Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 02-08-2016, 04:18 PM   #61
Full time employment: Posting here.
dtbach's Avatar
 
Join Date: Apr 2011
Location: Madison
Posts: 752
Quote:
Originally Posted by FUEGO View Post
That's my mom right there.

She recently retired at 62 with a full (but modest) pension and my dad is still working. They are set to get $35-40k in social security in another few years. And they have probably $2 million or more in the bank.

Yet she's worried about tiny expenses and trying to cut corners all over. She's driving a 20 year old Honda with 200k+ miles on it. I've suggested she could probably afford to buy a new(er) used car but she says "I'm on a budget".

She's hesitant to spend on fun travel while she still can. "I'm on a budget".

She doesn't have an actual budget and hasn't determined exactly how much she could spend every year without depleting her portfolio later in life. I've suggested they crunch the numbers or meet with their financial advisor (you pay him, why not use him?).

I imagine they will learn from us that it's okay to spend more in retirement as long as you have a plan with some degree of safety. I just hope it's before they are 70+ and/or suffer from some disability.

The good news is my inheritance will probably be rather rotund. The bad news is I don't think they'll ever be able to spend all their funds.
This is pretty much like my parents (although they are now in their 90's). Never spent any money, reinvested all dividends, etc and now they are wealthy but can't really do anything. Sure I'll get a nice inheritance but it would have been nicer if they had done some things. My dad realizes it now (my mother is in hospice and will probably be gone in a month or so) and admits that they should have done a little more travel etc. Well, you can't stop time and you only go around once (unless you are Hindu??) so you can bet I'll be spending some of my stash (and their's when I get the inheritance.

Also, in the next few years I will get a raise just by 1) paying off the mortgage, 2) getting the daughters through college and 3) taking SS at 68. So even though I won't be taking more from my WR, I will be getting a "raise" from expenses that go away and taking SS.
__________________

__________________
Wild Bill shoulda taken more out of his IRA when he could have. . . .
dtbach 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 02-08-2016, 04:19 PM   #62
Full time employment: Posting here.
dixonge's Avatar
 
Join Date: Mar 2008
Location: Ajijic
Posts: 847
What about a bell-curve sort of WR? Start low, cautious. As you see things working out, adjust upwards. Eventually you'll settle down, both in desire and perhaps in health, and then start lowering spending again. I can see us doing that.

It's tricky to balance our natural miserly, frugal mindset with our fear of missing out on something wonderful because we waited too late...
__________________

__________________
dixonge is online now   Reply With Quote
Old 02-08-2016, 04:38 PM   #63
Thinks s/he gets paid by the post
 
Join Date: Feb 2013
Location: Toronto
Posts: 1,414
I suspect that our withdrawal rate will fall as we age. RMDs will force some increase but there will be decreasing need to withdraw from other sources. Spending should go down with age and barring some major disaster, portfolio should be getting larger with time.
__________________
6miths is offline   Reply With Quote
Old 02-08-2016, 05:32 PM   #64
Thinks s/he gets paid by the post
 
Join Date: Dec 2009
Location: Alberta/Ontario/ Arizona
Posts: 3,127
Quote:
Originally Posted by dixonge View Post
What about a bell-curve sort of WR? Start low, cautious. As you see things working out, adjust upwards. Eventually you'll settle down, both in desire and perhaps in health, and then start lowering spending again. I can see us doing that.

It's tricky to balance our natural miserly, frugal mindset with our fear of missing out on something wonderful because we waited too late...
Interesting idea. We have been retired 10 years and portfolio has done well. Maybe I should boost spending a bit. I went to a Super Bowl party yesterday and the host had a really nice new sports car. Mmmm
__________________
Danmar is offline   Reply With Quote
Old 02-08-2016, 06:30 PM   #65
Full time employment: Posting here.
dixonge's Avatar
 
Join Date: Mar 2008
Location: Ajijic
Posts: 847
Quote:
Originally Posted by Danmar View Post
Interesting idea. We have been retired 10 years and portfolio has done well. Maybe I should boost spending a bit. I went to a Super Bowl party yesterday and the host had a really nice new sports car. Mmmm
I hereby disavow any influence I may have inadvertently had on any purchasing splurges!
__________________
dixonge is online now   Reply With Quote
Old 02-08-2016, 10:53 PM   #66
Thinks s/he gets paid by the post
 
Join Date: Dec 2015
Posts: 1,086
I am hopeful that WR will be allowed to increase. I think I'm going into it more frugally budgeted than absolutely necessary, and after a few years of getting my bearings, I'll be comfortable upping it a bit. Time will tell.
__________________
HadEnuff is offline   Reply With Quote
Old 02-09-2016, 06:41 AM   #67
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
kcowan's Avatar
 
