Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
A total mind shift on spending in retirement
Old 06-27-2018, 02:22 PM   #1
Recycles dryer sheets
Focus's Avatar
 
Join Date: Oct 2009
Posts: 499
A total mind shift on spending in retirement

Last year, I had an unexpected medical procedure that ate up my entire (high) deductible. That and my costly monthly premiums added up to a hefty total.

You'd think that would make me tighten the grip on my wallet, but it's had the opposite effect. My attitude now is: I'll be damned if I end up spending my savings on the U.S.'s overpriced health care industry. As a result, I find I'm less frugal and spending much more freely than ever before.

Has anyone else had a similar experience?
__________________

__________________
-
"Wealth consists not in having great possessions, but in having few wants."
--Epictetus
Focus is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-27-2018, 03:24 PM   #2
Full time employment: Posting here.
 
Join Date: Nov 2009
Posts: 537
We had similar experience on ACA. Both on Medicare now. More than double previous healthcare premiums going on ACA (with high deductibles) - and one $140K procedure hit us early on in retirement. Mostly covered by insurance after hitting max-out-of-pocket costs.

Just figured that these things are inevitable in retirement and would have to deal with them as they came up. Did not expect it to come up at the start of retirement. Didn't change any spending habits and hopefully retirement continues along w/o anymore of these financial hits.....
__________________

__________________
ďBelieve me, my young friend, there is nothing - absolutely nothing - half so much worth doing as simply messing about in boats.Ē Kenneth Grahame, The Wind in the Willows
fritz is offline   Reply With Quote
Old 06-27-2018, 04:05 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 6,663
No, "I'll be damned" sounds like an emotional response. I try to avoid that with respect to both investing and spending. You're not getting even with anyone than yourself.

Now, after monitoring a few years of spending and my financial state, I'm also less frugal, but it's due to having a good financial situation, not an "I'll be damned" response.

If you've got enough buffer to spend more, great. If the increased medical expenses are making a tight situation tighter, you're setting yourself up for a lot of trouble, IMO.

It's all up to you, but this post raises warning lights with me, since you asked.
RunningBum is offline   Reply With Quote
Old 06-27-2018, 04:48 PM   #4
Recycles dryer sheets
 
Join Date: Nov 2016
Location: Fargo
Posts: 242
What is worse than potential future health problems? Spending too fast and having health problems and money problems.

Keep your emotional spending in check. You probably got your "I'll be darned" spending out of the way.
bloom2708 is offline   Reply With Quote
Old 06-27-2018, 04:55 PM   #5
Recycles dryer sheets
Focus's Avatar
 
Join Date: Oct 2009
Posts: 499
Quote:
Originally Posted by RunningBum View Post
No, "I'll be damned" sounds like an emotional response. I try to avoid that with respect to both investing and spending. You're not getting even with anyone than yourself.

Now, after monitoring a few years of spending and my financial state, I'm also less frugal, but it's due to having a good financial situation, not an "I'll be damned" response.

If you've got enough buffer to spend more, great. If the increased medical expenses are making a tight situation tighter, you're setting yourself up for a lot of trouble, IMO.

It's all up to you, but this post raises warning lights with me, since you asked.
I can see how you might get that impression, but don't read too much into my choice of words. I haven't changed my financial plan or bought an expensive red sports car. Not yet, anyway...

Thus far in retirement (nearly four years in), I've had to pull less from savings than expected. The medical expenses pushed me up to my original annual estimate. In a sense, it indicated that my financial plan is sound, and perhaps that helped make me feel freer about spending.
__________________
-
"Wealth consists not in having great possessions, but in having few wants."
--Epictetus
Focus is offline   Reply With Quote
Old 06-27-2018, 04:55 PM   #6
Thinks s/he gets paid by the post
RobbieB's Avatar
 
Join Date: Mar 2016
Location: Central CA
Posts: 3,658
I was max out of pocket the last 2 years of my wife's life. Hospitals and chemo ain't cheap. But she died anyway and that was what made me less frugal.

