If You Were Me, Would You Spend More?

[robnplunder]

Didn't someone post Dalai Lama's wise saying about this on another thread? The answer is there somewhere - http://www.early-retirement.org/forums/f27/customer-died-suddenly-perspective-72546.html#post1463101.

 

[FANOFJESUS]

It should be ok to take trips because you might feel different about it in 10 years. It is only temporary as I see it. Maybe you will say been there done that. Your money pile is so big if I were traveling I would only skim the surface of it. But I think 30k of travel is very wild. I am sure you can get it done for a lot less.

 

[Kimo]

To: daylatedollarshort .......I live in Hawaii, when is the "off season" LOL!

PS. Only meant this as fun!!!

 

[Meadbh]

Why don't you start out spending an extra $15,000 on travel . If you look for deals you can do some great trips for this price . Do it now ! As we age health tends to get in the way .

+1
It's not necessary to spend $30k to have some great trips. Just do it!

 

[Dwhit]

So, what do you say? If you were me, would you spend more -- on travel, or anything else?

I say not only "Yes", but "Hell Yes!".

 

[38Chevy454]

Yes, do it.
The phrase "spend it while you can" has deep meaning. The older you get, the less you'll want to travel and the more you'll regret not doing it while you could have.

X2, money can't buy your health back. Go and enjoy travel, you worked hard to accumulate the money, now reap the reward for that hard work.

 

[retire2020]

To OP: Yep..I would. I would take minimum 3% WR and add it to my pension to spend for a year. Spend it while you're young, able to travel and move around.

 

[TimSF]

Looks like you have more than enough money to go on some nice trips. Go for it. Enjoy.

+1

 

[daylatedollarshort]

To: daylatedollarshort .......I live in Hawaii, when is the "off season" LOL!

PS. Only meant this as fun!!!

Off season for people who don't have to time their vacations to school vacations. Our trips there got a lot more expensive when we couldn't go in October and March.

 

[Kimo]

Off season for people who don't have to time their vacations to school vacations. Our trips there got a lot more expensive when we couldn't go in October and March.

+1

 

[ocdokie]

Hi, OP here. Thank you, thank you to all who have replied! The thought of spending from the stash still nauseates me, but how I can let that get in the way of what I'm sure will be wonderful experiences?

As a couple of posters suggested, I did re-run FireCalc, setting aside a chunk for "fun money" and subtracting it from the total stash. I still ended up with a 100% success rate. Thanks for that suggestion! I found a level of comfort in that result (knowing that past market returns don't predict the future, but you go with what you got).

I also liked that several posters advised to "do it now" because there's no guarantee of good health in the future. I've seen this personally with my own mother, who at the age of 85 and in the period of one year, has gone from living independently to living in a nursing home, afflicted with dementia to the extent that she cannot speak, walk, or feed herself.

I so appreciate all your input. When I think of things by myself, I always wonder, "What am I overlooking?" That's why a forum like this is so helpful.

In the last hour, DH got an e-mail from Delta Airlines trumpeting sales on fares to Europe this fall. Now, I check ER.org and get positive feedback from you good folks on traveling while we're physically able. I know from previous experience that both DH and I value experiences more than "stuff", so I went over this thread with him. His eyes lit up and he said, "China!" A little more thought, then "India!" Getting very excited now, "A Galapagos cruise and Machu Picchu!" Then he stood up and announced, "New Zealand! (Pause) In Business Class!"

I think I need a new suitcase. Thanks again, one and all.

 

[NW-Bound]

"New Zealand! (Pause) In Business Class!"

Now, you are [-]talking[/-] spending!

I have not gathered up the courage to get a Business seat with my own dime, but with your pension, you are in better financial shape than we are. Enjoy!

 

[powerplay]

So happy to hear you are going to do some travel and that your DH is excited about traveling.

My answer to your original post is am emphatic YES! Spend some of that money you earned and saved for just this time in life and enjoy.

Looking forward to reading about some of your adventures.

 

[Meadbh]

Here is some recent research on how to make the most of your trips.

The science of the perfect vacation: 4 keys to making it memorable | CTV News

 

[Chuckanut]

Here's the way I figure it. According to FireCalc and a few other calculators, I could end up on my death bed with a slight deficeit, probably less than 50,000. But, most likley I end up with a lot of cash left over, anywhere from about $300k to several million.

So, with the odds that I will not outspend my money, I might as well spend more now while I can enjoy the fruits of my labors. If things head south, I can always tighten up the budget a bit.

 

[gcgang]

Spend it now, while you can enjoy it!

