Venue for April 25 - Oaklawn again

[JolyB]

At the risk of being taxed as an Arkansas resident and having to register my motor vehicle [come to think of it, that's probably a lot less than what it is up here], I'd like to continue to stay in Hot Springs, enjoy the waters and the superb racing at Oaklawn Park.

Once again they will be offering races with very full fields that appear to be quite competitive. So, let's limit our contest card to races 3 through 11. That includes both of the stakes races and ought to keep us busy enough.

Post time for race 3 will be 1:37 PM Central time.

Hope to see all of you in the starting gate.

[cal828]

Originally Posted by JolyB

At the risk of being taxed as an Arkansas resident and having to register my motor vehicle [come to think of it, that's probably a lot less than what it is up here], I'd like to continue to stay in Hot Springs, enjoy the waters and the superb racing at Oaklawn Park.

Once again they will be offering races with very full fields that appear to be quite competitive. So, let's limit our contest card to races 3 through 11. That includes both of the stakes races and ought to keep us busy enough.

Post time for race 3 will be 1:37 PM Central time.

Hope to see all of you in the starting gate.

Good choice. Maybe OP will be kinder to us than in our last two visits.

Speaking of comparing taxes(and other expenses), I was reading last night about a young couple that retired in their 30s and moved to Arizona and are living off their investments which totaled about a million dollars. After the Covid sell-off they had lost about $232k, but said they would be staying the course which is probably best, I think. Anyway, there was in indication of their expenses and what I thought was amazing was what they reported spending on insurance which was $170 a month for 2 cars and their home. That seemed crazy low to me. I pay about $170 for my house alone and probably 2 and half times that for my cars, but I have one more car than them. One thing that might have something to do with it though was they live in the middle of the desert where not much grows except creosote bushes so maybe they get a break because not much danger of fire or water damage as that is a scarce commodity in the desert. Here in Arkansas, the danger to your house is fire, which destroys it quickly or water, which destroys it slowly or of course, the occasional tornado, which I am guessing is probably a very rare, if unheard event in the desert.

[JolyB]

Originally Posted by cal828

Speaking of comparing taxes(and other expenses), I was reading last night about a young couple that retired in their 30s and moved to Arizona and are living off their investments which totaled about a million dollars. After the Covid sell-off they had lost about $232k, but said they would be staying the course which is probably best, I think. Anyway, there was in indication of their expenses and what I thought was amazing was what they reported spending on insurance which was $170 a month for 2 cars and their home. That seemed crazy low to me. I pay about $170 for my house alone and probably 2 and half times that for my cars, but I have one more car than them. One thing that might have something to do with it though was they live in the middle of the desert where not much grows except creosote bushes so maybe they get a break because not much danger of fire or water damage as that is a scarce commodity in the desert. Here in Arkansas, the danger to your house is fire, which destroys it quickly or water, which destroys it slowly or of course, the occasional tornado, which I am guessing is probably a very rare, if unheard event in the desert.

This is way off topic, but I wanted to reply to your observations. That insurance number is much lower than I have experienced also - although the liability component of auto insurance up here is very expensive, and in this litigious world it is essential to have liability coverage that is greater than the state's minimum requirements.

I'd love to read the article you referred to so that I could understand how that young retired couple makes their budget work. The nest egg is impressive until you consider just how long it needs to last. I assume that they don't have children and don't plan on having any. Even so, financial planners often suggest that your annual expenditures should not exceed 4% of your nest egg, but I think that is for retirees in their 60's, not retirees in their 30's. Perhaps they are in an area with low property taxes and they may reduce utility expenses with solar power from the Arizona sun and be otherwise self-sufficient. The cost of health insurance must take a very sizeable chunk of their budget, and it will continue to increase as they get older.

[cal828]

Here is the link. Tab down and I think it says market watch videos. The first one is Dr. Phil and the 2nd one is entitled "Firestarters." That is the one on the young couple. I think their estimate for monthly expenses was a little over 2K.

Yes, they have solar power, no kids and they do talk about the 4% withdrawal rule.

https://search.yahoo.com/search?p=ww...p=mss&ei=UTF-8

[JolyB]

Thanks for the link. Interesting article. Have to admire the bravery and independence of those who make such a life style decision. They seem to have thought it out very carefully and it must work for them for the time being. The absence of either transportation or clothing from their monthly budget must eventually be faced as things eventually need to be repaired or replaced. The amount allocated for health care seems very low, even for a young, healthy couple. Over time, that can be a budget breaker. They are fortunate that property taxes are so low. Most of all, I guess they need to hope that the increase in value of their stock investments grows faster than the rate of inflation, since they are looking at such a long horizon over which their nest egg must last.

[DonGuido]

Originally Posted by JolyB

This is way off topic, but I wanted to reply to your observations. That insurance number is much lower than I have experienced also - although the liability component of auto insurance up here is very expensive, and in this litigious world it is essential to have liability coverage that is greater than the state's minimum requirements.

I'd love to read the article you referred to so that I could understand how that young retired couple makes their budget work. The nest egg is impressive until you consider just how long it needs to last. I assume that they don't have children and don't plan on having any. Even so, financial planners often suggest that your annual expenditures should not exceed 4% of your nest egg, but I think that is for retirees in their 60's, not retirees in their 30's. Perhaps they are in an area with low property taxes and they may reduce utility expenses with solar power from the Arizona sun and be otherwise self-sufficient. The cost of health insurance must take a very sizeable chunk of their budget, and it will continue to increase as they get older.

Nest egg, what nest egg? Our yoke was broke a long time ago. And I was 71 when I retired. a forced retirement at that. I know TMI, back to racing.

[cal828]

Originally Posted by JolyB

Thanks for the link. Interesting article. Have to admire the bravery and independence of those who make such a life style decision. They seem to have thought it out very carefully and it must work for them for the time being. The absence of either transportation or clothing from their monthly budget must eventually be faced as things eventually need to be repaired or replaced. The amount allocated for health care seems very low, even for a young, healthy couple. Over time, that can be a budget breaker. They are fortunate that property taxes are so low. Most of all, I guess they need to hope that the increase in value of their stock investments grows faster than the rate of inflation, since they are looking at such a long horizon over which their nest egg must last.

I agree that they are brave. I think what would concern me is their losses in the market which I am guessing may plunge even further when companies start reporting earnings, but they are young so could return to work. We all have to worry about the stock market. I'm sure it will recover at some point, but who knows when. They are right to stay invested because if you cash out, you just lock in losses. A lot of older people depend on the market for part of their income, but I would hate to think I was solely dependent on it.

As for property taxes, I think mine are quite a bit lower, but I didn't hear them say how much acreage they had so maybe that is the difference. Might be nice to live in Arizona. I probably wouldn't be plagued by all the allergy problems that I have
in this wet place with tons of both pollen and mold. Hot Springs is a pretty, forested place with several lakes, but some of us pay the price for living here.