10 Expenses That GO UP in Retirement
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3 жыл бұрынThis video discusses 10 expenses that go up in retirement. Learning how to estimate expenses in retirement is an important skill. Many retiree's don't figure this out until they have learned this hard way. This video and it's companion video "7 Expenses that Go Down in Retirement" will help you understand the biggie's in retirement costs and potential savings.
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Disclaimer: this video is for educational and entertainment purposes only and is not meant to be a substitute for legal, accounting, tax, or professional advice. If you have any specific questions about any legal, accounting, tax or other professional service matter you should consult the appropriate professional services provider.
@florianmadison Жыл бұрын
*_I just turned 60, was planning to Retire Soon? BooM the Economy Crashes into Recession and High Inflation ! I guess I will keep working another yr or 2?.._*
@merrywhiterose 3 жыл бұрын
1. travel 2. utilities 3. fitness/exercise 4. debt 5. reading 6. HEALTH CARE 7. moving 8. day-to-day expenses 9. charitable donations 10. financial planning
@janicemurphy7878 3 жыл бұрын
Thanks Mary. Awm
@7SideWays 2 ай бұрын
Thank you for the sumary👍
@Samuel-ym7ls 3 жыл бұрын
1. Don't travel- optional 2. Go solar 3. Run/train at home 4. Pay cash for everything 5. Read free things 6. Health is wealth 7. Stay put 8. Live low cost 9. Be generous from investment gains/Give time 10. Create a will and trust to preserve wealth
@lisadiconti Жыл бұрын
Yep!
@djw8888 3 жыл бұрын
Save $$ - go to the library where you can borrow books, books on CD, DVDs (music and movies), and other entertainment for free.
@Columbus1152 3 жыл бұрын
And a million more free online resources. I especially enjoy many free renditions of classic rock songs done by young modern artists, there's still a lot of talent in the world and many honor the classics.
@tamaj152 3 жыл бұрын
I've been working with a financial planner for about 15 years, and I definitely give him kudos for showing me more ways to save for retirement, and for letting me know what to expect when I do retire, early next year. It was his idea to build an annual travel budget into my financial goals. Smart guy.
@HolySchmidt 3 жыл бұрын
Thanks for the comment
@jrhalabamacustoms5673 3 жыл бұрын
3 years to mortgage payoff, been traveling for 35 years of my career, looking forward to NOT traveling! SO has absolutely no desire to travel. Planning on spending my time gardening and donating time back to community. See how it all will work out.
@HolySchmidt 3 жыл бұрын
Sounds nice
@RoxanneJ 3 жыл бұрын
I agree with the travel! I’m good traveling 2x a year. I know people who have to travel 7x a year. Crazy.
@bassdojo3925 3 жыл бұрын
I'm the same! I've traveled nearly 12 yrs of my 30 yr career. Missed many b-days, holidays, and family gatherings. Looking forward to staying home, honing my hobbies (fishing and woodworking), gardening and being a grand parent.
@uncareid5557 3 жыл бұрын
@@bassdojo3925 Being a grandparent is one of the most fulfilling parts of my retirement. My in-laws moved away from all nine of their grand kids to move to golf heaven. They had no idea what they were missing out on. Their son is planning a 5 month cruise around the orient. I could not leave my children and grandchildren for that long.
@uncareid5557 3 жыл бұрын
@Donald Gaffney Officially 15 months. I went in a few days, uncompensated, to supervise a couple of jobs for the first few months of my layoff, but I have not pulled a paycheck since March 2020. My boss was grateful and sold me my work truck at a good price to say thanks. I'm very happy for now.
@rond.2408 3 жыл бұрын
“40% of the average retiree $ goes to debt service.” Holy cow! You MUST be debt free when you retire if you hope for peace of mind.
@HolySchmidt 3 жыл бұрын
That makes life a whole lot easier
@jimgardner1306 3 жыл бұрын
Couldn’t agree more. I retired early due to migraines and to help care for my parents. I moved from Taxinois to Indiana. I purchased a home using only the equity in my old home to lose the mortgage. Property taxes dropped by 85%, auto and home insurance dropped by 55%. Utilities dropped by 25%. Never had the travel bug. Migraines are under control with less stress. Life is good.
@blackworldtraveler3711 3 жыл бұрын
I retired a year ago. Don't think people realize how nice it is to retire debt free.
@James_48 3 жыл бұрын
I think some debt is okay if net worth is okay. I’m planning to retire with my wife at age 60, 6 years from now. We will likely carry some debt into retirement but we will have high five figure dividend income plus a pension and Canada pension plan. We will still have a mortgage and an investment line of credit but plenty or resources to manage it.
@vinnyg2619 3 жыл бұрын
Just my opinion but you need to know your expenses before retirement to know if you can retire comfortably, that's with or without debt. But you also have to remember that adding in taxes and health insurance that are coming out of your paycheck now have to be added to your living income in retirement. 40% is too much debt for anyone to have although when first starting out it may be that high. As we get older paying down or eliminating it is what we should do, As far as debt is concerned I look at it as manageable low percentage debt like mortgage or car loan vs credit card or high percentage debt with high percentage debt eliminated from the debt as soon as possible. If you have a 3% mortgage and can get a 5% return on your money then eliminating your mortgage will give you 2% less on your money (this is assuming you are investing your money). But if you are banking/saving your money then paying off debt is smart.
@bookmagicroe9553 3 жыл бұрын
Two more areas of expenses: helping very elderly parents in their 90s, and/or helping adult children who find themselves in a crisis.