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 5,714
Send a message via Skype™ to kcowan
Quote:
Originally Posted by Danmar View Post
Interesting idea. We have been retired 10 years and portfolio has done well. Maybe I should boost spending a bit. I went to a Super Bowl party yesterday and the host had a really nice new sports car. Mmmm
We have little desire for material things but we expect that when our current cat of 18 years decides to cross the Rainbow Bridge, we will have more flexibility to travel whenever we desire it. This will increase our WR as we pursue more Bucket List items but I expect that to subside in a few years. And we are not counting the days because we love our tuxedo cat. He always greets us when we return home.

We just had house guests and he disappeared for a week but he is now back! Our buddy. There are some things that money cannot buy!
__________________
For the fun of it...Keith
kcowan is offline   Reply With Quote
Old 02-09-2016, 10:09 AM   #68
Thinks s/he gets paid by the post
 
Join Date: Dec 2009
Location: Alberta/Ontario/ Arizona
Posts: 3,127
Quote:
Originally Posted by kcowan View Post
We have little desire for material things but we expect that when our current cat of 18 years decides to cross the Rainbow Bridge, we will have more flexibility to travel whenever we desire it. This will increase our WR as we pursue more Bucket List items but I expect that to subside in a few years. And we are not counting the days because we love our tuxedo cat. He always greets us when we return home.

We just had house guests and he disappeared for a week but he is now back! Our buddy. There are some things that money cannot buy!
Desire for material things tends to decrease with age for sure, but boy that car was nice. Luckily there are quite a few things that money can buy.
__________________
Danmar is offline   Reply With Quote
Old 02-10-2016, 10:15 AM   #69
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
kcowan's Avatar
 
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 5,714
Send a message via Skype™ to kcowan
My friend retired last December 2014 and has now sold his vintage Alfa and replaced it with the Luxus hardtop convertible. Certainly toys have their place in any retirement.

He is in the process of booking 3 months in PV for next year (2 months this year).
__________________
For the fun of it...Keith
kcowan is offline   Reply With Quote
Old 02-11-2016, 10:08 AM   #70
Thinks s/he gets paid by the post
 
Join Date: Dec 2009
Location: Alberta/Ontario/ Arizona
Posts: 3,127
Quote:
Originally Posted by kcowan View Post
My friend retired last December 2014 and has now sold his vintage Alfa and replaced it with the Luxus hardtop convertible. Certainly toys have their place in any retirement.

He is in the process of booking 3 months in PV for next year (2 months this year).
So if people increase their Withdrawal Rate as they age what would you spend it on other than travel or health care? Certainly could gift more to family and charity. At some point a hot sports car is just ridiculous. Happily I'm not at that stage yet.😉
__________________
Danmar is offline   Reply With Quote
Old 02-11-2016, 10:19 AM   #71
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: 16,457
Quote:
Originally Posted by Danmar View Post
So if people increase their Withdrawal Rate as they age what would you spend it on other than travel or health care? Certainly could gift more to family and charity. At some point a hot sports car is just ridiculous. Happily I'm not at that stage yet.��
Bribe family to travel with you.
Upgrade to a nicer assisted living place.
Give more away....

Oh yeah - there are tons of ways to upgrade travel so that it is more comfortable for someone with less mobility, or needing assistance.
__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is online now   Reply With Quote
Old 02-11-2016, 10:28 AM   #72
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2006
Posts: 11,017
Quote:
Originally Posted by Danmar View Post
So if people increase their Withdrawal Rate as they age what would you spend it on other than travel or health care? Certainly could gift more to family and charity. At some point a hot sports car is just ridiculous. Happily I'm not at that stage yet.😉
I would add personal services. A maid would be nice. When I can't drive any more, a chauffeur. Grocery delivery. A limo for my upcoming trip to Italy, rather than the train. Etc......
__________________
Meadbh is offline   Reply With Quote
Old 02-11-2016, 10:34 AM   #73
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Amethyst's Avatar
 
Join Date: Dec 2008
Posts: 5,875
I'm not sure what that "point" is. There is man at our gym who is about as generic-looking a geezer as you could imagine - big belly, few strands of hair, potato face, and an eyepatch - but he drives the hottest bright-yellow sports car imaginable.

And we cheer him on.

