You Only Live Once

[RetireAge50]

If you had $4,000,000 and 40 years to live would you:
1. Plan to spend about the same per year
2. Spend a $1,000,000 on your wildest dreams and then go with 75% of option 1.
3. Spend variably based on your energy/desires at the time (knowing the decision changes future spending).
4. Stick with a safe spending level. Maybe spend more later or give it away.
5. Another plan. This is the dumbest question ever posed.
I have always planned for option 1 but am now thinking 2 or 3 makes more sense.

 

[AnIntentionalRoad]

We`re sorta in that demographic and are closest to #4 spending <4% a year. But we separated out a good portion of our portfolio into a "fun money" bucket that can be spent according to #2 and #3, IE if we spend it all, it won't impact our SWR.

Sent from my SM-T237P using Early Retirement Forum mobile app

 

[Big_Hitter]

5

 

[Meadbh]

4

 

[bclover]

If you had $4,000,000 and 40 years to live would you:
1. Plan to spend about the same per year
2. Spend a $1,000,000 on your wildest dreams and then go with 75% of option 1.
3. Spend variably based on your energy/desires at the time (knowing the decision changes future spending).
4. Stick with a safe spending level. Maybe spend more later or give it away.
5. Another plan. This is the dumbest question ever posed.
I have always planned for option 1 but am now thinking 2 or 3 makes more sense.

LOL probably go for number 2.

My husband died at a very early age, 53. that is my greatest regret that we didn't do so many things because we were always so worried about living to 90

Now I force myself not to do that. this year I've got 4 vacations planned with various loved ones.
cruise with my sons
Montreal jazz festival with my sister
Charleston sc to research my family history
walt Disney world for a 10 day family reunion.

Now I'm not much of a "thing" person. I'll probably make one more large purchase in my life but when I go to my casket people will definitely be saying
"man we didn't think that girl would stay still long enough to be buried"

 

[Mo Money]

I'm more or less that demographic. 4.

 

[Teacher Terry]

#3. We are spending more now because I know as we age we will naturally want to do less as I have seen with others.

 

[longranger]

#4 with occasional deviation towards #3.

 

[W2R]

I'd just keep spending the same amount as I normally spend right now, because that's what I am used to and I am happy at this level of spending.

I'm not sure which number that corresponds with. Maybe it's #1 unless that means spending a higher amount that doesn't change from year to year.

 

[jim584672]

#6 Make a money bed.

 

[brewer12345]

I think I would end up spending under a million on a woodland compound with acreage and after that have very low expenses, sticking with a 3% draw on the balance of the funds.

 

[Walt34]

Between 1 and 4. Not quite a million splurge but some, then hold it to sustainable levels.

 

[ls99]

Disagree

You only twice, forget the money!

 

[rodi]

I would do a downsized #2.

I wouldn't set aside 1/4 of the 4M... but I'd carve out a chunk to cover expensive bucket list items... maybe 3-400k. I think 3.6M is more than enough to live comfortably going forward. Especially since I'm not in the 4M demographic now... so this would be a big expansion of my budget. LOL.

 

[hnzw_rui]

Somewhere between 2 and 3 for me. I'd likely allocate an allowance for fun money in the yearly budget.

 

[eta2020]

5: Another plan aka "my plan":
Invest it in equity ETFs VTI, VXUS, VWO, VIG, SCHD and spend dividend yield.

I think I would be looking at about 90-95k income growing at 7-8% a year with 0% in federal taxes.

 

[Fermion]

I would spend $3mil and use the remaining $1mil to buy cloud storage for an i-Brain (coming in 2055 to an Apple store near you!) so I could live forever.

 

[Car-Guy]

2.5 (mostly#3 but with a touch of #2)

 

[pb4uski]

I would probably do a downsized version of #2 (two new vehicles, winter condo, new boat and a few other toys which would total $300k at most) and then #3.

 

[FIREd]

I'd go with #2 and spend a $1M on a home in California. Hum, wait I could do this now, yet I am not looking to buy. So I'd probably be boring and pick #4.

 

[Katiek]

4

 

[Jackanory]

Is 1 inflation adjusted? 'cause I'd be pretty skint in 40 years if it's flat. What is it, around $14,000pa in todays dollars?


In my wildest dreams I couldn't spend a mil' in a year; I must get some better dreams ... mescaline?


I guess I'll go with 3.

 

[FANOFJESUS]

I like #4 I could give a big chunk to the church each year and still live like a king.

 

[Fermion]

I like #4 I could give a big chunk to the church each year and still live like a king.

Why would that be better than giving a smaller amount of a smaller income and still living like a king? Just curious.

 

[audreyh1]

I would do a downsized #2.

I wouldn't set aside 1/4 of the 4M... but I'd carve out a chunk to cover expensive bucket list items... maybe 3-400k. I think 3.6M is more than enough to live comfortably going forward. Especially since I'm not in the 4M demographic now... so this would be a big expansion of my budget. LOL.

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