@HolySchmidt 3 жыл бұрын
Well done
@kennielsen3896 3 жыл бұрын
Elderly parents are one thing. Thank god my parents had a lot of us. That wasn’t too much of a burden, but adult children are another story. If you rescue them, it will get worse. Ur job is done. It’s sink or swim.
@ddellwo 3 жыл бұрын
Having seven older siblings, and watching a few of them turn themselves into pretzels trying to “save” a ne’er-do-well kid, here’s a bit of advice - SAVE YOUR MONEY! Once your kids get past their early twenties, no amount of money you throw at them will make a difference. Tell them to “put their big boy/girl pants on” and become an adult, because you are done raising them!
@petersonkahlid7679 3 жыл бұрын
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@johntrojan9653 3 жыл бұрын
@@ddellwo I lived at home until the age of 28. I had to marry INORDER TO GET THE HELL OUT OF THE HOUSE, THEN MOVE 200 MILES AWAY JUST TO BREAK THE BONDS OF MY CLUTCHY MOTHER - Just saying.(""UGH !!!"" 😱)
@christinepetersen1307 3 жыл бұрын
Check with your health insurance. Ours supplies us with a free entrance to many fitness centers. Ours is called Silver Sneakers.
@bluecollarmark 3 жыл бұрын
Word to the wise: start a Hobby Farm. This will keep you busy, will enhance the quality of your food, at the same time save you money.
@cherylmcnutt9905 2 жыл бұрын
Not if you had to sell your house to afford retirement.
@barbaraebner5889 3 жыл бұрын
Love the library. Free!
@HolySchmidt 3 жыл бұрын
Excellent option.
@petersonkahlid7679 3 жыл бұрын
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@dnhman 3 жыл бұрын
My worries are on costs for home repairs, and car repairs, these costs are skyrocketing
@tammiepulley7167 3 жыл бұрын
I guess there is a possible reason for buying books but I can’t think of it. I have library cards at multiple libraries, even out of town for audio books. It’s legal and I’ve been using it during lock down. Yes, healthcare cost are out of reach for many of us as we age. That is the one that worries me. Good video.
@chelin7023 3 жыл бұрын
Health care is the biggest rip-off of our era, even worse, it is forced on us and it is totally legal! Like you, I have used the library all my life and find it to be a treasure! The Teaching Company and Escolar are incredible audio courses. ☺️ Good life to you Tammie.
@TT-fq7pl 3 жыл бұрын
Speaking as a professional author, I can think of one good reason you should buy books!
@andyrose8642 3 жыл бұрын
Another great video, thanks Jeff you included a few I had not considered.
@HolySchmidt 3 жыл бұрын
Thank you Andy!
@jamaalkrafth1712 3 жыл бұрын
Saving to invest has always been the plan I've already built a good retirement portfolio hoping to retire soon!!
@HolySchmidt 3 жыл бұрын
Nice work Jamaal!
@jamaalkrafth1712 3 жыл бұрын
@Donald Gaffney I put money in a diversified portfolio holding, s tocks ,R E I T S and valued assets that give me consistent returns
@hec9664 3 жыл бұрын
He left out one big one, taxes. Taxes rarely go down. They always go up. Back when I was working we were sitting around at work on lunch one day talking about paying off our homes and not ever worrying about a house payment. An older guy chimed in and said, if you ever think you are done paying on your home try not paying your property taxes and see what happens. He said the sheriff will be out to auction your house faster than you can say SOLD! Taxes are tied into everything in our lives. You can't escape it.
@johnscott2746 2 жыл бұрын
I live in Florida. Property taxes are limited and can only go up 3% per year maximum. My house is currently worth $225,000 and the property tax is $705 a year. I also own an old homestead up by the state line. 24 acres with an old home on an acre with a well and septic and electric. The taxes on that each year is $310. Florida has a 6% sales tax but food and medicine is excluded. No state income tax. All in all it’s really a great place to be retired.
@samcarranza8544 3 жыл бұрын
Thank you for publishing this.
@HolySchmidt 3 жыл бұрын
You are welcome
@rebeccacasey9419 3 жыл бұрын
I will forever be thankful to you for making such wonderful video, I have been paying off my debt, and paving way to my retirement days . Gradually I will retire and I won't want to lack in any way.
@David_garner9 3 жыл бұрын
We need people like you in this world. I will make sure that I invest wisely..
@charlesclifford2624 3 жыл бұрын
We should reduced our rate of expenses cause you don't want to retire with debts .
@rebeccacasey9419 3 жыл бұрын
@Ryan Cooper Don't give up in that dream , just make the right decision and have a mentor.
@williamjoshua6315 3 жыл бұрын
@@rebeccacasey9419 Hope you don't mind if I ask you a few questions??
@Bitcoinarabinvestors 3 жыл бұрын
@@rebeccacasey9419 I actually invest doh but my profits ain't always as I expected. Will having a professional guide me improve my profits?
@MichaelWilson-we9rp 3 жыл бұрын
I don't know who needs to hear this but stop saving all your money. Invest some of it If you want financial freedom.
@jamesbruno4651 3 жыл бұрын
Honestly man. I tell this to my friends everyday. it's good to save money but you gotta have that investing spirit if you really want financial freedom.
@ritawilliams177 3 жыл бұрын
@Recheal Michael Thank you for the awareness here on youtube.... i have been searching for such signals as well.
