Can't stop saving

[2017ish]

This fits my in-laws to a "T." Late 80s, military pension (Lt. Col.) and two socials; they save every month, and don't touch the 7 figure portfolio. But, I think there were some months in their 60s/70s when they drew down! (And, the year they set up educational trust for grandkids... Thanks!)

We are not counting on social, but will draw high amounts at 70 (maybe 62 & 70?) if available. No other pension income. DW plans to spend all of our annual/quarterly withdrawals on travel for 10-20 years, in an effort to make up for a ton of deferred gratification. We'll see....

 

[Sunset]

We are currently underspending but it fits our lifestyle.
We have zero appetite for buying more stuff, in fact I've been nagging DW to buy a new car just because her old one is 18 yrs old.
I do want to travel more, but the planning ahead has been an issue for us.

 

[growerVon]

way better than hookers and blow - that would kill ya

Waiter? I'll have what he's having!

 

[Danmar]

If we continue in our current trajectory (just spending divs) our assets will continue to grow and daughter will get a very large legacy. I'm trying to spend principal but it is difficult, timing never seems right! Will keep working on it though.

Nobody would describe our lifestyle as frugal, but I don't think that was the key point of the OP.

 

[Golden sunsets]

If I'm not mistaken the article implies that saving some of the annual RMD is in fact saving. I would not describe this as saving. That scenario will describe us starting next year when DH hits 70.5. We anticipate that 32%(federal plus state) of that RMD money will be used to cover the additional taxes that we will incur. Our pensions and social security completely cover our regular spending including taxes on that income and interest and divy's that we don't currently spend. So we will reinvest 68% of the RMD( DH's only for 2years and then both RMDs starting in 2019) in taxable accounts annually. I would not have described this scenario as still being in the "savings mode". I think of it as being in decumulation or withdrawal mode, with an extremely low SRW of less than 1%.

 

[papadad111]

I think we will see this trend to save even in retirement increasing over the next couple of decades for those who have laid out solid retirement plans such as those here on this board.

In general, as the quantity of recipients of ultra safe and secure defined benefit pensions falls (recipients die off basically) combined with reduced social security benefit payouts, the desire to save what can be saved will grow.

The propensity to preserve wealth / assets tends to be higher when there is a modest degree of uncertainty.

There is however a cross over point where higher and higher uncertainty drives a strong "live for the moment / spend it all now" attitude such as times of high financial / political / economic / health distress. Examples include political turmoil, high inflation, or a meteor headed this way.

We've been in a "new normal" with lower market returns since around 2000/2001 and that also drives a more conservative stance and behavior with respect to withdraw rates and spend down habits.

The slower launch of the younger generation has many parents of those kids holding back a bit of retirement spending so as to be able to "provide" for slow launchers when that need appears.

One might also argue that growing life expectancy also may be cause for conservatism.

In general it may just be the indirect rationalization that 4% isn't as safe as once thought ... And bringing down the WR is a nature driven survival or instinctual behavior.

 

[Music Lover]

I have a healthy amount of savings and a COLA govt. pension, but I'm still waffling on the purchase of an $800 piece of musical gear that I can easily afford several times over.

 

[W2R]

I have a healthy amount of savings and a COLA govt. pension, but I'm still waffling on the purchase of an $800 piece of musical gear that I can easily afford several times over.

So buy it, if you really want it.

(I am thinking that your visceral response to my last sentence, might help you to decide what to do.)

 

[Big_Hitter]

So buy it, if you really want it.

agreed - live a little

 

[kcowan]

My former neighbor (83) is in a nursing home and is not allowed beer and has no desire for females. I smuggled in some beer and he only drank half a bottle. Said don't bother anymore.

He can leave for the day but has no desire to go anywhere. So my advice is to not take any chances. Spend it as fast as you can while you enjoy it.

 

[Music Lover]

So buy it, if you really want it.

(I am thinking that your visceral response to my last sentence, might help you to decide what to do.)

Oh, I will buy it...I guess my point was that rather then simply buying it outright and being done with it, I always have to think about purchases of that type for a couple weeks first to ensure that the "value" is really there, when all along I know that it's worth the money, but even if it isn't, it doesn't really matter.

