Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 09-26-2014, 03:42 PM   #81
Full time employment: Posting here.
CaliforniaMan's Avatar
 
Join Date: Dec 2013
Location: San Diego
Posts: 846
Quote:
Originally Posted by NW-Bound View Post
I originally planned to spend 3.5%, but after sitting down to figure out our SS, am quite comfortable going up to 4%. After spending 1% on the maintenance and update of our homes this year, I am still at less than 4%.

I would not throw money away, meaning spending it without thinking about what to get in return, but on the other hand have stopped worrying about running out of money. If things get really bad, out of control, and we have to get rid of the homes and live full-time in a small motorhome, so what? Fewer expenses, and less things to take care off, and more travel... I would still find a way to enjoy life. As long as one has life, with some reasonable health, money is secondary.

Me worry?
+1 Good points. I think I am getting there, but may take a while, only 6 months into retirement after a lifetime of working and saving (ok, spending and saving). Strange change in me, recently had a couple of opportunities (work related) which in the past I would have jumped at. Now have absolutely zero interest in, regardless of the amount of money.

One thing that struck me a few weeks ago, I was checking my high school reunion website, was the large number of deceased classmates. Women as well as men. Strange feeling, the cute girl in Latin class (public school, yes Latin), who let me copy her homework before class every morning, until she wised up and saw how lazy I was, the guy with the crazy socks I used to joke with, the guy I played army men with in grade school, many others. I will not see at the next reunion. Makes you really think about what is important. And after you have enough to live it is certainly not money.
__________________

__________________
Merrily, merrily, merrily, merrily,
Life is but a dream.
CaliforniaMan 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 09-26-2014, 03:49 PM   #82
Thinks s/he gets paid by the post
 
Join Date: Feb 2014
Posts: 1,469
Quote:
Originally Posted by Al in Ohio View Post
You need to research a sleep number bed with full tilt control. If you have or get acid reflux it's worth every penny. And no those nice non name brand mattresses are not even close. Quality mattresses are like good books. You can't just judge them by their cover.


Sent from my iPad using Early Retirement Forum

We researched and got a sleep number bed a couple of years ago. After we got it I talked about it at work. Virtually every partner already had one. It is very comfortable. And a slight tilt helps with reflux and snoring. :-)


Sent from my iPhone using Early Retirement Forum
__________________

__________________
EastWest Gal is offline   Reply With Quote
Old 09-26-2014, 04:07 PM   #83
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 16,494
I was just playing around with the SS estimate calculator a few days ago and was a bit surprised a the number it gave. This was a good surprise. For some reason I remembered one much lower as being the estimate.

So it looks like we're going to have more income than we planned on and I'll have to think up something to do with it. That's a nice problem to have.
__________________
I heard the call to do nothing. So I answered it.
Walt34 is offline   Reply With Quote
Old 09-26-2014, 04:25 PM   #84
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,388
The point that I have been trying to make here on this forum, for the past year or so ever since I survived an unexpected serious life-threatening disease, is that for those of us who are in the late 50s and above, the health risk is much more serious than the finance risk.

I can say that because for most people who manage to save and invest to have enough to either actually retire or contemplate doing so, they would know to manage and cope if some economic hardship happens. We are no dumb lottery winners who happen to get a windfall then blow it all on trinkets.

If people get so worried about having to live on less in their old age, meaning monetary issues, I wonder how devastated they would be if they suddenly discover some health problems, and they may not get to that old age after all? Not all of us will get to the 90s, let alone the 100s.

Just a few days ago, I talked with a fellow RV'er. His wife has flown back home due to some pain, and he's driving the RV home alone. They now suspect stomach cancer. They had planned to get a boat to sail the world. She is only 52.
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is offline   Reply With Quote
Old 09-26-2014, 04:34 PM   #85
Recycles dryer sheets
 
Join Date: Dec 2011
Location: Chicago area
Posts: 427
Quote:
Originally Posted by rodi View Post
That article is nuts.

An expensive mattress? That's one of the things you should splurge on? (Don't get me wrong - if your mattress is crappy, replace it - but you can get very nice mattresses that are as good as the name brand ones, for a lot less. My sister just replaced hers - top of the line materials, totally researched what she wanted - and got a local furniture store brand that is equivalent to the big name brands for half the cost.)