@reachherontelegramnamebeck9524 3 жыл бұрын
@Recheal Michael Hello i keep losing when i invest but i'm still trading to improve my techniques i just need a better source to invest and earn while still Trading on my own
@jessicakanus9348 3 жыл бұрын
@Recheal Michael How amazing Mrs Becker is really dominating the trading zone and making things easy for his investors
@johnfreddy4446 3 жыл бұрын
@Recheal Michael Hello can anyone please help me with her contact info? i've lost a lot trading by myself.
@jaysnow973 3 жыл бұрын
Very insightful 👏
@MsLucky443 3 жыл бұрын
Wow, I hope to have energy this year🚨
@blairbrownie1223 3 жыл бұрын
I don’t know too many retirees who frequently travel.Most have found contentment in having their children come to them and in interacting within their community
@HolySchmidt 3 жыл бұрын
Where do you like to travel Claire?
@donaldfrapwell4116 3 жыл бұрын
It was common (until Covid) for my friends to take those longer trips (3 weeks and more) after they retired. Most jobs now barely give enough vacation to cover travel for Christmas, Thanksgiving, ...
@gtbigdog3507 3 жыл бұрын
I live 3 miles from all three of my kids. I am not moving. Unfortunately I have a $800k house in LA. I wish I could cash out some of that value
@angieharris9744 3 жыл бұрын
Good info !
@berryconway4296 3 жыл бұрын
I watched a few of your videos and just subscribed I like the way to cut to the chase. Thinking about expenses in retirement I'd like to offer a couple of comments. We joined a gym through "Silver and Fit" comes with our insurance. Dirt cheap. Even though we don't have a mortgage I expect house upkeep costs to go up significantly when we're no longer able to keep the yard up by ourselves or clear the drive of snow/ice. And don't forget hobbies. My wife is a fiber artist (knitting, crochet and weaving) and I'm a woodworker. The wool and cotton supplies are spendy but not nearly as expensive as wood or the tools I keep accumulating.
@DaveM-FFB 3 жыл бұрын
Well done. This is a valuable list for folks who are getting ready to retire. Although as a self employed person, I'm expecting my health insurance to go down when I turn 65 and go on Medicare.
@ericmgw 3 жыл бұрын
Thanks Jeff.
@HolySchmidt 3 жыл бұрын
You bet
@Jo-uy6jh 2 жыл бұрын
Thanks so much for your very interesting videos. I’m 53 so not retiring for a while but any advice now, so retirement will (hopefully) be pleasurable, not miserable is much appreciated👍
@janetd4862 3 жыл бұрын
I retired six months ago with no debt and a modest retirement account. I have zero debt (hooray!), and haven’t had to start dipping in to that retirement savings yet. I’ve found I’ve spent more this year on hobbies, and definitely on healthcare. I’ve always had dental insurance when I worked, so it’s a bite to have to pay 100% for dental expenses. And I agree with the person that said helping adult kids is an expense. Mine aren’t “in crisis”, but we find ourselves being overly generous helping them out.
@RG-hf4et 3 жыл бұрын
One thing a lot of people do is mistakenly stay in their homes they raised a family in and don't downsize. Even if the house is paid off, it costs more to heat & cool the house, more repairs, higher taxes, outside maintenence costs, etc. I am single, live in a 2600 sq.ft. house on 3.5 acres. I am selling it because it is too much house for me and too much outside maintenence. I lived here for 23 years. My income is going down and I am looking forward to a simpler lifestyle in a condo or townhouse & I look forward to paying less property taxes!
@tshandy1 3 жыл бұрын
I might also add ammo costs go up. Old people have more time to sit around the house and shoot at stuff out the windows.
@sylviajones4907 3 жыл бұрын
🤣
@mz2288 2 жыл бұрын
Hell Yeah!
@toddspangler6669 2 жыл бұрын
Get out of my yard you whipper snappers Click Click!! 🤣
@behindenemylines3361 2 жыл бұрын
I put 20(+) years in the Army, I have been in a lot of places (some of which I wished I had never seen) so there's very few places I want to see.
@ddellwo 3 жыл бұрын
Well, travel is ONE expense that is definitely NOT going to be going up for me! After 35 years in the corporate grind and being on the road a couple of nights per week on average, the absolute LAST thing I want to do in retirement is hop on a plane and travel somewhere……😱 Trying to get all of my big expenses (mainly collector cars) out of the way during my working years so in retirement my month-to-month cost of living is actually quite modest. What a treat it will be to actually have the TIME to enjoy life, instead of scrambling from one business meeting to another! Won’t miss the slightest thing about the business world…..!!!!!
@HolySchmidt 3 жыл бұрын
Well said. I’m sure many people feel the same way.
@kennielsen3896 3 жыл бұрын
That’s not travel, it’s work. By time of retirement you should have places to see as a leisure traveler. Meet new people. A cooking trip to Italy, language program in Paris, Madrid, Argentina are ways to travel, meet people like You and have fun. Stay at budget hotels/air b&b’s.
@ddellwo 3 жыл бұрын
@@kennielsen3896 - Nope. After three decades of standing in long security lines, being entombed in airplanes for hours on end, herded like cattle onto shuttle buses, and checking-in bleary-eyed at the hotel after a late-arriving flight, you won’t find me doing much traveling in retirement unless it’s for weddings or funerals! I’ve already told my wife the only thing I want to do in my first year off the job is head out to my garage every morning with a ice cold can of Diet Coke and spend the day happily tinkering on old cars! Fortunately, my younger bride will need to work a few years longer than me, so by the time she retires you might be able to convince me to head out for a long weekend somewhere - we’ll see……😂
@retiredinbali9565 3 жыл бұрын
I hear you brother. My retirement e-mail that I sent out to all my office colleagues was titled, "Tick-Tock, I'm Off the Clock".