 

[W2R]

Oh, I will buy it...I guess my point was that rather then simply buying it outright and being done with it, I always have to think about purchases of that type for a couple weeks first to ensure that the "value" is really there, when all along I know that it's worth the money, but even if it isn't, it doesn't really matter.

I like savoring my purchases for a little while before pulling the trigger, too. But I still buy whatever-it-is eventually.

 

[W2R]

My former neighbor (83) is in a nursing home and is not allowed beer and has no desire for females. I smuggled in some beer and he only drank half a bottle. Said don't bother anymore.

He can leave for the day but has no desire to go anywhere. So my advice is to not take any chances. Spend it as fast as you can while you enjoy it.

You don't suppose that possibly the wisdom of old age has finally taught him that (gasp!) there is more to life than booze and women?

I know, I know, how silly. Just had to bring up the remote possibility that he might be perfectly blissful living his life as it is right now.

 

[RobbieB]

In home care is what I will do for as long as possible when my time comes. I used one of these services to care for Pops as he aged and I was still working. The cost was $20/hr and this is of course not a nurse, just a care giver. Gets you out of bed and dressed, makes you food and does light house keeping, also someone to talk to.

 

[Debinnov a]

In home care is what I would prefer too, but knowing me I would have video cameras set up all over to reduce the chances of elder abuse or theft. It is so sad to have to think this way, but I've heard of so many instances.

I guess I just need to make sure I've sold or given away all of my jewelry and valuables. Maybe I should be doing that now. I decluttered a lot two years ago when I retired, but held onto a lot of my nicer things - that I rarely use now....

Sent from my KFTHWA using Tapatalk HD

 

[YVRRocketSurgery]

My former neighbor (83) is in a nursing home and is not allowed beer and has no desire for females. I smuggled in some beer and he only drank half a bottle. Said don't bother anymore.

He can leave for the day but has no desire to go anywhere. So my advice is to not take any chances. Spend it as fast as you can while you enjoy it.

Oy vey. Reading this makes me feel sad.

 

[cyber888]

I'm gonna splurge from 60 - 80 on travel n beautiful girls. After 80, I'm just going watch TV on an 80 inch HD TV and just stay at home


Sent from my iPad using Early Retirement Forum

 

[NW-Bound]

With no pension and SS not yet started, what savings?

Spend, spend, spend...

 

[eta2020]

I'm gonna splurge from 60 - 80 on travel n beautiful girls. After 80, I'm just going watch TV on an 80 inch HD TV and just stay at home


Sent from my iPad using Early Retirement Forum

That sounds like a sensible plan. I am on board with it and in a way you are absolutely correct.

We pretty much have similar plan

 

[RobbieB]

That's kind of the way I look at it. I gotta blow a lot of dough from now until I'm 80 because at 80 people pretty much just watch TV.

I've been spending twice what I did while I was working for 2 years now and my net worth is the same.

Gotta blow dough faster -

 

[Walt34]

I've been spending twice what I did while I was working for 2 years now and my net worth is the same.

Gotta blow dough faster -

That's easy to fix and has been discussed before. Just buy a boat/airplane/horse and any spare cash, and non-spare cash, will quickly evaporate.

 

[aja8888]

Buy a used RV. That will take care of any cash you have and then some.

 

[RobbieB]

Renting an RV will be done for sure, on the list. Try it to see if I like it.

Next year I'll buy my very first ever new car.

I figure on 20 to 40 grand for new flooring for my house and I've got that 12 grand solar install coming up too. Spend a lot of dough and help the local economy -

 

[papadad111]

Renting an RV will be done for sure, on the list. Try it to see if I like it.

Next year I'll buy my very first ever new car.

I figure on 20 to 40 grand for new flooring for my house and I've got that 12 grand solar install coming up too. Spend a lot of dough and help the local economy -

Never bought a new car either. I did get a bottle of new car smell ... It wasn't all that...

Tell us what it's like when you pull the trigger.

 

[ziggy29]

If your [-]cheapness[/-] frugality isn't causing personal, professional or relationship problems, then it isn't a problem.