As someone still new to retirement - so nervous about the budget... reading this article does not make me want to spend more. Especially when they suggest a 4-6% WR.
DW and I were in a furniture store last weekend and just randomly started trying out some of the mattresses. They were just OK. Then we looked at the price tags ans the top of the line mattress was priced at $15,000 but was "on sale" for $6,999.

We quickly moved on.
__________________
AnIntentionalRoad is offline   Reply With Quote
Old 09-26-2014, 04:37 PM   #86
Recycles dryer sheets
 
Join Date: Aug 2011
Location: aberdeen
Posts: 267
Guilty with this, sometimes.
Although, I had some legacy spending to help my daughter and even a education account for my only grandson. That made us feel good.
We're on 2-3% WR w/o problems.
We avoid big ticket items like cars, and will drive the Honda and Ford truck until about 100K miles.
We'll split a Subway footlong and drink water with it followed by an apple!
We're spending more on gas on road trips but stay in cheaper motels.
No first class plane ticket.
But we'll spend a lot on health care if we have to.

We don't want to be the richest folks in the graveyard. We just want to maintain our simple life style, and buy some nice experiences.
__________________
Birchwood is offline   Reply With Quote
Old 09-26-2014, 04:43 PM   #87
Thinks s/he gets paid by the post
 
Join Date: Feb 2012
Posts: 1,102
Quote:
Originally Posted by NW-Bound View Post
The point that I have been trying to make here on this forum, for the past year or so ever since I survived an unexpected serious life-threatening disease, is that for those of us who are in the late 50s and above, the health risk is much more serious than the finance risk.

I can say that because for most people who manage to save and invest to have enough to either actually retire or contemplate doing so, they would know to manage and cope if some economic hardship happens. We are no dumb lottery winners who happen to get a windfall then blow it all on trinkets.

If people get so worried about having to live on less in their old age, meaning monetary issues, I wonder how devastated they would be if they suddenly discover some health problems, and they may not get to that old age after all? Not all of us will get to the 90s, let alone the 100s.

Just a few days ago, I talked with a fellow RV'er. His wife has flown back home due to some pain, and he's driving the RV home alone. They now suspect stomach cancer. They had planned to get a boat to sail the world. She is only 52.
Good stuff. People seem to be overly optimistic in assessing their longevity (or the good years they can live a good lifestyle) yet so pessimistic in assessing markets. All of us here seem to live in the 95-100% success probability with a life in the 90's. I'll admit that's me, but I am really starting to question that. I've always been a pessimist in most planning (hey, I'm an engineer) but I always assume spending today's rate when I'm 92. Yeah, if I'm in a home. Won't be traveling but I suppose it could happen. I've lately been playing with slightly less than total market pessimism and the results are eye opening. Maybe the fact that I pulled the plug in 2011 and portfolio is up over 25% after withdrawals underscores that no, the worst does not always happen. I know, someone will trot out that if this was 2010 and I'd pulled the plug in 2006 I'd have a different perspective.

In the end we all have to do what is comfortable. However, I suspect there are a number here that will have one of those "Crap. If I knew THIS was going to happen I would ...taken those trips, had the beach house, eaten really great food, drank better wine, etc" moments. But, I'd guess we're all actually doing what feels best for us and that's what matters. Now really though, drinking cheap wine or national beer by the case?
__________________
H2ODude is offline   Reply With Quote
Old 09-26-2014, 05:02 PM   #88
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,388
Quote:
Originally Posted by H2ODude View Post
... In the end we all have to do what is comfortable. However, I suspect there are a number here that will have one of those "Crap. If I knew THIS was going to happen I would ...taken those trips, had the beach house, eaten really great food, drank better wine, etc" moments. But, I'd guess we're all actually doing what feels best for us and that's what matters...
Even before I got diagnosed with that disease which I overcame, I often asked myself that if I suddenly learned that I had only a short time left to live, I would regret anything. And the answer was no.

I have been thinking that other than the regret of not being able to live longer, I could not have done much better. I would not regret not getting that fancy car, or that big home. I already had enough travel. I could have spent more for my travels, like paying for better aircraft seats, but these benefits were really marginal, meaning they would not enhanced my experience at the destination. I doubt that on a deathbed, people would regret these things.

