Has the wealth effect changed your spending?

[ugeauxgirl]

So which brand of water bottle won the most? Inquisitive people need to know...

(I always have a bottle of high end vodka for guests who prefer it served on ice or with a dash of water.)

According to the kids, Dasani works best because of the shape and stiffness of the bottle.

We ARE willing to pay more for bourbon, which we mostly drink without mixers, but I drink vodka when my allergies are bad (it doesn't aggravate them) and since I'm going to put cranberry juice or something else in it, the brand makes no difference at all. My friends are all bourbon or beer drinkers- I'm the only one who drinks it here.

 

[W2R]

Food is not expensive in the US compared to whatever else, and I can only eat so much. It is reassuring to know that even if the market went down the tube, I should not have to worry about food cost. I do not need more than this to keep myself content. Life is darn good.

Food cost would not be much. Don't forget property taxes. And yes, life is darn good and seems to get better for me as I grow older.

 

[audreyh1]

I’ve never gotten a flu shot before, but will be flying on the 19th and maybe I should get a shot. Hopefully that’s long enough time to establish immunity.

Hmmm 2 weeks, but if I do it tomorrow I’ll have a 11-12 days. Probably good enough.

 

[ejman]

Food cost would not be much. Don't forget property taxes. And yes, life is darn good and seems to get better for me as I grow older.

In Oregon, once one gets to ahem! the proper age, property taxes will be deferred until transition to greener pastures if one is unable to pay so I suppose as long as SS covers the cost of food and utilities in a paid up house in Oregon party on! ( I suspect other states may have similar provisions)

 

[NW-Bound]

OK, you made me look again.

Here in AZ, for seniors there's property tax freeze, then property tax reduction, then property tax deferral. These are in increasing value for the senior, in increasing level of financial hardships.

However, if we defer SS till 70, we will get more than $73K/year, in today's dollars. That's way above the income to qualify for any of the above treatments.

Here, the RE tax is only about $600/yr for each $100K of the home market value. Just give me my SS, and I will gladly pay RE taxes. I still have plenty left to eat lamb chops, then to drink Cognac after the meal.

 

[foxfirev5]

Oh, let's take a look/ Woops two properties, no senior discount. And no deduction......

 

[RobbieB]

Taxes are not something I worry about.

 

[HadEnuff]

no... my retirement spending model assumes that the rate of return on my nut will be around 18% per year, which is what I plan on.

The poverty effect may kick in if there is a correction.

 

[RobbieB]

Yeah, good answer, me too!

 

[ejman]

OK, you made me look again.

Here in AZ, for seniors there's property tax freeze, then property tax reduction, then property tax deferral. These are in increasing value for the senior, in increasing level of financial hardships.

However, if we defer SS till 70, we will get more than $73K/year, in today's dollars. That's way above the income to qualify for any of the above treatments.

Here, the RE tax is only about $600/yr for each $100K of the home market value. Just give me my SS, and I will gladly pay RE taxes. I still have plenty left to eat lamb chops, then to drink Cognac after the meal.

Aha! All the more reason to take SS at 62 as we both did! I Just love to contribute to the SS at 62 vs 70 debate whenever I can
Oregon has limits of about $45K for income and 1/2 million dollars or so for NW so if I happen to need the program I suspect I'll qualify. I hope I don't ever need to...

 

[NW-Bound]

Hmmm...

When things get tight, the tax police may come knocking on your door asking how you could buy those Grande Utopia speakers on your SS, even with RE tax reduction. You must have hidden income or assets somewhere. They will ask for clawback, or will confiscate your beloved speakers.

... I really should consider those Utopias after all...

 

[Helen]

We are currently at a 2% withdrawal rate due to the bull market. Next year will be my 5th year in retirement and we have yet to spend all of our annual budget.

These are our high spending years since we are doing a lot of traveling. We are also helping friends in need and donating to charities.

We have good health and no financial worries plus very good subsidized health insurance. We are very blessed and we are grateful.

 

[ejman]

Hmmm...

When things get tight, the tax police may come knocking on your door asking how you could buy those Grande Utopia speakers on your SS, even with RE tax reduction. You must have hidden income or assets somewhere. They will ask for clawback, or will confiscate your beloved speakers.

shssssss.... Don't tell 'em

 

[Scuba]

Yes, I also got my free flu shot yesterday. More than made up for this “freeness” at wine store though. Our favourite Chardonnay (Rombauer) which we bought last week at Costco in Scottsdale for $29.95 was over $61 in Canmore. Yikes, got something a little cheaper, J Lohr and La Crema.

