Early Retirement Projections – Part 1: Estimating Our Retirement Expenses

Mr. Enchumbao

I work for a large investment management company helping people save for traditional retirement. During my spare time, I help others save for financial independence and early retirement by writing for Enchumbao. My journey to FI began in 2012. I was in a lot of debt back then, but I turned things around and became debt free a few years later. My wife and I reached financial independence in 2017 and are preparing to retire by 2020.

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4 Responses

  1. Ht says:

    Hi,

    Really interesting! What did you use to budget for health care? Your annual cost appears much lower than what we are projecting for 2019, and people were already telling us we were low. Wondering how you’ll do it. 😉

    • We didn’t really “budget” for health care here. I know, so irresponsible. 😉 Given how unpredictable health care costs are right now, we’ll explore our options once we get much closer to retirement. I’d say that in about a year we’ll examine our situation. I think it will cost more than what we have leftover from our budget (see part two of this series http://www.enchumbao.com/projections-withdrawal-strategy/, but we can trim down some expenses to make room for it and/or bring in some income to cover it.
      I don’t think it will be hard at all for the two of us to bring in $500-$1,000 a month of additional income in early retirement by doing something we enjoy so I’m not too concerned. After all, staying active in some fashion will be key to a healthy retirement. Thanks for stopping by.

      • cargalmn says:

        Got it – that makes sense, especially since the cost truly does change every year right now (up, up, and away!). I know it’s a great source of concern for all of us nearing FIRE. Thanks!

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