Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 08-14-2016, 07:54 AM   #21
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: 5,063
Send a message via Skype™ to kcowan
I find that, as I work my way through the bucket list, I am not adding items at the same rate. Decline of spending has not kicked in yet. Loss of animals and relatives has freed us for the moment to travel so spike is continuing for a few years.
__________________

__________________
For the fun of it...Keith
kcowan 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 08-14-2016, 09:03 AM   #22
Thinks s/he gets paid by the post
 
Join Date: Dec 2009
Location: Alberta/Ontario/ Arizona
Posts: 2,582
Actually this thread got me thinking a bit more. I looked at my spending excluding capital items (home purchases) and alimony since retirement. The results surprised me a bit as follows , indexed to 2007 my first full year of retirement:
2007- 100%
2008- 80%
2009- 54%
2010- 74%
2011- 65%
2012- 55%
2013- 84%
2014- 75%
2015- 92%
2016- 65%

Doesn't seem to be any pattern other than looks like I went crazy in the first year, cut back in 2009 (financial crises), and spent more in 2015 ( daughter's wedding). I was thinking my spending was more constant than this. Interesting, at least to me.
__________________

__________________
Danmar is offline   Reply With Quote
Old 08-14-2016, 09:17 AM   #23
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 22,909
Quote:
Originally Posted by Danmar View Post
Actually this thread got me thinking a bit more. I looked at my spending excluding capital items (home purchases) and alimony since retirement. The results surprised me a bit as follows , indexed to 2007 my first full year of retirement:
2007- 100
2008- 80
2009- 54
2010- 74
2011- 65
2012- 55
2013- 84
2014- 75
2015- 92
2016- 65

Doesn't seem to be any pattern other than looks like I went crazy in the first year, cut back in 2009 (financial crises), and spent more in 2015 ( daughter's wedding). I was thinking my spending was more constant than this. Interesting, at least to me.
Just to clarify, these are percentages, with 2007 as the base year, so 2016 is 65% of the amount spent in the year 2007?
__________________
MichaelB is offline   Reply With Quote
Old 08-14-2016, 09:26 AM   #24
Thinks s/he gets paid by the post
 
Join Date: Dec 2009
Location: Alberta/Ontario/ Arizona
Posts: 2,582
Quote:
Originally Posted by MichaelB View Post
Just to clarify, these are percentages, with 2007 as the base year, so 2016 is 65% of the amount spent in the year 2007?
Correct, should have made that clearer. Will amend post.
__________________
Danmar is offline   Reply With Quote
Old 08-14-2016, 09:45 AM   #25
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 40,656
First ten years, with year 1 (2006) = 100.

Other than the very cautious spending in the first year of retirement, our numbers do resemble a smile.

Thankfully the uptick in spending starting in 2013 isn't due to healthcare.
Attached Images
File Type: jpg Smile.JPG (24.8 KB, 19 views)
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 08-14-2016, 10:01 AM   #26
Recycles dryer sheets
 
Join Date: Apr 2011
Location: Castro Valley
Posts: 360
Through the first 7 years of retirement (age 51 to 58) my spending has not reduced at all and will increase over the several years. I don't plan on any reduced spending until at least mid 70s.
__________________
jkern is offline   Reply With Quote
Old 08-14-2016, 02:16 PM   #27
Thinks s/he gets paid by the post
 
Join Date: Jun 2014
Posts: 1,034
We are traveling more because we have the time and eating out more, etc. We have been semi-retired for 4 years now at ages 62 and 57. My Mom's spending really dropped at about age 80 as her traveling went way down. Also since we work p.t. from home for ourselves we have a lot more energy then when we worked f.t. So this translates into wanting to go out more.
__________________
Teacher Terry is offline   Reply With Quote
Old 08-14-2016, 04:54 PM   #28
Recycles dryer sheets
 
Join Date: Jul 2014
Location: Undisclosed
Posts: 81
Here are our percentages for the first 10 years. This year will probably be below 100% but next year (new shingles on roof) will probably exceed 100%.

100%
96%
97%
91%
94%
94%
94%
101%
85%
91%

Instead of a smile, we will be waving.
__________________
N02L84ER is offline   Reply With Quote
Old 08-14-2016, 05:07 PM   #29
Recycles dryer sheets
 
Join Date: Jan 2014
Location: Austin
Posts: 457
Interesting.

I'm spending more than I did while I was working. And so far this year I've spent more than I had at the same time last year.

It's still only about half as much as I've planned to spend every year until I'm no longer able to do so, but it's trending upwards as I no doubt become more comfortable with the concept.
__________________
ER'd 6/1/2014 @ age 53. AA=70/30, WR=3%
Looking4Ward is offline   Reply With Quote
Old 08-14-2016, 06:35 PM   #30
Full time employment: Posting here.
 