Love Rombauer Chardonnay! $30 is a really good price.

 

[Danmar]

Love Rombauer Chardonnay! $30 is a really good price.

Yes, usually it’s $36-40. AJ’s (Arizona) sells it for about $40 and has periodic 25% off sales. That pushes it down to about $30. I cleaned Costco out-3 cases.

 

[kcowan]

While some of the cabin air is recycled the air from the vents also comes from fresh air from outside (after it's been warmed and compressed by the engines). So the vent air would be somewhat diluted. That might help, but not by much.

I heard that airlines stopped mixing as much outside air because it cost more than recycling the indoor air (after all, at 35000 feet, it is pretty cold). I would be tempted to wear a mask if the cabin temp forced me to use it.

According to the kids, Dasani works best because of the shape and stiffness of the bottle.

Thanks. It is good to know that it is fit for the purpose!

We ARE willing to pay more for bourbon, which we mostly drink without mixers, but I drink vodka when my allergies are bad (it doesn't aggravate them) and since I'm going to put cranberry juice or something else in it, the brand makes no difference at all. My friends are all bourbon or beer drinkers- I'm the only one who drinks it here.

In Mexico, I drink a local brew which is 54 pesos/liter. It is fine for my Bloody Caesar and other heavily mixed drinks. But for finer applications, I use Costco which has Grey Goose and also Kirkland US. The Grey Goose is sweeter but the US is mighty fine! I have taken to using it in my alternative to wine drink of vodka/tonic/soda/lime at cocktail hour.

Taxes are not something I worry about.

Yup that and death are things that worry will not influence. Although I know that worry causes prematurely grey hair. What me worry? Alfred had it right!

We are currently at a 2% withdrawal rate due to the bull market.

OK so you are using VPW? So are we!

Love Rombauer Chardonnay! $30 is a really good price.

Yes, usually it’s $36-40. AJ’s (Arizona) sells it for about $40 and has periodic 25% off sales. That pushes it down to about $30. I cleaned Costco out-3 cases.

We love stocking up on wine at Costco. The prices are always tough to beat. The only problem is consistency of supply. Remind me not to shop the day that Danmar was there before me!

We also buy Tillamook cheese when it is on their shelves. Buy two because it will not return for 2 months...

 

[NW-Bound]

shssssss.... Don't tell 'em

Some will, because there may be a reward.

... We love stocking up on wine at Costco. The prices are always tough to beat. The only problem is consistency of supply. Remind me not to shop the day that Danmar was there before me!

Well, not much of a stockup, as they enforce the booze limit at the border.

When I cross the border going up north, the Canadian border guards ask me about booze. When I cross it going south, the American side asks me about "illegal substance".

 

[Trawler]

The recent gains did finally get me to spend some of the unused budget money or should I say deferred expenses that has been accumulating from the past five years since RE. New car as old one had 250K miles on it. Replaced a 31 year old furnace and Air Conditioner and a 21 year old Hot Water Tank. So this year looks expensive but 5 year average sill below budget. DW also got the green light for one of our bucket list trips to Europe in 2018.

 

[RobLJ]

Bought a Silverado and gave the Subaru to DS and his wife (and grandkid, since it gives them more room in the back of her car for the babyseat). Part of it was gains and part of it was preparing for starting to do partial withdrawals in 2018--I convinced DW that the last 5 years were good enough for her to hang it up. I'll still work online part-time for another two years, but we will start withdrawals and then hit the portfolio for 5-6% withdrawals from 2021-2023, after which SS kicks in for me. We're back to 3-3.5% withdrawal rate when DW's SS kicks in later.

 

[Danmar]

Well, not much of a stockup, as they enforce the booze limit at the border.

When I cross the border going up north, the Canadian border guards ask me about booze. When I cross it going south, the American side asks me about "illegal substance".

Don’t cross the border with wine for the reason you mention. Not worth the hassle of carrying it in our luggage. Plenty of opportunity for drinking it when we are in Arizona.

 

[kcowan]

Well, not much of a stockup, as they enforce the booze limit at the border.

I stock up at Costco in Mexico. No borders involved. In Canuckistan, I shop at wine stores and government places at high prices. We do order wine by the case from California.