Guess we're doing ok?

[jonat]

Had our annual review with our Fidelity managed account portfolio manager (and earlier in the day our account manager). Many of you know that Fidelity currently offers a Retirement Preparedness Measure (RPM) score, based on your input of planned expenses, assets and income over retirement. The portfolio manager said that in the many years he has been doing this, ours is the first time he saw the RPM score peg the meter at 150+ (it doesn't go higher than that.)

Our account manager ran analyses that showed us croaking with $10-15M in assets (I think that's in future dollars, maybe $4M in today's) assuming a "significantly underperforming" market.

DW has been, historically, much more conservative and worried about risk than I have been, but she is finally relaxing and coming around to the view that we probably don't have to worry about running out of money. I am 62 and retired earlier this year, DW is 65 and retired in 2004. We have lived below our means for decades and saved, but we live comfortably. We were told that we really need to spend more, given that our goals are to spend everything down.

 

[euro]

Had our annual review with our Fidelity managed account portfolio manager (and earlier in the day our account manager). Many of you know that Fidelity currently offers a Retirement Preparedness Measure (RPM) score, based on your input of planned expenses, assets and income over retirement. The portfolio manager said that in the many years he has been doing this, ours is the first time he saw the RPM score peg the meter at 150+ (it doesn't go higher than that.)

Our account manager ran analyses that showed us croaking with $10-15M in assets (I think that's in future dollars, maybe $4M in today's) assuming a "significantly underperforming" market.

DW has been, historically, much more conservative and worried about risk than I have been, but she is finally relaxing and coming around to the view that we probably don't have to worry about running out of money. I am 62 and retired earlier this year, DW is 65 and retired in 2004. We have lived below our means for decades and saved, but we live comfortably. We were told that we really need to spend more, given that our goals are to spend everything down.

Good for YOU - sounds like the well-earned result of good planning and appropriate lifestyle. congrats!

 

[RobbieB]

Yeah, time to blow some dough!

You don't want to die with 15 million eh? Can't spend a dime when your dead. Have more fun now while you still can.

 

[Lsbcal]

So what are you going to do about this excessive​ frugality?
We need to see a list of line items. Maybe dates too.
Summer vacation season is almost here.

 

[Blue Collar Guy]

If you had your life to live over again, would you still work till 62?

 

[evilanne]

Yeah, time to blow some dough!

You don't want to die with 15 million eh? Can't spend a dime when your dead. Have more fun now while you still can.

+1 You definitely don't want it to be subject to any inheritance tax

 

[DrRoy]

Definitely time to enjoy now.

 

[jonat]

We are already taking vacations - two this year and two scheduled for next year. Our wills have everything going to charity, so tax is not an issue. We're not the sort to significantly change our lifestyle at this point in our lives, but it does mean we can loosen up a little. Just this morning DW decided that she could now "afford" to buy brown eggs instead of white eggs at the supermarket (50 cents more.)

I had been telling people at work that I would probably retire at 66 or 67, as long as I enjoyed the work, the people, and that I was comfortable with the work environment. Then last year Megacorp decided that it wanted to shed >10K workers and offered very generous buyout packages for retirement-eligible employees (which I definitely was.) Oh, and if I stayed (which my immediate management very much wanted me to do), my commute would change from 5 minutes to two hours in horrible traffic, as they were "consolidating" sites. That's what pushed me over the edge.

I was worried how I would handle it psychologically, but it's been great so far. In some sense I'm busier than ever and enjoying it greatly. I have stayed involved in my field of work but on my own terms.

 

[Danmar]

You can only spend it or give it away, now or later. Sounds like you don't want to spend much more so why don't you start giving away more now? Would be a lot more satisfying to see the results of your generosity. Of are you just so "conservative" that you would rather see it pile up?

 

[Ready]

It's hard to change a lifetime of LBYM even when Firecalc says you can spend much more than you are.

But so far this year we've needed to replace a water heater, purchase new furniture for the family room, and do a variety of small repairs around the house. I used to worry about that stuff but now I just don't any more. That's the nice part of having extra cushion.

And just last week, when we went out for my favorite Chicken soup with matzo ball and kreplach, I asked the waitress for an extra kreplach in my soup. It felt so decadent, but I figured it was worth it to splurge a little.

 

[jonat]

We have already stepped up our charitable giving, but who knows what the future may bring, so we don't want to make significant inroads to the savings so early in our retirement. Ask me again in 15-20 years. DW is convinced she won't live much past her mid-80s, based on family history. I could go well into the 90s.

 

[Lsbcal]

...

And just last week, when we went out for my favorite Chicken soup with matzo ball and kreplach, I asked the waitress for an extra kreplach in my soup. It felt so decadent, but I figured it was worth it to splurge a little.

No kidding those little things can be a lot of fun and stress free spending.

Yesterday we bought 2 replacement low flow Kohler toilets. The plumber will be installing both. Our old ones are 30+ years old and it seemed the best idea to get all the hardware fixed at once.

