Planning to spend more in the go go years?

[audreyh1]

We are definitely trying to do more now while we can and very cognizant of the go go years.

It just happens that we still don’t exceed a somewhat conservative withdrawal rate at current higher portfolio levels.

We’re also considering giving heirs a major advance.

 

[footenote]

Honestly, could have kept WR at 4% this year
Overage will mostly consist of putting a decent deck on the house

This homebody gets a huge kick outta home improvements:
it's my "car I don't really need" indulgence

 

[NW-Bound]

... It seems as though most here implement a much more more conservative strategy by targeting a WR in the 3% - 4% range based on initial projected expenses as opposed to say a planned more aggressive WR of 5% for the "go go years" and then say 3% for the "slow go years" and then perhaps 2% for the "won't go years" (i.e. only)...

We were never in the "go go years". We skipped straight to the "slow go" phase.

 

[Teacher Terry]

NW, go go for us meant 2 trips a year for 2 weeks and a few 4 day ones. That’s nothing for some people.

 

[NW-Bound]

I found out that one long trip each year was about all I could do. So, I have been alternating between a 2-month RV trek one year, with a 5 to 6-week international trip the next year.

I already have 2 homes. I guess I can blow more dough in a fancy car for each of us, but neither of us cares for one. My wife does not even care to drive.

So, I don't see how to spend 5% WR. But I do not see that as a problem.

WR is headed to 2.5% this year, unless the market tanks, and I lose 50%. Then, it will be 5% WR for me.

 

[Scuba]

We definitely planned to withdraw more in the early years, partly because SS and a pension will kick in later and partly because we are traveling a lot while we can. We planned on a 25% reduction in travel and entertainment at age 75 and 50% at 80. So far we are ahead of where we planned after 2.5 years of ER since the market has done so well.

 

[Bryan Barnfellow]

In the past 6 years we have traveled more trying to take advantage of our good years.

Likewise for us in the past four years since ER.

-BB

 

[ckelly78z]

Children, and Grand Children would sure appreciate some financial help if you have extra $$ laying around...don't wait to spread it around, do it while you can see the results, and feel the love.

 

[Ronstar]

Our go-go years started about 6 years ago when I was 58. Spent a lot of dough and did a fair share of go-going since then. But we may have entered the slow-go phase. Now sold the snowbird condo and hunkering down for a while. No big trips planned - just a couple of week long ones. No big expenditures planned.

 

[PatrickA5]

Children, and Grand Children would sure appreciate some financial help if you have extra $$ laying around...don't wait to spread it around, do it while you can see the results, and feel the love.

Just sold our rental to DD with a $50K discount to pay for down payment. Plan on giving other DD and DS each $50K for down payments on homes in the near future. Of course grandkids are spoiled on a daily basis, but they don't cost much (yet). But, these big (for us) gifts are pretty much the end of the bank of Mom and Dad. DS has a year of college left and then he's off the payroll. It will be nice to concentrate our expenses on only ourselves - if that ever actually happens.

I guess these are the go-go years for us, but we really don't go much of anywhere. A couple of short domestic vacations per year. We're early 60's and imagine our expenses will drop dramatically in our mid 60's and then again in our 70's. I haven't yet tried to forecast any of our expenses later in life, but will probably make that a project to work on soon.

I know my Dad was spending less than $20K per year during his 80's & 90's, but didn't need LTC.

 

[W2R]

I guess these are the go-go years for us, but we really don't go much of anywhere. A couple of short domestic vacations per year. We're early 60's and imagine our expenses will drop dramatically in our mid 60's and then again in our 70's.

Why do you think that will happen? I am puzzled. I am sure you have a good reason for assuming this, but personally at age 71 I don't see that happening. Like you, I never engaged in a lot of expensive international travel.

Here's a chart covering my first 10 years of retirement:

 

[Teacher Terry]

W2R, I think expenses drop if you travel and go to a lot of events. Then you age and don’t go as much. Since you never did those things I can see why yours wouldn’t change. At times we have spent 10-15k/year traveling and 800/month on plays, festivals, eating out, etc. We aren’t now but have in the past.

