Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Re: US News Article: Socking Too Much Away
Old 05-23-2006, 04:36 PM   #41
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: US News Article: Socking Too Much Away

Speaking of generations, is it because we're analyzing current retirees who are largely depression era babies? Will this look differently when the free spending boomers retire?
__________________

__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny 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!

Re: US News Article: Socking Too Much Away
Old 05-23-2006, 04:45 PM   #42
Thinks s/he gets paid by the post
SteveR's Avatar
 
Join Date: Jul 2005
Posts: 2,803
Re: US News Article: Socking Too Much Away

Quote:
Originally Posted by Cute Fuzzy Bunny
Speaking of generations, is it because we're analyzing current retirees who are largely depression era babies?* Will this look differently when the free spending boomers retire?
I believe part of it may be the depression era folks...it is in my parents case. Boomers are used to spending more but those of us that grew up with depression era parents who ingrained into us the value of money and the evils of debt will be more careful about over spending. Some of course went the other direction and spent like crazy so their kids learned to spend and not save.

In one believes the popular media...all baby boomers are broke, deep in debt and will work until they die. There are millions that are not in this camp and what they do will be interesting. I know my proposed spending is initially near my current levels but drops off by 50% by my 70s; more in my 80s if I live that long. Time will tell.

It will be interesting to say the least.
__________________

__________________
Work? I don't have time to work....I'm retired.
SteveR is offline   Reply With Quote
Re: US News Article: Socking Too Much Away
Old 05-23-2006, 04:46 PM   #43
 
Posts: n/a
Re: US News Article: Socking Too Much Away

Quote:
Originally Posted by Cute Fuzzy Bunny
Speaking of generations, is it because we're analyzing current retirees who are largely depression era babies? Will this look differently when the free spending boomers retire?
The ones that are truly 'free spending' won't be able to retire. -
__________________
  Reply With Quote
Re: US News Article: Socking Too Much Away
Old 05-23-2006, 04:57 PM   #44
Thinks s/he gets paid by the post
 
Join Date: Jan 2006
Posts: 1,012
Re: US News Article: Socking Too Much Away

Being from the Depression era may affect the overall level of spending but do you really think it explains the decrease of spending in later years?* In other words yes I think the "free spending" baby boomers will be spending more in constant dollars for any given age than the depression era retirees, but I also see some good reasons that spending decreases for older retirees that seem to apply as much to baby boomers.
__________________
jdw_fire is offline   Reply With Quote
Re: US News Article: Socking Too Much Away
Old 05-23-2006, 05:05 PM   #45
Thinks s/he gets paid by the post
Coach's Avatar
 
Join Date: Nov 2005
Location: Colorado, USA
Posts: 1,127
Re: US News Article: Socking Too Much Away

We're an interesting, self-selected group. While most people apparently spend little time in retirement planning, we research the subject deeply enough to find this board, read it regularly and over time, and have learned enough that the number of really uninformed posts is extremely low. And we're cautious by nature -- we add 10 years to our life expectancy "just to be safe", analyze and then pad our expense projections "just to be safe", and model the worst years in stock market history "just to be safe."

Folks, between us we're gonna leave a lot of money on the table, come the end! But that sure beats ending up eating Alpo.

Coach
__________________
"Comprehensive health insurance is an idea whose time has come in America." President Richard M. Nixon, February 6, 1974
Coach is offline   Reply With Quote
Re: US News Article: Socking Too Much Away
Old 05-23-2006, 05:07 PM   #46
Thinks s/he gets paid by the post
Outtahere's Avatar
 
Join Date: Sep 2005
Posts: 1,677
Re: US News Article: Socking Too Much Away

Quote:
Originally Posted by Cut-Throat
When I get to the home I'm gonna be talkin about Big Fish, Wine, Women and Song!
Arn't you doing that now?
__________________

Dogs aren't our whole lives, but they make our lives whole. - Roger Caras
Outtahere is offline   Reply With Quote
Re: US News Article: Socking Too Much Away
Old 05-23-2006, 05:15 PM   #47
 
