You should be sure where the figures come from. One day you may have to manage the plan. You might be surprised. My father has been dead for 22 years. My mother has not worked a day and has more money than she did the day he died. They were a middle class couple with six kids.
Maybe you could spend your golden years camping? Workampering offers free camping plus pay. I've talked to a few of these people. They summer in the north and migrate with the birds.
The most important thing is to minimize expenses -- pay off your mortgage, credit cards, etc. Understand the cost of your lifestyle -- track expenses carefully. Calculate your income -- social security, pension, plus income from savings. Estimate your life expectancy. Adjust your lifestyle to address any gaps -- no need to wait for retirement to do this. Address the gap by doing something you really like to do so it does not seem like work -- maybe work at a local retailer with employee discounts on stuff you use.
Tracking expenses is a lot easier if you pay for everything with a credit card. As a bonus, you can get a cash back card which will provide fraud, price, and extended warranty protection. As you track expenses, some opportunities will be obvious. We fired the cable company ten years ago. There are lots of discounted cell phone plans. Once you stop commuting, cars last forever. Registration and insurance costs drop every year.
Thank you Len for the well thought out and solid advice. Fortunately the cost of living in my area is pretty reasonable and I grew up with rather thrifty parents and they passed that on to me. We are working on our mortgage and car loan. Almost all of our purchases are made on a credit card which offers 2% or more on all purchases and try to not carry a balance from month to month. We track our purchases fairly religiously and have definitely cut back on expenses over the years (cut cable and switched to an inexpensive streaming service, canceled most subscription services and reduced cell phone plans etc) and stick to a budget.
I think the part that I feel uncertain about is projecting income from savings and the impact that retiring early can have on social security etc. I also just don’t fully understand how to calculate the amount needed to retire. As much as I love my husband and know that he is intelligent, I have told him I would feel better if we consulted a financial advisor/retirement advisor/expert who can walk me through everything so that I can work up figures as things change going forward. I like to understand how my decisions now could impact the numbers going forward. Plus a second opinion on where we stand financially from an unbiased/uninvolved third party can’t hurt. We plan to set up a meeting with someone by February at the latest.
I will definitely check out the workamping website, I didn’t know anything like that existed! I keep learning something new about this RV/camping lifestyle every day.
Edited by budgetsRsexy, Sep 22, 2019 - 7:15 pm.