What I am saying is that it's OK to scrimp, as long as you would feel comfortable with leaving all that money behind if your longevity is not as planned. In my case, my wife or heirs will enjoy that, and I do not have to spend it all. But on the other hand, I am not going to let money worry keep me from enjoying life (let's see if I can still say the same if my WR happens to grow way beyond 4% due to market ebbs ).
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is offline   Reply With Quote
Old 09-26-2014, 05:14 PM   #89
Recycles dryer sheets
 
Join Date: Dec 2012
Posts: 389
From H2ODude
Quote:
People seem to be overly optimistic in assessing their longevity (or the good years they can live a good lifestyle) yet so pessimistic in assessing markets.
Ain't that the truth.

I know there are some great threads on this forum, but I think if I was to refer someone to read one thread and what this forum is about, this would be it. Quintessential of how ERs think.
__________________
Elbata is offline   Reply With Quote
Old 09-26-2014, 05:44 PM   #90
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Mulligan's Avatar
 
Join Date: May 2009
Posts: 7,369
Quote:
Originally Posted by NW-Bound View Post
Even before I got diagnosed with that disease which I overcame, I often asked myself that if I suddenly learned that I had only a short time left to live, I would regret anything. And the answer was no.

I have been thinking that other than the regret of not being able to live longer, I could not have done much better. I would not regret not getting that fancy car, or that big home. I already had enough travel. I could have spent more for my travels, like paying for better aircraft seats, but these benefits were really marginal, meaning they would not enhanced my experience at the destination. I doubt that on a deathbed, people would regret these things.

What I am saying is that it's OK to scrimp, as long as you would feel comfortable with leaving all that money behind if your longevity is not as planned. In my case, my wife or heirs will enjoy that, and I do not have to spend it all. But on the other hand, I am not going to let money worry keep me from enjoying life (let's see if I can still say the same if my WR happens to grow way beyond 4% due to market ebbs ).

That is kind of where I am at. I decided since I probably spend 85% of my time at my home (my preference) I might as well spend some money on my home. And that means busting out the wallet for hard wood flooring, bathroom reno with emphasis on an awesome shower and throwing the never used jet tub out the window, along with extending my deck and putting a hot tub on it. I swear my bones find the fountain of middle age after I sit in a hot tub for an hour.


Sent from my iPad using Tapatalk
__________________
Mulligan is offline   Reply With Quote
Old 09-26-2014, 06:06 PM   #91
Thinks s/he gets paid by the post
robnplunder's Avatar
 
Join Date: Nov 2013
Location: Bay Area
Posts: 2,123
Quote:
Originally Posted by REWahoo View Post
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?
I can help W2R and others with spending. PM me if you want ideas. Small consulting fee applies. Don't respond all at once. I have a full time job still.

__________________
Pura Vida
robnplunder is offline   Reply With Quote
Old 09-26-2014, 06:09 PM   #92
Thinks s/he gets paid by the post
 
Join Date: Apr 2005
Location: Midwest
Posts: 1,564
Quote:
That is kind of where I am at. I decided since I probably spend 85% of my time at my home (my preference) I might as well spend some money on my home. And that means busting out the wallet for...............
I love this thread. When I get out of the hospital next week, depending on the results and prognosis, I will take this into consideration. I might not have 30 yrs left. Or even 20.
__________________
razztazz is offline   Reply With Quote
Old 09-26-2014, 07:14 PM   #93
Full time employment: Posting here.
 
Join Date: Jan 2006
Posts: 684
Nope, not me.
__________________
48Fire is offline   Reply With Quote
Old 09-26-2014, 07:43 PM   #94
Thinks s/he gets paid by the post
 
Join Date: Feb 2007
Posts: 1,903
Quote:
Originally Posted by NW-Bound View Post
The point that I have been trying to make here on this forum, for the past year or so ever since I survived an unexpected serious life-threatening disease, is that for those of us who are in the late 50s and above, the health risk is much more serious than the finance risk.

I can say that because for most people who manage to save and invest to have enough to either actually retire or contemplate doing so, they would know to manage and cope if some economic hardship happens. We are no dumb lottery winners who happen to get a windfall then blow it all on trinkets.

