FIRE - A Guaranteed Decline in Standard of Living?

[Gumby]

The young wife and I were recently discussing our desired income level after retirement. She named a figure and I pointed out that, after taxes and savings, we are currently living quite well on less than 2/3 of that amount. I asked her what she would do with the extra money and she couldn't think of anything. As it is, we can afford to do and have everything we want. It costs a certain amount and I don't see that changing significantly in the future.

We sat down last night to write the last few checks to get up to our charitable giving goal for the year. It was a very pleasant and satisfying activity. Next year looks to be better financially than this one, so we will likely increase our giving target. Especially since we can't think of anything else to do with the money.

 

[Billy]

You bet

The demise of the DBP pension and retiree healthcare actually has an upside. Without these "anchors" people might be more inclined to change jobs, start a business or new business, switch careers or whatever it takes to get out of a crap filled groove and do something new and more enjoyable during their working years.

I agree. My family has been self-employed for generations. My father never had a pension. Billy and I made our own. No one bought our health insurance but us. This is the way it has ‘always’ been. In my careers, I felt freedom to come and go, make changes, and take chances. I did work for the State of California for a while (when I was single) and all the paid holidays, paid sick days, paid vacation days, automatic wage increases (regardless of production output) and paid health care felt ‘strange’ to me.

I worked my pitutie off there at the State, but I saw that some old geezer was going to snooze away the day, get his raises and promotions simply from collecting seniority. My spirit was dying. I had to leave. 8) -- Just one person’s perspective….

Kcowan

I think this is the best advice you can get. No one can forecast what is going to happen in 30 years. Just think where you were at 30 years ago. The key element is to be flexible. I'll bet B&A did not plan to build tennis courts (congratulations), live in Thailand or write a book. But they did have the attitude to get out and experience the world as they found it. This is the secret to successful ER. Leave The Jones in your dust!

Thanks, Kcowan! Flexibility does have its advantages. Many people like to have things all scheduled out decades in advance. B and I like more room to maneuver. Each to their own, I guess!

RE: the healthcare issue -- I do think that if people could put more energy into lifestyle changes - diet, exercise, watching their weight, drinking and smoking, maybe taking supplements, trying a different health approach for their answers, etc. and trying to stay off medications to begin with, then it would help with the healthcare expenses later on in life.

These western medical procedures are very expensive and many prescriptions have such awful side effects. If we could avoid them as much as possible to begin with…

We know a lot of older folks and I love the stories of the ones who are 80 and don’t take anything but an aspirin at night. It’s a goal that I hold in mind!

Be well,
Akaisha
Author, The Adventurer’s Guide to Early Retirement