Spend the dough while you can, you may be diagnosed with pancreatic cancer and have 2 years left.
__________________
Retired at 59 in 2014. Should have done it sooner but I worried too much.
RobbieB is offline   Reply With Quote
Old 06-27-2018, 05:00 PM   #7
Recycles dryer sheets
Focus's Avatar
 
Join Date: Oct 2009
Posts: 499
Quote:
Originally Posted by fritz View Post
Just figured that these things are inevitable in retirement and would have to deal with them as they came up. Did not expect it to come up at the start of retirement. Didn't change any spending habits and hopefully retirement continues along w/o anymore of these financial hits.....
Same here. Didn't expect major issues until after I was on Medicare. Life has a way of throwing us curveballs. I still have years to go until Medicare kicks in, so I'm quite concerned about what might happen with insurance coverage from here until then.
__________________
-
"Wealth consists not in having great possessions, but in having few wants."
--Epictetus
Focus is offline   Reply With Quote
Old 06-27-2018, 05:10 PM   #8
Moderator Emeritus
aja8888's Avatar
 
Join Date: Apr 2011
Location: The Woodlands, TX
Posts: 8,982
Quote:
Originally Posted by RobbieB View Post
Spend the dough while you can, you may be diagnosed with pancreatic cancer and have 2 years left.
Or two weeks like some people I knew.
__________________
......."Everybody has a plan until they get punched in the face." -- philosopher Mike Tyson.
aja8888 is offline   Reply With Quote
Old 06-27-2018, 05:31 PM   #9
Thinks s/he gets paid by the post
 
Join Date: Dec 2010
Location: Midwest
Posts: 1,347
Retirement is no different than pre-retirement when it comes to financial surprises. You can plan all you want, but a fridge can go out, car can collapse, leaking pipe can destroy a bathroom, etc. And this does not include health issues. How did you handle those expenses during pre-retirement? Savings? Heloc? Get a PT job? Spouse goes to work? What is so different now?

I had a very good friend whose wife contracted a muscular type disease about a year into retirement. She was put into a nursing home and he spent every meal with her, 3 times a day, just to make sure someone made sure she was eating. None of their travel plans worked out and he was financially ruined over time. Now that, is a retirement crisis-not the occasional emergency spending. Just my opinion, of course.
brucethebroker is offline   Reply With Quote
Old 06-27-2018, 05:41 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 20,147
Quote:
Originally Posted by RobbieB View Post
I was max out of pocket the last 2 years of my wife's life. Hospitals and chemo ain't cheap. But she died anyway and that was what made me less frugal.

Spend the dough while you can, you may be diagnosed with pancreatic cancer and have 2 years left.
That certainly moderates things for me in terms of being too frugal. Mom was diagnosed with pancreatic cancer at 62 and passed less than 1.5 years later. That motivated me to retire very early when I could, and now Iím turning 59 this year! Itís a little spooky.
__________________
Retired since summer 1999.
audreyh1 is offline   Reply With Quote
Old 06-27-2018, 05:46 PM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 6,663
Don't deprive yourself and be too frugal, because you might be dead in a year or two.

Don't overspend, because you might still be around.

It's kind of a fine line to walk, but living like there's no tomorrow is a lot different from spending like there's no tomorrow.
RunningBum is offline   Reply With Quote
Old 06-27-2018, 08:35 PM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Moemg's Avatar
 
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 10,547
After being so sick earlier in the year I was determined to be less frugal .It only worked for a few months and then I reverted to my frugal self.It was fun while it lasted !
Moemg is offline   Reply With Quote
Old 06-27-2018, 09:26 PM   #13
Thinks s/he gets paid by the post
 
Join Date: Jun 2014
Posts: 2,428
Bruce, so sorry about your friend. He sounds like a wonderful person who had his priorities straight.
Teacher Terry is online now   Reply With Quote
Old 06-28-2018, 02:14 AM   #14
Thinks s/he gets paid by the post
Koolau's Avatar
 
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 3,403
Quote:
Originally Posted by Focus View Post

I'll be damned if I end up spending my savings on the U.S.'s overpriced health care industry.
Some folks go the expat route to get lower HC costs. Not my cup of tea as there are too many other things I like about living in the US which compensate for our expensive HC system. This could turn political so I'll only suggest "you pays your money and you takes your choice." YMMV

Oh, and your MC is no good outside the US. Good luck.
__________________
Ko'olau's Law -

Anything which can be used can be misused. Anything which can be misused will be.
Koolau is offline   Reply With Quote
Old 06-28-2018, 05:23 AM   #15
Thinks s/he gets paid by the post
 
Join Date: Mar 2011
Posts: 4,966
Quote:
Originally Posted by RunningBum View Post
Don't deprive yourself and be too frugal, because you might be dead in a year or two.

Don't overspend, because you might still be around.

It's kind of a fine line to walk, but living like there's no tomorrow is a lot different from spending like there's no tomorrow.
I've often mentioned the guy who told me: "Oh, you're 60? Remember that even if you live to be 90, you only have 15 or 18 good years left. After that things go downhill or you loose interest in things". I met him in a bar for just a few minutes but it changed my entire life-thinking.