@bethheerten1132 2 жыл бұрын
@@ddellwo When my husband retired travel was not something he wanted to do either, but after a few years we started going a bit. We enjoy not having to fly and not having an itinerary by which we have to abide. Also, not having to be back home in time to go to work Monday morning is wonderful! Enjoy your retirement however you choose to spend it.
@MM-ig2zq 3 жыл бұрын
Trip. I travel to the supermarket. Gym. Walk for free. Books. Pay for internet my only source for reading. Health Care. Skip the Doc if you feel good. Move. No need to my state is hot as hell. Planning. I plan on having two whiskey every afternoon.
@HolySchmidt 3 жыл бұрын
It sounds like you have it all figured out
@nancydavidson2295 2 жыл бұрын
has the price of whiskey gone up?
@AlfaKenyBody 3 жыл бұрын
Same analysis I provided in the previous, it seems valid here. Due to Covid19, with people working from home, I believe the expenses with utilities and food will be already at the peak.
@petersonkahlid7679 3 жыл бұрын
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@richardt1792 3 жыл бұрын
For decades I have heard that I should plan my retirement based on needing 70% of my last year's annual salary. The articles say your not spending on work clothing, meals out, and transportation to work and back. Although that 70% is repeated so often, they make it sound like a fact, it never made any sense to me. I had also assumed I would need more than that and that is how I planned. I have roughed it out and it looks like I will start retirement with 110% of my gross salary. Virtually all of it will be taxable.
@cherylcampbell7495 3 жыл бұрын
Use the gym showers. No charge cards. Kendal download books or how about the library ?Downsize everything. Eat organic as much as possible, fruit and vegetables. Eggs are your biggest source of protein.
@davidsiemer7578 3 жыл бұрын
Good videos and advice; thankfully I will be able to fly free when traveling. More videos on passive income please
@HolySchmidt 3 жыл бұрын
Sure. Any area in particular?
@petersonkahlid7679 3 жыл бұрын
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@danknauer5091 2 жыл бұрын
1. Travel - Most folks will increase their traveling at least through 75 as Geoff said. 2. Utilities - Shouldn't see major changes here particularly if you've been working from home. (Preparing a meal at home will be a net gain.) 3. Exercise - Lots of free ways to do this: walk, run, exercises, etc. 4. Debt - Not sure how this goes up, unless - as you should - you have zero. Have zero and keep it close. 5. Reading - Libraries and on-line are free. Used books and book swaps can keep these low. 6. Health care - Yep. 7. Moving - Moving to downsize is a net gain. That's why you downsize. 8. Day-to-day - If you get bored, you may just spend. Or eat. Don't. 9. Charity - Donate your time instead. 10. Financial planning - If you set in a good plan and stick to it, this should be pretty stable cost. FWIW
@brendafleming231 3 жыл бұрын
Thank you!
@HolySchmidt 3 жыл бұрын
You are welcome Brenda. Is there any topic you’d like to see more of?
@brendafleming231 3 жыл бұрын
@@HolySchmidt I haven't had the chance to search your channel so I don't want to request something you've recently covered but just in case you haven't I'd like to learn how 401ks "operate" and how to get the most out of them. And what can a financial advisor do to help us maximize. Thank you very much for asking. And thank you for your channel. I haven't really done much in the way of my financial future and it's so good to have someone helping us. You are apprecited.
@DavidEVogel 3 жыл бұрын
11. Depends.
@anamaria2053 3 жыл бұрын
@Holy Schmidt- Do you have a video on finding a financial planner or recommendations?
@lorenzobeckmann3736 3 жыл бұрын
I was told (at retirement), by a finance wizard, that I will need doulbe every 15 yrs; the point to take from that is: not being "maxed" early on and now 17 yrs later--still with abundant life.
@behindenemylines3361 2 жыл бұрын
I am in the process of moving (I have lived in my current house a long time) my advise to all; start early! You will be surprised on the amount of "stuff" you have!
@brianhill5009 3 жыл бұрын
Something I have noticed since retiring is how many charity solicitations I get by mail and by phone. Outfits I have never heard of somehow get my address and phone number. That is why my kitchen trash container gets filled so quickly and so many phone calls are not answered. Thank goodness there is call ID.
@HolySchmidt 3 жыл бұрын
I use an app called Robo Killer. It answers the phone and pretends to be a person - keeping the solicitor on the phone as long as possible…
@mz2288 2 жыл бұрын
Geoffrey, excellent content! May I humbly suggest you have a strong coffee before filming the next video?
@HolySchmidt 2 жыл бұрын
Lol. Sorry MZ, I’m not that type of KZfaqr!
@JA-vv8wy 3 жыл бұрын
Medicare doesn’t cover new dentures (1set every 10 years), hearing aids, or glasses. Have money set aside. Take care of your teeth & hearing NOW
@RG-hf4et 3 жыл бұрын
As a dentist, most dental problems are preventable. Take care of your teeth now!!