Quote:
Originally Posted by Danmar View Post
At some point a hot sports car is just ridiculous.
__________________
If you understood everything I say, you'd be me ~ Miles Davis
'There is only one success to be able to spend your life in your own way. Christopher Morley.
Amethyst is offline   Reply With Quote
Old 02-11-2016, 10:41 AM   #74
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,424
We had a family member who lived in an assisted living home. She relied on her portfolio for about half her total spending and was very thrifty. Even when we urged her to increase her spending a bit for her own comfort she refused, concerned that she might run out of money.

Toward the end, when her health was rapidly declining, she did admit, very privately, that she regretted not having spent more on herself during her final years.

I think these discussions are too theoretical. Our concerns about portfolio survival do not go away gradually and we do not see the slow approach of more funds available to spend. Our financial horizon is indefinite, then very suddenly upon us. We only know we had more money to spend when it is too late to spend it.
__________________
MichaelB is online now   Reply With Quote
Old 02-11-2016, 10:55 AM   #75
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,400
Quote:
Originally Posted by MichaelB View Post
... I think these discussions are too theoretical. Our concerns about portfolio survival do not go away gradually and we do not see the slow approach of more funds available to spend. Our financial horizon is indefinite, then very suddenly upon us. We only know we had more money to spend when it is too late to spend it.
+1000

I have seen too many people dyeing of cancer, a heart attack, or a stroke in their 60s, or even 50s, to think that it is certain that I do not have that risk.

The above said, I have no desire for a sports car. I must be paid a lot of money, and I mean a lot, to have to drive such a car. And I am not even of early SS age.
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is online now   Reply With Quote
Old 02-11-2016, 11:11 AM   #76
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,077
Quote:
Originally Posted by MichaelB View Post
We only know we had more money to spend when it is too late to spend it.
An insurance salesman will be along shortly to point out the fallacy of your thinking - and offering to sell you a SPIA.
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 02-11-2016, 11:12 AM   #77
Thinks s/he gets paid by the post
 
Join Date: Dec 2009
Location: Alberta/Ontario/ Arizona
Posts: 3,127
OK posts 71-75 have convinced me to get that sports car, maybe. Most of the things mentioned as possible increases, we are already doing. Agree with MichaelB. Once you figured out you should spend more, it's probably too late.
__________________
Danmar is offline   Reply With Quote
Anyone planning to increase their WR with age?
Old 02-11-2016, 11:35 AM   #78
Moderator
Ronstar's Avatar
 
Join Date: Aug 2007
Location: A little ways southwest of Chicago
Posts: 9,341
Anyone planning to increase their WR with age?

I have plans to increase WR in the next few years. Part of it will go into our travel budget. Maybe a new truck, but not a new sports car.


Sent from my iPad using Early Retirement Forum
__________________
Ronstar is offline   Reply With Quote
Old 02-11-2016, 11:44 AM   #79
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,846
Quote:
Originally Posted by NW-Bound View Post
The above said, I have no desire for a sports car. I must be paid a lot of money, and I mean a lot, to have to drive such a car. And I am not even of early SS age.
+1 Even at just 67 years old, the aches and pains of aging have started catching up with me. I have zero desire to try to get in and out of a sports car. Love my Venza, though! It's just the right height to get in and out of, as pain free as possible.

Also, I never exceed the speed limit so any extra horsepower is wasted on me. Even my Venza has more zip than I can take advantage of.

I imagine there will be plenty to spend money on as I grow older. Probably these won't be the same things as I once desired. Similarly, what a 55-year-old spends his money on might not be what he would have spent it on (had he had it) at 17.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is online now   Reply With Quote
Old 02-11-2016, 12:18 PM   #80
Thinks s/he gets paid by the post
 
Join Date: Dec 2009
Location: Alberta/Ontario/ Arizona
Posts: 3,127
I'm not really trying to argue the merits of a sports car. Rather spending more now on something that brings enjoyment. Everybody is different in this regard whether it be more travel, more charitable giving, helping family, etc. The point that keeps coming out is, by the time you realize you should (have) spend(t) more, there probably isn't anything worthwhile to spend it on.
__________________

__________________
Danmar 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
Millennials Say They'd Give Up Their Cars Before Their Computers or Cell Phones Midpack Other topics 22 03-12-2013 07:10 AM
So, do you feel your age? Act your age? Like your age? vickko Life after FIRE 84 04-10-2010 02:47 PM
65% Spend More Time with Their Computer than Their Spouse soupcxan Other topics 11 01-25-2007 04:48 PM
Reaches into their stomachs and saves their lives~Wow! mickeyd Other topics 0 12-14-2006 11:11 AM
Japan - Their 20 year Downturn and their Investors............. Cut-Throat FIRE and Money 30 10-31-2005 04:13 AM

 

 
All times are GMT -6. The time now is 05:23 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.