Posts: n/a
Re: US News Article: Socking Too Much Away

Quote:
Originally Posted by Outtahere
Arn't you doing that now?
I'm not just talkin Now -
__________________
  Reply With Quote
Re: US News Article: Socking Too Much Away
Old 05-23-2006, 05:21 PM   #48
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,260
Re: US News Article: Socking Too Much Away

Quote:
Originally Posted by Coach
We're an interesting, self-selected group.* While most people apparently spend little time in retirement planning, we research the subject deeply enough to find this board, read it regularly and over time, and have learned enough that the number of really uninformed posts is extremely low.* And we're cautious by nature -- we add 10 years to our life expectancy "just to be safe", analyze and then pad our expense projections "just to be safe", and model the worst years in stock market history "just to be safe."

Folks, between us we're gonna leave a lot of money on the table, come the end!* But that sure beats ending up eating Alpo.

Coach
I agree... I have NO problem with my portfolio growing the older I get... I made a decision when I was about 17 that I would retire when I hit 55... no reason to change a good plan... and I do not care if someone in the family gets something.... but to tell the truth, I am thinking of setting up an education trust for anybody in the family line so they all can go to college.. many thoughts on how to manage this... but have not put it on paper.
__________________
Texas Proud is online now   Reply With Quote
Re: US News Article: Socking Too Much Away
Old 05-23-2006, 05:22 PM   #49
Thinks s/he gets paid by the post
SteveR's Avatar
 
Join Date: Jul 2005
Posts: 2,803
Re: US News Article: Socking Too Much Away

Quote:
Originally Posted by Coach
We're an interesting, self-selected group.* ...
Folks, between us we're gonna leave a lot of money on the table, come the end!* But that sure beats ending up eating Alpo.

Coach
Yes most folks here are not a good cross section of the rest of the country or the world. *Very few people would jump without at least some amount of number crunching to see if they would splat or bounce once they hit. *

There is a good chance that we as a group will be leaving a ton on the table for family or charity. *Even if inflation runs wild like in the 1980s most of us would be able to easily adjust and do just fine. *The belt and suspenders approach to FIRE is not a bad thing....if it allows you to sleep at night and retire early.


__________________
Work? I don't have time to work....I'm retired.
SteveR is offline   Reply With Quote
Re: US News Article: Socking Too Much Away
Old 05-23-2006, 07:25 PM   #50
Moderator Emeritus
laurence's Avatar
 
Join Date: Feb 2005
Location: San Diego
Posts: 5,234
Re: US News Article: Socking Too Much Away

Quote:
Originally Posted by Texas Proud
I agree...* I have NO problem with my portfolio growing the older I get...* I made a decision when I was about 17 that I would retire when I hit 55...* no reason to change a good plan...* *and I do not care if someone in the family gets something....* but to tell the truth, I am thinking of setting up an education trust for anybody in the family line so they all can go to college..* many thoughts on how to manage this... but have not put it on paper.
I was thinking about that, too! I was, in fact, thinking beyond family and imagining setting up a local scholarship fund (worthy graduates of the local high school, something like that). See, the only barrier to college for my family members is desire, really. But if a kid has all the academic qualification to go to a top 20 school, but couldn't get enough grants to cover the dorm room, I'd love to help be that critical piece that lets them reach their dream. Like you, I haven't fleshed out this plan, my portfolio is too small for me to get ahead of myself!
__________________
laurence is offline   Reply With Quote
Re: US News Article: Socking Too Much Away
Old 05-24-2006, 01:18 PM   #51
Recycles dryer sheets
 
Join Date: Dec 2004
Posts: 273
Re: US News Article: Socking Too Much Away

I still like the old saying, "rich people plan for 20 years from now, poor people plan for Saturday night."