@sungspatta6123 3 жыл бұрын
@@RG-hf4et you are a good man n dentist. Not too many dentists recommend prevention. I'm 64 have spent way over 100k my money n dental insurance my teeth are very compromised. Will spent lot more money. Thank you
@antiquegirl6505 3 жыл бұрын
I changed my Medicare to a Medicare Advantage plan. These DO include dental, vision, hearing aids, etc. Many of them also include 'Silver Sneakers' gym memberships, rides to doctor appointments, meal services.
@JA-vv8wy 3 жыл бұрын
@@antiquegirl6505 wow! Thanks! I didn’t know that. I’m glad these are available. Will look into it
@antiquegirl6505 3 жыл бұрын
@@JA-vv8wy They usually just get the Medicare $, not any additional. I have one that gives an allowance for over-the-counter items (like vitamins, toothbrushes, head-ache meds, etc), every 3 months. But you have to use their service, cannot usually just get the items. Check into them, lots of name insurances like Anthem Blue Cross/Blue Shield, Aetna, United Healthcare, etc.
@stevearnold8467 3 жыл бұрын
Travel? I had a good laugh on that one. India? Upstate New York? I wish. I'm too busy dealing with the needs of my parents to have time to travel.
@TNtoolman 2 жыл бұрын
Glad that about only one of these listed pertain to me... charitable donations. Self-employed working from home for the lat 25 years... no debt... no increase in home expenses... actually total medical cost went down with Medicare and supplement... travel limited due to Covid... books free from local library and if I want exercise I go out and walk. I've never had so few expenses... Only other area that has increased some is eating out, but that didn't go up a lot.
@carrotlover7763 3 жыл бұрын
I wouldn’t even consider retiring if I had debt and you definitely shouldn’t be traveling if you have debt.I am retiring in nine months and I wouldn’t being doing so if I had debt. I know some people don’t get a choice and they have their jobs retire on them, however spending beyond your means with the thought of I will save tomorrow can catch up with you.
@todddunn945 Жыл бұрын
Health care costs don't have to go up if you stay in traditional Medicare and buy a Medicare supplement policy. My insurance costs run about $300/mo and that is all I pay for medical treatments even though I have cancer and currently see 5 different specialists. Fortunately I take no drugs.
@richstex4736 3 жыл бұрын
My $.02 worth? Plan on saving enough to retire at 100% of your last earning year. Pay off your mortgage. Get all other debt down to a reasonable amount (under 10K). Keep fit to reduce doctor visits. Live comfortably, not extravagantly. Do that & you can enjoy a nice, middle-class retirement.
@sarita3337 3 жыл бұрын
What was your career when you retired?
@petersonkahlid7679 3 жыл бұрын
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@dr.velmasablan3611 3 жыл бұрын
I enjoyed this video, however I think the number one expense in retirement is HEALTH CARE not travel. Many folks can't afford or prefer not to travel. Whether it is preventive or interventive medicine, HEALTH CARE is a big expense and continues to increase. There is also making arrangements for funeral costs that wasn't mentioned.
@rayleps4576 3 жыл бұрын
I'm 54 retired when I was 40. Don't travel to expensive places. Use my computers to entertain myself. Bought a new bicycle as I have more free time - this keeps me fit and looking good into my late 50's. The property I bought was a condo in a building from 1971. Electricity payment is the same for everybody in the building. Individual units don't have an electrical meter so my computer/electricity expense is constant regardless of how much is used. Car expense has been constant as I own a Honda. Retirement can be optimized if you give it some thought and make the right decisions. Don't pay for Internet on your cellular phone, do Internet needs at home and reduce cellular cost. Better yet, get a pay-as-you-go plan without data and I guarantee you bill will be less. Use a cellular phone like a telephone, no more as they make you pay. Cheers!
@petersonkahlid7679 3 жыл бұрын
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@barnabyjara4751 3 жыл бұрын
There is only 1 expense that goes up, Healthcare. All other 9 are optional expenses. BOOKS??? Haven't you heard of libraries??? I could read one book a day for the rest of my life without paying one cent.
@HolySchmidt 3 жыл бұрын
Thank you for the comment Barnaby. Yes there are no required expenses - you can say that with many expenses when people are working as well. But human beings have needs/wants beyond basic survival. Amazon would go out of business if people actually used the library but I was there the other day and it was just as quiet as it was 25 years ago, unfortunately.
@RG-hf4et 3 жыл бұрын
Everyone forgets you already paid for the library through your property taxes. Utilize it!!!!
@bkinouye 3 жыл бұрын
If you downsize your home and/or move to a cheaper location, you might be able to reduce or even eliminate your debt.
@petersonkahlid7679 3 жыл бұрын
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@shellyscott6447 3 жыл бұрын
Only flying and hotels. Sell your house get an RV and travel!! That's what I'm going to, might even get a van, who knows, but it's affordable!!
@johnscott2746 3 жыл бұрын
We love to take our RV out but there really is nothing like coming back home again.
@tammiepulley7167 3 жыл бұрын
Shelly, I traveled in an RV for 6 months and started out totally committed. I could have continued but I decided it wasn’t fun doing all the travel planning and physical hookups by myself. If there’s a way you can go for a few months before you sell your house please consider that. As for me, sold my RV and I’ve been moving around and renting rooms for a few month at a place and it’s getting old. I cannot decide where to land.
