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Old 09-25-2014, 10:25 AM   #21
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Spending too little? Me, yes, but DW cancels me out!
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Old 09-25-2014, 10:31 AM   #22
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Ya , maybe so , as defined by the article. I think I spend at least double or more , adjusted for inflation, compared to my grandparents generation.
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Old 09-25-2014, 10:32 AM   #23
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I really don't think you'll be able to change your spending habits substantially. But it is fun to think about, isn't it?
Ha! Oh ye unbelievers, just wait and see. If this non-traveling homebody somehow manages to buy a more upscale home (a purchase that would have a lot of value for me), the property tax assessor and the insurance company would help me change my spending habits quite a bit. I am figuring that just the increased property tax and insurance would eat up all of my SS. The utilities and maintenance would be more, too.

You know how they caution homebuyers about lifestyle creep if they buy a more expensive home in a better neighborhood? Well there you go. But I am in no hurry. I will relish the process, you're right. It definitely IS fun.
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Old 09-25-2014, 10:36 AM   #24
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Ha! Oh ye unbelievers, just wait and see.
Go ahead, prove me wrong!
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Old 09-25-2014, 10:44 AM   #25
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Go ahead, prove me wrong!
I almost did on Tuesday! But even though I'm eager to do so, there just isn't any sense in paying 7% more for the house than the maximum the comps could possibly justify. 4% more and we'll talk... Stupid sellers think it's the effing Taj Mahal. Maybe they'll come back at me with hat in hand and ask me to resubmit my offer, at some point, and then you'll see. Meanwhile I'll just patiently wait for something else suitable to come on the market. I'm not going to settle for just ANY house, y'know.
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Old 09-25-2014, 11:01 AM   #26
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I don't think 4-6% is unreasonable for people retiring at full retirement age. I think a lot of people on this site will have more money when they die than when they retired. To some that may mean success. To me it means you worked longer than you needed to.
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Old 09-25-2014, 11:03 AM   #27
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A typically stupid retirement finance article. People will spend "too little" when pigs fly. Means are limited, but wants infinite.

For many of us, there is nothing much to spend money on that would clearly increase our happiness- at least as much as having comfortable balances available.

I spend whatever I want on food or on going out, but can it really increase your spending much if you buy a bit more halibut @ $18/#? Who would want to eat it more than once a week or so?
As far as going out to eat, I like happy hours a lot, and for really nice food and a prudent amount of wine it rarely costs more than $50-$60 for two. A movie can set me back $50, add an oyster feast and still it will always be less than $125 total.

I don't want a car. My only use would be going to dances, which might expose me to difficulty with GF. I sometimes think I might like better clothes, but then I would have to be sure the moths didn't eat them so that is out.

There are few things I could spend money on that don't carry ongoing responsibilities, or expose me to some foreseeable and other unforeseeable risks. Don't want!

Ha
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Old 09-25-2014, 11:12 AM   #28
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Now that I am getting SS direct deposits, my WR has gone from 2.x% to 1.x% and is getting awfully close to 0.x%. ....
I think about spending and enjoying more as a result (not spending more just to spend it) next year--DH is going to start SS early 2015 just after reaching 66, and then in summer 2015 I start medicare for about one-third the cost of my $930/month individual COBRA plan. Not in a million years did I ever expect to have this "problem".
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Old 09-25-2014, 11:22 AM   #29
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I don't want a car. My only use would be going to dances, which might expose me to difficulty with GF.

Ha
As long as you didn't take the GF with you to a dance, you should be OK with that!
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Old 09-25-2014, 11:30 AM   #30
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I'm going "low spend" (half of what I could spend) these first few years for two reasons... One is that this is my first year not getting a W2 (at 55), so I figure this is the danger zone if the market does not cooperate. And finally, I'm trying to stretch my limited after-tax funds into more years for the purpose of qualifying for the ACA subsidies. In a couple of years, I'll need to show income from the 401k, and then I plan to be spending closer to what I'm "allowed" to spend.
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Old 09-25-2014, 11:35 AM   #31
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Moi, spending too little? Hmm... I beg your pardon, but not this guy. Not anymore!

After spending mucho for the recent upgrades and repairs to the homes, and now pumping expensive Canadian gasoline at $5/gal into the guzzling motorhome, my last 12-month expenses are running 3.9% of current portfolio value, which has been shrinking with the current market ebb too.

So, me underspending? Party on!
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Old 09-25-2014, 11:51 AM   #32
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I find that a trip to Europe easily corrects any under spending for the year.
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Old 09-25-2014, 12:05 PM   #33
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If you aren't spending enough, buy a used Volvo. That will help you increase your spending....
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Old 09-25-2014, 12:05 PM   #34
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I don't think 4-6% is unreasonable for people retiring at full retirement age. I think a lot of people on this site will have more money when they die than when they retired. To some that may mean success. To me it means you worked longer than you needed to.
I decided I was FI just as a joined the forum in 2006.. I was considering pulling the plug then when MIL broke her hip and FIL was quickly identified as having Alzheimers'. To avoid becoming a FT caregiver I stayed employed. FIL finally passed away 3 years ago. I've been officially a OMYer since then. My excuse was moving into what is to be our final retirement home which has involved various imporovements and expenses covered from earnings. Realistically, I could have covered all of these costs out of the portfolio. Now, I'm pretty sure I won't be spending what I have. The grandkids should be happy when they find out.

I agree with you that there are a lot of people here that have worked far longer than necessary. They justify it with very low withdrawl rates and many contingencies that they just have to cover. Of course, there is the other group (much smaller) that retire on a wing and a prayer with tight budgets and no room to maneuver. You never know the future. People approach that problem in different ways.
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Old 09-25-2014, 12:08 PM   #35
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I find that a trip to Europe easily corrects any under spending for the year.
I can't get DW to go enough to spend my travel budget. Without going to Europe (or somewhere overseas), the money just sits there until next year.
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Old 09-25-2014, 12:12 PM   #36
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I find that a trip to Europe easily corrects any under spending for the year.
+1. Living in the Bay Area helps with any fear of underspending too.
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Old 09-25-2014, 01:41 PM   #37
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+1. Living in the Bay Area helps with any fear of underspending too.
+2
As does living in SoCal...but that will be remedied in the not too distant future when I leave never to return.
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Old 09-25-2014, 01:45 PM   #38
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+1. Living in the Bay Area helps with any fear of underspending too.
So does having gum surgery that is completely non-reimbursable by either medical or dental insurance! DH did that yesterday, and there went next year's vacation.
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Old 09-25-2014, 02:10 PM   #39
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Good article but not likely to garner much support from this forum. This forum is full of people with 2% - 3% WR, and their yearly asset continues to increase at rate that would leave them with a lot more than what they have now. Some want to leave the money to their children, to charities, and to other worthwhile cause and that's all good. For others, no amount of money is enough to ensure their financial security.

As for me, I have reduced my LBYM level in recent years, i.e, loosened up my purse string a little to bring more comfort and enjoyment to our lives, and to give more to others. I don't see the point of accumulating wealth beyond what's needed for my retirement.
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Old 09-25-2014, 02:15 PM   #40
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+2
As does living in SoCal...but that will be remedied in the not too distant future when I leave never to return.
Options, where are you going next if you don't mind saying? We've been trying to justify the move to S. California for years, but it just doesn't make sense. We visit a lot and sure enjoy the weather, palm trees and beaches.
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