East coast Retirement Budget explained in detail

East coast is an expensive locality in USA. If you plan on retiring at east coast, we have come up with retirement budget you can refer to to determine how much you need to have in buffer to retire comfortably. We have developed this budget taking into consideration early retirement as well. This comes handy for retirement planning. Take a look at this and come up with your retirement (or) early retirement figures. We recommend making use of Personal Capital as the preferred tool to track your expenses, plugin the values from Personal Capital to come up with your expense estimate

Retirement Budget Planning In High Cost Of Living East Coast
S.No Expense Category Maximum Amount Budgeted Remarks
1 Housing Expenses (Lets assume mortgage paid in full before retirement)
1.1 Property Taxes 10000 This is a conservative estimate of property taxes in east coast. The amount varies from 7000 to 10000 on an average
1.2 Home Insurance 2400 This estiamte is based on $40 per 100k worth of home value. Average home pricing in east coast is 400K to 500K
1.3 Home repairs/maintenance 5000 This depends on repair of many different appliances including overn, plumbing, heater reapirs etc
1.4 Home Maintenance 4000 This includes fees on sewer, trash, snow removal, landscaping etc
1.5 Home Utilities 2000 This includes gas bill, electricity bill and miscellaneous expenses
1.6 Home furniture 1200 Furnitures can be added, changed as needed. This is purely optional expense
2 Cable/Phone
2.1 Internet 80 Average internet price is $80. Downgrading will not save much
2.2 Cable/Netflix 10 Optional
2.3 Phone bill 1500 Cell phone bill for family of 3 from a stable service provider costs $120 per month minimum
3 Auto Expenses
3.1 Toll Expense 300 It depends on commute. Once retired this will be closer to $0. However, with vacations in early retirement this is an option that can be part of budget
3.2 Gas Expense 1000 On an average expect to spend $100 per month on auto for miscellaneous travel. If you plan mini picnics, vacations close by that can still be part of this. This does not include major vacation expense
3.3 Auto Repairs 1500 If you own a car that is too old have this buffer added in place
3.4 License Renewal 20 License renewal costs are included on a five year average. The amount included here is per year average estimate
3.5 Vehicle Title Registration/ Inspection fees 200 This is an annual expense you can expect depending on your locality
3.6 Auto insurance 500 This is minimum amount that covers basic things in east coast
4 Clothing
4.1 Adults Clothing 400 This is an annual expense that is an average estimate
4.2 Kids clothing 500 As kids grow their clothing expense outspace adults expense towards clothing
5 Groceries/Household Expenses
5.1 Groceries/Vegetables 8000 This is average estimte for family of 4 people living in east coast
5.2 Restaurant/ Outside dining 3000 For a family of four if you expect to spend $50 per week on an average this is restaurant expense
6 Toys/Kids Fun Stuff
6.1 Toys 3000 For family with 2 kids it costs this much every year
6.2 Educational Camps 3000 This is optional but kids enjoy camps
6.3 Fun stuff 2500 this includes weekly visit of places kids want to visit frequently
7 Gadgets/ Electronics
7.1 Laptop 1000 Though there is no need to replace expensive laptops every year this might be needed
7.2 Accessories 600 This covers accessories like mouse, headphones, cameras, tripod etc
8 Credit Card Dues/Subscription Fees
8.1 Annual subscription fees 600 Most probably travel rewards credit cards come with fees. In retirement frequent trael, travel related expenses mostly cover this expense
9 Gifts to Family Friends
9.1 Gift Cards 200 For family visits this cost is minimum you can expect
9.2 Gifts to Kids 300 Every holiday season expect this expense
10 Charity/Donation
10.1 Donation 100 Optional
11 Vacation
11.1 Semi-annual vacation 3000 Once in a year expense
11.2 Major travel Expense 9000 For family of four this is average expense on major trips per year
12 Medical/Vision/Dental Expense
12.1 Medical with ACA Coverage 5000 If the ACA coverage is gone expect this to be around 20K without tax credit
12.2 Vision/Dental 2500 Vision and dental without insurance costs this much
13 Taxes
13.1 Federal Income Tax 15000 The above expense comes around 90K. With deductions to cover above expense person has to shed 15K in federal income taxes
13.2 State Income Tax 8000 On an average in east coast tax rate is 7%. For salary range of around 90K it will be in this range
Total Expense Amount in Retirement 95410