Financial planning for the dogs

I suppose many people want to read about Cyprus, the sequester, debt limits, and other events that seem very important for a moment or two. There are plenty of people writing about those issues today. I’ll take a break from the commentary and give some advice that can save you a lot of money and provide you a much better life experience.

Most people love animals. Many of us of own pets. Unfortunately, because there is little advance warning of pet-related costs, few people actually do a good job of accurately planning around all those costs during a pet’s lifetime.

I’m inspired to write about it this month for a few reasons:

1. We love dogs. We’ve been a big-dog retriever family for some time.
2. We lost one of our golden retrievers prematurely this past fall, while very good friends of ours lost theirs just this month. Both dogs were way too young, and both required veterinary care before they passed.
3. We’re about to get a puppy next month, which requires a lot of costs and time up front, but it’s also very exciting!

All in all, it seemed like a good time to visit this topic because dogs (or insert your pet of choice) are expensive to own. You owe it to yourself and your dog to plan accordingly.

Assumptions

Let’s paint a picture using my family as an example. Fill in your own assumptions.

1. We choose to own large purebred retrievers. We believe you get a more genetically mature and temperamental animal, while you discourage hobby breeding and puppy mills. We presume this lowers our costs of ownership as well.
2. The upfront cost of a purebred dog is high, though.
3. Large breeds, in general, don’t live that long compared to small breeds. We assume 10 years. (My last three dogs to pass away lived to 11, 13, and 8.)
4. We do all the recommended vet visits and then some.
5. We do all recommended shots, blood work, heartworm treatments, and ectoparasite treatments.
6. We groom our dogs at least four times a year. Golden retrievers require it. Labs don’t require much.
7. We feed our dogs quality dog food.
8. We actively play with our dogs and give them toys and treats.
9. We do not let our dogs get fat. Simply double the numbers below if you let your dog get fat. Also, consider yourself guilty of abusing your pet and expect its quality of life to be horrible. Unfortunately, the dog can’t tell you that until it’s too late. (Okay, I’m stepping off my soapbox.)

I think this is a relatively consistent assumption track for most committed dog owners.

First year: $2,500 to $4,000 up front

Here’s the first-year upfront cost in our situation (you can adjust accordingly for your preferred animal).

1. Puppy: Our large purebreds have historically run $1,200 to $1,800.
2. Books: We already own a bunch of books, but let’s assume you actually want to raise a dog correctly and learn in advance. Books will run about $25 to $50.
3. Toys: Tennis balls, $15. Dog toy store … easily in the hundreds if you get crazy, but let’s assume $100.
4. Dog stuff: Like a crate for training, grooming tools, leashes, etc.: $250.
5. Treats: $50 a year.
6. Boarding. When we travel, we get a home/pet sitter. If you travel and board or need a sitter, you’re looking at $30 to $75 a day. Let’s assume you’re gone for one week a year at $50 a day.
7. Puppy vet visits to get through the first year. Vaccinations, deworming, heartworm, ectoparasites (fleas and ticks), spaying or neutering. Roughly $300 to $600, depending on the vet.
8. Training: If you are not training your dog on your own, you may want to hire someone. That runs anywhere from $25 to $50 a class to $400 to $1,000 a month if you send the dog away. Let’s assume you take just five one-on-one classes at $50 a class: $250.
9. Food: Good food runs about $1 a pound. Our large dog goes through 50 pounds of food a month. Assume $500 per year.
10. Grooming: $75 a visit for a longhaired dog. First year, assume one time.

Ongoing: $1,000 to $2,000 annually/$10,000 to $20,000 over 10 years

This is about the average annual expenditure for our dogs.

1. Toys: Assume $25.
2. Treats: Assume $50.
3. Food: Assume $500.
4. Heartworm and ectoparasite treatment: $200 to $300 a year.
5. Grooming: $75 a visit, four times a year: $300.
6. Boarding if you travel – presumably about $30 to $50 a day.
7. Vet checkups: $250 to $500.

Vet irregular maintenance: Approximately $1,250 over 10 years

These are things that will likely pop up over the dog’s lifetime that you should address.

I’m assuming something pops up every other year over a 10-year life.

1. Dental cleanings: $250-plus.
2. Flu or sickness: $250.
3. Other: $250.

Major injury: $500 to $2,500

If your dog tears a ligament, gets attacked by another dog, or gets hit by a car, you’re looking at $500 to $2,000 in surgery costs plus medicine.

Hopefully, this never happens, but if it does, it’s expensive.

End of life: $250 to $5,000-plus

The end of a dog’s life can be peaceful and require few veterinary costs (hopefully that’s the case) or it can be very expensive, depending on your choice of comfort and care and whether your dog is afflicted with something “treatable.”

If your dog gets a terminal illness or a cancer that is treatable and you choose to treat, you’re looking at a big price tag.

For example:

1. Confirming the problem requires tests and scans: $500 to $1,000.
2. Medicine: $30 to $100 a month.
3. Surgery to remove problem: $1,500 to $3,000.
4. Burial/cremation: $150 to $250.

Total costs: $2,000 to $5,000-plus.

If instead you choose just to keep your dog comfortable rather than opt for major surgery, you’re still looking at vet visits, medicine, and burial: $1,000 to $1,500.

If you’re lucky, your dog passes away peacefully with no problems in his or her life: $250 in burial, cremation.

Final tally over 10 years: $12,500 to $30,000-plus

Depending on the level of care at the beginning and end of your dog’s life, how you treat your dog annually, and whether you needed to treat any injuries, it is entirely possible the cost of owning a dog could run anywhere from $12,500 to $30,000 over 10 years. (I’ve met owners who have spent even more with no regrets.)

So, yes, you read that right; annual pet costs should be budgeted at about $100 to $200 per month, not including the first-year costs.

Dogs are wonderful. Good dogs add so much to one’s quality of life. We hope to always have dogs in our lives. But dog ownership comes with a significant financial responsibility.

Are you prepared to own a dog the way he or she deserves to be owned?

Michael Dubis is a fee-only certified financial planner and president of Michael A. Dubis Financial Planning, LLC. He is also an adjunct lecturer at the University of Wisconsin Business School James A. Graaskamp Center for Real Estate. Mike can be reached at financialperspectives@gmail.com.

 This article contains the opinions of the author. The opinion of the author is subject to change without notice. All materials presented are compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. This article is distributed for educational purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, products or services described in this website or that of the author’s. Mike Dubis does not guarantee the relevancy, appropriateness, or accuracy of any outside information or links. Mike Dubis does not render or offer to render personalized investment advice or financial planning advice through this medium. All references that might be made to an investment or portfolio’s performance are based on historical data and one should not assume that this performance will continue in the future.
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