I'd always rather err on the side of being too conservative when it comes to savings.
__________________
time flies like an arrow, fruit flies like a banana
larry is offline   Reply With Quote
Re: US News Article: Socking Too Much Away
Old 05-24-2006, 02:37 PM   #52
Thinks s/he gets paid by the post
 
Join Date: Apr 2006
Posts: 1,487
Re: US News Article: Socking Too Much Away

Quote:
The ones that are truly 'free spending' won't be able to retire
... they'll be the ones who do in fact end-up spending less as the age ...
__________________
d is offline   Reply With Quote
Re: US News Article: Socking Too Much Away
Old 05-24-2006, 02:47 PM   #53
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,260
Re: US News Article: Socking Too Much Away

Quote:
Originally Posted by Laurence
I was thinking about that, too! I was, in fact, thinking beyond family and imagining setting up a local scholarship fund (worthy graduates of the local high school, something like that).* See, the only barrier to college for my family members is desire, really.* But if a kid has all the academic qualification to go to a top 20 school, but couldn't get enough grants to cover the dorm room, I'd love to help be that critical piece that lets them reach their dream.* Like you, I haven't fleshed out this plan, my portfolio is too small for me to get ahead of myself!
I agree... but if I am able to live 40 plus more years I hope to have a big bag of cash at that time... and I would do the same as you.. set it up at the two colleges I graduated for scholorships if family members were not there to utilize the funds... a lot of my thinking is how to have the principal protected from somebody in the future saying "lets spend more now as it will help more people now"... I want it to LAST... since I was a trustee for a few years, I know how to put some instructions on the accounting so they can not go hog wild...
__________________
Texas Proud is online now   Reply With Quote
Re: US News Article: Socking Too Much Away
Old 05-25-2006, 05:13 PM   #54
Recycles dryer sheets
 
Join Date: Nov 2005
Posts: 355
Re: US News Article: Socking Too Much Away

Trust Fund for Education: Mom had one for the decendents of employees of Dad's business. The trust fund industry assumes you have so much money that expenses don't matter. Significant legal fees for set-up, ongoing banking and professional accounting fees for complying with IRS regulations, even mutual fund fees similar to variable annuities. No, it was not at Vanguard.
The trust was eventually folded due to the carrying expenses. It was just easier to write checks to deserving kids than to report amounts and SS numbers to accountants to file tax returns on the trust. Those kids were mostly living at home while attending the local junior college. This was in the late 1970's.
__________________
heyyou is offline   Reply With Quote
Re: US News Article: Socking Too Much Away
Old 08-13-2006, 12:22 PM   #55
Confused about dryer sheets
 
Join Date: May 2005
Posts: 6
Re: US News Article: Socking Too Much Away

Of course, it's easy to spend less. Just don't take inflation into account! Doing that will drop your spending by about 3% per year (the inflation amount) - hardly noticable year to year. This allows you to take a 7% withdrawal rate (well, at 90+% survival according to firecalc) starting now...

If you assume that inflation stays at 3%, the 7% (non-inflation adjusted) withdrawal will be higher than a 4.2% inflation adjusted amount for the first 16 years so you get more now with a gradual decrease in spending as time goes on.

Greg
__________________
gstander1 is offline   Reply With Quote
Re: US News Article: Socking Too Much Away
Old 08-13-2006, 05:50 PM   #56
Full time employment: Posting here.
mountaintosea's Avatar
 
Join Date: Aug 2006
Posts: 553
Re: US News Article: Socking Too Much Away

I like the last line in the article. "You don't want to be the richest man in the graveyard."
__________________
mountaintosea is offline   Reply With Quote
Re: US News Article: Socking Too Much Away
Old 08-13-2006, 06:00 PM   #57
Recycles dryer sheets
 
