Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Spending change after FIRE
Old 01-22-2017, 08:36 AM   #1
Recycles dryer sheets
Taxman59's Avatar
 
Join Date: Sep 2014
Posts: 483
Spending change after FIRE

I retired July 1, 2015. I know our spending habits from over 3 years of the same net pay being deposited in our account. I also built up our budget from zero and came within about 10% of the deposit amount (misc. cash spending). I feel very comfortable with our spending and also know that there is about 20% fluff in our monthly spending. Add to that the mortgage is about to go away, and we are in good shape. Friday night, I was doing some reading (continuing education for my CPA) on retirement planning, and it got me thinking (always dangerous). I ran FIRECalc, and it shows that I can increase our monthly spending by about 30% and still hit a 98% success rate on a plan through 95 years old!

My question for the forum is this: Should I increase our travel budget by $10-15k per year (well within our limits per FIRECalc) and enjoy retirement that much more, or should I continue to LBOM (Live Below Our Means) and likely end up with a bucket load of $$ for our sons at some time in the future? I know DW would love to travel more and take more expensive trips (can you say European River cruises, China etc. )
__________________

__________________
Taxman59 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 01-22-2017, 08:41 AM   #2
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 41,844
Viewing your situation from the perspective of 11+ years of retirement, my vote would be to up the travel budget and spend the money now. At this point I'm growing far more concerned about running out of health than running out of money.
__________________

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 01-22-2017, 08:56 AM   #3
Full time employment: Posting here.
 
Join Date: Nov 2016
Posts: 708
I looks like you are in good finical shape. It would be a personal decision but I personally have a hard time living above my means. The problem is we have lived our whole life being frugal and then now we can live above our means makes for a hard decision. I can only speak for myself but I can see myself at some time if I have the good problem you have to spend more. I have only been out about one year so I am very careful and still very frugal.
__________________
street is online now   Reply With Quote
Old 01-22-2017, 08:59 AM   #4
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
Have you factored in long term care as a possibility?
If you either have a great LTC policy, or are confident you can self-insure for it, then REWahoo's advice is spot on, as I see it.
__________________
braumeister is online now   Reply With Quote
Old 01-22-2017, 09:08 AM   #5
Thinks s/he gets paid by the post
 
Join Date: Dec 2009
Location: Alberta/Ontario/ Arizona
Posts: 3,072
I find myself in a similar position after about 10 years of retirement. Have 3 choices really. Spend/gift more now, or gift more when we die, or procrastinate and see how things go. Plan on spending/gifting more now but not a crazy amount. After all for most people the whole objective of LBYM while working is to have a "nice" retirement.

My FIL just passed away at 91. They always lived below their means even in retirement. He retired with $1-2 million 30 years ago and now they have over $5 million in invested assets. His kids are quite pleased about this but it seems less than optimal to me.

I say if you would enjoy sending more and you can easily afford it, you should. Obviously you would want to be sure about this and perhaps keep some back just in case of a market crash. "Means" is a little hard to define in retirement, but anything up to about 4% withdrawal rate is probably ok.
__________________
Danmar is offline   Reply With Quote
Old 01-22-2017, 09:11 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,130
We spend a heck of a lot more after retiring in spite of being huge savers while working. If the funds are there, put them to good use! Yes, if you like to travel, increase the travel budget. Travel is best done in the early retirement years since it requires good health.
__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is offline   Reply With Quote
Old 01-22-2017, 09:42 AM   #7
Recycles dryer sheets
Taxman59's Avatar
 
Join Date: Sep 2014
Posts: 483
Braumeister, we have a good to great LTC policy so that is a worry we don't have. DW is getting stoked about the additional travel $$$. I guess my LBOM lifestyle is about to change. Thanks for your input.
__________________
Taxman59 is offline   Reply With Quote
Old 01-22-2017, 10:39 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
bbbamI's Avatar
 
Join Date: Dec 2006
Location: Dallas 'burb
Posts: 9,036
Do it now while you are in good health and still have passion.
__________________
There's no need to complicate, our time is short..
bbbamI is offline   Reply With Quote
Old 01-22-2017, 10:50 AM   #9
Recycles dryer sheets
 
Join Date: Aug 2009
Location: westerville
Posts: 238
We found after almost 4 years of retirement in the same position and thoughts then past fall went and splurged on a two week European vacation and went all out. Was best vacation I have ever taken and worth every cent. Spent about 8K and will do another bucket list one this fall. Go for it you may not be able to next year.
__________________
Trawler is offline   Reply With Quote
Old 01-22-2017, 01:33 PM   #10
Moderator
MBAustin's Avatar
 
Join Date: Jul 2010
Posts: 4,123
I agree with those who vote for more travel in the short term. If there is a major market correction that affects your projected success rate in ways that concern you, then just skip it for a year or two.

Also, even if you up your travel budget significantly, it still looks to me that you are LBYM - just not as drastically as now.