 

[PatrickA5]

Why do you think that will happen? I am puzzled. I am sure you have a good reason for assuming this, but personally at age 71 I don't see that happening during my first 10 years of retirement.

Here's a chart:

Mainly due to kids being completely off the payroll. A decent percentage of our current expenses involve paying for college, insurance, phone, food, etc. for our DS. We also do vacations with DS and his girlfriend which will stop once they get jobs, etc. I anticipate overall expenses going down a good 25% over the next two or three years and leveling off from there. I doubt we do much (if any) traveling in our 70's and project food expense will go down as we won't eat out as much. Once on Medicare, our medical expenses "might" go down, but they could go up too.

 

[W2R]

W2R, I think expenses drop if you travel and go to a lot of events. Then you age and don’t go as much. Since you never did those things I can see why yours wouldn’t change. At times we have spent 10-15k/year traveling and 800/month on plays, festivals, eating out, etc. We aren’t now but have in the past.

Good point. PatrickA5 said he doesn't travel except domestically, but maybe he is spending thousands each year on plays and festivals. Or perhaps he has some other expense that he expects will drop out.

For me, eating out costs the same at age 70 as it did at age 60. I don't eat as much food, but I choose more expensive menu items because I like the luxury of being able to do that. Maybe that's just me.

 

[NW-Bound]

... At times we have spent 10-15k/year traveling ...

We are still doing this, but don't know how long it will last.

The thread on "Overtourism" has been hitting home. I need to find more off-the-beaten-path places to go on my RV trek, but I am getting tired too of driving long distances.

It will not be long now before y'all see me post the purchase of two rocking chairs in the "Blow Dough" thread.

Oh wait! I already have that at the high-country boondocks home. I am all set.

 

[W2R]

Mainly due to kids being completely off the payroll. A decent percentage of our current expenses involve paying for college, insurance, phone, food, etc. for our DS. We also do vacations with DS and his girlfriend which will stop once they get jobs, etc. I anticipate overall expenses going down a good 25% over the next two or three years and leveling off from there. I doubt we do much (if any) traveling in our 70's and project food expense will go down as we won't eat out as much. Once on Medicare, our medical expenses "might" go down, but they could go up too.

OH!!! Yes, having the kids off the payroll will definitely lower your expenses! Thanks for the response. My DD has been off the payroll for over 20 years so none of my retirement expenses went to her (except for gifts at Christmas and birthday).

I love eating out in my 70's. It's a nice little luxury that I still enjoy. Cooking at home seems a little bit more arduous in my 70's. I blame arthritis and boredom.

My medical expenses went up after Medicare, and my dental expenses went way up. I had/have pretty good federal retiree insurance (that is now a Medicare supplement at the same price, plus I have to pay for Medicare Part B and for more prescriptions than at younger ages), so YMMV. It doesn't cover dental so I really got hit by the expense of those implants in the past 5-6 years.

 

[REWahoo]

Mainly due to kids being completely off the payroll.

The largest pay raise I ever got by far was when DD#2 flew the nest.

 

[W2R]

We are still doing this, but don't know how long it will last.

The thread on "Overtourism" has been hitting home. I need to find more off-the-beaten-path places to go on my RV trek, but I am getting tired too of driving long distances.

It will not be long now before y'all see me post the purchase of two rocking chairs in the "Blow Dough" thread.

Oh wait! I already have that at the high-country boondocks home. I am all set.

But then, instead of two rocking chairs, maybe you will want two of those expensive massage chairs recently shown in the "Blow That Dough" thread!

We are tired of driving long distances too, but really car trips were not very expensive for us compared with some of the travel costs that some apparently incur for more elaborate trips to more expensive destinations than Springfield. We have thought of driving to see Pennsylvania, since F likes that part of the country, but recently decided that we just don't want to drive (or fly) there.

