Originally Posted by Moemg
My Mom is 97 and her spending is probably the same but instead of spending it on vacations she spends it on an independent living apartment . If she suddenly got a windfall she probably would not do anything different . There comes an age where just living a quiet life is enough .
Sometimes it costs money to "live a quiet life." Literally.
We've had DW's mom in a NH for several months now. She'll be private pay for a few months and then switch to Medicaid. She'd LOVE to have a private room because she loves quiet and privacy. Being in control of her own environment is very, very important to her. But she can't afford it. The home we managed to get her into, despite her meager financial status, is quite nice vs. the many others we toured. Still, with a roommate, MIL is unhappy. Stoic, by unhappy.
In her case, there was never an opportunity to decide "spend now or spend later," so the question is moot. She was always in a low income situation.
DW and I do have choices. We're doing fine today using a spend rate based on constant, inflation adjusted spending. I suppose it would be nice to switch to the Bernacke plan and add some thousands of dollars to our annual budget for extra travel or entertainment. Then we think of MIL and decide we'll leave things as they are........ One of us might prefer to have a private room too.