A total mind shift on spending in retirement

[scrabbler1]

I had some health issues 3 years ago including being diagnosed with Type 2 Diabetes as part of a 12-day hospital stay. I hit my OOP max thanks to the ACA Silver plan I had. I have had to alter my med expenses within my budget since then due to extra doctors and some prescription drugs. Nothing which will bust my budget, just reduce the cushion I have built into my budget. It hasn't affected the rest of my spending.

 

[Chuckanut]

Thanks to some minor medical issues and one scare that turned out to be a false alarm I do spend more than I might otherwise, but I certainly don't spend for the sake of 'bloughing the dough'. The ability to spend a day at home reading, or working on a hobby or small project is plenty of reward in and of itself.

 

[RobbieB]

I don't spend for the sake of spending either, I spend for stuff I really want.

Like fancy hotel rooms and first class airfare.

 

[kcowan]

I buy organic food when it tastes better. We are only going this way once.

We will always spend more for comfort and service when it makes sense.

We spend whatever it takes on health.

 

[googily]

I have cautionary tales on both ends of the spectrum--DH's death last year from cancer at 55, of course, but also my father, still chugging away at nearly 85. His father died at 57 and so he became pretty intense about his health after he turned 50. He still bikes, and lives alone, and does what he wants to do (with plenty of dough left to do it with).

But he never expected to make this age, nor to be alone if he did get there--Mom was seven years younger and of strong stock, but died of neurodegenerative diseases five years ago. And now Dad is losing the last of his life-long friends, and has very few people left to spend time with outside of kids and grandkids.

It's all made me realize that you don't want to be the first to go, but you don't really want to be the last to go, either.

I'm spending pretty freely, but still with caution, and with plenty of cushion.

 

[FIREd]

After 3 years of living off the portfolio, we are still sticking to the budget and resisting splurges which would require increasing our withdrawals (we are still in our 40's with potentially a pretty long road ahead still). Even if I ran into a life-altering health issue, my wife could still live well into her 90's (good genes ) and it would probably not feel right to splurge recklessly and risk her financial future.

 

[Focus]

I have cautionary tales on both ends of the spectrum--DH's death last year from cancer at 55, of course, but also my father, still chugging away at nearly 85. His father died at 57 and so he became pretty intense about his health after he turned 50. He still bikes, and lives alone, and does what he wants to do (with plenty of dough left to do it with).

But he never expected to make this age, nor to be alone if he did get there--Mom was seven years younger and of strong stock, but died of neurodegenerative diseases five years ago. And now Dad is losing the last of his life-long friends, and has very few people left to spend time with outside of kids and grandkids.

It's all made me realize that you don't want to be the first to go, but you don't really want to be the last to go, either.

I'm spending pretty freely, but still with caution, and with plenty of cushion.

Thanks for sharing this. That's what it all comes down to, doesn't it? Life is unpredictable. And relationships are more important than anything one can buy with money.

 

[googily]

Thanks for sharing this. That's what it all comes down to, doesn't it? Life is unpredictable. And relationships are more important than anything one can buy with money.

Indeed. And, as John Lennon and others have said, life is what happens when you're busy making other plans.

Which can be tough for inveterate planners to accept! [emoji16]

 

[isisdave]

This is why DW is insisting we go-go-go until we can't-can't-cant. Retired at 66/65, deferred SS to 70 except for spousal, and spending way more than 4% on travel until we have to slow down. It did take about 18 months to shift from frugal mode to live-a-little mode.

At 80, a pair of hydraulic ramjet rocking chairs and a gigabit Ethernet connection will be just fine. It'll take to age 95 to edit all the photos, anyway.

 

[97guns]

Life is short as it is if you make it to the average lifespan, I’ve given that lots of thought and with my net worth blowing up since retirement I’ve really let loose with my spending. my brother is planning a Vietnam vacation in 2020, I don’t plan that far out anymore, if I have the desire to go somewhere I go ASAP because nobody knows what tomorrow holds.

 

[DrRoy]

Our first year of ER, we spent right on budget except for one “splurge” item, but still ended the year well ahead of where we’d thought we would. Our new Fidelity FA said we could ratchet up our spending quite a bit and still be fine, which DH has taken to heart. Luckily he is pretty frugal so his ratcheting it up a bit is still not too bad. I feel like we’re still early in ER and we have a nice lifestyle, spending slightly more than we did when we were working, so I don’t feel a need to bump anything up too much. Maybe after 5 years of ER if we’re still in a really solid position, we can start “blowing more dough.”

This is pretty much where we are. First year on a pretty free budget, but still below 2% WR, and spending more than we did pre-RE. This year spending more, but again under 2%. I am thinking of taking out 2% for next year and just spend it all.

I don't spend for the sake of spending either, I spend for stuff I really want.

Like fancy hotel rooms and first class airfare.

This would probably do it.

 

[VanWinkle]

I was max out of pocket the last 2 years of my wife's life. Hospitals and chemo ain't cheap. But she died anyway and that was what made me less frugal.

Spend the dough while you can, you may be diagnosed with pancreatic cancer and have 2 years left.

Sorry to hear about your late wife RobbieB, I was not aware of your loss.
I can relate as my wife is is ongoing treatment now.

 

[Momcpa]

RobbieB......sorry for your loss. None of us know how long we have. A really sad part of serious illness (one of the sad parts), is that when it hits, it may be too late to do those things we've put off: vacations, travel, splurges. Our health and doctor commitments may make those things WAY less likely to happen. To a smaller degree, my DH and I have been there and seen it first hand.