This is probably a lot more detail than anyone cares about but I find it helps us to write it out. Right now we are still on a OMY basis and plan to Retire June 1 after we pay off our new car, the kitchen remodel, and all our daughters student loans.
Our retirement budget is 120k
We are targeting about 84k base.
24000 for housing includes 20k PITI and 4k maintenance budget
24000 for health insurance and out of pocket
12000 for all utilities, house cleaners , yard workers, phone, insurance etc
24k for food, clothes, local travel, eating out, wine, entertainment, etc
That leaves about 36 thousand cushion, in good years; nice international travel, maybe the occasional new car or home remodel. In bad years, we can cut all or most of this 36k.
We are 60/58 so sometime in the next 10-12 years we will ramp up SS between 36k and 60k depending on start date. This will be strictly for buffer. The plan is to wait til we are 70, barring some brutal market downturn.
In 5 to 7 years we go to medicare, which should help the health insurance costs a little.
The first two years are strictly cash and capital gains so taxes should be minimal. After that , the taxes will ramp up gradually until we hit 70 and start the RMD's.