@peanutsassyathena 3 жыл бұрын
I was shocked to recently learn many seniors are paying college loan debt. Sometimes the college loans are for themselves from making a late career change, but mostly it was from being a cosigner for their adult kids/grandkids and the kids/grandkids stopped paying the loans resulting in the senior being on the hook for the payment. This has forced many seniors back into the workforce at least part time. Be careful in regards to co-signing for anything. You may feel fine now, but what if that changes suddenly, and it often does, how will you be able to keep working. College loan debt, as it stands now, can be taken out of your social security check, just like back taxes. No other debt can be taken from your social security other than college loans and taxes, but both of those can change a retirement from enjoyable to miserable.
@skibum6422 3 жыл бұрын
I'm thinking that retiring with any debt is recipe for a disastrous retirement. I have friends buying houses in their 50's with 30 years mortgages and I think they are crazy.
@petersonkahlid7679 3 жыл бұрын
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@bassdojo3925 3 жыл бұрын
No, you can write off the interest. I'm pulling in $15K/mo in pension (plus investments) and have a recent mortgage. I'm only 51. I have too much money and wanted a new home with little up keep for me and the wife.
@kevindecoteau3186 11 ай бұрын
medicare with a supplement plan helps to control those oop costs!
@monabiehl6213 3 жыл бұрын
More time? Time speeds up when you retire.
@julz9378 3 жыл бұрын
if all my expenses are paid, i have no savings and i have 2000 left a month will i be ok? that is based on my pension and ss
@dancalmpeaceful3903 2 жыл бұрын
Spend money on books on reading and movies? It's called the "library".....use it.
@samash1704 3 жыл бұрын
I'm taking a pill that allows me to age in reverse. So this video doesn't apply to me.
@toddspangler6669 2 жыл бұрын
Your diaper and daycare bills for yourself will surely add up! 😂
@ArizVern 3 жыл бұрын
Retired vet 76, still married 50 plus years. Was opposite of others my whole life No education, when teacher turned around was never at my seat. Waiting on second Tesla Tri-motor Cybertruck in 2023.
@petersonkahlid7679 3 жыл бұрын
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@ArizVern 3 жыл бұрын
@@petersonkahlid7679 RETIRED NOW FOR 18 YEARS. YOUR REPLY LOOKS LIKE EVERYTHING I SAW IN SCHGOOL AND STILL DON'T UNDERSTAND IT.
@mtadams2009 3 жыл бұрын
What is the reason for so much credit card debt? That seems like an awful lot of money paying credit card bills. My wife and I pretty much pay for everything by a credit card. We pay it in full every month. We do this to earn points for free air travel. When I was young I got into some credit card mess owing about 7,500 and promised myself never to do it again, I have not done that again as its not only bad financially but also very stressful. As I have aged having less stress has been a priority for me. The one thing we do have is my wife's mom, aunt and older brother to help take care of. Its a good thing my wife is a high earner and we both saved our money as they did not.
@janibeg3247 3 жыл бұрын
Health car insurance, Other healthcare costs, taxes, eating out, charities, giving money to relatives 529 plans
@uncareid5557 3 жыл бұрын
Moving was expensive. But well worth it to get out of crazy tax NJ.
@vinnyg2619 3 жыл бұрын
I've been in NJ for about 32 years coming from NYC. When I first came, I got an immediate tax break/raise due to no income tax and things like clothes were tax free (still is). Yes, property taxes are high but some things when you retire aren't taxed like SS and as of now any income besides SS under $100K is tax free, at least that's what my friend who is a CPA told me. Also once you hit 65 (I think) and have less than $91K income you can freeze your property tax at that current level. Yes, property taxes are higher than other places in the US but once you've grown accustomed to them in you budget, assuming you can afford them, it's part of the budget.
@uncareid5557 3 жыл бұрын
@@vinnyg2619 It wasn't just the high property taxes. I was born in Passaic County in the 1950s and lived in Passaic and Bergen Counties most of my life. I'm sick of cold weather, short summers and crowded, poorly paved roads. I left some family behind but most have moved out also. NJ is so corrupt and mismanaged. Seeing tax money squandered became a continual source of frustration. It really is better in the South. People are nicer, the pace is slower, and I can (and already have) visit anytime I want- except Nov-March.
@RG-hf4et 3 жыл бұрын
I'm born and raised in NJ so I can relate. I am tired of the cold winters, the high property taxes and am tired of NJ corruption. But the same crap is happening on the Federal level and look at all the wasted time and money wasted while Republicans & Democrats bicker pissing away your hard earned tax dollars, yet they all still get paid & get their pensions. My house is going up for sale soon but my dad is still alive and needs help. I will probably will move in with him once it is sold and I am thinking of looking into the South to move to. Where did you move to? I live in a nice area in Hunterdon County near Clinton.
@uncareid5557 3 жыл бұрын
@@RG-hf4et From northern Bergen County, NJ, to Rutherford County, Tennessee. Just south of Nashville. Taxes are high for the area, almost $2K. My brother is the only holdout out of the 7 of us. He is in Miltown by his kids. But if he had the right opportunity he would leave, too. As far as the Fed, do what you can. I have moved into precious metals and have no debt. Medicare is good so far. Hey, maybe your father would like to move to a warmer climate, too. My in laws moved first to South Carolina, then to Naples Florida. They loved it.
@RG-hf4et 3 жыл бұрын
@@uncareid5557 2k in taxes sounds very appealing vs. the $12k I am spending now. Naples is supposed to be lovely I hear.
@samsmullen991 2 жыл бұрын
The fifth point is moot since you can get books that you want to read through the public libraries.
@HolySchmidt 2 жыл бұрын
Sagely advice
@Pahoe77 2 жыл бұрын
Libraries are free. Kindle has free books available.
