I was wondering where does the money come from for your " extras" and unplanned expenses...Do you have a reserve of savings that you draw from.. If so what is the recommended amount.. I know in the stick house they say 3 - 6 months is it the same with FTing... Thanks for any input ..patti
Luvglass said
05:15 PM Jan 31, 2010
Being retired, we have a fixed income and everything we spend over and above that comes from savings, or IRA accounts. and that has been every month that we've been out for 4 years now.
Either we'll die before we run out, or we'll be eating dog food and work camping a lot.
Oh, but what an adventure it is!
Howard said
08:33 PM Jan 31, 2010
Patti,
Except for our IRAs, all of our financial assets (investments) are pretty liquid (mutual funds). If we need cash, we sell investments. It's all an emergency fund. :)
Back in the stick house, we had the three to six months of expenses in cash savings, but out on the road, we want those funds earning as much return as possible. So, we keep them invested.
We sort of have the same plan as Luvglass. :)
DagoRanch said
03:24 PM Feb 1, 2010
My plan has us leaving in 2011 with a years worth of expenses in the bank $30K. When we get down the halfway point of $15K, we'll work for awhile to build up the kitty so to speak. We feel that for most things, $15K will be enough to cover "most" things that may come up.
That being said, if we were in DIRE need, due to a real emergency, we could draw upon the various retirement accounts that are floating around out there, of course at a very hefty price in penalties and taxes.
So simply put:
$30K draw down to $15K; Lather, Rinse, Repeat. :)
eagleshea said
03:41 PM Feb 1, 2010
DagoRanch wrote:
So simply put:
$30K draw down to $15K; Lather, Rinse, Repeat. :)
SO what is your plan to Lather and rinse ???
DagoRanch said
04:03 PM Feb 1, 2010
Um....errrr....ugh.....gee...
You got me!
Imagine if we COULD lather and rinse with something that generated money! LOL
two travelers said
07:30 PM Feb 1, 2010
Thanks for taking the time to give me some input... it helps give me some ideas as to what I need to plan for...patti
Patti,
Except for our IRAs, all of our financial assets (investments) are pretty liquid (mutual funds). If we need cash, we sell investments. It's all an emergency fund. :)
Back in the stick house, we had the three to six months of expenses in cash savings, but out on the road, we want those funds earning as much return as possible. So, we keep them invested.
We sort of have the same plan as Luvglass. :)