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How much is enough savings? (+Musings)
#11
Hello, where are you getting RV insurance for $11/month? I currently use USAA and pay roughly $40/month.
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#12
If you ck out bob wells videos, you will see as low as 250/ month. There are lots out here at around 600/ month
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#13
(11-14-2017, 04:31 AM)Redbearded Wrote: So, how much is enough? 

By time I get on the road with the rig I want, I'll be low in liquid cash (though by time I sell most of my stuff that may not true, here's hoping!)
I have some retirement accounts and they have done pretty well these last years, but I think everyone has the concern that they will run out too early. I think I have enough given when I run some of the calculators like this one it says I'm getting really close if I get my spending down to $8000/year.
It's going to depend on 1) your lifestyle and 2) your ability/willingness to work while on the road.  I would always have enough to have the next year's expenses covered - even if you plan on working while on the road.  You just never know when an emergency is going to come up. 

You might be able to get by on $8K a year, but is that going to cover emergencies?  What if you need a major repair on your rig such as a new transmission or rebuilt engine?  In addition to what you think your normal expenses are going to be, you'd be wise to also have enough to cover significant one time expenses. You don't want to have to use your food budget to buy a new pair of tires.
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#14
It looks like I'll have about $50k in a 401(k) account when I make the leap next year, after paying off debt and getting the van ready.  
I'll be 55, and I'm debating whether to try and stretch that money by working part time until I start collecting Social Security in 7-10 years, or just take a long vacation until it runs out before going back to work.
I won't know what I'm doing until I do it.  Either way, it will be an improvement over the normal/safe/stagnant life I've got going on now.
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#15
Key for me is to separate out the Vehicle fund from other costs of living, because that is not a steady expense, can in fact require more in one hit than I'd spend on everything else for a whole year.

I would start out with as much in there as what the vehicle cost, or at least $5K, and then add to it per mile as below, from another thread:

______
For me, biggest consumer of "disposable" income is long road trips.

And when stationary, food prepared by others rather than cooking yourself. 

I figure $1 a mile for my internal budgeting, and it's pretty easy to do a thousand miles in a month sometimes. 

That is to cover all vehicle costs, from fuel, to being prepared for long tows from off the pavement, to major drivetrain repairs, to improving the buildout, whether comfort or aesthetics.

If I want to drive 400 miles tomorrow, but don't have $400 ready in my CurrentOperations account to transfer in to the VehicleDoNotTouch account, I just stay in place until I've saved it up and **actually made the transfer** there. 

And if/when I'm on any sort of Gov or family assistance, I count it internally as income.

Some say that's crazy too much, $1 a mile! To them I say

It's nice to have options, and over the decades I've been **stuck with none** out in the middle of whoop-whoop, too **many darn** times, to skimp on that budget category anymore. 

As/if I accumulate a surplus, that just means I have a greater range of choices, spending stupid money on keeping my beloved going (and not having to do a fresh buildout) 

or upgrading to a larger or more reliable vehicle when I decide to replace her, and maybe a nicer level of buildout. 

If I *did* end up with over say $50 grand in there (dreams are good! )

I suppose I *might* tap into it for say, medical care if needed. 

Or maybe I'd keep saving up for a Unimog 8-)
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#16
(12-01-2017, 07:51 AM)mayble Wrote: It looks like I'll have about $50k in a 401(k) account when I make the leap next year, after paying off debt and getting the van ready.  
I'll be 55, and I'm debating whether to try and stretch that money by working part time until I start collecting Social Security in 7-10 years, or just take a long vacation until it runs out before going back to work.
I won't know what I'm doing until I do it.  Either way, it will be an improvement over the normal/safe/stagnant life I've got going on now.

I don't think that you can withdraw from a 401(k) without a penalty before 59-1/2.  $50K over a 5 year period might be too tight.  You probably have health insurance if you are working for a company which offers a 401(k) and you are currently 10 years away from medicare.  That would mean that your medical cost will increase if you pull the plug now. 

It might be wiser to move into a van, but continue to live where you are currently working.  You could then become a "weekend nomad".  That would decrease your expenses allowing you to accumulate more cash until you go full time. And being a weekend nomad might be enough to make you feel that you have a better life than you currently have.
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#17
thanks for the advice, but it's not like i haven't done any research

you can withdraw your 401(k) with no penalty if you leave the company in the year you turn age 55 or later
$50k would give me about $600-700/month until age 62, or about $1500/month for about 3 years - so i either work part time to supplement the $600 or goof off for a couple years, then go back to work until age 62 (or 65)

health insurance will be interesting, to say the least, and will be a factor in determining my domicile state once we see what happens in dc
if i stay in my current state, i'll be eligible for medicaid but the cost of car insurance will probably drive me out (so to speak)

it would be "wiser" to keep working until i'm 70 - that ain't gonna happen lol
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#18
Turning 70 coming March, still working but on my own terms 2 days a week. Idle hands are the devils playground.
2015 RTR  adrian.schafgans@gmail.com
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#19
(12-01-2017, 09:50 AM)mayble Wrote: thanks for the advice, but it's not like i haven't done any research

you can withdraw your 401(k) with no penalty if you leave the company in the year you turn age 55 or later
$50k would give me about $600-700/month until age 62, or about $1500/month for about 3 years - so i either work part time to supplement the $600 or goof off for a couple years, then go back to work until age 62 (or 65)

health insurance will be interesting, to say the least, and will be a factor in determining my domicile state once we see what happens in dc
if i stay in my current state, i'll be eligible for medicaid but the cost of car insurance will probably drive me out (so to speak)

it would be "wiser" to keep working until i'm 70 - that ain't gonna happen lol

I stand corrected about the withdrawal age.
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#20
(12-01-2017, 10:04 AM)mpruet Wrote: I stand corrected about the withdrawal age.

I never heard of the rule of 55, either.  I'm glad she pointed that out.  It sounds like it is 401k specific (not IRA).  If folks are getting close to 55, it makes sense keeping retirement funds in a 401k vs rolling over into an IRA (which is what I've done when changing jobs).

I assume withdrawals are taxed like income so that is a consideration if you want to qualify for ACA subsidies or keep income so low you can get Medicare (or whatever the low income program is called).  If you can tap other sources of income/savings and not touch your 401k, you could continue to have money grow as a tax deferred savings account.
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