Real cost of full timing

[mbrower]

I am nearing retirement and would like to RV full time, traveling the country stopping no longer than 30 days in any one area. I'm not frugal but I'm not extravagant either. I don't want to spend my retirement squeezing every nickel until my DNA is permanently ingrained into Lincoln's head. I have crunched the numbers and I feel I would have around 7K dollars/month to start and 3% increase per year for the remainder of my life. These are before tax figures. I think that sounds adequate for a couple with no debt but I know things can add up quickly. I have no interest in working or hosting post retirement at this time so I'm not considering those options. I think I would just work another couple of years if needed. Looking for some real world guidance from people who live the life every single day. Any advice would really be appreciated!

I only want to retire once.

[JAXFL]

2gypsies wrote:

jmtandem wrote:

I have reconsidered work camping and would be open to it a few times a year when I need to slow down, but will probably consider it as a last resort measure only.

.

Keep in mind that workamping for money is a job. Volunteering for your campsite is fun. 🙂 and they treat you like a king because they really need you.

That means work for money is taxable and you could move up to a new tax rate.... don't you just love it?

[2gypsies1]

jmtandem wrote:

I have reconsidered work camping and would be open to it a few times a year when I need to slow down, but will probably consider it as a last resort measure only.

Some RV parks and campgrounds where folks purchase the site for exclusive use hire full timers, give them free space while working there, and pay a nominal hourly wage. You can live for almost free usually as the pay is often enough to cover food. And as others have indicated there can be lots of exploring on the days off. It helps your money stretch and is rarely looked at as 'work'. And if you can't stand it, quit. You have nothing to lose, a real win win situation.

Keep in mind that workamping for money is a job. Volunteering for your campsite is fun. 🙂 and they treat you like a king because they really need you.

[xthread]

Check this site out,It may help

http://www.rv-dreams.com/index.html

[jmtandem]

I have reconsidered work camping and would be open to it a few times a year when I need to slow down, but will probably consider it as a last resort measure only.

Some RV parks and campgrounds where folks purchase the site for exclusive use hire full timers, give them free space while working there, and pay a nominal hourly wage. You can live for almost free usually as the pay is often enough to cover food. And as others have indicated there can be lots of exploring on the days off. It helps your money stretch and is rarely looked at as 'work'. And if you can't stand it, quit. You have nothing to lose, a real win win situation.

[mbrower]

2gypsies wrote:
You definitely can't base health insurance in any of your planning right now. Look at all the changes in the past two years and lots of increases if you have to buy your own. Full-timers now who are not on Medicare are really running into lots of problems. You just don't know what the future will hold in that respect, unfortunately.

This is the part that really worries me. Health care is very fluid right now and god only know when costs will settle out. However, since health care insurance is now a requirement to buy, I think they will figure out a way to make it affordable to those on fixed income and/or retired. Unfortunately, I can only plan on past experiences and the data I have available at this moment.

I have reconsidered work camping and would be open to it a few times a year when I need to slow down, but will probably consider it as a last resort measure only.

[mbrower]

jmtandem wrote:

I'm not really looking for a specific place to live. I'm just looking for a strategy to keep more of my retirement income. For the next decade, where I live will be where I park my RV. Would like my home base to be where taxes,registration and tag, and medical cost would be the lowest. My house now is is the home my wife and I built, where we raised our kids, and where we worked the land to make it our own utopia. It's not perfect but I doubt I could find anywhere else within my budget that I'd rather live once I'm done traveling.

If I am understanding you correctly you need to be very careful and consult a CPA as in most cases where you vote, where you register your vehicles, have your driver's licenses and keep a home base is considered your home state. You might want to check the excellent information on the Escapees webpages as to how to do what you want to do. Many full timers use South Dakota, Florida, or Texas as their domiciles for tax purposes. They typically have to register to vote, get their driver's licenses, and register their vehicles in that state and often spend at least some time each year in the state. It is good you are doing your homework now before you cast off the dock lines and check out all your domicile options as health insurance is also a major consideration and understanding how that will work for you depending on the state you choose for your domicile is important. Technomadia has a lot of good info on health insurance for full timers.