At first, I took the OP's "I'll be damned" comment to mean that he/she would spend all their money and let Medicaid pick up the health tab.
__________________
Living well is the best revenge!
Retired @ 52 in 2005
marko is offline   Reply With Quote
Old 06-28-2018, 06:57 AM   #16
Thinks s/he gets paid by the post
 
Join Date: Mar 2015
Posts: 1,778
Quote:
Originally Posted by Focus View Post
Last year, I had an unexpected medical procedure that ate up my entire (high) deductible. That and my costly monthly premiums added up to a hefty total.

You'd think that would make me tighten the grip on my wallet, but it's had the opposite effect. My attitude now is: I'll be damned if I end up spending my savings on the U.S.'s overpriced health care industry. As a result, I find I'm less frugal and spending much more freely than ever before.

Has anyone else had a similar experience?
No. Frankly I don't understand how a costly medical year would make you spend more. And I have no idea what "I'll be damned if I end up spending my savings on the U.S.'s overpriced health care industry" actually means.

- Did you cancel your insurance?
- When the next medical procedure comes up, will you refuse treatment?
- Is this some sort of YOLO action, where you intend to drive your assets down to Medicaid level?

Last November, I found out I have cancer. I haven't changed my spending habits at all.
__________________
Old enough to know better.
joeea is offline   Reply With Quote
Old 06-28-2018, 07:16 AM   #17
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dawg52's Avatar
 
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 8,004
Quote:
Originally Posted by Focus View Post
I can see how you might get that impression, but don't read too much into my choice of words. I haven't changed my financial plan or bought an expensive red sports car. Not yet, anyway...

Thus far in retirement (nearly four years in), I've had to pull less from savings than expected. The medical expenses pushed me up to my original annual estimate. In a sense, it indicated that my financial plan is sound, and perhaps that helped make me feel freer about spending.
I get what you mean. As I age I have loosened the budget a bit. And a medical hit can be a reminder that we do not know how much time we have left. But it is a balancing act.....got to be sure there is plenty left for the super golden years if we make it that far.
__________________
Retired 3/31/2007@52
Full time wuss.......
Dawg52 is offline   Reply With Quote
Old 06-28-2018, 07:29 AM   #18
Thinks s/he gets paid by the post
 
Join Date: May 2014
Posts: 3,948
I've always been afraid of ending up old and poor and that's driven my financial decisions as an adult. To me, an unexpectedly large OOP medical expenses falls into the "oh, crap" expense category- you don't know what, you don't know when, but Stuff Happens. I have a 3% withdrawal rate in uneventful years to be conservative so I can withdraw more for such incidences.
athena53 is offline   Reply With Quote
Old 06-28-2018, 07:39 AM   #19
Thinks s/he gets paid by the post
Car-Guy's Avatar
 
Join Date: Aug 2013
Location: Citizen of Texas
Posts: 3,077
Quote:
Originally Posted by RobbieB View Post
Spend the dough while you can, you may be diagnosed with pancreatic cancer and have 2 years left.
I've known 3 people diagnosed with Pancreatic cancer in the past 10 years. All were gone in less than a year.
Car-Guy is offline   Reply With Quote
Old 06-28-2018, 07:43 AM   #20
Thinks s/he gets paid by the post
Car-Guy's Avatar
 
Join Date: Aug 2013
Location: Citizen of Texas
Posts: 3,077
Quote:
Originally Posted by Focus View Post
Last year, I had an unexpected medical procedure that ate up my entire (high) deductible. That and my costly monthly premiums added up to a hefty total.

You'd think that would make me tighten the grip on my wallet, but it's had the opposite effect. My attitude now is: I'll be damned if I end up spending my savings on the U.S.'s overpriced health care industry. As a result, I find I'm less frugal and spending much more freely than ever before.

Has anyone else had a similar experience?
Not due to a specific medical event, but my enhanced spending is due to the realization of my own mortality. Logistically, I should have about 15 years left. Could be <5 or could be ~25 but the clock is winding down.
__________________

Car-Guy is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Pulling the trigger - shift from mind to heart Focus FIRE and Money 21 07-29-2014 11:48 PM
Total Bond Mkt Index vs PIMCO Total Return Inst/Stable Value Dude FIRE and Money 7 04-03-2008 01:11 AM
Time to shift towards large growth? Lsbcal FIRE and Money 8 12-02-2007 10:44 PM
Shift Happens... Fireup2020 Other topics 4 06-02-2007 10:30 AM
Shift Happens greg Other topics 9 05-18-2007 12:09 PM

» Quick Links

 
All times are GMT -6. The time now is 12:53 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.