@AlongtheRiverLife 3 жыл бұрын
Like my mom says, You do not spend less money during retirement, you spend more because you are home where you can spend it. Doing in retirement = money.
@HolySchmidt 3 жыл бұрын
A lot of people say that. What was her biggest increase in spending?
@AlongtheRiverLife 3 жыл бұрын
@@HolySchmidt This small trip to buy a small something, followed by another small trip to buy a small something. P.S. I enjoy your videos! Do you provide services for fees for retirement planning?
@HolySchmidt 3 жыл бұрын
Hi Mark, thank you for the kinds words. Unfortunately I don’t, this channel and other commitments keep me pretty busy. There are a lot of people on KZfaq that do provide professional services though and many seem quite knowledgeable.
@dickritchie2596 2 жыл бұрын
Your liquor bill will go up. Health care costs will increase as you sink into alcoholism or drug dependency. Speaking of depends, that cost will increase too. You will spend more money on Twinkies an cat food.
@happymimi5668 3 жыл бұрын
We and our friends spend a significant amount of money on vitamins and other supplements that help keep us healthy.
@HolySchmidt 3 жыл бұрын
Sounds like smart spending
@judithgallegos1748 3 жыл бұрын
Be debt free before retiring. Not everyone can afford to travel after retirement. Medical and dental expenses are the big ones. Read books from the library. There are a lot of things you can do without spending money. Getting hit with dialysis is a major problem. The Golden Years is a myth.
@HolySchmidt 3 жыл бұрын
Thanks for the comment Judith.
@johnschnellbach986 3 жыл бұрын
Our #1 increase is going out to eat. Being home all the time gets us antsy and just want to get out of the house. Also, our friends ask us out for dinner. Who's going to say no
@songbirdsinging1878 3 жыл бұрын
for us, healthcare (retiring early, we both pay all medical and premiums out of pocket), charity/donations (we started a cat rescue!), House repairs and remodeling went up exponentially!!. Covid put a damper on travel and we aren't big travelers since we live in a gorgeous area in NY State. NY has it all. Farmland, quaint small towns, cities, wineries, Universities, mountains, lakes, fishing, and we are near the Canadian border too. lots to do here.
@FIRED13 2 жыл бұрын
Travel will remain the same for us. We will travel only slightly more but kids won't be joining, all things even out. Utilities will also be the same once kids move out. Debt? Nope, we control; money does not control us.
@vinnyg2619 3 жыл бұрын
Healthcare is my concern mostly. I have 3 years to go and my wife has 2 years and I am trying to gather enough info to see how it all may work. I know 2 people, one on Medicare with Supplemental and another on Advantage and the one on the Advantage is sorry he went onto it; the other which is on the Supplemental claims she doesn't get many bills. I know the other stuff mentioned will go up as well, hopefully we can keep a handle on it!
@carrotlover7763 3 жыл бұрын
Make sure to compare your supplemental options. Also if you don’t like your plan and want to change it, you can do so during open enrollment every year.
@vinnyg2619 3 жыл бұрын
@@carrotlover7763 Thanks for this! The person with the Advantage plan claims it's difficult to get onto the supplemental plan once you're in the advantage plan, I was under the impression you can switch over during open enrollment but I haven't gotten that far in my research. I do see there are different supplemental plans, I'm thinking "G" and in my state (NJ) it looks as if AARP is the only carrier with community pricing but again I haven't gone too far in researching, this is just what's on the Medicare site. It may be the cheapest alternative in the long run but then again if I can switch maybe not.
@nancymcgrath6283 3 жыл бұрын
It is worth it to pay the extra for a supplement as Advantage plans have higher deductibles and copays. They also need prior approval for more medical needs which they may deny then you have to go through the appeal process.o
@vinnyg2619 3 жыл бұрын
@@nancymcgrath6283 I will definitely be looking into the supplemental plans. It seems to be the way to go to control medical costs.
@johnscott2746 3 жыл бұрын
@@vinnyg2619 be sure and do a lot of research. The truth is that most supplement plans are a waste of money. You would have to be in really poor health to even break even on the cost. Regular Medicare is actually a very good deal. There is a $1400 deductible on Part A which is hospitalization. Part B had a $203 deductible and then pays 80% of approved charges. So, unless you are being hospitalized several times a year, you are just wasting money on a supplement plan. Because you only have to pay your share of the APPROVED charges. If you go in the hospital and the total bill is 100,000 your share would be minuscule. About 75,000 of that is hospital, which you pay 1400 for. The other 25,000 is the doctors bill which Medicare will knock down to about 3000. Your 20% is 600 dollars. So out of this huge bill you owe 2 grand. So like I said, unless you are being hospitalized over and over each and every year, then you are wasting money on a supplement plan.
@mikeconner7682 3 жыл бұрын
Speaking of health care, what can you tell us about Medicare supplement plans?
@HolySchmidt 3 жыл бұрын
That’s a good idea.
@johnscott2746 3 жыл бұрын
Supplement plans are basically a rip off. You should investigate it a lot before throwing away your money.
@eileenmcgovern9193 3 жыл бұрын
@@johnscott2746 do you believe in advantage plans that does not give an added charge.
@johnscott2746 3 жыл бұрын
@@eileenmcgovern9193 Medicare advantage is different from supplements. The only problem with Advantage is that it works like an HMO. You are restricted to certain medical providers. But if you are not traveling a lot and you have serious health problems, a Medicare Advantage plan can be of great benefit.
