The following is a breakdown of my anticipated monthly expenditures while retired.
I've revised this based on your very helpful comments of my previous post on expected target retirement savings. With so much speculation about current expenses (for us in our late 30s) going away, I decided to delete everything that didn't make sense (like day care) and put a new table up.
Please comment on what we're missing (I haven't been in my 60s yet (at least in this life)).
Obviously one of the next steps is to put my current savings plan and investment asset allocation plan (which will not be final until July 2007) and see if we can actually save enough to meet our projected needs.
One interesting question is how many expensive habits will we acquire that become essential. Another question is what forms of physical assistance will we need?
Have a wonderful weekend.
PS I calucalted the savings goal by multiplying annual expenditures by 25. This is in-line with current research that estimates if your first year's withdrawel in retirement is 4% or less of your assets and it remains consistent (adjusted for inflation) you shouldn't run out of money.