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Can't stop saving
Old 06-06-2016, 03:30 PM   #1
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Can't stop saving

Now here's one I think will find great favor here.

This study shows that successful retirees never stop saving. And they save a lot too, 25 to 35 percent of income. Just keep on stacking cash even though they don't have to.

I really do think that I'm a sort of rare bird able to "blow some dough" after a lifetime of frugality. Maybe it was because my wife died at 60? Or maybe because I'm INTP and not INTJ? I dunno.

I do know that I don't want to die with a 2 mill net worth. I don't really see much difference between the spendthrift that lives in poverty because he's broke or the millionaire that appears to live in poverty because he just refuses to "have fun", can't "turn off" the savings habit. One side can't save and the other side can't spend.

Weird. Somewhere between the 2 extremes must be the "happy middle" eh?
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Old 06-06-2016, 03:35 PM   #2
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Originally Posted by RobbieB View Post
Now here's one I think will find great favor here.

This study shows that successful retirees never stop saving. And they save a lot too, 25 to 35 percent of income. Just keep on stacking cash even though they don't have to.

I really do think that I'm a sort of rare bird able to "blow some dough" after a lifetime of frugality. Maybe it was because my wife died at 60? Or maybe because I'm INTP and not INTJ? I dunno.

I do know that I don't want to die with a 2 mill net worth. I don't really see much difference between the spendthrift that lives in poverty because he's broke or the millionaire that appears to live in poverty because he just refuses to "have fun", can't "turn off" the savings habit. One side can't save and the other side can't spend.

Weird. Somewhere between the 2 extremes must be the "happy middle" eh?
My parents never stopped being frugal once they retired. I think once you get in the habit of being frugal, it just doesn't go away.
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Old 06-06-2016, 03:45 PM   #3
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It's only been a few months since we started SS for me, and a good bit of that has been going into savings. We rarely travel, eat out at most once a week and then not at expensive places, and both of us hate shopping, so the money just isn't being spent.

DW is working on changing that, making noises about having parts of the house painted and some hardwood flooring replacing carpet. If that doesn't spend enough, there's always more camera or R/C stuff I could buy.

So while we don't want to leave an absurd amount of money on the table for the heirs, we don't want to be candidates for "Hoarders" either just to spend the money. I'm sure we'll figure something out.
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Old 06-06-2016, 03:59 PM   #4
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This might be us. Right now we aren't selling any funds/ETFs to fund living expenses. Just spending dividends and pulling in a decent income from a little side hustle that's turning into an intermediate sized side hustle (with respect to revenue; time commitment is actually declining).

I guess we could have bigger problems than ending up 60 or 70 with a few million unneeded dollars in our portfolio.
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Old 06-06-2016, 04:18 PM   #5
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I've been pretty frugal since I was a kid. Now that I am FI and close to RE, I am loostening up some to enjoy things more, mainly through travel.
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Old 06-06-2016, 04:29 PM   #6
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My plan is to continue saving into retirement too.
Part of that is to be conservative in the early years of retirement. The other part of it is just maintaining the same view on value and decision-making when purchasing something but allowing for the odd splurge. And growing a larger nest egg gives me more confidence/comfort when splurging and may will allow for larger splurges.
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Old 06-06-2016, 04:31 PM   #7
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Us to a degree. Always knew we were beyond FI well before retired, I was just lucky enough to have a career I actually enjoyed until last year or two. We're currently unsuccessfully trying to burn at a rate that's about 40% more than what we lived on until retired. The problem is that if a dollar means something to you, it's hard to just blow it on stuff or things like business class that just seems overpriced relative to what a buck means to you and the apparent value. That said, after five years of retirement we're getting better about being comfortable just, well, spending. Only the cat eats cat food. :-)
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Old 06-06-2016, 04:35 PM   #8
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That will be my biggest problem, saving less and feeling good about it. I save ~$17K a month now, with my 401K, 401K match, HSA, IRA, after tax, and extra mortgage payments, etc.

On an expensive month, where I pay over $10K in property taxes and other maintenance items, I 'only' may save $2-3K. It feels like I am going broke.

The goal is to cut back to saving only $5K a month after I leave my job until I am 62, then spend more.