Thank you, a lot of good information. I will check out technomedia about health insurance. Thanks for the tip!

[2gypsies1]

You definitely can't base health insurance in any of your planning right now. Look at all the changes in the past two years and lots of increases if you have to buy your own. Full-timers now who are not on Medicare are really running into lots of problems. You just don't know what the future will hold in that respect, unfortunately.

This doesn't mean that you have to give up your dream of full-timing. I'd just recommend that you save as much as you can now and not be in any kind of debt when you begin full-timing.

You state you want to travel a decade. Are you planning to let your house sit during that time or rent it out? The house will need care during that time so that will be another added expense.

Full-timing is an awesome experience and lifestyle. We hope you can do it but I think all of us are trying to bring up things that perhaps you haven't thought about so there are no surprises.

Also keep in mind that volunteering in the national or state parks is a great thing. It gives you purpose and you'll know that it really does help out. The parks are so appreciative. It will also give you a free campsite. How many folks can say they've actually lived in Yellowstone? It's not like a 'job'. Don't rule it out for a couple months a year. It gives you a chance to really explore the park and the surrounding area. We loved doing it occasionally. There are many different opportunities if you don't want to be camp host. If you're mechanically-minded or a photographer or would enjoy interpretative gigs, the positions are out there. We specialized in giving lighthouse tours in different places - a fun gig. 🙂

[mbrower]

TechWriter wrote:

mbrower wrote:

I don't know how long it will take to complete my bucket list but I want to allow at least ten years which means I need to be on the road by age 60

Where I call home for tax and health purposes has also been on my mind and I believe NC is not as senior friendly as other states so If any one can share some insight into calling another state home I would love to hear from you.

If you retire at age 60, you'll need 5 years of buying your own health insurance.

This could be a considerable expense -- far more than the $150/month you said you were spending now. BTW, your health declines as you get older.

The fact that you didn't know Medicare starts at 65 (not 62), want to keep you house (with all its incumbent expenses), and want to take a lump sum payout of your retirement fund has me changing my mind about your estimated budget expenses. I think you could be in for a bad surprise if you retire that early.

Thank you for your response. I have figured my home taxes, insurance, and electric into my budget and is not included in the 7k travel budget so I'm not sure what else I could be overlooking. As far as health insurance, I am worried a little about that. I have a HDHC plan
and have had it since they were made available around mid 2000's. With those plans you are allowed to save and invest money in a health care savings account much like a 401K, which I have contributed the max allowable amount. By estimate, I should have around 70K in the account at retirement. According to healthcare.gov, my premiums with subsidies would be around $250.00/month with max out of pocket of 13K. If I met out of pocket expense for 5 years that would only be around 59K. In the last 8-10 years I have only reached my deductible once so I think my odds are pretty good but then, only God knows.

As far as my retirement money I mentioned cashing out, this account is a benefit provided by the company I work for. It is not funded by me and could go the way of the dodo bird if the company decides to do away with it, which they say they have the right to do. They have quit providing that benefit to new employees two years ago. My options are to cash it out and spend or reinvest it. I can also draw a fixed stipend from it the rest of my life or until they decide to do away with it. I think I'm going to cash it out. What I do with it I'm still undecided but I like the idea of a new truck/RV.

This account is NOT my retirement account. Sorry about the confusion.

[jmtandem]

I'm not really looking for a specific place to live. I'm just looking for a strategy to keep more of my retirement income. For the next decade, where I live will be where I park my RV. Would like my home base to be where taxes,registration and tag, and medical cost would be the lowest. My house now is is the home my wife and I built, where we raised our kids, and where we worked the land to make it our own utopia. It's not perfect but I doubt I could find anywhere else within my budget that I'd rather live once I'm done traveling.

If I am understanding you correctly you need to be very careful and consult a CPA as in most cases where you vote, where you register your vehicles, have your driver's licenses and keep a home base is considered your home state. You might want to check the excellent information on the Escapees webpages as to how to do what you want to do. Many full timers use South Dakota, Florida, or Texas as their domiciles for tax purposes. They typically have to register to vote, get their driver's licenses, and register their vehicles in that state and often spend at least some time each year in the state. It is good you are doing your homework now before you cast off the dock lines and check out all your domicile options as health insurance is also a major consideration and understanding how that will work for you depending on the state you choose for your domicile is important. Technomadia has a lot of good info on health insurance for full timers.

