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08-22-2014, 08:34 AM
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#21
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2007
Posts: 14,328
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I've been retired 7 years, but DW still has two more to work. I save about $1K a month from my pension and use it max out a Roth and an HSA. I don't see any reason to spend extra money unless I want something.
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08-22-2014, 09:06 AM
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#22
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Thinks s/he gets paid by the post
Join Date: Jun 2013
Location: Bonita (San Diego)
Posts: 1,795
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Not yet retired, but I can see phases coming:
Phase 1: ER/Semi-ER - I'm not working or working part-time at an interest (income not important); DW will likely continue working. Either way, I'm sure we will continue saving in this phase.
Phase 2: Total ER - both DW and I are done. No intention to save at this point. We'll have emergency funds, but they'll be replenished from pension/savings as required.
Like others have said, once we get there, I intend to spend and enjoy as our means allow us. The question we're asking ourselves right now is: how much do we want as our "means" and how long are we willing to work to get it?
__________________
"So we beat to our own drummer in the sun;
We ask for nobody's permission to run.
I just wanna live in a world like that;
Now I'm gonna live in a world like that!" - World Like That, O.A.R.
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08-22-2014, 09:19 AM
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#23
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Moderator
Join Date: Apr 2012
Location: San Diego
Posts: 14,212
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I'm not in savings mode at this point - but might be in the future.
Right now our only income sources are rent and DH's SS. It doesn't cover our spending, so we draw down the balance from savings.
In 2 years I will start drawing a small pension of about $500/month. We'll withdraw less when this kicks in.
Somewhere between 10 and 18 years from now I'll start collecting SS. Also in that timeframe, the kids will hopefully be launched. At that point, we will hopefully be drawing even less.
When RMDs kick in in 18 years I suspect we'll be spending less than the "income"... but RMDs don't have to be spent, they can be reallocated back to taxable accounts.
I can't see "saving" during retirement unless one has a surplus of income from sources like rent, pension, etc. I'm not in that boat.
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08-22-2014, 10:53 AM
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#24
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Thinks s/he gets paid by the post
Join Date: Feb 2007
Posts: 3,681
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Our monthly expenses are currently 87% of DHs pension so we save the 13%. Also, I have a small part time job (school crossing guard) that I enjoy so I also save 100% of that income. I don't make much, it's only around $380-$400 a month net pay and it's only during the school year but it allows me to add to the ROTH IRA or our HSA.
I've always been a saver. It's actually in my DNA. Like some others here, I can't find anything else to spend money on. So we save up for the stuff that you know is going to come up as part of life (big medical costs this year) and home ownership (roof, windows and HVAC since DH retired) and being part of a family (out of town wedding) or aging. We just save what we can every month and know it will be there to cover stuff that happens.
__________________
Married, both 69. DH retired June, 2010. I have a pleasant little part time job.
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08-22-2014, 11:28 AM
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#25
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Full time employment: Posting here.
Join Date: Dec 2013
Location: San Diego
Posts: 880
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We find having a separate small passbook savings account very useful for budgeting and keeping us within our spending limits. Only been retired since April, but are doing the same as we did before. Each year we determine the monthly amount to put into our checking account, and every month that amount goes into checking and another account set-aside for non-monthly expenses like insurance payments and property tax. Anything extra from checking goes into this savings. We then can use this for extra travel or something special we want to get or to do. This helps us be more frugal, since we want there to be something left to put into our savings account. It is purely psychological of course, but we find it very helpful. And any money we splurge from what we have saved does not feel like we are splurging. So we enjoy it more. Our retirement accounts are separate, and are used only to determine the monthly withdrawal each year.
EDIT: The amount deposited into checking is after state and fed tax.
__________________
Merrily, merrily, merrily, merrily,
Life is but a dream.
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08-22-2014, 11:53 AM
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#26
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Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 4,366
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SS and a small pension won't cover our expenses, and we'll be taking SS as late as possible. No saving for us.
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08-22-2014, 12:35 PM
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#27
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Thinks s/he gets paid by the post
Join Date: Feb 2011
Location: West Tx
Posts: 1,392
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Right now we save at least 30% of my salary in my 403 b while I still work. We also save in an account for regular payments of taxes, long term care insurance, and other insurances. We also have a savings exclusively for travel in the credit union funded by bonuses or unexpected money , which usually has $4-7000 in it. (On my nonprofit job, our board tends to give annual bonuses, instead of raises, so that they can give what we can afford each year. It's usually 1-5% of our salaries.) Then we have another savings account in my husband's credit union for our next vehicles. As someone else said, saving is in our DNA. Maybe we are crazy to have it all separated like that, but it works for us.
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08-22-2014, 12:47 PM
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#28
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Thinks s/he gets paid by the post
Join Date: Feb 2011
Posts: 1,797
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Quote:
Originally Posted by travelover
..... ....I don't see any reason to spend extra money unless I want something.
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Or NEED something. I think many folks set aside $$ for predictable future expenses (e.g. major repair/replacement of big ticket items, big vacations, remodeling project, etc). Is that "savings" or just part of the long term budget? I call it smart budgeting.
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08-22-2014, 12:57 PM
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#29
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Thinks s/he gets paid by the post
Join Date: Jul 2013
Location: Texas
Posts: 1,065
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We are both retired and we set aside (save) 8% of our income for future unpredictable expenses.. goes into the emergency account to keep it growing.