Things like FireCalc aren't " one and done" answers. They are just guides. You are in great shape to enjoy things. What if the market tanks? Re run your simulation then. Maybe you can only spend extra $25k, or maybe not be able to spend the extra when you're 80+, when you probably won't feel like it anyways.

 

[ocdokie]

Now, you are [-]talking[/-] spending!

I have not gathered up the courage to get a Business seat with my own dime, but with your pension, you are in better financial shape than we are. Enjoy!

I've never paid for Business Class, either. We've redeemed airline miles to do it twice, but it takes so long to save them up. The reason DH specifically mentioned doing it to go to New Zealand, is that in the past I said I wouldn't take a flight that long unless I could be somewhat comfortable (compared to cattle -- er, economy -- class). Now it seems I've created a monster.

 

[shortstop14]

Just got back from two months traveling all around New Zealand, and we're in a similar situation to you *without* the pension. So I guess that answers the question from my perspective on loosening up a little now - although I still don't care for seeing the stash go down after years of focus on pushing it up. Fortunately, the last two years since retirement have been good to our portfolio. The first big down year will likely see us cutting back on travel, but until then, we'll hit the road.

But no business class for me - those frugal habits die hard, and the back end of the plane gets there at the same time. And we traveled around New Zealand in a cheap campervan. But that's really personal preference, in the end. We'll spend a month or so in Arizona during the colder weather, and probably a month or so visiting our daughter over the holidays. Getting the time to travel was one of the major incentives for retiring in the first place for me.

 

[imoldernu]

After you cover yourself for long term expenses as in nursing homes... and have insurance against lawsuits... the rest is yours to enjoy.

Here are some numbers that tell who is still alive, at what age... In my own case, more than half of the people who were born when I was, are now dead.
Not morbid... just facts... (from 2006)

Something to think about.

 

[ICNTR]

I didn't read all of the responses so please excuse me if this is not within the context. Regardless, your question is a tough and complicated one. Here's another. Do you want for anything?
If so then run the numbers and make an educated decision. If not then enjoy the blessings of the moment.

 

[NW-Bound]

Here are some numbers that tell who is still alive, at what age...

Wow, more than 1/2 make it to 80. It is higher than I thought.

However, I suspect that I will not be among those lucky 1/2.

 

[Moemg]

To keep your budget inline buy your suitcase at TJ Maxx !

 

[butterfly]

Here is how I see it. You are covering everything now without tapping the principle. SS will add more to the mix. The basics are covered.

Here is how I look at the 'what-ifs': If you have a health situation that threatens to sink your boat, $200K less isn't going to make any difference. Eat your dessert while you can enjoy it. If the economy goes into a tail spin, you are in better shape than the vast majority of people. I would be more concerned in that situation about the pitchforks and torches than I would be about what happened to my $1.9 million.

Here is one way to approach this: Pull (on paper) $200K into your 'vacation account'. That leaves $1.7M in your investment account. That will fund $30K for almost 7 years, assuming no growth. Maintain your $1.7 year after year. Anything over it goes into the paper vacation account. If the market has a bad year, you don't put anything into the vacation account.

You said that you see no need to leave a legacy, so there is the problem of what to do with the $1.7 down the road. I would volunteer to help you out with that, but that would make me look like an Variable Annuity Salesman! Allowing yourself to have a stash of mad money that you can spend without guilt should allow you to take some very nice vacations. If the market continues to grow, you have allowed yourself to enjoy some travel while you are able. Down the road is an unknown that can be dealt with down the road.

Rerun your Firecalc with $1.7 instead of $1.9. I would guess that it is still 100%.

I completely agree with this. You are living on an income stream without touching your principal.
While you are young and fit enough I would travel wherever you desire because as you age your will want to do this less and less and (hopefully) many other expenses will dwindle too.

But with pensions, SS and that large investment; you are fine.
Have some great trips, relax and enjoy!

 

[chris2008]

I'd like to stronly support the "vacation account".
That is what we did after receiving an inheritance from a travel loving aunt. The amount is earmarked.
She used to say that your memories are the only things that can't be taken away from you.
So, if you like to travel, build happy memories while you can. Some people feel that the lust for travelling goes away as you get older. So do it while you can.
You won't start travelling when you are 80 and find that you still have all your principal intact.
And then, reconsider your understanding that travelling must be expensive. There are many ways to travel economically when you have time enough and do not insist on international 5* hotels.

 

[CUinFl]

You should be able to incrementally, and conservatively, add ~$50k annually to your current expenses. The reason is you still have the SS kicking in at 70.

I would suggest you take the trips you are thinking, spreading them over a few years and assess where things stand every couple years.