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Old 11-14-2013, 07:52 PM   #41
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In the last few years, we got ready so we could splurge in retirement: bought a new camper, nice canoe, paid off debts...

Now we just load up the bikes and canoe into the camper and go when and where we wish. Just came back from around taladega national forest. Michigan last month and two months in Alaska starting last June. Now we have more time to spend, but the major costs have already been taken care of - while we still worked.

Whatever is best for you.
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Old 11-14-2013, 07:58 PM   #42
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There's nothing wrong with enjoying better things once in awhile, but I don't agree with your rationale on the money.

If you are spending on extras instead of saving, you are reducing your retirement fund. Not a problem, since you plan to save enough for retirement and enjoy the extras, but the fact is that you could either retire a bit earlier, or be able to enjoy some extras in retirement if you weren't spending it now. It's just a choice. Some people would rather take retirement ASAP. I preferred to work a bit longer to put away enough to enjoy some nice things both while working and in retirement, though I don't go overboard.

I have the same kind of reaction when I hear about people who do things like move up putting on a new roof just before retiring, or replacing their car early. There's no difference between spending that money in retirement or while working, except that by deferring it until it is actually needed you put off the next time replacement needs to be done.

Ongoing expenses like fine dining and entertainment actually are a bit different, so maybe it is best to do it now and use retirement as a signal to live with fewer luxuries.
I agree with RunningBum. Spend what you want to spend when you want to spend it but don't think the pre-retirement spending is any different from post-retirement spending.
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Old 11-14-2013, 08:10 PM   #43
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Splurging on luxuries like travel or fine dining will make the work more tolerable and helps keep your sanity while you are waiting for that time to check out.

Spending money on necessities like a new roof or a car that needs replacement also serves as a motivation to stick it out for a few more months to get some extra income. In that sense, it is helpful.
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Old 11-14-2013, 08:32 PM   #44
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I am definitely living it up BEFORE retirement. We have three trips totaling $150K in next 18 months; been saving up for almost a year for them. I have increased my travel budget at expense of additional retirement savings beyond the $43K (including employer match) that I continue to make. I will still make Roth contributions by taking money out of taxable brokerage accounts that are earmarked for retirement.

This travel also defers building up "cash" accounts to a full year's spending in preparation for retirement. So, instead of retiring at 58 it might be 59 or 60 or even longer if I still enjoy work and can travel as I want.

This is a choice we made to "practice" retirement.

Marc
I know someone who estimates he spends $40K on each family vacation, so I can envisage how you could get to $150K in three trips, especially if they include 3 month luxury cruises, for example.

Meanwhile, back at the ranch, I am trying hard to stay within the $8K travel budget that I established for 2013. Three trips down, one to go!
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Old 11-14-2013, 08:43 PM   #45
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Splurging on luxuries like travel or fine dining will make the work more tolerable and helps keep your sanity while you are waiting for that time to check out.
This a good point. I discovered that some of my wants disappeared and/or changed after I retired. A lot of the stuff I was doing was to compensate for the stress at work. Once I retired and the stress went away I thought about things differently.
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Old 11-14-2013, 08:48 PM   #46
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When I was still working part-time and my wife was still toiling at her megacorp, for a few consecutive years we had 2 foreign trips and 2 domestic trips a year. I still enjoyed my work and the pay that came with it, but my wife had such tough times at work that she did not have enough travel.

So, despite being a manager and with plenty of work, she managed to offer herself for some reduced work hours, in exchange for less pay of course, to help the group budget. They called it "buying extra vacation". She traveled with some friends without me.

Ever since quitting, she does not have that urge to get out of town anymore.

PS. So, my wife has been to places that I have not been, like Bali, Komodo Island, Kuala Lumpur, Singapore, and some places in Argentina, etc...
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Old 11-14-2013, 08:59 PM   #47
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This a good point. I discovered that some of my wants disappeared and/or changed after I retired. A lot of the stuff I was doing was to compensate for the stress at work. Once I retired and the stress went away I thought about things differently.
That is bad. Although my job gives me tons of stress, I'd like to splurge to reward myself for being a die hard LBYMer for life.
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Old 11-14-2013, 09:09 PM   #48
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I know someone who estimates he spends $40K on each family vacation, so I can envisage how you could get to $150K in three trips, especially if they include 3 month luxury cruises, for example.

Meanwhile, back at the ranch, I am trying hard to stay within the $8K travel budget that I established for 2013. Three trips down, one to go!
Almost half of this is for a cruise from Kangerlussuaq Greenland to Nome Alaska through the Northwest Passage; a trip that has been on our bucket list for years. It is way too expensive but would be a big regret if we didn't take advantage of the ice conditions.

After 9-11 we realized life is too short and that although we have always saved for retirement, we need to enjoy every day of life. We found luxury cruising in 2002 and have saved each nickel so we can travel as much as vacation time (and elderly parents) allowed. We have also been lucky to have had two overseas assignments that have also been great for travel. I am afraid when i actually commit to retirement, I might be afraid of spending $50K+ on a single trip, so I am a candidate for OMY.

Marc
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Old 11-14-2013, 10:54 PM   #49
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After 9-11 we realized life is too short
Marc
To me, it was after my younger brother's death this year that ingrained this on me. I tried to splurge on him while he was alive, e.g, taking him to fancy golf course (one I would not play if it wasn't for my brother) when he was still able. When he passed away, I decided to splurge a bit when I can. Life is too short, cliche but very true.
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Old 11-15-2013, 08:03 AM   #50
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I'm fascinated that so many of us have landed on the same thing in retirement; that is that the luxuries we rewarded ourselves with during our working years quickly lose a good chunk of their appeal when the daily stress of working is removed.