Join Date: Mar 2008
Posts: 660
While my projections have expenses and income in the 6 figure range, I just can't see us spending that amount in our late 70's and 80's. I think our travel will be reduced and our medical should be well covered. We could house repairs in 20-30 years, but we'll hopefully have moved or downsized by then.
__________________
akck is offline   Reply With Quote
Old 08-14-2016, 06:42 PM   #31
Thinks s/he gets paid by the post
RobbieB's Avatar
 
Join Date: Mar 2016
Location: Central CA
Posts: 1,936
I'm spending a lot more than when I was working. I have all this time now to surf and buy stuff off the internet -
__________________
Retired at 59 in 2014. Should have done it sooner but I worried too much.
RobbieB is offline   Reply With Quote
Old 08-14-2016, 08:17 PM   #32
Thinks s/he gets paid by the post
 
Join Date: Jan 2008
Posts: 1,495
The decline in spending is voluntary. From Wade Pfau's site:

The_Relationship_Between_Spending__Aging (1).pdf
__________________
Options is offline   Reply With Quote
Old 08-14-2016, 08:33 PM   #33
Thinks s/he gets paid by the post
RobbieB's Avatar
 
Join Date: Mar 2016
Location: Central CA
Posts: 1,936
Cool, good to know. I'm not gonna be a volunteer -
__________________
Retired at 59 in 2014. Should have done it sooner but I worried too much.
RobbieB is offline   Reply With Quote
Old 08-14-2016, 08:38 PM   #34
Thinks s/he gets paid by the post
 
Join Date: Oct 2012
Location: Colorado Mountains
Posts: 1,884
My spending has gone down every year if I do not include DS' education expenses and home construction. At the rate I am going, I may get down to my projected retirement spending maybe in 2017. DD is getting married next month, so that blows all annual spending comparisons for this year!
__________________
Hermit is offline   Reply With Quote
Old 08-15-2016, 01:44 AM   #35
Recycles dryer sheets
 
Join Date: Aug 2009
Posts: 453
If we are covered by a medigap plan F for instance, is there any reason why our medical expenses should increase as we age? Aside from LTC.

Sent from my Nexus 6P using Early Retirement Forum mobile app
__________________
bmcgonig is offline   Reply With Quote
Old 08-15-2016, 02:23 AM   #36
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2005
Posts: 5,114
just premium jumps,dental ,hearing aids , vision ,modifying ones home to remain in it if need be and long term care costs . .

medicare is introducing lower income brackets in 2018 where your premiums will jump if you hit the levels . this years income will be the benchmark for your 2018 premium . the new range is 133,500 to 160k will be added and increased as well as increases in the 160-214k range

__________________
mathjak107 is offline   Reply With Quote
Old 08-15-2016, 07:07 AM   #37
Thinks s/he gets paid by the post
mpeirce's Avatar
 
Join Date: Feb 2012
Location: Columbus area
Posts: 1,446
Quote:
Originally Posted by RobbieB View Post
I'm spending a lot more than when I was working. I have all this time now to surf and buy stuff off the internet -
Well, actually, me too.

When I was working I didn't have much time to spend money, I was busy working.
__________________
mpeirce is offline   Reply With Quote
Old 08-15-2016, 08:49 AM   #38
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: 5,063
Send a message via Skype™ to kcowan
Quote:
Originally Posted by Danmar View Post
Actually this thread got me thinking a bit more. I looked at my spending excluding capital items (home purchases) and alimony since retirement. The results surprised me a bit as follows , indexed to 2007 my first full year of retirement:
I have added my column and based it on 2006:

2007- 100% 100
2008- 80% 95
2009- 54% 97
2010- 74% 99
2011- 65% 81
2012- 55% 81
2013- 84% 83
2014- 75% 68
2015- 92% 70
2016- 65% 71

Doesn't seem to be any pattern other than looks like I went crazy in the first year, cut back in 2009 (financial crises), and spent more in 2015 ( daughter's wedding). I was thinking my spending was more constant than this. Interesting, at least to me.
We did not have a wedding to cover. We bought our snowbird home in 2007 and have excluded the capital cost but not the remodelling/refurnishing so I think that has contributed to the higher initial years.

I expect this year and next to be slightly higher because we replaced the carpet throughout with hardwood so have been upgrading furnishings in our northern place.

The general decline below budget is because of the cheaper cost of living for 6 months in Mexico.
__________________
For the fun of it...Keith
kcowan is offline   Reply With Quote
Old 08-15-2016, 11:26 AM   #39
Full time employment: Posting here.
 
Join Date: Mar 2008
Posts: 660
Quote:
Originally Posted by mathjak107 View Post
just premium jumps,dental ,hearing aids , vision ,modifying ones home to remain in it if need be and long term care costs . .

medicare is introducing lower income brackets in 2018 where your premiums will jump if you hit the levels . this years income will be the benchmark for your 2018 premium . the new range is 133,500 to 160k will be added and increased as well as increases in the 160-214k range

This had me worried, but it's for singles. Here's a chart that shows married filing jointly too:

__________________
akck is offline   Reply With Quote
Old 08-15-2016, 12:02 PM   #40
Full time employment: Posting here.
martyp's Avatar
 
Join Date: Sep 2010
Location: El Cerrito
Posts: 936
I ER'd 5.5 years ago. I noticed pretty soon that my spending was below what I expected it to be. The decrease was entirely voluntary. The decrease wasn't just associated with lower w*rk related or commuting expenses. It is just that a lot of my previous spending became unimportant to me once I ER'd. Lately I've chosen to start spending that "windfall" on travel.

Of course everyone has individual circumstances to consider but this pattern of retirement spending seems reasonable to me. Or . . . it seems to apply in my case.
__________________

__________________
Happy, Wild, and Free
martyp 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
Normally I don't ask for advice but veremchuka FIRE and Money 85 08-20-2012 11:39 AM
Are loans normally structured this way? CompoundInterestFan FIRE and Money 6 02-16-2010 10:17 AM
Many Retirees get to Double Dip? mickeyd FIRE and Money 2 02-28-2009 09:07 AM
Should I dip into my HELOC to buy? ER_Hopeful FIRE and Money 45 10-18-2008 03:08 PM
Triple Dip tryan FIRE and Money 12 10-10-2005 11:47 PM

 

 
All times are GMT -6. The time now is 01:29 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.