This page will detail spending plans, plus financial goals.
Spending
During the early years of retirement, the plans are to spend as little money as possible to let our funds grow. The hiking and sailing adventures therefore will need to be low budget.
For hiking the Appalachian trail, I’ve seen multiple quotes about $2-3 per mile, or around $10k for the trip. This varies wildly depending on how often people stay in hotels, visit restaurants, etc. I’m hoping we’ll have cash in hand to pay for the trip at the point of retirement.
Sailing costs are even more unknown than the hiking, by quite a long shot. I’ve seen quotes from 8-10k per year to 30k per year. Very rarely do people quote anything higher than 30k. From reading many discussions on the subject, I’ve decided on a budget of around $20k per year. This may or may not include boat insurance, depending on the boat purchased, cost of the insurance, etc.
The huge unknown in expenses is health care. When traveling internationally, many people suggest only keeping catastrophic health care for emergencies, but dealing with all normal injuries/illness through the local medical institutions. Supposedly this is cheap and often high quality. This is something I’ll need to look into more. Besides with all the talk of national health care, it is very likely to change in some way over the next 10 years.
Financial Milestones
Goal: On June 14th, 2017, we should have $1,000,000 in investments, plus $100,000 cash to purchase a boat. Most likely almost all valuable possessions will be sold before retirement, so Networth can be used to track progress. My NetworthIQ badge is in the right column keeping track of our progress.
Networth Milestones (with buffer built in):
- June 14th, 2008 - $460,000
- June 14th, 2009 - $525,000
- June 14th, 2010 - $590,000
- June 14th, 2011 - $660,000
- June 14th, 2012 - $740,000
- June 14th, 2013 -$820,000
- June 14th, 2014 - $905,000
- June 14th, 2015 - $995,000
- June 14th, 2016 - $1,090,000
- June 14th, 2017 - $1,200,000
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