I really thought I'd lament the loss of many of the perks of our job, and we thought we'd continue to travel in the same way post-retirement as we did pre-retirement. No one was more surprised than me when slowing down and touring the USA and Canada with our RV in tow became more alluring than flying or cruising off to another continent. In fact, cruising has pretty much lost all appeal, primarily because of the at-sea days. I needed those at sea days when I was decompressing from work, but now I find them annoying. I want to explore when I leave home, not pay to relax. I'm already relaxed!

It's all just very interesting . . .
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Old 11-15-2013, 08:12 AM   #51
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To me, it was after my younger brother's death this year that ingrained this on me. I tried to splurge on him while he was alive, e.g, taking him to fancy golf course (one I would not play if it wasn't for my brother) when he was still able. When he passed away, I decided to splurge a bit when I can. Life is too short, cliche but very true.
I am struggling with this one a bit, perhaps because of retiring post-The Great Recession and having my confidence in our financial institutie ons shaken to the core as a result. While we aim to enjoy every dollar wset aside for R&R in our annual budget, our retirement budget is still a LBYM budget, just as it was pre-retirement. Perhaps it's just a case of old habits being hard to break, but at this rate our kids will be the big winners at some point down the road.
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Old 11-15-2013, 10:18 AM   #52
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...No one was more surprised than me when slowing down and touring the USA and Canada with our RV in tow became more alluring than flying or cruising off to another continent. In fact, cruising has pretty much lost all appeal, primarily because of the at-sea days. I needed those at sea days when I was decompressing from work, but now I find them annoying. I want to explore when I leave home, not pay to relax. I'm already relaxed! ...
You took the words right out of my mouth keyboard!

However, I still like to make foreign trips, preferably to developed and safer countries where I have the audacity to travel on my own and do not have to rely on a tour guide.

On the other hand, my sister and her husband like to cruise. They are more extroverted, and enjoy the company of other cruisers.
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Old 11-15-2013, 12:18 PM   #53
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Perhaps it's just a case of old habits being hard to break, but at this rate our kids will be the big winners at some point down the road.
My wife and I are aiming to spend all our money before we croak. My only child, from day 1 out of college, has been independent and would not hear of any "inheriting" from us. These make us feel a bit more liberated to spend in FIRE as we wish. In reality, my child will most likely retire well with what we leave him behind. But I (my wife may not) will still be hell bent on spending everything we got before we meet our maker .
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Old 11-15-2013, 10:47 PM   #54
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But I (my wife may not) will still be hell bent on spending everything we got before we meet our maker .
Yes, but what if you get that meet-your-maker date just a bit wrong . . .
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Old 11-16-2013, 06:16 AM   #55
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I don't see a problem with splurging a little before retirement. To me it seems better to splurge while still working rather than during retirement, because there is usually some discretionary income to soften the splurge. I splurged for several years during my taper into retirement. Bought a lot of hobby toys to keep me busy. Now that I'm chock full of hobby gear and keep myself busy 24/7, I don't feel the need to spend much anymore
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Old 11-16-2013, 03:22 PM   #56
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Yes, bought a nice new car and second home. Wanted to have some of those costs and expenses behind me and known for ER.
After the boys graduated from college, we bought a cabin in Colorado 3 years ago (I always regretted not buying my grandfather's cabin) and we've never regretted it. It's a loooonnnnggg day's drive from Houston.
We may sell it after retiring in a few years and moving to the Seattle area.
We may also replace the Outback when my wife gets her bonus next May/June, even though it could last another 4 years; this is anticipating retirement and not wanting to purchase again until SS kicks in in 10 years.
I find it a little weird being able on a monthly basis to buy a coat, a Yamaha receiver while my wife was travelling, etc. I limit it to one splurge per month. That will change in two years when I retire, but is an incentive to continue slaving for 18-24 months longer. OMY.
I do plan to semi-retire, even though I don't need to--barring a 2008 event.
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Old 11-22-2013, 06:24 PM   #57
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Just ordered 2 DNA kits from 23andme for < $200. To me, this qualifies as a splurging it a little. LBYM me would not have done that just to satisfy my curiosity.
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Old 11-22-2013, 08:09 PM   #58
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Interesting thread. Your tastes do change pre and post retirement. While working, 4-5 day trips to a beach in Jamaica were great as were cruises. Weekend at the lake house were an absolute necessity. Now not so much. In the first few years of retirement we took family and friends with us on luxurious trips. Kind of got it out of our system I guess. Now after buying more vacation properties we tend to travel a little less. Instead invite friends to our places. I think you should balance spending with saving. It would be a shame if you were so successful at LBYM that you couldn't enjoy spending it in retirement. Not a problem that we have.
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Old 11-27-2013, 11:34 AM   #59
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Interesting thread. Your tastes do change pre and post retirement. While working, 4-5 day trips to a beach in Jamaica were great as were cruises. Weekend at the lake house were an absolute necessity. Now not so much. In the first few years of retirement we took family and friends with us on luxurious trips. Kind of got it out of our system I guess. Now after buying more vacation properties we tend to travel a little less. Instead invite friends to our places. I think you should balance spending with saving. It would be a shame if you were so successful at LBYM that you couldn't enjoy spending it in retirement. Not a problem that we have.

I am on pre-retirement and just signed up Costa Rica tour for coming Jan.

I plan to travel a lot when I retire but your comment above makes sense somewhat.
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Old 11-27-2013, 11:38 AM   #60
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I didn't have time to live it up before retiring.

Instead, we set aside a major cash stash before retiring to so we could live it up as soon as we retired.

Well, I did buy a new vehicle the year before retiring that I had never considered until I realized what I would be using a vehicle for after retiring (switched from a sedan to SUV, something I never considered while working/commuting).
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