Big Splurge on Retirement

[hakuna matata]

Just curious if anyone here would cop to a big splurge on retirement. It seems a natural thing to do, but my sense is that it would go against the grain of most people here, given their savings patterns and LBYM. My wife and I have always lived that same way, but we do spend money on certain things only if we feel it is worth it to us. Obviously what is worth it to me would/could seem frivolous to another, so the question isn't if what I am splurging on is right or wrong.

The question is 'did you do a big splurge when YOU retired or are you planning on doing a big splurge if you haven't retired yet'?

We have two things set for our retirement in 16-18 months. One will be paid for before then so I wouldn't consider it a splurge. The other though is a purchase we have always planned on doing at retirement but the splurge is a significant step up from what we were originally considering. My wife and I have been joking about it but it is clear to me that we both have the desire to do this big splurge IF the numbers are right. I told her the other day that if our Net Worth hit a certain number I would seriously consider it.

Right now our Net Worth makes us FI so I feel anything above this number is just extra sauce, nice to have but it isn't necessary. So I am okay spending a portion of that extra sauce if you will. The number I suggested to her isn't outside the realm of possibilities as I feel we actually could hit that number before we retire.

So what say you all-- you too frugal to splurge, or did you, and did you regret it or not regret it?

 

[pb4uski]

Our splurges have been pretty minor (new golf clubs for the both of us, a new dining room set, etc) only about 10% of our annual living expenses.

I'm curious though - what you got in mind? An R8 would be nice.

 

[seraphim]

We're taking a 3 month excursion through Alaska and Canada. Something we planned for years. We have set money aside - independent from our investments. Now, while we're healthy enough.

 

[Mulligan]

Our splurges have been pretty minor (new golf clubs for the both of us, a new dining room set, etc) only about 10% of our annual living expenses.

I'm curious though - what you got in mind? An R8 would be nice.

I splurged on a new Rocketbalz driver and 3 wood and am hitting the ball further than I ever have....into the woods. The past week or so, I think I am turning the corner with them though. OP...I did some splurges the first year I retired, mostly on a bunch of vacations and new big tv for the mancave. However, I cheated...I worked PT for 3 years after retiring and still saved additional money despite going on a spending binge. I am back to normal now, and enjoy a saving/spending balance.

 

[Meadbh]

Could you define "big" splurge? Either as an absolute number or as a percentage of NW?

In any case I don't think I qualify. I went on a two week vacation, but it wasn't especially extravagant. Other than that I have been quite LBYM. I did make some significant purchases prior to ER, e.g. a new car, golf clubs. The car was needed anyway after 17 years with the old one!

 

[growing_older]

I am "planning" a big splurge soon after I retire, which is an extended trip. I guess I will want to indulge my desire to travel for longer periods more easily once I am officially retired, but I think I will usually try to do those very inexpensively. But at least one (probably the first) I want to save up for and hit some potentially expensive places on my bucket list.

 

[hakuna matata]

Our splurges have been pretty minor (new golf clubs for the both of us, a new dining room set, etc) only about 10% of our annual living expenses.

I'm curious though - what you got in mind? An R8 would be nice.

what is an R8?

I will tell the splurge in a bit, but I didn't want to sidetrack the discussion with people commenting on if they thought the splurge was a good idea, etc. I was more interested in the idea.

Meadbh the splurge would be al little over 50% of my annual gross income I would say

 

[ChocoKitty]

Heh, I feel like a moron now. The "big splurge" I'd planned to celebrate my last day of work was $50 of sock yarn.

 

[Meadbh]

what is an R8?

I will tell the splurge in a bit, but I didn't want to sidetrack the discussion with people commenting on if they thought the splurge was a good idea, etc. I was more interested in the idea.

Meadbh the splurge would be al little over 50% of my annual gross income I would say

It's a boat! A plane! A vacation home! A round the world cruise!

No, I didn't do that. I just spent $22 on new pajamas at Walmart.

 

[Moemg]

I also wonder how big a splurge you are talking about ? I always have money left over from my yearly budget that gets moved to a splurge account . Unfortunately my thrifty ways limits the amount I can mentally splurge . I could easily splurge on a nice trip but no way could I book a world cruise without hyperventilating .

 

[REWahoo]

We waited until a year after retirement and then splurged on a motor home. It was a planned one-time expense - roughly one year of our gross income.

RVing has been and continues to be a big part of our retirement. For us the splurge was a very good decision.

 

[cj]

Heh, I feel like a moron now. The "big splurge" I'd planned to celebrate my last day of work was $50 of sock yarn.

LOL!! Another knitter! I don't even know how much I've spent on yarn in the 2 years since I've retired. But it's been worth every cent.

 

[hakuna matata]

Okay I will fess up what I am thinking of.
it is a car but oh what a car--at least to us.

a 2014 Jaquar F-type--price range from about $65-100k depending on the model, etc.

Our cars that we own currently are a 1994 Miata, 2001 BMW 535i and a 2004 Ford Sportrac. We would get rid of the BMW I think (maybe). The Miata will go off with my daughter when she goes to college. The truck is a good truck and you always need a truck.

