Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 03-28-2016, 12:06 AM   #41
Full time employment: Posting here.
 
Join Date: Apr 2015
Posts: 903
Quote:
Originally Posted by tmm99 View Post
Wow, I didn't know getting the lawn mowed cost that much.
I think the 3-acre thing adds to the cost just a teeny tiny bit.
__________________

__________________
hnzw_rui is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-28-2016, 07:13 AM   #42
Full time employment: Posting here.
FIREmenow's Avatar
 
Join Date: May 2013
Posts: 590
We have been thinking along these lines also with our planning. We're about 2 years away now. I think I have decided to take SS at 62 just for that reason.

I plotted below scenarios with SS at different ages along with pensions and savings withdrawals. I included inflation, expected returns, SS COLA, etc.



Yeah, the "guarantee" goes down (just) a bit by the end, but I think I decided I'll deal with that when the time comes I think I'd rather be able to be a bit more "spendy" early on.
__________________

__________________
FIREmenow is offline   Reply With Quote
Old 03-28-2016, 09:04 AM   #43
Full time employment: Posting here.
Markola's Avatar
 
Join Date: Nov 2013
Posts: 545
Quote:
Originally Posted by bclover View Post
lol, Markola, actually the reason why I have been frugal is to enjoy a nicer vacation.
I totally admit, I never understood traveling and living "lower" for lack of a better word than at home.
I truly don't want to travel and go motel style.

I will die happy if I never have to fly coach again in life.


But besides the type of travel, I'm hoping that I'll do "more" of it
I've done it all and enjoyed it all, ranging from a great hostel in Amsterdam I'll never forget, to completely forgettable Hiltons, to an unforgettable summer camping in our western national parks, to flying from NYC to Kauai first class last year and parking our butts on the beach at the St. Regis and letting them bring us cocktails all day. You gotta use the right tool for the job! :-)
__________________
Markola is offline   Reply With Quote
Old 03-28-2016, 09:34 AM   #44
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
kcowan's Avatar
 
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 5,714
Send a message via Skype™ to kcowan
We did the extended stay in the US sunbelt when we first retired, trying different places. We also did Mexico every year for a few weeks. Now we have settled into one month in Europe and 5-6 months in Mexico and that is well within our budget.

We have our eyes on some extensive cruises that should increase our budget for a few years.
__________________
For the fun of it...Keith
kcowan is offline   Reply With Quote
Old 03-28-2016, 11:40 AM   #45
Thinks s/he gets paid by the post
 
Join Date: Dec 2009
Location: Alberta/Ontario/ Arizona
Posts: 3,127
Quote:
Originally Posted by braumeister View Post
We asked him how he managed to stay in such good condition, and his answer was that he lived in Phoenix and ran up Camelback mountain almost every morning before breakfast.
Wow, I can attest that that is very impressive for any aged person, let alone a 75 year old.
__________________
Danmar is offline   Reply With Quote
Old 03-28-2016, 11:45 AM   #46
Thinks s/he gets paid by the post
walkinwood's Avatar
 
Join Date: Jul 2006
Location: Denver
Posts: 2,676
Not taking inflation into account may work for people retiring at 65. For those retiring in their late 40s like we did, I think inflation could be an issue. I'd rather just use Bernicke's formula in firecalc. That too is a form of hedonic tilt.

Currently, we're just using percentage of portfolio.
__________________
walkinwood is offline   Reply With Quote
Old 03-28-2016, 11:52 AM   #47
Thinks s/he gets paid by the post
MasterBlaster's Avatar
 
Join Date: Jun 2005
Posts: 4,359
Quote:
Originally Posted by W2R View Post
There's another simple solution. Retire with enough money that you can have what you want and need, both now and in your later years.
Your thought misses the point of maximizing nest-egg utility while you are alive. Leaving a large unspent nest-egg is seen by the authors as undesirable.
__________________
MasterBlaster is offline   Reply With Quote
Old 03-28-2016, 12:33 PM   #48
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,846
Quote:
Originally Posted by MasterBlaster View Post
Your thought misses the point of maximizing nest-egg utility while you are alive. Leaving a large unspent nest-egg is seen by the authors as undesirable.
Yeah, crazy knee-jerk assumption (and judgment) by the authors, isn't it? Or so it seems to me. The rest of my prior post, below, expands on my line of thought.

Quote:
Originally Posted by W2R View Post
There's another simple solution. Retire with enough money that you can have what you want and need, both now and in your later years.

Of course, that assumes non-infinite consumer urges, an attitude that Madison Avenue types probably regard as being completely despicable. One would have to settle on some particular lifestyle as being "enough".

