Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 01-03-2017, 11:52 AM   #61
Thinks s/he gets paid by the post
 
Join Date: Dec 2009
Location: Alberta/Ontario/ Arizona
Posts: 3,072
Quote:
Originally Posted by RunningBum View Post
I "worry" about money in that sense of identifying underperforming investments or overspending. I don't want to get to the point of near disaster and having to take drastic action. I think most of us here are that way, though it sounds like a few don't need to. I want to know as early as possible if I'm heading toward failure so I can cut back.



I wouldn't have gotten to where I am, ER'd before age 50 and living very comfortably, without managing my money well, and I'm not going to stop now.
Fair enough, I was thinking more about the interminable discussion around the historical Firecalc results ( to 4 significant digits) when a simple reaction to actual results would certainly suffice for almost all of us here. Certainly for those in withdrawal mode.
__________________

__________________
Danmar 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 01-03-2017, 11:54 AM   #62
Thinks s/he gets paid by the post
 
Join Date: Jan 2008
Posts: 1,495
Quote:
Originally Posted by RunningBum View Post

...

I wouldn't have gotten to where I am, ER'd before age 50 and living very comfortably, without managing my money well, and I'm not going to stop now.
+1
Well said.

Years ago a brilliant and very successful mentor told me money stays around people who respect it and take good care of it. It does the opposite to those who don't manage it well.
__________________

__________________
Options is offline   Reply With Quote
Old 01-03-2017, 11:56 AM   #63
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: 5,612
Send a message via Skype™ to kcowan
Quote:
Originally Posted by Danmar View Post
Frugal to the point of cheapness. Great for us so not complaining.
I would try to get them to loosen up and enjoy life!
Quote:
Other end is my mom. She was never frugal and actually a little frivolous and vain. She may very well run out of money. But she is 91 and has about 6 years of funding left. If she runs out, we will pay her nursing home bills which are quite high at about $85,000 per year.
You should be able to get her in a nice subsidized home and then subsidize her informally for extras?
__________________
For the fun of it...Keith
kcowan is offline   Reply With Quote
Old 01-03-2017, 12:03 PM   #64
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: 5,612
Send a message via Skype™ to kcowan
Quote:
Originally Posted by Danmar View Post
The compararable program in Toronto would be pretty grim. I would rather pay for a better place for my mom.
I shopped for one for my bro in Toronto on Yonge north of Bloor. It would have been great, even for me. The key is to apply ahead of because of wait times.
Quote:
Originally Posted by Fermion View Post
Do we have any actual proof of this or just stories? Do they beat you every Saturday and twice on Sunday? Serve cat food just once per day?
My market research was done in 2005 so it might have gone downhill in 10 years.

But if I were out of money I would jump at it. Walking to entertainment/shopping and right on the rapid transit.
__________________
For the fun of it...Keith
kcowan is offline   Reply With Quote
Old 01-03-2017, 12:10 PM   #65
Thinks s/he gets paid by the post
 
Join Date: Dec 2009
Location: Alberta/Ontario/ Arizona
Posts: 3,072
Quote:
Originally Posted by kcowan View Post
I would try to get them to loosen up and enjoy life!
You should be able to get her in a nice subsidized home and then subsidize her informally for extras?
Too late for half of my in laws. He is almost gone. She will move into a very nice place. But still won't spend a dollar.

As for my mother. She's 91 with 6 more years of funding left. I don't think there is that much risk of her running out?
__________________
Danmar is offline   Reply With Quote
Old 01-03-2017, 01:21 PM   #66
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: 8,499
Quote:
Originally Posted by Danmar View Post
She's 91 with 6 more years of funding left. I don't think there is that much risk of her running out?
I sincerely hope you're right, but of course you never know.
That's what a good friend thought when his mom became confined to her bed at 95. She died at 103, and it was a very rough eight years for everyone.

Always better to err on the conservative side.
__________________
braumeister is offline   Reply With Quote
Old 01-03-2017, 02:02 PM   #67
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2013
Posts: 5,267
SS and pensions will cover most of our basic expenses plus a few frills and we can use some of the portfolio income and hobby income for extras if we want. We use liability matching and our plan is pretty much to have at least the same net worth we have today in inflation adjusted dollars more or less at age 104+, less whatever we need for long term care or other extraordinary expenses. If we downsize or move to a lower cost of living area we could save a bit more. We decided early on our focus would be more on avoiding sequence of returns risk or having to worry about running out of money than growing our portfolio in retirement.
__________________
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 01-03-2017, 02:05 PM   #68
Recycles dryer sheets
 
Join Date: Mar 2011
Location: Dallas
Posts: 454
Mom's situation is the only one I know intimately. She and Hubby is living on SS and she's on VA benefits for health. She's still saving about 1/3 of her SS and only has $90-100k outside of the home she owns (not worth much, but lives there "free").

