Beyond FI but before RE - Increase experience spending?

[Koolau]

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Originally Posted by Danmar <SNIP> We have had some discussion here recently concerning those that would like a little "lifestyle creep" but just can't do it.

I think that's where we find ourselves. When we retired, we probably doubled our cash burn - and it felt okay because everything was more or less "in the plan" for FIRE. Of course, a big reason we could double cash burn was because, for years, we had been saving that other half (roughly.)

The other reason we feel comfortable in upping the cash burn is that it seems "worth it." Our biggest "extravagance" is our living quarters - condo overlooking the Pacific in Paradise instead of an average house on the mainland. Much of our other increased spending is in aid of this particular extravagance. Such things as higher travel budget (to visit family/friends we left behind) the Paradise "tax", keeping a small place on the mainland, etc.

What we DON'T seem to perceive as "worth it" (yet - for us) are things like newer/better cars, 1st class travel, bigger place, Euro trips (heh, heh, we still love "visiting" Hawaii), etc.

Maybe at some point we will see the value in some of these things (1st class IS much more comfortable - perhaps we'll get so decrepit it will then seem worth it.) Until then, it's still a struggle to spend for less perceived value.

I have to admit the smallest envy (not sure if that is the right word, but close enough) of those with budgets 2 to 5 times our budget. Actually, I think I just live vicariously through the posts about extensive luxury 1st class travel to exotic places, luxury cars, multiple houses, etc. I celebrate anyone's passion for what they spend THEIR money on! I say "enjoy it!" YMMV

[kcowan]

We have an FA to help with portfolio growth. I am seeing a need for a lifestyle coach to assist with this class of problem. They would know about taxes, charities, gifting and inheritance.

[Sunset]

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Originally Posted by Toocold That's what I'm contemplating as "experience" spending. I'm thinking that we keep our base expenses flat at $60k and start spending $20-40k a year on travel -- to go to Europe, Caribbean, Hawaii, Asia. DW and I love traveling so rather than waiting for RE, we start spending on vacations. And because I no longer am trying to get ahead in the corporate environment, I can finally take some 2 week vacations .....

I recommend taking a Viking River cruise, it's a bit expensive (we spent $10 for 2 weeks, but that was the cheap room.). It is traveling on the river in nice luxury, and you meet many interesting and pleasant folks enjoying the fruits of their labor.
One of the fellows on our trip was a Canadian, lived near T.O. and owned a company that employed well over 100 people.

[Toocold]

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I recommend taking a Viking River cruise, it's a bit expensive (we spent $10 for 2 weeks, but that was the cheap room.).

For the summer, we went on our first cruise at royal caribbean. I liked the trip, although it was a bit crowded at times, but plenty of things to do. I'll check this out. I've read that if we wanted to go a bit more luxurious, crystal cruises were supposed to be better, or we can always try the new Ritz cruises.

DW likes more luxury, whereas I'm the type who wouldn't mind backpacking through Europe. In general, I'm always looking for something new so I would prefer not to buy a vacation home. I think I'd get tired of it sooner than later.

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I was trying to make is until you have run through the sport years, driving years, college years, and throw in a few weddings

Would you hold off on RE if you had kids on middle school? Or are you saying you need to make sure you can pay all of this (if you choose to do so)?

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You may easily retire at 50 or 55 with (by that time) your spacious condo on a Hawaiian beach, and a second home on the mainland. Of course by that time you will be used to traveling first class; and oh, eventually in addition to helping the grandkids with college, you may be flying the grand kids out to visit, or taking the whole family on vacation. In other words, consider enjoying yourself now, and also making a plan to allow you to continue your upgraded lifestyle in retirement. (You also don't know what the future holds, healthwise, etc. )

That's good advice. For many years, I traveled extensively for work and I got constantly upgraded to first class. For domestic travel, I don't see a huge difference, and I'm perfectly happy in coach when traveling for pleasure.

I had a good conversation with DW. She's happy that we're going to let loose a bit. Of course, the best things in life don't cost much money. During this extended weekend, I took the kids bike riding to the local DQ for some ice cream -- $8 in total and worth every penny.

[Fedup]

$10 for 2 weeks? Where and how can I sign up? Too cheap?

[DawgMan]

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Originally Posted by Toocold Would you hold off on RE if you had kids on middle school? Or are you saying you need to make sure you can pay all of this (if you choose to do so)?

Having been thru the gauntlet with 4 kids my hindsight advice to most people who ask is yes, wait until they are at least in college and things ($$) are more predictable. When my kids were younger I had one set of plans that cost X and then life has away of taking you down another path where things may cost a multiple of X. While much of it is controllable in a sense, you find yourself compromising on some of your earlier plans because you have been affected by lifestyle creep or you become a big softy (in my case, easy to do with 3 of my 4 kids being girls). Example: I said I would never have 6 cars in my driveway and guess what, I had 6 cars. Kids car insurance (especially when they are not always the bets drivers), braces for 4 kids, private school when you planned on public school because 1 or 2 kids needed a a certain type of help, college out of state when you planned on in state. Point is, those little boogers can cost some dough and in my case, I made the decision to get them off the payroll before I launch.

[SilentWalker]

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Originally Posted by Toocold Would you hold off on RE if you had kids on middle school? Or are you saying you need to make sure you can pay all of this (if you choose to do so)?

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Originally Posted by DawgMan Having been thru the gauntlet with 4 kids my hindsight advice to most people who ask is yes, wait until they are at least in college and things ($$) are more predictable.

I would say it also depends on one's age and degree of burnout one is experiencing. My personal choice will be retiring very soon, something between 2 and 8 months from now, just due to the fact that I am not willing to be part of the magacorp exec meat grinder any more. While it also means I will not be able to pay for Ivy League schooling for my 3-year old son, quitting now will at least give me a chance for making to his graduation alive.

[Scuba]

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Originally Posted by Toocold For the summer, we went on our first cruise at royal caribbean. I liked the trip, although it was a bit crowded at times, but plenty of things to do. I'll check this out. I've read that if we wanted to go a bit more luxurious, crystal cruises were supposed to be better, or we can always try the new Ritz cruises. DW likes more luxury, whereas I'm the type who wouldn't mind backpacking through Europe. In general, I'm always looking for something new so I would prefer not to buy a vacation home. I think I'd get tired of it sooner than later. Would you hold off on RE if you had kids on middle school? Or are you saying you need to make sure you can pay all of this (if you choose to do so)? That's good advice. For many years, I traveled extensively for work and I got constantly upgraded to first class. For domestic travel, I don't see a huge difference, and I'm perfectly happy in coach when traveling for pleasure. I had a good conversation with DW. She's happy that we're going to let loose a bit. Of course, the best things in life don't cost much money. During this extended weekend, I took the kids bike riding to the local DQ for some ice cream -- $8 in total and worth every penny.

For your next cruise, if you want something different than a river cruise, I recommend trying one of the small luxury cruise lines - Sea Dream, Silverseas, Regent Seven Seas, or even Windstar. Smaller than Crystal ships so great service/personal attention.

[kaudrey]

How about getting involved with a charity? Giving back is one of the main reasons I want to FI - both with my time and my money.