How dreadful to contemplate the retiree who has no desire for a Lamborghini, a trip around the world, or a giant mansion, but instead is completely happy and fulfilled with only a used Toyota, a trip across town, and a modest home. It's almost unpatriotic.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is offline   Reply With Quote
Old 03-28-2016, 12:36 PM   #49
Thinks s/he gets paid by the post
 
Join Date: Dec 2009
Location: Alberta/Ontario/ Arizona
Posts: 3,127
Sometimes people change their spending desires, especially during a long retirement. No matter how much one has there are always things that might pop up. So it is difficult to always anticipate with certainly your spending levels.
__________________
Danmar is offline   Reply With Quote
Old 03-28-2016, 12:56 PM   #50
Recycles dryer sheets
 
Join Date: Apr 2011
Location: Castro Valley
Posts: 400
Quote:
Originally Posted by Moemg View Post
That is a great idea . I am so glad I did all the adventure travel in my 40's & 50's . Let's face it white water rafting is not as much fun at 69.
Maybe, maybe not! I was snow skiing last Friday and rode the chair lift to the top with an 80 year old guy. He was still skiing advanced runs. Last month I played 18 holes of golf with a 91 year old. You never know.
__________________
jkern is offline   Reply With Quote
Old 03-28-2016, 12:56 PM   #51
Moderator
Sarah in SC's Avatar
 
Join Date: Sep 2005
Location: Charleston, SC
Posts: 13,456
Was talking with my boss about this a bit this morning. My own situation is so vastly different than that of our clients that I try to balance the advice we give versus the advice I should consider for myself.

I figure on coming up with the basic expenses that I'll have "forever" and separating that mentally from the "extra" money we will want to spend in the early years of retirement. If I know our base is covered, I will feel more confident in spending more early on. Though honestly we will likely be living bare-bones always, which suits me fine, but wouldn't be what I'd probably recommend for others.
__________________
“One day your life will flash before your eyes. Make sure it's worth watching.”
Gerard Arthur Way

Sarah in SC is offline   Reply With Quote
Old 03-28-2016, 01:03 PM   #52
Thinks s/he gets paid by the post
 
Join Date: May 2014
Posts: 2,977
It's definitely working that way for DS and me. Downsizing a year after retirement was a lot more expensive than we anticipated although we ended up in a house we absolutely love and I'm finally seeing decreases of $400-$500/month in expenses (including utilities and, for some reason, groceries) since we moved. We're also doing one major, expensive trip a year and a few road trips with hotel stays. That could decrease if DH gets to the point where the long-haul trips are too hard on him.

After a period with a possible lull in travel expenses, I could see home maintenance expenses picking up if I start farming out work that I do myself now, including housecleaning, lawn care and gardening.
__________________
athena53 is offline   Reply With Quote
Old 03-28-2016, 01:31 PM   #53
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Gone4Good's Avatar
 
Join Date: Sep 2005
Posts: 5,381
Quote:
Originally Posted by MasterBlaster View Post
Your thought misses the point of maximizing nest-egg utility while you are alive. Leaving a large unspent nest-egg is seen by the authors as undesirable.
I agree.

But the alternative to dying with a large nest egg is living with a smaller one, and therefore a smaller cushion. That may be an acceptable choice for many folks, and that's OK as long as they understand the tradeoffs involved.

But those tradeoffs aren't things that get a lot of attention in many of these withdrawal optimization articles. The one linked in the OP is a perfect example. It's almost all free lunch.
__________________
Retired early, traveling perpetually.
Gone4Good is offline   Reply With Quote
Old 03-28-2016, 02:34 PM   #54
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2013
Posts: 5,326
I think there is a third option - going a lot of places yet not spending much money. Frequent flyer points, parks and picnics, activity co-ops, free unsold seat tickets - there seems to be ways to do most activities in our area for free or low cost. Plus there is certainly no shortage of blogs on how to accumulate and use free travel miles.
__________________
Even clouds seem bright and breezy, 'Cause the livin' is free and easy, See the rat race in a new way, Like you're wakin' up to a new day (Dr. Tarr and Professor Fether lyrics, Alan Parsons Project, based on an EA Poe story)
daylatedollarshort is offline   Reply With Quote
Old 03-28-2016, 02:39 PM   #55
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,263
Quote:
Originally Posted by bmcgonig View Post
The U seems only to occur if health care spending increases, and as he states if you have a medigap policy, then even this doesn't happen. So it seems for many on this board the U doesn't exist at all. The exception, of course, is long term care.