If people get so worried about having to live on less in their old age, meaning monetary issues, I wonder how devastated they would be if they suddenly discover some health problems, and they may not get to that old age after all? Not all of us will get to the 90s, let alone the 100s.

Just a few days ago, I talked with a fellow RV'er. His wife has flown back home due to some pain, and he's driving the RV home alone. They now suspect stomach cancer. They had planned to get a boat to sail the world. She is only 52.
Good point. I live in a small town in SW Oregon that publishes the Obits in the daily paper. It's amazing to see how few (very- very few particularly males) make it to the late 90's or 100's that seemingly everyone at this forum (including moi) plan for. Most everyone is checking out in late 70's - mid 80's as per normal mortality schedules. ( and gulp, quite a few around my current age (64)! quite Amazing!
__________________
ejman is offline   Reply With Quote
Old 09-26-2014, 08:09 PM   #95
Thinks s/he gets paid by the post
 
Join Date: Mar 2010
Location: Kerrville,Tx
Posts: 2,707
The issue becomes that while the most recent numbers show that at 65 a male can expect 17.2 years and a female 19.9 years some will be on the long end of the tail. For expense planning purposes one needs to do this. Here is the census bureaus life expectancy by year spreadsheet Life Expectancy - The 2012 Statistical Abstract - U.S. Census Bureau (the link goes to a page that allows one to get a pdf or a spreadsheet).
Using the overall values at 70 it is 15 years,75 11.7 80 8.8, 85 6.5, 90 4.6 etc.
So the average person will die leaving money on the table as one should plan at at least the 75% point of the life expectancy curve.
__________________
meierlde is offline   Reply With Quote
Old 09-26-2014, 09:34 PM   #96
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2013
Posts: 5,325
Quote:
Originally Posted by razztazz View Post
I love this thread. When I get out of the hospital next week, depending on the results and prognosis, I will take this into consideration. I might not have 30 yrs left. Or even 20.
I hope your prognosis is excellent. That must be a tough wait to find out.
__________________
daylatedollarshort is offline   Reply With Quote
Old 09-26-2014, 09:35 PM   #97
Thinks s/he gets paid by the post
 
Join Date: Nov 2009
Posts: 3,855
My SWR has been falling since 2011, my third year of ER, for two reasons: The first is my HI premiums have fallen thanks to the ACA, and the second is the growth of my portfolio has exceeded the growth, if any, of my expenses. My ER was in the 2.5% range but us around 2% now.

If I want to go on a little spending spree once in a while, I don't worry because it is not a regular thing. Earlier this year, I had to shell out about $800 for things which would cause my SWR to rise about 0.1% for the year, hardly anything alarming.

From Fidelity's RIP program, my financial outlook only improves once I turn ~60 and can begin tapping into my "reinforcements" which are (1) unfettered access to my IRA, (2) my frozen company pension, and (3) Social Security. My only really somewhat challenging years will be those in my late 50s. So if i can keep my SWR this low for a few more years, so much the better. And I can still go on a spree now and then.
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

"I want my money working for me instead of me working for my money!"
scrabbler1 is online now   Reply With Quote
Old 09-26-2014, 09:52 PM   #98
Full time employment: Posting here.
 
Join Date: Mar 2004
Location: No Where for Very Long
Posts: 747
I've always been conservative with money so I tend to underspend. Living abroad has also been a factor in my lower with drawl rate since its cheap to live here. But it can also be expensive; it just depends on the person and their lifestyle.

There is a difference between not spending much but having the ability to do so.

No fancy motorcycle, car, Rolex or McMansion is worth my freedom...
__________________

__________________

Lancelot 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
Little by little sliding into mild depression. vicente solano Health and Early Retirement 61 09-03-2010 11:45 AM
If Too Much Time In The Gym Leaves You With Too Little Time For Your Honey, Try This haha Health and Early Retirement 14 08-27-2009 04:03 PM
did you feel guilty if you ERed before spouse? retiringat50 FIRE and Money 17 07-11-2008 11:18 AM
Felt a little guilty Eyerishgold Other topics 26 09-25-2007 01:27 PM
Too Much Money= Too Little Leisure? yakers FIRE and Money 11 02-07-2006 11:02 AM

 

 
All times are GMT -6. The time now is 09:40 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.