When Hubby passes, she'll be low maintenance until her health slows. Then we'll step in to help. She's pretty self-sufficient / independent otherwise.

I manage some of her finances and she beat the S&P by 4.5% this year...
__________________
Surewhitey is offline   Reply With Quote
Old 01-03-2017, 02:09 PM   #69
Recycles dryer sheets
 
Join Date: Mar 2011
Location: Dallas
Posts: 454
Our expenses are on the high side and only 4% of our totals. When we hit SS and small pension, we'll use that as "fun" money...

Most that I see here are very in tune with their finances and likely plan for the worst and get better from their performance.

We have a 45 year plan and have columns for health, car, home maint. events happening ever "x" years and put in a 3% inflation into spending although the only inflation we notice is health insurance...
__________________
Surewhitey is offline   Reply With Quote
Old 01-03-2017, 02:58 PM   #70
Thinks s/he gets paid by the post
Huston55's Avatar
 
Join Date: Jul 2011
Location: The Bay Area
Posts: 1,764
Quote:
Originally Posted by ggbutcher View Post
I personally think you have to worry enough to manage the risk. Sitting here today, there are a few things I cannot know: 1) how long DW and I will live, 2) how healthy we will be (imoldernu's sugar post is freaking me out right now...), 3) how reliable are our income sources in retirement. These constitute risks that require some consideration.

Risk is all about managing consequences and their associated probabilities. For longevity, I use the six-sigma tail value of age 100, plan for savings withdrawals to last at least that long. For income source reliability, I am arranging multiple sources, both pensions and savings, if one falters it won't take us down the tubes. For health, well, doggonit, I'm going to go and throw all the sugar we have in the trash. Oh, when DW gets home....
100 yo is actually closer to 5-sigma but, who's counting?
__________________
You may be whatever you resolve to be.
Huston55 is online now   Reply With Quote
Old 01-03-2017, 03:03 PM   #71
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,190
Quote:
Originally Posted by Danmar View Post
They bought it for $150,000 in the '70's. Nothing special. Poorly maintained and decorated. This is Toronto.
OK... that makes more sense...

Forgot about that in some HCOL areas....
__________________
Texas Proud is offline   Reply With Quote
Old 01-03-2017, 03:08 PM   #72
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2006
Posts: 10,946
Quote:
Originally Posted by Texas Proud View Post
OK... that makes more sense...

Forgot about that in some HCOL areas....
Canada's HCOL areas are Vancouver and Toronto.

Here’s what $1-million homes look like in 16 Canadian cities | Globalnews.ca
__________________
Meadbh is offline   Reply With Quote
Old 01-03-2017, 03:15 PM   #73
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Posts: 2,052
I have a few family members in my parents' generation (ages 64, 70, and 72) that are retired/unemployed/disabled, who probably wouldn't be able to do it, if it weren't for help from the family. The 72 year old is one of my cousins who's always been a bit of a leech, although he did have medical issues. He lives in his 92 year old mother's basement, but when she passes away I can almost guarantee he won't be able to keep up with expenses and maintenance of the house, and will probably lose it.

The 64 year old is my uncle, who's on disability as well (kidney issues), and is living in my grandmother's house (Mom's side of the family). The house is part his, part Mom's, and part mine. We're holding onto it, so he has a place to live. He did get a pretty nice inheritance from Grandmom, plus I helped him with his 401k over the years, so he's doing fairly well. But, if it wasn't for Grandmom's house, he'd either have to live with my Mom, or me...probably wouldn't be able to make it on his own for very long.

The 70 year old is my Dad. He's living in Granddad's house, which I think is currently going through probate. There are two other heirs, his brothers. My Dad is in pretty bad health. I think he has cancer, but he's refusing to go to the doctor. He's supposed to get a pretty nice inheritance once Granddad's estate settles...provided his two brothers don't get greedy, start fighting, and lawyering up. If they end up selling the house and my Dad has to find another place, he says he'll be okay, but I have my doubts.
__________________
Andre1969 is offline   Reply With Quote
Old 01-03-2017, 03:15 PM   #74
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Lsbcal's Avatar
 
Join Date: May 2006
Location: west coast, hi there!
Posts: 5,614
Quote:
Originally Posted by RunningBum View Post
...
As far as obsessing about AAs, withdrawal strategies, and returns, for me, that's as much of a hobby as it is worrying. I like playing the numbers game. I'll look for a better credit card deal, CD interest rate, plane fare, and discounts. I do it more to feel good about finding these things rather than feeling like I have to or I'll run out of money.