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08-22-2014, 01:29 PM
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#30
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2007
Posts: 14,328
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Quote:
Originally Posted by ERhoosier
Or NEED something. I think many folks set aside $$ for predictable future expenses (e.g. major repair/replacement of big ticket items, big vacations, remodeling project, etc). Is that "savings" or just part of the long term budget? I call it smart budgeting.
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I don't really discriminate between my emergency fund and the rest of my stash. It is either spent or invested. Granted, some is in cash equivalents.
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08-22-2014, 01:34 PM
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#31
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Thinks s/he gets paid by the post
Join Date: Feb 2008
Location: Indialantic FL
Posts: 1,330
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I don't save, extra cash gets moved to deferred spending accounts.
__________________
JimnJana
"The four most dangerous words in investing are 'This time it's different.'" - Sir John Templeton
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08-22-2014, 03:37 PM
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#32
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Thinks s/he gets paid by the post
Join Date: Oct 2010
Location: irradiated - too close to the nuclear furnace
Posts: 1,294
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I save, what else would you call it?
I "save" $1500-$1800 per month, I've been retired just over 7 years. I don't need to take distributions from investments, I just have extra income I don't need to spend = "savings".
I have always been a LBYN's person and I'm not spending wildy in retirement but I'm not living a homeless person's life either. I don't wish for anything, I'll spend on whatever I want or need but my wants and needs are simple. I could buy stuff but I don't want or need "stuff".
I am therefore I save.
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08-22-2014, 06:57 PM
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#33
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Recycles dryer sheets
Join Date: Nov 2013
Posts: 238
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Sadly no saving for us. Retired in May after selling small business. Now we are trying to get used to not having any income coming in and drawing down savings. Taking SS at 70 for me and that's 13 years away and DH is six years younger (robbed the cradle) so at least sixteen years before two SS payments coming in. No pensions - so we are intent on sticking to our budget until then.
Sent from my KFJWI using Tapatalk HD
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08-22-2014, 07:11 PM
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#34
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Thinks s/he gets paid by the post
Join Date: Nov 2009
Location: SF East Bay
Posts: 4,342
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As others have said, if you have income from a pension, SS, or similar, that is surplus to your requirements, then you are in a position to save. All of my income comes from the withdrawals from my portfolio, so the the moment I stopped working, the concept of saving ceased to exist for me.
However, my withdrawals stand at about 2.05% per annum of the current value of my stash so although I'm not saving, I think my WR is sustainable, even if I increase it a little in the years ahead.
__________________
Contentedly ER, with 3 furry friends (now, sadly, 1).
Planning my escape to the wide open spaces in my campervan (with my remaining kitty, of course!)
On a mission to become the world's second most boring man.
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08-23-2014, 08:49 AM
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#35
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2010
Posts: 5,913
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We spend more than our pension income. But we spend comparatively little of our passive investment income. It simply gets reinvested.
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08-23-2014, 09:42 AM
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#36
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2008
Posts: 7,438
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My targeted WR will be about 2.4 to 2.5%. Non discretionary living expenses are about half to 3/5 of that.
I have over 2 years of targeted budget in cash or 3-4 years of non discretionary expenses.
So I'm thinking of perhaps leaving DRIP on for a year or two, so that when I do start spending dividends and drawing down cash, there will be more shares than at ER. So that would be a form of saving in ER.
But I also think about spending more in the first decade or two, on the premise that one would be better able to do more requiring money before they reach their early or mid 70s, such as traveling to places which may be difficult for folks with mobility limitations.
OTOH, this transition to withdrawals after a lifetime of saving could be unsettling, with unknowns like health care costs and taxes so I'm thinking of staying with the targeted WR and then boosting it after you get a handle on these unknowns.
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08-23-2014, 09:46 AM
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#37
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 17,265
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Still save? I guess I do if you count not withdrawing as much as I had planned to over the year.
__________________
Comparison is the thief of joy
The worst decisions are usually made in times of anger and impatience.
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08-23-2014, 09:47 AM
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#38
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 17,265
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Quote:
Originally Posted by travelover
I've been retired 7 years, but DW still has two more to work. I save about $1K a month from my pension and use it max out a Roth and an HSA. I don't see any reason to spend extra money unless I want something.
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You must be one heck of a guy to have a good woman who will work for years after you have retired to a life of idle pleasures.
__________________
Comparison is the thief of joy
The worst decisions are usually made in times of anger and impatience.
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08-23-2014, 09:50 AM
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#39
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,021
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Still save? Hell no.
We built up a nest egg so we could enjoy retirement and that's what we're doing. We try not to overspend but we certainly don't 'save' any of our income.
BTW, get off my lawn...
__________________
Numbers is hard
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08-23-2014, 10:28 AM
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#40
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Thinks s/he gets paid by the post
Join Date: Jun 2013
Location: Bonita (San Diego)
Posts: 1,795
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Quote:
Originally Posted by Tailgate
We are both retired and we set aside (save) 8% of our income for future unpredictable expenses.. goes into the emergency account to keep it growing.
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I don't see the purpose of a conventional "emergency fund" in retirement. Does this mean you don't keep 2-3 years worth of expenses set aside in cash/cash equivalent?
As others said, in retirement, I figured money is either invested or it's not.
__________________
"So we beat to our own drummer in the sun;
We ask for nobody's permission to run.
I just wanna live in a world like that;
Now I'm gonna live in a world like that!" - World Like That, O.A.R.
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