If you sell that boondocks home then I imagine you would probably cut way back on your expenses.

 

[GravitySucks]

The plan is to spend more now though I'm having trouble doing it. Traveled for 4 months last year and didn't get close to the travel budget. In the plan at 78 travel drops but will still include a month away in the winter and a cruise or two a year.
One thing that may not be accounted for is the increase in spending for repairs as I age. I have two guys installing gutters right now. Two years ago I'd have done it myself. I have sworn off ladders and roofs.

 

[jollystomper]

The plan is to spend more now though I'm having trouble doing it. Traveled for 4 months last year and didn't get close to the travel budget. In the plan at 78 travel drops but will still include a month away in the winter and a cruise or two a year.
One thing that may not be accounted for is the increase in spending for repairs as I age. I have two guys installing gutters right now. Two years ago I'd have done it myself. I have sworn off ladders and roofs.

+1
In our first fiscal year of my retirement, our SWR is turning out be about half of what we thought it would be. This includes $30K for travel. Close to half of that was for "extravagant" things like better airline seats, better class of rental cars, very nice hotels, etc.

One thing we need to try is a cruise, DW and I have never gone on one, so we are now researching good cruises for first-timers.

We did a lot of improvements/long term maintenance on our house before retirement, but I still intend to do more in these go-go years. I avoid anything that requires me to get on anything bigger than a step ladder. We'll end up spending about $5K in July on various home fixes/improvements, could probably save more than half by doing it ourselves, but we have the money and prefer to use the time we have now on more fun things.

 

[NW-Bound]

But then, instead of two rocking chairs, maybe you will want two of those expensive massage chairs recently shown in the "Blow That Dough" thread!

We are tired of driving long distances too, but really car trips were not very expensive for us compared with some of the travel costs that some apparently incur for more elaborate trips to more expensive destinations than Springfield. We have thought of driving to see Pennsylvania, since F likes that part of the country, but recently decided that we just don't want to drive (or fly) there.

If you sell that boondocks home then I imagine you would probably cut way back on your expenses.

Car road trips are not expensive. But when you drive a motorhome with 8 miles to a gallon for 10,000 miles, and much of it where gas is $5/gallon, it hurts a bit every time you top off the 55-gal tank. I spent as much in the years I did RV treks as the years I did a 5 to 6-week European trip.

I cannot sell the boondocks home yet. That's where the rocking chairs are, because it's cool up there at 7,000-ft elevation. Can't be sitting in a chair outside in the front porch or back patio at the metropolitan home when it's 110F to 120F outside.

I will keep in mind the massaging chairs for when I get confined to the city home. Who knows how soon that time will come.

 

[aja8888]

The thread on "Overtourism" has been hitting home. I need to find more off-the-beaten-path places to go on my RV trek, but I am getting tired too of driving long distances.

To miss out on Overtoursim this year, we are driving to Tomahawk, WI for vacation with DW's sister and husband. No crowds there!

 

[NW-Bound]

A quick search on the Web for attractions near Tomahawk, WI, reveals the following Big Bull Moose as a roadside display.

It is most likely not as crowded as the Mona Lisa at the Louvre. You can see it at this address: N8796 County Rd S, Tomahawk, WI.

 

[kgtest]

A quick search on the Web for attractions near Tomahawk, WI, reveals the following Big Bull Moose as a roadside display.

It is most likely not as crowded as the Mona Lisa at the Louvre. You can see it at this address: N8796 County Rd S, Tomahawk, WI.

Lol, I posted the Party Invite and address over at the 4H. Surely it will be overcrowded now.

 

[NW-Bound]

The business where the above display is located has had its name changed from "Big Bull Moose Supper Club" to "Road Lake Pub & Grill".

Yelp has no reviews. TripAdvisor has 4 reviews, all favorable.

There ya go. I did a quick trip planning for ya.

See: https://www.tripadvisor.com/Restaur...s-Road_Lake_Pub_Grill-Tomahawk_Wisconsin.html