Join Date: Jun 2006
Posts: 322
Re: US News Article: Socking Too Much Away

Maybe the confusion here is that these people had a financial planner and there portfolios went up?
If your following yer rules and you shoot for an 8 % return and your spending 4 % of your portfolio you actually have the ability to increase spending as the portfolio rises. The I assume you guys will live long enuff to get ss . These guys did. Then I am guessing that somehow medicaid will lower your health costs ?
So then using the rule of 72 if you retire with 2 million and your spending 4% you would only need 3.6% above that to double your money in 20 yrs.
__________________
spideyrdpd is offline   Reply With Quote
Re: US News Article: Socking Too Much Away
Old 08-14-2006, 09:07 AM   #58
Thinks s/he gets paid by the post
Jay_Gatsby's Avatar
 
Join Date: Oct 2004
Posts: 1,719
Re: US News Article: Socking Too Much Away

I guess I don't understand what's wrong with dying and leaving an estate worth far more than when you retired. If you allocate your money properly so as to avoid taxes and spendthrifts, your money can continue to benefit generations of your family. This is how one provides opportunities to one's family that aren't possible to achieve during one lifetime. Sure, you learn a great deal about money by working your way through high school and college, but wouldn't it be better in some ways for your kids to never worry about paying for an education?
__________________
He had one of those rare smiles with a quality of eternal reassurance in it . . . It faced, or seemed to face, the whole external world for an instant and then concentrated on you with an irresistible prejudice in your favor. -- The Great Gatsby, F. Scott Fitzgerald
Jay_Gatsby is offline   Reply With Quote
Re: US News Article: Socking Too Much Away
Old 08-14-2006, 09:58 AM   #59
Full time employment: Posting here.
 
Join Date: Feb 2006
Posts: 987
Re: US News Article: Socking Too Much Away

Quote:
Originally Posted by Jay_Gatsby
I guess I don't understand what's wrong with dying and leaving an estate worth far more than when you retired.*
An answer to that is the situation that I/DW have, in which we have no "generations of your family" to consider.

We plan to leave the "remainder" to charity, but don't want to leave a lot (sorry, I don't trust others with "our money", and where it will go...)

I know that we are the minority in this situation, but please consider it in your "equation"...

- Ron
__________________
rs0460a is offline   Reply With Quote
Re: US News Article: Socking Too Much Away
Old 08-14-2006, 10:19 AM   #60
Thinks s/he gets paid by the post
Jay_Gatsby's Avatar
 
Join Date: Oct 2004
Posts: 1,719
Re: US News Article: Socking Too Much Away

Quote:
Originally Posted by Ron'Da
An answer to that is the situation that I/DW have, in which we have no "generations of your family" to consider.

We plan to leave the "remainder" to charity, but don't want to leave a lot (sorry, I don't trust others with "our money", and where it will go...)

I know that we are the minority in this situation, but please consider it in your "equation"...

- Ron
You have no nieces, nephews, cousins, etc... to whom you could leave some of your money? Even if you chose not to have kids, I'd like to think that you might want to ensure that future generations of your family (not necessarily your direct descendants) might have better opportunities than their parents or even you enjoyed.

On the other hand, spending your hard earned money on things you want, rather than saving it for future generations isn't something of which you should be ashamed or have a need to explain. It's your money. You earned it, you can spend all of it if you choose.
__________________

__________________
He had one of those rare smiles with a quality of eternal reassurance in it . . . It faced, or seemed to face, the whole external world for an instant and then concentrated on you with an irresistible prejudice in your favor. -- The Great Gatsby, F. Scott Fitzgerald
Jay_Gatsby 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
Foreign Exchange rates next news topic? dex FIRE and Money 0 04-13-2007 09:28 AM
Where do you get reliable news? uncledrz Other topics 37 10-15-2006 02:13 PM
Nords! - We have good news and bad news!............ Cut-Throat Life after FIRE 16 09-13-2006 02:26 PM
BREAKING NEWS!!!! Dawg52 Other topics 6 10-23-2005 10:47 AM
Are You Rich? CNN news article dex FIRE and Money 5 08-25-2004 11:20 AM

 

 
All times are GMT -6. The time now is 04:09 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.