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Subject:  Re: Whare are they? Date:  1/7/2010  4:03 PM
Author:  SRenaeP Number:  4785 of 5246

Are you using expected annual expenses with an inflation factor as AI? In retirement there's no more saving for retirement (that 20% is a big hunk of your high incomes), no SS or Medicare contributions, most likely lower income taxes, even if your health care costs = your mortgage payments.

There's also the possibility of downsizing, moving to a lower COL area, buying a more energy-efficient home, sharing a single car, buying a more energy-efficient car.

When I said annual income, I meant our actual gross income. As far as retirement needs, I expect to need 70% of our current gross (we currently don't see 30% due to tithing and retirement savings).

Our current home (purchased 3 years ago) is our 'forever' home and we have no intentions of downsizing or moving. Our plan is to basically keep our lifestyle the same except don't work and travel more (we travel a lot now). Therefore any tax or mortgage savings could be eaten up by increased travel and leisure expenses. I prefer to plan conservatively since our savings will have to sustain us for 40+ years and we want to lead a fairly comfortable lifestyle. It's like what's the point of not working only to sit home and not enjoy life.

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