Sent from my iPad using Early Retirement Forum

Yes, kinda what I was going to point out....

Most of the people I know who are up in age have not had big increases in spending.... and I do not know anybody who is in long term care... everybody died before getting to that point...

My mom is the closest to needing expensive care, but she is 96 and still living on her own, with a little help from a caregiver 3 days a week... pretty cheap IMO...
__________________
Texas Proud is offline   Reply With Quote
Old 03-28-2016, 02:55 PM   #56
Thinks s/he gets paid by the post
 
Join Date: Mar 2015
Location: Winnipeg
Posts: 1,302
Quote:
Originally Posted by jkern View Post
Maybe, maybe not! I was snow skiing last Friday and rode the chair lift to the top with an 80 year old guy. He was still skiing advanced runs. Last month I played 18 holes of golf with a 91 year old. You never know.
That's right...you never know. But, those are the exceptions. The reality is that there are a lot more 65 year old golfers than 90 year old golfers and there are very, very few 80-year old skiers....even on the bunny hill, never mind on advanced runs.

With careful planning, people can spend a little more in the early years without leaving themselves destitute in the later years.
__________________
Music Lover is offline   Reply With Quote
Old 03-28-2016, 03:19 PM   #57
Thinks s/he gets paid by the post
MasterBlaster's Avatar
 
Join Date: Jun 2005
Posts: 4,359
Quote:
Originally Posted by Gone4Good View Post
I agree.

But the alternative to dying with a large nest egg is living with a smaller one, and therefore a smaller cushion. That may be an acceptable choice for many folks, and that's OK as long as they understand the tradeoffs involved.

But those tradeoffs aren't things that get a lot of attention in many of these withdrawal optimization articles. The one linked in the OP is a perfect example. It's almost all free lunch.
Granted, never spending (or lightly spending) your money will insure that you never go broke. If that makes you happy then go for it.

However that's not the point of the article. This is a spending optimization problem subject to the constraint that the nest-egg never goes to zero. That's what the author is speaking to - nothing more.


And for what it's worth, I suspect very few will use this strategy.
__________________
MasterBlaster is offline   Reply With Quote
Old 03-28-2016, 04:07 PM   #58
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Gone4Good's Avatar
 
Join Date: Sep 2005
Posts: 5,381
Quote:
Originally Posted by MasterBlaster View Post
However that's not the point of the article. This is a spending optimization problem subject to the constraint that the nest-egg never goes to zero. That's what the author is speaking to - nothing more.
I'm not sure this is a problem that lends itself to "optimization" and I can forsee great harm in pretending we can put too fine a point on something that is at best a guesstimate about the future.
__________________
Retired early, traveling perpetually.
Gone4Good is offline   Reply With Quote
Old 03-28-2016, 04:12 PM   #59
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
braumeister's Avatar
 
Join Date: Feb 2010
Location: Northern Kentucky
Posts: 8,591
Quote:
Originally Posted by Music Lover View Post
The reality is that there are a lot more 65 year old golfers than 90 year old golfers and there are very, very few 80-year old skiers....even on the bunny hill, never mind on advanced runs.
You may not be a skier, but my experience is different. I constantly encounter skiers in their 70s and early 80s while riding the lifts. Many ski areas offer free lift tickets if you're 70 or older, and plenty of people take advantage of it.
__________________
braumeister is offline   Reply With Quote
Old 03-28-2016, 04:13 PM   #60
Thinks s/he gets paid by the post
MasterBlaster's Avatar
 
Join Date: Jun 2005
Posts: 4,359
Quote:
Originally Posted by Gone4Good View Post
I'm not sure this is a problem that lends itself to "optimization" and I can forsee great harm in pretending we can put a fine point on something that is at best a guesstimate about the future.
"Problem" is defined as in a class of mathematical approaches. Not necessarily an issue you have to deal directly with.
__________________

__________________
MasterBlaster is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Why Not Spend More on Me Now than Later? Birdie Num Nums Life after FIRE 86 02-17-2014 08:18 PM
consumer staple tilt ducky911 Stock Picking and Market Strategy 2 08-30-2012 03:27 PM
"Spend More, Get Less? The Health Care 'Conundrum'" Coach FIRE Related Public Policy 19 07-13-2009 12:07 PM
Income: More is less? Less is more? Sam FIRE and Money 9 08-19-2006 08:01 PM
More about CPI and hedonic adjustments sgeeeee Other topics 2 06-06-2005 07:56 PM

 

 
All times are GMT -6. The time now is 03:45 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.