Sunday, November 21, 2010

Haven't been here in a while.

Feeling more comfortable with the portfolio these days.
Now we are  clearly at a 50/50 split between stock and cash/bonds/CD.
If the non liquid assets were in the mix it would be: 50 non liquid /25/25.

We don't plan on spending any of the above mentioned money. With our current income (which is less than I made as a teacher in the midwest) we are able to save for home improvements, taxes, insurance and trips to see the "children". Our basics are simple. It works for us.

Living expenses vs Savings 

The key is to figure out when you, basically, have enough. By doing this exercise I know that I/we will have enough if: 
1)My husband passes away. Besides missing him terribly, I will not be receiving any of his pension. Currently we live entirely on that pension.
2) The US decides not to honor its pension to retired military (I actually would not be surprised if this happened).
3) The economy collapses as we know it and savings have to sustain us for awhile.

Sustaining ourselves with no outside help would last twenty years at our current spending levels.  45% need/ 55% want. Granted wants include things that are good- travel, entertainment, presents, # of travel vehicles that live at our house.  We could do without those things. 
There is plenty to do here. Gardening, hiking, fishing are all within walking distance of the place.
If inflation took off we could simply cut to the wants  and get by quite nicely.  The only hang up would be property taxes. One never knows where those can end up!

Sometimes I wonder how long we should live this way- not touching the savings.  One thought is that we could take out what my husband would bring in for SS for the next five years. That way we would feel better about just waiting the Social Security out until his actual retirement date at 66.  In turn, if he should pass, I would receive a sum of money until I turn 66 (which is seven years later).

Nah---let it ride as long as possible.  We have saved for some pretty neat stuff already. A long anticipated trip to our honeymoon destination for our 30th anniversary next year. Well, that is, IF I decide that I can tolerate air travel at that point!