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xmas shopping

November 7th, 2006 at 09:47 pm

went shopping with mom today and got several xmas gifts.

Started at Bed, Bath N Beyong. Got an oven liner for mom and a miniature frying pan just big enough for one or two eggs for me. Had a $5 off of $15 coupons. Total spent $22.53

Went to Hobby Lobby and got a decorative chest for mom. 50% off. Spent $53.00

Lunch at Sonic. Mom bought

Linen's and Things - got a ratchet screwdriver for dad and a foot massager thing for me. 2 20% off coupons. Total spent $17.16

Target was the last stop. Got a Tamagotchi virtual pet game and lanyard for youngest niece. On sale, total $19.19

Someone asked how much I plan to have when I retire. I've been tracking my spending for many years now. Without my mortgage, which I plan to have paid off by the time I retire, I expect to need about $1700 a month. That includs an anticipated $350/month for health care, $150/month for a car replacement fund, and $50/month for maintenance/repair of car/household items.

I figure to be safe and account for unforseen items, I need $2000/month or $24,000 a year. Then I need to pay taxes on top of that, I expect taxes to run around 10% since some of the money will be from investments, where the taxes have already been paid. So my rule of thumb is I will need $27,500 a year for the first few years of retirement.

I figure I can safely take out 4.5 - 5% a year from my investments meaning I need at least $600,000 in investments.

My goal is to have my house paid off and between $650,000 and $700,000 in investments in order to retire.

I expect to have a min $90,000 in cash/bonds at the start of my retirement and the rest in stocks. That's riskier than most investment counselor's advice, but it's a number I'm comfortable with. The stocks are diversified and invested in the following formula:

Health fund 5%
REIT fund 5%
US small caps fund 25%
Foreign fund 15%
Emerging Markets fund 10%
US Lg Cap - Value fund 20%
US Lg Cap - Growth fund 20%

Finished reading my book Valley of Silence by Nora Roberts. Romance. Very good.

3 Responses to “xmas shopping”

  1. Ima saver Says:

    Can I ask, how close are you to your goal?

  2. Sunshine Suz Says:

    It was me who asked about your retirement goals. Thank you very much for sharing.

    I, too, am working on paying off my house....one of the biggies but the taxes and insurance on it will still be around $5,000 a year.

    Funny...I shopped at B,B&B this weekend with coupons for Christmas presents too.

    Thanks again.

  3. retire@50 Says:

    I am 50 months away from my goal. 4 years, 2 months

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