Parsippany NJ in east coast USA has been rated best places to be in. If you plan on retiring at east coast particularly at parsippany NJ, 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 (Parsippany NJ Inclusive)
Retirement Budget Planning In High Cost Of Living East Coast (Parsippany NJ Inclusive)
| 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 |