...
Me too. It's especially fun to talk about money on this forum when the market is providing more spending money for us.

I don't think we've quite gotten to the market's greed stage but we are far from the fear stage. Mild greed is more fun. Shame it can't be perpetual.
__________________
Lsbcal is offline   Reply With Quote
Old 01-03-2017, 03:16 PM   #75
Thinks s/he gets paid by the post
 
Join Date: Jun 2014
Posts: 1,425
I don't understand why people stay in homes that they can't afford to maintain. I would sell and rent or buy a small condo. We have lots of discretionary spending that we could cut if we needed too.
__________________
Teacher Terry is offline   Reply With Quote
Old 01-03-2017, 03:23 PM   #76
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 5,000
Quote:
Originally Posted by Teacher Terry View Post
I don't understand why people stay in homes that they can't afford to maintain. I would sell and rent or buy a small condo. We have lots of discretionary spending that we could cut if we needed too.
Sentimental attachment? Prefer the familiarity to something strange and new? Don't want shared walls? Too much work to fix up a house to sell, and pack and move?
__________________
RunningBum is offline   Reply With Quote
Old 01-03-2017, 03:37 PM   #77
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Posts: 2,052
Quote:
Originally Posted by RunningBum View Post
Sentimental attachment? Prefer the familiarity to something strange and new? Don't want shared walls? Too much work to fix up a house to sell, and pack and move?
Could be a fear of the unknown, and worry about making a wrong decision. My Mom and stepdad bought a second home in Florida back around 2002 or so. They had some neighbors down there they really liked. Well, neighbors ended up selling, at the worst of the market crash, to move back home to Pittsburgh so they could be closer to the kids and grandkids. Ended up regretting it, because they took a loss on the house in Florida, and now pay more for a condo in PA, hate the winter, and don't see the family as much as they'd like.
__________________
Andre1969 is offline   Reply With Quote
Old 01-03-2017, 03:54 PM   #78
Thinks s/he gets paid by the post
Huston55's Avatar
 
Join Date: Jul 2011
Location: The Bay Area
Posts: 1,764
Quote:
Originally Posted by RunningBum View Post
Sentimental attachment? Prefer the familiarity to something strange and new? Don't want shared walls? Too much work to fix up a house to sell, and pack and move?
Quote:
Originally Posted by Andre1969 View Post
Could be a fear of the unknown, and worry about making a wrong decision. My Mom and stepdad bought a second home in Florida back around 2002 or so. They had some neighbors down there they really liked. Well, neighbors ended up selling, at the worst of the market crash, to move back home to Pittsburgh so they could be closer to the kids and grandkids. Ended up regretting it, because they took a loss on the house in Florida, and now pay more for a condo in PA, hate the winter, and don't see the family as much as they'd like.
Not to derail this thread too much but....

There are (among those above) lots of good reasons to rent---forever after FIRE.
__________________
You may be whatever you resolve to be.
Huston55 is online now   Reply With Quote
Old 01-03-2017, 04:03 PM   #79
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 16,367
Quote:
Originally Posted by RunningBum View Post
Sentimental attachment? Prefer the familiarity to something strange and new? Don't want shared walls? Too much work to fix up a house to sell, and pack and move?
Will FIL several years ago it was all of the above. That, and not wanting to face the reality until it came crashing down on him.
__________________
I heard the call to do nothing. So I answered it.
Walt34 is offline   Reply With Quote
Old 01-03-2017, 04:41 PM   #80
Thinks s/he gets paid by the post
 
Join Date: Dec 2009
Location: Alberta/Ontario/ Arizona
Posts: 3,072
Quote:
Originally Posted by Teacher Terry View Post
I don't understand why people stay in homes that they can't afford to maintain. I would sell and rent or buy a small condo. We have lots of discretionary spending that we could cut if we needed too.
Agree but many older people want to stay in their homes as long as they possibly can. My in laws could certainly well afford their home, they just had bad taste and were cheap. They should have downsized years ago and are now being forced to.
__________________

__________________
Danmar 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
Running out of money vs. Too much money but couldn't enjoy it cyber888 FIRE and Money 94 12-12-2015 12:58 PM
Running from or running to? Unpaintedhuffhines Life after FIRE 25 04-23-2013 10:29 AM
Health Care Fund for ERs: Running out of money early samclem Health and Early Retirement 5 04-03-2011 10:21 AM
Worries of Running Out of Money in Retirement retire@40 FIRE and Money 13 05-20-2008 10:02 AM
Medicare running out of money joesxm3 FIRE and Money 23 04-25-2007 11:22 AM

 

 
All times are GMT -6. The time now is 11:44 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.