[TechWriter]

mbrower wrote:

I don't know how long it will take to complete my bucket list but I want to allow at least ten years which means I need to be on the road by age 60

Where I call home for tax and health purposes has also been on my mind and I believe NC is not as senior friendly as other states so If any one can share some insight into calling another state home I would love to hear from you.

If you retire at age 60, you'll need 5 years of buying your own health insurance.

This could be a considerable expense -- far more than the $150/month you said you were spending now. BTW, your health declines as you get older.

The fact that you didn't know Medicare starts at 65 (not 62), want to keep you house (with all its incumbent expenses), and want to take a lump sum payout of your retirement fund has me changing my mind about your estimated budget expenses. I think you could be in for a bad surprise if you retire that early.

[tjfogelberg]

"Full timing" tends to indicate a desire to shed one's "sticks and bricks" and live on the road FT. We are falling more into your camp (pardon the pun) of keeping S+B as a permanent base. We've spent years fixing things up and love it here. The RV is our outlet and will eventually be our ticket south to escape the harsh winters. Keys for us to make this work are being debt free and knowing our budget. When we first took a long trip in the RV (2 months), we had such a great experience that we thought we might like to full time someday. But then we came home and realized how much we love it here. We will opt for a smaller less expensive RV and keep our S+B. We think it will hold it's value and is low cost. That is the other secret- organizing things so that the monthly costs are as low as possible and maintenance is manageable. I guess we'll just be a couple of run of the mill snowbirds, probably spending much of the winter in Texas. Lots of parks to choose from and only 1,200-1400 miles South.

[mbrower]

jmtandem wrote:
Early on you said you were keeping your house. If you are looking for another state to retire in why not sell, look, and in your travels find the state and/or city you want to retire in?

I'm not really looking for a specific place to live. I'm just looking for a strategy to keep more of my retirement income. For the next decade, where I live will be where I park my RV. Would like my home base to be where taxes,registration and tag, and medical cost would be the lowest. My house now is is the home my wife and I built, where we raised our kids, and where we worked the land to make it our own utopia. It's not perfect but I doubt I could find anywhere else within my budget that I'd rather live once I'm done traveling.

[Ivylog]

GA has become senior friendly... At 62 you do not pay GA income tax (6%) on $32K/person and at 65 it increases to $65K. Property taxes vary by county with the cheapest in the GA mountains, BUT most RVs are considered property.

There is still no sales tax on used non motorized vehicles (trailers) bought from an individual. It used to include cars and trucks... MHs.

[jmtandem]

Early on you said you were keeping your house. If you are looking for another state to retire in why not sell, look, and in your travels find the state and/or city you want to retire in?

[mbrower]

Everything seems to be a balancing act especially as you get older and living on a fixed income.

The break even point on SS seems to be about 82 no matter the age you start drawing. If your life expectancy is earlier than 82 it seems it would be more prudent to start drawing earlier. I looked at my family history and most all members of my family live around 80 years. I have a grandma who is 94 and a uncle who is 82 but they seem to be exceptions rather than the rule. Dad died in June at 78. With the exceptions of a few, most of my family die from heart related problems and were active with few debilitating problems prior to their deaths. About half of my siblings including me have already had our first heart attack in our 50's so I know I'm not immune.

So, if I look at my life honestly, I will probably die with-in a few years of the age of 80 but will probably remain active and in good health until then. I think realistically age 70-75 would probably the age when hauling a fifth wheel around the country would be too stressful, too physical, or too dangerous.

I don't know how long it will take to complete my bucket list but I want to allow at least ten years which means I need to be on the road by age 60.

Where I call home for tax and health purposes has also been on my mind and I believe NC is not as senior friendly as other states so If any one can share some insight into calling another state home I would love to hear from you. Thank you all for your generous time to respond. I'm learning a lot from each of you.