[quote=UCGal]AN…
Do you plan to drive when you retire?
I assume you’d use your current equity to pay for a place in Del Mar or Solana Beach.
Cars wear out…even when lightly used. You still need to budget for gas, insurance, tires, etc… if you own a car.[/quote]
Yes, I plan to drive. I said remove car payments, not car maintenance or gas, etc. Right now, even with today’s gas price, we’re paying ~$150/month in gas for 2 cars. When we’re retired, we can reduce to 1 car and we no longer need to drive everyday to work. So, I suspect it’ll be much less than that. I suspect insurance will go down to for lightly used vehicles vs vehicles used for commute. Tires will last much longer too. Right now, we’re driving ~10-15k miles/years, so tires should last 4-5 years. When we’re retired, I suspect 1 set of tires will last 8-10 years. Bottom line is, if you project the current expense for transportation (not including car payment) will be more than enough to cover the transportation cost during retirement.
Yes, you assume correctly, I don’t plan to retire until I can pay off my retirement house.