Enjoy!
__________________
"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute." William Feather
----------------------------------
ER'd Oct. 2010 at 53. Life is good.
MBAustin is offline   Reply With Quote
Old 01-22-2017, 01:46 PM   #11
Thinks s/he gets paid by the post
DrRoy's Avatar
 
Join Date: Dec 2015
Location: Michigan
Posts: 1,683
I RE in 10 weeks! To maintain 100% of our current spending, which already includes 6 weeks of travel per year, I only need a 1.5% WR to start. Now we are considering a professionally guided photography tour to Patagonia that would be around $15K. I guess that's what the $ is for.
__________________
"The mountains are calling, and I must go." John Muir
DrRoy is offline   Reply With Quote
Old 01-22-2017, 02:17 PM   #12
Thinks s/he gets paid by the post
 
Join Date: Jun 2014
Posts: 1,425
The last 2 years we have really increased the amount we are spending on travel. We spent about 14k/year. WE have had a few friends either die or become very disabled in their 50's and 60's so not taking any chances.
__________________
Teacher Terry is offline   Reply With Quote
Old 01-22-2017, 02:35 PM   #13
Thinks s/he gets paid by the post
Souschef's Avatar
 
Join Date: Dec 2015
Location: Santa Paula
Posts: 1,115
Do it now! You never can predict what will happen to your health in the short or long term!
A dear friend and neighbor of ours just passed away, and he was 3 years younger that I.
When I retried, we traveled with a vengeance. My wife had done some traveling with her late husband, but never needed a passport until she met me.
From 2007 until now, we have been on 47 trips for a total of about 480 days! However, as we have gotten older, we slowed the pace down. We have opted for travel by ourselves, in many cases using the itineraries and accommodations that the tour groups use.
We gave up on the "bags outside at 7AM" and "off the on the bus" type of travel.
__________________
Retired Jan 2009 Have not looked back.
AA 95%/0/5
WR 2% SI 2SS & 2 Pensions
Souschef is offline   Reply With Quote
Old 01-22-2017, 02:45 PM   #14
Thinks s/he gets paid by the post
 
Join Date: Apr 2010
Posts: 1,657
Our vote would be to travel now while you have the desire and the health.

We started retirement with a six month trip. Since then it has been two major trips per year, each one from 2 months to three months. Make no mistake travel takes some work. At least the way we do it.

Why stay home and look at your investment statements all day?
__________________
brett is offline   Reply With Quote
Old 01-22-2017, 02:57 PM   #15
Full time employment: Posting here.
 
Join Date: Dec 2010
Location: Midwest
Posts: 873
Not so much traveling, but we do get the heck out of Dodge in the winter and spend 3 mos. where it is warm. Obviously, saving that $ would help the bottom line, but....

Livin' the dream.
__________________
brucethebroker is offline   Reply With Quote
Old 01-22-2017, 03:23 PM   #16
Recycles dryer sheets
 
Join Date: Aug 2013
Posts: 270
Only been retired for 44 months. I'm 53 and DW is 51. Right now I'm assuming no SS so FireCalc says we can increase spending 7% for 95% success rate (age 95). If I include SS then we could spend 30% more right now for a 95% success rate. It is temping to spend more now, but we are still so far from receiving SS & Medicare that I assuming the worst and hoping for the best. I suspect as we get within 5 to 7 years of SS we may (should) start spending more. The fear of running out of money still haunts me but I hope that fear becomes less with each passing year in retirement. We want to spend every cent since we have no kids. The old saying, you can't take it with you...
__________________
bradaz2488 is offline   Reply With Quote
D*** the torpedoes, full steam ahead!
Old 01-22-2017, 03:41 PM   #17
Recycles dryer sheets
Mdlerth's Avatar
 
Join Date: Oct 2016
Location: The Shire
Posts: 435
D*** the torpedoes, full steam ahead!

I know what DW would say about wanting to travel more in retirement. Ergo, we will travel more in retirement.

It sounds like it's well within your means. Enjoy your trip(s)! Post a few snapshots when you get there!
__________________
Paying it forward is the best investment.
Mdlerth is offline   Reply With Quote
Old 01-22-2017, 03:43 PM   #18
Full time employment: Posting here.
 
Join Date: Jul 2011
Posts: 721
Have fun- enjoy some while you can. You'll likely cut back anyway as you get older so you still may have a considerable amount to leave behind. Woo hoo!
__________________
panacea is offline   Reply With Quote
Old 01-22-2017, 03:44 PM   #19
Recycles dryer sheets
Willers's Avatar
 
Join Date: May 2013
Posts: 480
I say spend it for a year and see how it goes. You can always reduce it later if it makes you feel uncomfortable.

This was our hardest decision in our first year of retirement. We had to "force" ourselves to spend more on this. We haven't regretted it!

Sent from my SM-T810 using Early Retirement Forum mobile app
__________________
“If you don't do it this year, you will be one year older when you do.” - Warren Miller
Willers is online now   Reply With Quote
Old 01-22-2017, 04:35 PM   #20
Thinks s/he gets paid by the post
 
Join Date: Apr 2010
Posts: 1,657
We have not done any group travel either. Cruises excepted plus a safari with a group of six. We simply go at our own pace nor do we feel the need to completely fill each day. Our winter trip is usually the longest because we want to avoid the cold weather.

We are fairly frugal travellers who focus on value. This can mean anything from a five star to a small B&B.
__________________

__________________
brett 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
Hi-New here! Hoping to FIRE in 16 years. How do expenses pre FIRE change over time? NgineER Hi, I am... 29 01-04-2017 09:57 AM
Did Your FIRE Number change as you got closer to FIRE? Senator FIRE and Money 28 04-22-2016 02:23 PM
How Spending Habits Really Change After Retirement RonBoyd FIRE and Money 68 11-24-2015 07:50 AM
Change in Subjective/emotional risk tolerance after FIRE? 2017ish FIRE and Money 5 02-19-2015 12:53 PM
FIRE observations after job change slepyhed Young Dreamers 5 06-30-2007 05:56 AM

 

 
All times are GMT -6. The time now is 07:03 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.