So we were going to get a new car--hadn't decided on what to get but this is easily $20-40k over that budget. I don't need a car like this but I do appreciate nice cars (love my BMW) and this just looks like a fun car.

 

[ChocoKitty]

LOL!! Another knitter! I don't even know how much I've spent on yarn in the 2 years since I've retired. But it's been worth every cent.

Oh, I agree completely. I'm on a yarn diet right now because I overdid it the past few months. I know, some people say sock yarn doesn't count as stash, but my overflowing bins beg to differ. And these days I only buy sock yatn because I love it that much.

Where do you buy yours and what do you like most?

 

[hakuna matata]

I love it--my thread has become a yarn thread!

 

[Meadbh]

Whatever floats your [-]boat[/-] car, HK. Speaking of water.....you live near Seattle, so won't the top be up most of the time?

 

[hakuna matata]

Whatever floats your [-]boat[/-] car, HK. Speaking of water.....you live near Seattle, so won't the top be up most of the time?

yes I do live near Seattle. I had the top down on the Miata a lot. <looks to the left, looks to the right, coast is clear> psstt..It doesn't rain as much as people think up here!

I never have let the weather dictate my lifestyle up here, and the top goes up and down in 12 seconds. And the summers here are awesome--bluest skies I have ever seen.

 

[MooreBonds]

It's subject to a wide adjustment since I'm still single, but would love to splurge on a round-the-world trip upon retirement. Something like a 4 month jaunt, or perhaps 2 or 3 trips at 6 weeks each, with a short respite at home to fully absorb all of the great memories. Probably involve some cruising, some land touring, etc. Maybe $40k-$50k.

Of course, additional trips would also be on the retirement agenda after that one....but it'd would be the official kickoff to the next phase of life.

 

[pb4uski]

what is an R8?.....

R8 = Audi R8. Though I like the Jag too.

Jaguar F-Type vs. Audi R8 vs. Porsche 911 - Automobile Magazine

 

[hakuna matata]

R8 = Audi R8. Though I like the Jag too.

Jaguar F-Type vs. Audi R8 vs. Porsche 911 - Automobile Magazine

ah, that is what I thought initially---but you were talking about golf clubs and since I don't golf I thought it was a golf thing! Now off to read that article!

 

[cj]

Oh, I agree completely. I'm on a yarn diet right now because I overdid it the past few months. I know, some people say sock yarn doesn't count as stash, but my overflowing bins beg to differ. And these days I only buy sock yatn because I love it that much.

Where do you buy yours and what do you like most?

Yes, this thread has been hijacked by knitters. ChocoKitty, I do a lot of charity knitting (scarves for the rape crisis center, blankets for Project Linus, pet snuggies for the animal shelters) so most of that yarn comes from Michaels/Joann/Hobby Lobby, using coupons or trolling the sales. I don't buy the cheapest stuff, but I am careful about costs (though I do keep track and take the deduction on taxes).

When I want to do nice stuff, I typically try to find the bargains on yarn.com, or KnitPicks, or occasionally from a local yarn shop. I love KnitPicks sock yarn and many of their other yarns - decent quality, reasonable prices. I have also used Cascade Heritage Paints sock yarn, which I loved a LOT. You can never go wrong with any Cascade yarns.

 

[cj]

And so as not to get thrown out by the OP, here is my splurge. Got it 3 months ago, even though I did NOT need a new car. I just wanted it.

 

[RunningBum]

Wow, what a beautiful car! (The Jag, not the Crosstrek with the weird rims, though it is a nice car too.) Just went to Edmunds.com and they have good things to say about it too.

One thing I see financially is that there will be some extra cost for insurance, maintenance (probably), and speeding tickets (likely!).

Only you can say if this is worth it to you vs. spending on something else or having more of a safety buffer. I was kind of at that same point many years ago and had planned to get a new Honda S2000 when I hit a number, but when I got there I decided I'd be just as happy with a slightly used Miata for considerably less. 14 years later I still like driving the Miata, though it shakes a lot on the highway now. But some are bigger car enthusiasts than me, and appreciate a true sports car more.

 

[Bestwifeever]

Okay I will fess up what I am thinking of.
it is a car but oh what a car--at least to us.

a 2014 Jaquar F-type--price range from about $65-100k depending on the model, etc.....
So we were going to get a new car--hadn't decided on what to get but this is easily $20-40k over that budget. I don't need a car like this but I do appreciate nice cars (love my BMW) and this just looks like a fun car.

That is NOT a splurge, that is an investment, and "only" $20 to $40 K more than you woud spend anyway, some of which you will get back when you sell it one day. Completely justified .

 

[MBAustin]

Part of "are we ready to ER" for us was for me to buy a new car - a Prius. Although I was sad to give up the stickshift, I was not sad to trade up from a 2000 Ford Focus to a 2010 Prius!

Our ER splurge was two cruises in the first 9 months - a Panama Canal trip just after I ER'd, and an Alaska trip the following summer for our 25th anniversary. Both were terrific.

I'm intrigued by all the yarn posts as one of my ER activities is knitting - I mostly knit prayer shawls for my church (25+ in two years) but I've started on some other small projects. I may start looking for nicer yarns than whatever Michaels/Hobby Lobby/Joann's has on sale! Thanks for the tips!