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Old 12-23-2017, 07:50 AM   #121
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My plan is that when the market tanks I won't have to decrease my spending.
!
Yes, I understand. A reasonably conservative approach. I am currently spending more than ever but when the market tanks I will just go back to spending divs. My divs are rock solid and weren’t cut in 2008-2009.

But I think it also depends on your age. I’m 67,been retired 11 years, and the portfolio is at an all time high. I figure if I don’t enjoy things now, I will soon get to the point where all I will want to do is “sit on the porch” (figuratively). This will likely mean a very large legacy left behind. I certainly don’t mind leaving a good size legacy but not something outrageous.

Getting the balance right between current consumption, risk, and legacy is something I think about a lot. I am very much in the minority here, it seems.
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Old 12-23-2017, 08:10 AM   #122
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Getting the balance right between current consumption, risk, and legacy is something I think about a lot. I am very much in the minority here, it seems.
Maybe not as much as you think. I'm in the same situation, albeit on a much smaller scale. I'm sure others are as well.
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Old 12-23-2017, 08:26 AM   #123
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Just spent a week in a neighboring state (Nayarit) on the beach for a break from our condo in downtown PV. Yea Baby.

Thinking of buying some ETHER as a flyer given the pullback. Having some fun!

Spending down the principle seems to be far away right now. If not now, when? Does not Firecalc assume that?

(Pas de lieu Rhône que nous. Our French teacher said Pas d'elle yeux Rhone que nous! It took us a while to figure it out!)
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Old 12-23-2017, 08:30 AM   #124
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.



Getting the balance right between current consumption, risk, and legacy is something I think about a lot. I am very much in the minority here, it seems.

I feel the same way .
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Old 12-23-2017, 09:19 AM   #125
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Maybe not as much as you think. I'm in the same situation, albeit on a much smaller scale. I'm sure others are as well.
Yes, probably. But we seem much more interested in discussing honey glazed hams, cognac, wine, knives, shellfish,iPhones, etc. More fun and easier? Well we do live in a consumer society, I guess.
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Old 12-23-2017, 10:01 AM   #126
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Forget legacy for us. My concern is having enough to cover us for late-in-life medical expenses.
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Old 12-23-2017, 10:17 AM   #127
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Forget legacy for us. My concern is having enough to cover us for late-in-life medical expenses.
Agreed, the legacy is not as much in my mind as the $45 K I blew this year on dental work. That would have been a nice new pickup truck that I could have used (enjoyed?) and left as part of the legacy.
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Old 12-23-2017, 10:38 AM   #128
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My plan is that when the market tanks I won't have to decrease my spending.
That’s my plan as well. I am only giving myself a 1.35% raise for 2018 (less than the CPI increase for the trailing 12 months). Even if the market dropped 50% tomorrow, my WR would remain well below 4% and I would not have to decrease my spending.
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Old 12-23-2017, 12:01 PM   #129
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I gave myself a $200 a month raise for entertainment earlier in the year but ended up not taking the raise and cutting the entertainment budget by $75 instead. We don't go out less, we just spend less. Over time I just keep finding more and more good deals and ways to save. Last night we went to a ballet performance in the city, walked around the fountains and Christmas lights at Yerba Buena Gardens and had drinks at a roof top bar with pretty city views. For us that was a fun night out so I don't see a need to spend more. The bargain hunting part is half the fun for me.
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Old 12-23-2017, 01:28 PM   #130
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The market return this year is 6.5x my 2017 expenses. And this year's expenses still included some significant non-recurrent charges that will go away.

So, I should have a lot more discretionary spending, but I do not feel I need anything. Surely, buying a 3rd home will blow that money in a hurry, but I do not want one, so why do I put myself through the hassle?

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Getting the balance right between current consumption, risk, and legacy is something I think about a lot. I am very much in the minority here, it seems.
I do think about it, but not a lot. Not yet anyway. Two reasons: 1) I am not that loaded yet, and 2) I am 61 and still have time to think of things I really "want". I must be sure what I spend money on gives me pleasure and not more hassle.

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Yes, probably. But we seem much more interested in discussing honey glazed hams, cognac, wine, knives, shellfish,iPhones, etc. More fun and easier? Well we do live in a consumer society, I guess.
Consumables are something we all have to buy. So, it's easiest to upgrade these. It is true that they do not really make a dent. To really blow some dough, one needs another home, or at least a luxury car. I do not have enough for, nor want a 3rd home. And having a Tesla in my garage would not bring up my happiness level any.

