he is. I think if he moved to a more relaxed down to earth place (and he does want to move out of SoCal anyways) then he would probably find many women are just as down to earth as he is.
Gee, Spartana. He's a simple kinda guy. You're a simple kinda gal. Both of you want to move out of southern California. Hmm... :idea:
Gee, Spartana. He's a simple kinda guy. You're a simple kinda gal. Both of you want to move out of southern California. Hmm... :idea: What - and give up my lifelong search for a filthy rich sugar daddy who will finance me so that I can live in a style that i will demand to become accustom too :devil:!
Well he is a nice guy and we are compatable in many way - more so than the current guy I'm dating who isn't similair to me in terms of my simple life at all - but were just friends. I might set him up with my sister though :-)!
Yes the military pension is taxable but at only $1250/month I think it will only be a tiny amount after both Fed and Calif standard deductions (maybe a few hundred/year). My taxable income is similiar (a bit less) and I am often in the zero % or 10% brackett after standard deductions. I think his goal is to live off just his pension (and live simply as possible) and I don't think he wants to touch any of that $300K except for emergencies and want to just invest it or let it sit and grow for the most part. so wouldn't need to plan on using the 4% rule - or anything like that - for awhile. Not having kids or really much family he doesn't mind "dying broke" and spending down his savings though. I also think his Tricare medical coverage is free and so there would be no premium increase or additiona costs (I'm not sure how Tricare for military retirees works exactly though so may be wrong) but, as some pointed out, there will be other inflationary increases in other areas besides medical, so his annual pension increases (3% currently) may not keep up with inflation.
I should add that he is currently unemployed after getting laid off and has been thinking of trying to retire rather than going back to work. He recently went thru a divorce and his ex bought him out of their house (which was paid for) so now he rents a one bedroom apt and lives off his share of his pension (ex spouse gets the other $1250/month) and what he gets in unemployment while he job hunts. I've suggested that he look into just renting a shared place for half his current rent, or moving somewhere he likes better (maybe Oregon) that has a lower cost of living and buying a place. He has a pretty low cost life in terms of his day to day interests and activities (no costly hobbies or interests) so really can probably get by with little money and enjoy his life to the fullest.
I am about to retire from the federal civil service after 32 years of federal service, 8 years of it active duty military service.
In preparation for the transition, I bought a 1995 Dodge diesel pickup truck with a tow package two years ago for $6,000 and started looking around for a "toy hauler" RV trailer. I found and bought a 2005 toy hauler back in May for $9,500 and I have been learning to use it and live in it efficiently.
On Saturday, 03 AUG 2013, I will be taking a state of California "Guard Card" class. I have an application in with Dial Security to do some guard work in the oil fields of Ventura County whilst I wait for my pension to fully kick in. After that, I'll decide if I want to keep working there or go do something else.
Dial Security and the oil company already let one guard park her pickup truck with an RV camper on site. She works 8 hours per day, 5 days a week for $15 per hour. Her pedestrian commute to work is all of a minute or so.
The site she guards is right outside the Los Padres National Forest, so there is some nice hiking on her days off. The nearest town, Fillmore, is eight miles away.
Something similar may be an option for the individual mentioned by the original poster, Spartana...
Best,
Rodger
Polliwog, I appreciate the specifics you give. Your situation is better than mine, but our ages are similar and I can get a sense of perspective for myself by your perspective.
I am about to retire from the federal civil service after 32 years of federal service, 8 years of it active duty military service.
In preparation for the transition, I bought a 1995 Dodge diesel pickup truck with a tow package two years ago for $6,000 and started looking around for a "toy hauler" RV trailer. I found and bought a 2005 toy hauler back in May for $9,500 and I have been learning to use it and live in it efficiently.
On Saturday, 03 AUG 2013, I will be taking a state of California "Guard Card" class. I have an application in with Dial Security to do some guard work in the oil fields of Ventura County whilst I wait for my pension to fully kick in. After that, I'll decide if I want to keep working there or go do something else.
Dial Security and the oil company already let one guard park her pickup truck with an RV camper on site. She works 8 hours per day, 5 days a week for $15 per hour. Her pedestrian commute to work is all of a minute or so.
The site she guards is right outside the Los Padres National Forest, so there is some nice hiking on her days off. The nearest town, Fillmore, is eight miles away.
Something similar may be an option for the individual mentioned by the original poster, Spartana...
Best,
RodgerThat sounds like you have a great situation Rodger! I think the RV life - either full time or part time - combined with some kind of part time or seasonal work near where you park your RV is a great way to retire. I'll definetely pass on your suggestion to him. I already suggested he do a seasonal job somewhere very cool and sent him this site www.coolworks.com for some job imspiration. I personally would rather work a seasonal job for a few months than a year round part time job but, assuming he moves to a part of the country he likes better than SoCal that is cheaper, he might not want to work at all if possible.
Good luck on your up coming retirement too!! I was also able to combine my military time with my government pension to add extra years (although I had to pay for that to get the "service credit"). Definetly worth it in the long run though.
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