@bookmagicroe9553 3 жыл бұрын
I've been very happy with my Medicare Advantage plan. There are plenty of doctors, PT, clinics, urgent care, etc. on the plan. My plan even includes two dental cleanings and dental exams a year. You are also covered for emergency if you are visiting elsewhere.
@hermannweber2441 3 жыл бұрын
I'm 40 currently retired with a networth of over $1million, I'm currently touring the whole world with my spouse, thanks to the FIRE movement. I did it and you can do it! Believe in yourself
@sarahpatterson390 3 жыл бұрын
What is FIRE movement?
@hermannweber2441 3 жыл бұрын
@@sarahpatterson390 FIRE means Financial Independence Retire Early. It's a movement teaching people to work towards financial freedom
@sarahpatterson390 3 жыл бұрын
@@hermannweber2441 thanks? I will research more about the FIRE movement
@stevewilliams1213 3 жыл бұрын
You did well John! Congratulations.. can you share some tips? I'm working to boost my financial status too
@hermannweber2441 3 жыл бұрын
@@stevewilliams1213 yeah 1. Plan towards it 2. Save money towards retirement Roth(IRA/401k) 3. Grow a solid investment. I made alot from the 3 tips it's very important to financial independence. One more tip, be frugal! Don't buy what you don't need.
@lunatik9696 3 жыл бұрын
no utilities no rent. own property, vehicle, solar and water collectors. Only recurring expenses above property tax, food, gas, meds and insurance are student loans. They can't take student loans out of my SS.
@RG-hf4et 3 жыл бұрын
There is no reason to spend one cent on books, newspapers, magazines....Go to your local library and they have a ton of this stuff paid by your TAX DOLLARS. Make it a conscious point to spend no money on books. What do you do with them once you read it? It sits on a shelf!! If your library doesn't have a new book, put it on a library list to get at a later date.
@jerrylawlor2784 3 жыл бұрын
Number 11 your wife talks on her phone to her daughter and drops the phone in the sink
@harmoni4499 2 жыл бұрын
These are more retiree's choices than they have to do them.
@yourgooglemeister6745 3 жыл бұрын
I could have made this list up while sitting on the toilet. Looks like you are doing the same thing!
@johnp139 3 жыл бұрын
If you are in debt (other than perhaps having a mortgage) then you shouldn’t be retiring.
@bellanegrin3915 2 жыл бұрын
Do you occasionally respond to replies?
@tomm8025 3 жыл бұрын
Interestingly, most costs that go up in earlier retirement (while still active) do not stay up. Statistically, with exception of healthcare costs go down after 70. This is simply because people are less active, even if healthy and in shape, after 70 things get harder to do for most. This is one of the reasons postponing collecting SS until 70 is a poor idea. Your risking all the SS you could have had and possibly working longer or eating through your own assets, simply to get a bump in cash flow when your are less likely to need it.
@RWong-wn3pv 3 жыл бұрын
It is inexplicable how people can believe the liars that say retirees can live on a FIXED incomes.
@Columbus1152 3 жыл бұрын
Maybe you cannot, but it can be done when you have no choice.
@OurPalawanExperience 3 жыл бұрын
I live on a fixed income very nicely...it's how you PLAN for retirement...
@davidcawrowl3865 3 жыл бұрын
It depends on what all constitutes "fixed". I have three separate pensions (federal, state and county) plus social security. Putting total gross adjusted into six-figures, and since having moved to a low-expense state in the South, life is pretty sweet (and yes, debt-free).
@RWong-wn3pv 3 жыл бұрын
Can you really name one expense that has NOT gone up?
@7SideWays 2 ай бұрын
40% of income spent on debt service as a retiree? Hopefully not!
@jaytee2642 3 жыл бұрын
Toilet paper. You're not using the 'facilities' at your work place anymore.😉
@NatesRandomVideo 3 жыл бұрын
"Boss makes a dollar, I make a dime... that's why I poop on company time!" - Unknown
@dancalmpeaceful3903 2 жыл бұрын
When I was laid off.....I'd shower once a week...MAYBE.....only because I couldn't stand my own "funk".....and I started to itch.....OR when I that rare interview.
@yourmother9246 Жыл бұрын
Did I hear that right? People 65 to 75 have alot of energy??? My father and law was dead at 72. Let me tell ya, people ain't got alot of fuckin energy at 65+ lol You NEED to retire EARLY in most cases to have the energy to travel that late in life. Traveling at any age is exhausting, especially if your 65+ Definitely don't count on having energy if your planning to retire at 65+. You're not going to a spring chicken ready to take on the world. Best to get most of the travel done while you still have your health!
@jrob67 3 жыл бұрын
Title should be “10 Expenses that MIGHT Go Up in Retirement”. Most of what is itemized in this video is discretionary.
@HolySchmidt 3 жыл бұрын
Lol. Most spending in life is discretionary beyond bread water and renting a room above a garage.
@jrob67 3 жыл бұрын
@Holy Schmidt - Ha! Fair point.
@tamarabartolo9185 3 жыл бұрын
Regarding the health care costs the reasons you give for increased expenses are the very reasons why we need universal health for all....
@jdvandy8528 2 жыл бұрын
If I have everything paid off make sure my roof etc is set for the rest of my life there no reason I can take about 25 k a year to live on ..not interested in bs world travel or anything so all this talk of needing millions to retire on is richy rich talk plus living till 90,100 is not of any interest to me I know
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