So, consumables it is. Even there, I only eat and drink so much. I like to travel, but doing too much of it, then it becomes tedious like work.
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Old 12-23-2017, 01:48 PM   #131
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Yes, consumables it is for me also.
  • Faster Internet.
  • $15 a bottle wine bought from a local wine store replaces some of my $5-$12 bottles from Costco and TJ's. And, it is part of the buy from local business that I like to support.
  • grass fed beef
  • a bottle of fancy bourbon recommended by folks on this site
  • cashmere travel sweater
  • searching for a very nice Fine Art matte photo paper to replace the cheaper and more ordinary paper I have been using.
  • upped contributions to charitable causes that put at least 85% of the money to good use. (OK, not my consumable, but consumed by others.
And, while not a consumable, probably the most expensive vacation year yet.

I am looking to upgrade some of my photo gear, but as of today I just can't justify the expense against the added benefit. Spending for the sake of spending is not my idea of Blowing Dough.
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Old 12-23-2017, 02:16 PM   #132
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Just got done replacing 800 sq. ft of carpet with wood flooring. Was going to do it in 2018 but DW convinced me we could "do it ourselves" when she saw it discounted 20%.

I guess it was a win-win because we are still on target with our budgeted 2017 numbers and now we remove it from the 2018 budgeted numbers too!
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Old 12-23-2017, 03:03 PM   #133
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We spend a lot more this year for new windows, furnace, and water heater. Next year, we probably need to spend $$ on roof and car.
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Old 12-23-2017, 03:11 PM   #134
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One of the kitties has developed chronic kidney disease so she’s doing her part to move the money out of my account.
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Old 12-23-2017, 03:36 PM   #135
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Yes, I understand. A reasonably conservative approach. I am currently spending more than ever but when the market tanks I will just go back to spending divs. My divs are rock solid and weren’t cut in 2008-2009.

But I think it also depends on your age. I’m 67,been retired 11 years, and the portfolio is at an all time high. I figure if I don’t enjoy things now, I will soon get to the point where all I will want to do is “sit on the porch” (figuratively). This will likely mean a very large legacy left behind. I certainly don’t mind leaving a good size legacy but not something outrageous.

Getting the balance right between current consumption, risk, and legacy is something I think about a lot. I am very much in the minority here, it seems.
Ditto.

Post 70 1/2 sharing with my new found Pals at the IRS those non Roth portfolio parts is legacy I have mixed emotions about. Also the mental adjustment from early ER 'cheap SOB' to spend it before you croak is a work in progress.

heh heh heh -
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Old 12-23-2017, 03:51 PM   #136
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We spend a lot more this year for new windows, furnace, and water heater. Next year, we probably need to spend $$ on roof and car.
Once you are done with that, you probably won't have any more big irregular expenses for years! Those are most of the big ones for a house, it seems to me.

Oh, that is.... unless your teeth are bad. Dental implants can really add up.
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Old 12-23-2017, 04:15 PM   #137
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While you folks were debating spending, I was out..... well, spending. We just returned from a short cruise this week. Okay, it has been planned for awhile and in our regular budget. We did buy two glasses of wine on board to supplement the 2 bottles we brought on board. Clearly our increased net worth is causing us to throw caution to the wind. With tip, the wine was $12 per glass.
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Old 12-23-2017, 04:24 PM   #138
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Yes, consumables it is for me also.
  • Faster Internet.
  • $15 a bottle wine bought from a local wine store replaces some of my $5-$12 bottles from Costco and TJ's. And, it is part of the buy from local business that I like to support.
  • grass fed beef
  • a bottle of fancy bourbon recommended by folks on this site
  • cashmere travel sweater
  • searching for a very nice Fine Art matte photo paper to replace the cheaper and more ordinary paper I have been using.
  • upped contributions to charitable causes that put at least 85% of the money to good use. (OK, not my consumable, but consumed by others.
And, while not a consumable, probably the most expensive vacation year yet.

I am looking to upgrade some of my photo gear, but as of today I just can't justify the expense against the added benefit. Spending for the sake of spending is not my idea of Blowing Dough.


Do tell. What bourbon did you choose to blow dough on?
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Old 12-23-2017, 04:58 PM   #139
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While you folks were debating spending, I was out..... well, spending. We just returned from a short cruise this week. Okay, it has been planned for awhile and in our regular budget. We did buy two glasses of wine on board to supplement the 2 bottles we brought on board. Clearly our increased net worth is causing us to throw caution to the wind. With tip, the wine was $12 per glass.
The last cruise we took, we had an unlimited booze package. Even then, I took only 3-4 drinks a day. Could not blow more dough on booze if I wanted to. Guess I could have ordered some premium and rare shots.
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Old 12-23-2017, 05:09 PM   #140
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New kitchen and some living room furniture this year $$$. Even paid someone to do the lawn for the last half of summer and told my DW she could let the hairdresser color her hair instead of doing it at home! ☺
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