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.

[tonymull]

Your plan sounds good, except you will not be eligible for Medicare till 65. But if you manage your income properly you will be able to get an ACA plan for something reasonable till you get there. SS income is only partially taxable and Roth IRA's are non taxable. We have been able to convert most of our regular IRA's to Roth's over the years so, for us, it's a matter of withdrawing the right mix of Roth, IRA, SS and capital gains to avoid taxes all together. Our budget is about 72K per year. You can save a tremendous amount of money by utilizing NF campgrounds when you can. We spend about 3 months each year in BC and the Rec. sites there are free...no electric or water, just pit toilets, tables and a fire pit, but they are mostly on lakes I want to fish and camp at anyway. Realize though, going in, that you won't likely be able to camp till you die, so plan for your last few years.

[mbrower]

The only 'real' numbers include depreciation or replacement of your RV. Many do not consider replacement costs prorated on a monthly basis as part of the true cost of full timing. RV's wear out, at the end of it's life are you planning to hang it up or get another one and keep going? It is a very real and not insignificant cost. If you need a new pickup sometime in the next ten years for the KZ you will spend upwards of $40-50,000. That is $350+/- a month replacement cost over a ten year period.

This has always been a major concern of mine. My plan as of now is to cash out my company retirement account and purchase new truck/fifth wheel the day I file my retirement papers. However, the financial markets may change and put a kink in my plans but barring a complete meltdown, a new truck will at least be in my future. This account is different than my IRA/401K account. I do have some play in my retirement numbers and the 7k draw should still allow my account to continue to grow provided the markets stay stable. I carry a 15k credit card with me when I travel so hopefully that would cover any major expenses that may come up.

[BarbaraOK]

mbrower wrote:
Thank you all for your suggestions. Right now, the 7k/month is before taxes and I'm not sure how retirement income is taxed. Right now I'm at about 28% tax bracket. As far as insurance, I have separate account for that and I'm more or less self insured as far as medical goes. I plan on going on Medicare once I reach early retirement at 62 if I'm eligible. My wife and I like to travel pure and simple. Sight seeing, memorials, parks, hiking, etc. We will eat out at popular local eateries maybe a few times a week. Once I feel there is nothing left to experience, I want to move on to our next destination. I'm very capable with most repairs on both camper and truck but large projects would need to go to a shop due to lack of facilities and equipment.

Medicare doesn't kick in until 65 unless you have a SS Disability. So you will have 3 years of additional health insurance to cover.

Lots of us do just fine on 4-5K of month, live very comfortably, don't have to work, etc. Just depends upon what you want to do.

Barb

[mbrower]

Thank you all for your suggestions. Right now, the 7k/month is before taxes and I'm not sure how retirement income is taxed. Right now I'm at about 28% tax bracket. As far as insurance, I have separate account for that and I'm more or less self insured as far as medical goes. I plan on going on Medicare once I reach early retirement at 62 if I'm eligible. My wife and I like to travel pure and simple. Sight seeing, memorials, parks, hiking, etc. We will eat out at popular local eateries maybe a few times a week. Once I feel there is nothing left to experience, I want to move on to our next destination. I'm very capable with most repairs on both camper and truck but large projects would need to go to a shop due to lack of facilities and equipment.

I guess full time vacation would be a more accurate description of what I'm seeking. I love my home and plan on keeping it so when my "vacation" finally ends, I plan on returning home and living out my days happily ever after.

I'm not college educated so I've never had a hi powered paying job. I've spent my whole life working extra shifts, nights, odd jobs and putting up with some of the worst supervisors that have ever walked the earth. I've missed a lot of life trying to raise two daughters, paying for college and weddings, all while trying to live debt free and saving for the day I can finally say "I've had enough". I hate to use the word never, but I really don't see myself doing work on anyone else's schedule once I decide to call it quits.

[rv2go]

I don't think that I could spend $7,000 a month if I wanted too.

[jmtandem]

Looking for some real world guidance from people who live the life every single day. Any advice would really be appreciated!

If you are looking for real numbers there are a few considerations and lots of web based real world dollar costs to full time. The first thing would be to understand that many full timers spend what they have available; just like they did before full timing. So, if that is your budget you have a good idea what it will cost you.

The only 'real' numbers include depreciation or replacement of your RV. Many do not consider replacement costs prorated on a monthly basis as part of the true cost of full timing. RV's wear out, at the end of it's life are you planning to hang it up or get another one and keep going? It is a very real and not insignificant cost. If you need a new pickup sometime in the next ten years for the KZ you will spend upwards of $40-50,000. That is $350+/- a month replacement cost over a ten year period.


There are lots of web pages with good numbers on what it costs to RV full time and if you look at their lifestyles you can see about what it costs for the lifestyle you plan to enjoy. Escapees, LoveYourRV, Technomadia, GoneWithTheWynns, NURVers, are all excellent webpages that provide lots of guidance on the RV life that include cost data, registration, licenses, health insurance, taxes, and for many how to make money on the road. Many RVing full time are not retired, they are young and embrace the lifestyle while they are young. Most are RVing for around $3500 or so a month so you should be good.

[TechWriter]

mbrower wrote:
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.

Yes, that sounds reasonable.

BTW, be wary of the "race to the bottom" posters -- "I full time on 4K", "I do it on $1K", etc, etc. You've worked your numbers . . . trust them.

A couple of suggestions . . .

-- Do as much preventive maintenance as possible before you start. It's typically more expensive and chancy on the road.

-- Will you have to buy health insurance on the road? If so, make sure this is in your budget with much more than yearly 3% increases.

-- Don't rule out working on the road. We bought park model (a totally unplanned expense) our 1st year and the money we made work camping really helped to pay off the loan.

[donn0128]

Depending on your RV type you can start budgeting at around 1500 a month for one, maybe 2500 a month for two.

[2gypsies1]

$7,000/month is very high. Most do it on much less.

Start keeping track of what you spend now. You'll need to add some things and subtract some to get a good idea. If you're going to keep your present house or load your belongings into a storage unit then it can really add up. We sold it all and never regretted it. Most likely your food will remain the same. Full-timers aren't on vacation so you don't go to restaurants for every meal. You cook like you always did. What do you do for entertainment now? Will you be doing the same as you travel? There are lots of variances and it just depends how you want to live the lifestyle. However, you can do it much less than you have figured. Good luck!

[Dutch_12078]

Many fulltimers manage quite nicely on a third of that or less.

[JoeGood988]

You can save thousands by looking into work camping...hours vary from 12 hrs a week to 40. There are a wide variety of positions available. State parks, National parks, BLM, regular campgrounds, fish & game, lighthouses and the list goes on. You can commit to 30 days to 6 months at a time...look into www.workamper.com

[Hideout17]

7k a month sounds very doable imho. Enjoy yourself