At 80 (or 90+), it's strippers and beer in the nursing home all day, every day, until it's gone.
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Old 06-06-2016, 04:40 PM   #9
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At 80 (or 90+), it's strippers and beer in the nursing home all day, every day, until it's gone.
way better than hookers and blow - that would kill ya
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Old 06-06-2016, 04:52 PM   #10
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After retirement, just like before retirement, we can save up for expensive discretionary things-or-experiences we want so that we have enough to pay for whatever-it-is within our allotted spending amounts, without going over.

It's not like we will magically never save again for big irregular spending.

And hookers and blow in the nursing home? You guys are thinking small. How about a pretty little nurse to live in, pamper, and take care of you during your final years, so that you don't have to go to a nursing home at all?
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Old 06-06-2016, 05:06 PM   #11
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It's funny
I'm funding my daughters senior fall semester in Australia -
I gave her my 2 year old shinny red car and took her 114k mile old CRV
I really don't own any toys
My haircuts cost $10 bucks

Yet I can't pull the trigger on a $5k kayak and trailer... It has peddles and little flippers that make it go.
I think it would be good for me and the son.. Fishing time together and some time in the sun.
Hose it off and put it in the garage - no muss no fuss.

You cant undo a lifetime of frugality. It is a blessing and yes it is a curse.


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Old 06-06-2016, 05:11 PM   #12
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We look at it as 2 buckets.

One bucket will be spend in 20 years age 60-80.
Second bucket we will spend dividends only.

That means second bucket should grow. We will need to rethink this if total plus real estate exceeds Estate Tax limit.
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Old 06-06-2016, 06:58 PM   #13
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We look at it as 2 buckets.

One bucket will be spend in 20 years age 60-80.
Second bucket we will spend dividends only.

That means second bucket should grow. We will need to rethink this if total plus real estate exceeds Estate Tax limit.
I'm kind of doing the same thing. I'm hoping to build up a large enough of a dividend paying portfolio in a non-registered account to provide the bulk of the post retirement income but have other registered retirement buckets that I'm hoping to let grow (tax strategies aside) but can utilize if really needed.
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Old 06-06-2016, 07:05 PM   #14
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I've been retired 9 1/2 years and I've been maxing out my IRA and HSA from my pension every year since I retired. Next year DW will be retired , too, so I can only do the HSA until I hit Medicare.

Curiously, I've never felt the slightest bit deprived. I guess I just have low standards.
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Old 06-06-2016, 07:27 PM   #15
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I think the two extremes--spending and saving---are difficult to navigate. As I reach 60, single, still working at a job I enjoy, with what appears to be a secure retirement I've spent far more the last year or so than before. I'm appalled at the money flying out the door right now for my kitchen remodel, even though my choices have been fairly modest and the kitchen is small. I worry that I should be saving that money instead, but then I also want a place that I can really love for my retirement and I'm conscious that things like this remodel are for the long haul. I honestly don't know how to bridge the tension between save and spend at this point in my life.
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Old 06-06-2016, 07:34 PM   #16
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I know exactly what you mean about extremes. On Saturday, I booked within 3 hours..a one week family getaways including the grandkids and a plane ticket for a trip I'm doing this fall.

I had great fun doing the bookings and with enjoy every minutes of both outings but when I went to bed, I thought I spent a bunch of money today and felt just the faintest tug between saving and spending.
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Old 06-06-2016, 08:18 PM   #17
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Robbie, I think you have found the perfect formula, and this attitude will provide you great pleasure. I only know people with little money to spend so they don't, and people who have worked their entire life and saved it, and wont let it go.


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Old 06-06-2016, 09:02 PM   #18
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I am okay with leaving money to the kids and charity. We can be frugal relative to our income and not feel deprived. Today we had a nice lunch at a waterfront restaurant overlooking a marina - with a Groupon bought on sale.
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Old 06-06-2016, 09:19 PM   #19
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So, you wouldn't have gone there if you had to pay full price?
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Old 06-06-2016, 09:22 PM   #20
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So, you wouldn't have gone there if you had to pay full price?
No, why? We belong to entertainment.com, restaurant.com, buy Groupons, get newsletter coupons and make use of specials like Taco Tuesday. There's a lot to choose from that list.
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