Retiring on a budget

[byke]

Retirement is a ways out, but it's fun to think about the specific methods and locations to retire on a budget. I know, the "budget" part will create some confusion and I can't really put an exact number to it, but let's say you can spend $100k-$500k in cash and maybe $1500/mo, plus or minus $500. My ideal version of retirement involves a minimum of three locations to hop around whenever we feel like it, but it'd be a bonus if any of them worked as a standalone all year long in case you wanted to stay.

I figure you could spend $10k for a decent sailboat and maybe $200-$300/mo for the slip, then just tool around and fish and bbq and that'd make for a pretty sweet setup. This could be a year-round setup depending on the location.

Also found a neat place north of Tahoe where you could buy a trailer and "lot" for ~$30k and annual dues are $1200/yr. You get about 5-1/2mo to stay here, then they're closed the rest of the year, but that's not too bad of a deal. I imagine there are tons of places like this across the country.

Alaska would make a good base for the finances as long as you can be there half the year. No state income tax, almost no sales tax and most rural areas don't have property tax, plus the Alaska Permanent Fund kicks back $1500/yr or whatever it is. Homes can be expensive, but land is cheap, so you'd probably have to do the rv or travel trailer setup.

So what's out there? Where are the cool little budget spots?

 

[Blankpage]

Medical costs will be a kick in the balls to any US retirement plans, especially unforeseen accidents or serious ailments.

 

[CABilly]

Not really sure about details but to me “home base” would have to be a state with super low property taxes and no income tax. Probably narrows the field quite a bit

 

[tuxumino]

I've been thinking about Eureka/Arcata, Klamath falls or Reno. I'm about three years out and own a home in the BA.
I'm thinking a town/city with at least a community college.

 

[Brokenlink]

I'd be interested in a few places in Mexico. Many people are heading to Merida.

 

[mercurial]

Being an ex-pat is fine for early retirement years. Once you start getting up there, the subpar medical facilities in many parts of the world may be a deal breaker. I have gotten sick several times in developing countries, and once at their clinics or hospitals, waiting for hours to get properly triaged, you get the impression pretty quickly that things that are survivable in the west, routinely kill people elsewhere.

 

[Johndicezx9]

Something funny... when you don’t have to work you save quite a few dollars not commuting, not having wear or buy work clothes, buying and eating food on the run, chipping in for office gifts, etc....

:laughing

 

[Butch]

My sis sold the house in Saratoga and moved to Yerington NV. They have a 5th wheel and, I dunno, a Thousand Trails membership.

They get around and have fun.

 

[rodr]

Being an ex-pat is fine for early retirement years. Once you start getting up there, the subpar medical facilities in many parts of the world may be a deal breaker. I have gotten sick several times in developing countries, and once at their clinics or hospitals, waiting for hours to get properly triaged, you get the impression pretty quickly that things that are survivable in the west, routinely kill people elsewhere.

In terms of life expectancy, the WHO says the US ranks #31, between Costa Rica and Cuba.

Probably 'cause of all the guns though.

 

[bojangle]

In terms of life expectancy, the WHO says the US ranks #31, between Costa Rica and Cuba.

Probably 'cause of all the guns though.

Firearm deaths account for about 1.3% of all deaths. If you're not in a gang or in the drug trade, and you don't commit suicide with a firearm, your personal risk goes down a lot from there.

https://gun-control.procon.org/the-real-top-20-causes-of-death/

 

[CDONA]

I looked into live aboard in bay area marinas back in the '80s

Very expensive with a long list to get in. Something about marina fires that drive the insurance way up.

There are deals to be had in the RV world, winter/summer leases, if you want to return to the same spot. I prefer to wander, looking for that spot/community for when the wheels fall off.

 

[ScarySpikes]

This will probably change in 30+ years or so when I retire and the world is a hellscape ravaged by climate change, but right now my goal is tooling around the Mediterranean in a sailboat.

 

[Eldritch]

Medical costs will be a kick in the balls to any US retirement plans, especially unforeseen accidents or serious ailments.

Right now, you will be paying around $350 a month for your Medical Insurance to have everything covered.

 

[lefty]

Right now, you will be paying around $350 a month for your Medical Insurance to have everything covered.

That's not bad. But, I'm nine years away from 65, so I hope that Medical Ins is still available for a reasonable price, at that time. I would retire earlier, but the fear of any 'medical emergencies' keeps me working to 65.

The Wife and I plan to go to a place that has two criteria; Cool Climate, and liberal.

 

[Blankpage]

Right now, you will be paying around $350 a month for your Medical Insurance to have everything covered.

I'd be surprised if the average retired American is paying no more than $350/month total for healthcare.
Having never paid for healthcare I still find $350/month to be way higher than I'd want to pay.

 

[bojangle]

That's not bad. But, I'm nine years away from 65, so I hope that Medical Ins is still available for a reasonable price, at that time. I would retire earlier, but the fear of any 'medical emergencies' keeps me working to 65.

The Wife and I plan to go to a place that has two criteria; Cool Climate, and liberal.

So, the south is off the list?

 

[lefty]

So, the south is off the list?

I'm a New Orleans native. My Wife and I visit every 12-24 months. On our last trip we looked at some BEAUTIFUL homes in Slidell. We asked the Realtor, who happened to be a Latina, "How liberal is the area- would we feel 'safe' here"? (I'm Black and my Wife is Latina)

The Realtor replied (in a very casual tone); "Oh, we have the Klan here, and they have their marches and parades, but everyone just laughs at them....."

My Wife said "Thank you, we're done".

But, I was just in North Carolina, on business, and I met nothing but wonderful people. I was sitting in a restaurant one night and the guy sitting at a nearby table, looked "Sketchy". In my mind- he was the type of person I wanted to avoid. Well, when I asked the Waitress for my bill she said that "that man paid your bill already".

I ran outside to thank him and I told him of my ignorant prejudices and how much I was blown away by his generosity.

(On another note- I ate at Bojangles 2 times!!!)

 

[Eldritch]

I'd be surprised if the average retired American is paying no more than $350/month total for healthcare.
Having never paid for healthcare I still find $350/month to be way higher than I'd want to pay.

It is expensive, but that is the typical cost for Medigap plans that cover the 20% Medicare does not. These plans (Gap Type F) provide phenomenal Medical coverage for the elderly, but at a cost. Scrips and whatnot will add to that cost, as will a decent LTC and STC policy, which should also be in your planning and your health when you enroll matters much more for those ones.

 

[HappyHighwayman]

I can probably retire with the house paid off by 55 especially if I sell it and move back to Canada or out of the Bay Area but who knows what the world will be like in 15 years.

 

[Johndicezx9]

I retired last year as my position was eliminated. In addition to my pension my health, dental, and vision are covered til I turn 65, but at the rate it was when I left. This year’s increase leaves me paying $34 per month....

As I said, I noticed a lot of things I don’t spend money on.

At some point I may get another job, either full or part time, but right now I’ve got too much to do... like barfing!