Message Font: Serif | Sans-Serif
No. of Recommendations: 0
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.

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.