 

[Lsbcal]

We are already taking vacations - two this year and two scheduled for next year. Our wills have everything going to charity, so tax is not an issue. We're not the sort to significantly change our lifestyle at this point in our lives, but it does mean we can loosen up a little. Just this morning DW decided that she could now "afford" to buy brown eggs instead of white eggs at the supermarket (50 cents more.)
...

Careful, that is how the big spending starts.

We are taking 2 upcoming vacations too. Then there was that trip to Death Valley in February.

What I did was to identify the minimum spending level we should shoot for. Then I split the spending into Basics and Fun/Discretionary. Basics are all the regular bills plus standard restaurant tabs. Fun/Discretionary are generally above $1000 and are things like vacations, furniture replacements, garden redesigns, car replacements, etc.

I just track broad monthly spending and the fun/discretionary stuff. I do not do a detailed breakdown of the Basics category. Just once a month totaling of the charge cards, checking account, and cash. Keeping it simple (I think) and not obsessing (too much).

 

[Danmar]

We have already stepped up our charitable giving, but who knows what the future may bring, so we don't want to make significant inroads to the savings so early in our retirement. Ask me again in 15-20 years. DW is convinced she won't live much past her mid-80s, based on family history. I could go well into the 90s.

So what then is your issue? Just bask in the knowledge you are very lucky indeed?

 

[rothlev]

It's hard to change a lifetime of LBYM even when Firecalc says you can spend much more than you are.

But so far this year we've needed to replace a water heater, purchase new furniture for the family room, and do a variety of small repairs around the house. I used to worry about that stuff but now I just don't any more. That's the nice part of having extra cushion.

And just last week, when we went out for my favorite Chicken soup with matzo ball and kreplach, I asked the waitress for an extra kreplach in my soup. It felt so decadent, but I figured it was worth it to splurge a little.

I love chicken soup with kreplach, but an extra kreplach in my soup is NOT extravagant !!! You've got to come up with something else.

 

[2017ish]

...

And just last week, when we went out for my favorite Chicken soup with matzo ball and kreplach, ....

Had never heard of this dish. Just looked it up. Yummy addition to our winter cookbook.

(If you couldn't tell: lifelong denizen of flyover country )

 

[jonat]

So what then is your issue? Just bask in the knowledge you are very lucky indeed?

Did I say I had an issue? Lots of us here share stories of how we're doing, not everyone is in trouble. Sometimes a success story is of interest.

As for "very lucky", I prefer to assign it to making good decisions and sticking to them. Yes, luck was partially involved in my career path, but I know many who had the same path that made different choices and are struggling. Indeed, several of my colleagues who were made the same buyout offer said they couldn't afford to accept it.

 

[sanfanciscotreat]

Re post #8, I do not mind spending more if there is an added benefit, but there is no difference in brown and white eggs.

Retired poultry scientist.

 

[RobbieB]

I find that brown eggs have a more yellow yolk. They just look better. Besides they are more expensive and we need to;

Blow More Dough

 

[Scuba]

I find that brown eggs have a more yellow yolk. They just look better. Besides they are more expensive and we need to;

Blow More Dough

[emoji23]

 

[street]

You have done well and being where you are at doesn't come by accident. Nice job and you should enjoy your wealth.

 

[Fedup]

Re post #8, I do not mind spending more if there is an added benefit, but there is no difference in brown and white eggs.

Retired poultry scientist.

The organic eggs in Hawaii taste a lot better than the ones from Costco. You just have to find the right ones to buy.

 

[Spanky]

We were told that we really need to spend more, given that our goals are to spend everything down.

Only if you want to and feel comfortable of doing it. In the interim, enjoy your retirement.

 

[Danmar]

Did I say I had an issue? Lots of us here share stories of how we're doing, not everyone is in trouble. Sometimes a success story is of interest.

As for "very lucky", I prefer to assign it to making good decisions and sticking to them. Yes, luck was partially involved in my career path, but I know many who had the same path that made different choices and are struggling. Indeed, several of my colleagues who were made the same buyout offer said they couldn't afford to accept it.

Ok, so just looking for some feedback then. You are doing more than OK, great in fact. But I suspect you knew that? Congratulations.

As to the role of luck? We have had this debate several times. I certainly agree that good decisions play a significant role but also think that luck does as well. What I do know is that if you credit your success more to luck, you will have more friends. You don't actually have to believe that but as I have aged I find myself thinking that luck played a bigger role than I had originally felt. Maybe getting more humble or mellow in old age?

 

[Surewhitey]

Luck is for Vegas...every crossroad in our life is thought out to benefit our family / friends in the best way we can foresee. So far, we feel pretty blessed in the outcome of most decisions. I do think age, humility and giving back helps you make better, well-thought decisions. Principles guide our decisions and LBYM is one basic one and happiness in giving is another...