Little surprise on withdrawals

[palomalou]

Happy New Year!
I don't know that we are as frugal as many of this lovely group, but I always ask two questions before most spending:
1. Is it truly necessary?
2. Do I REALLY want it?
My spouse, who does our financial management (with my input ) asked me a few days ago how much I thought we pulled from investments in 2022. I guessed 2.5%, because somehow I thought it was below 4% by the way he asked. He said, "Close-2.2%." I guess we are doing okay. We have been retired almost 9 years and live in NYC. Spouse does a little part-time free-lancework, I think just because he enjoys it, because the pay is insignificant. He took SS at 62, and I will start later this year at 68 1/2.

[audreyh1]

Is there something you are saving it all for?

I guess once your SS kicks in this year your withdrawal rate may drop to 0%.

Ha ha you might want to check out the Blow that Dough 2023 thread because forum members are not always frugal.

[palomalou]

Not really saving it for anything ecept the fact that we have no children and hence will end up having to self-fund what ever befalls us in old-old age. We probably will spend a bit more this year. I think it may have to do more with the fact that we by and large already have everything we need and just that the habit of questioning expenses is so heavily engrained by now...
When I am in the hospital (happens more that I would choose, had cancer 8 times) I pay the hefty surcharge for a private room at Sloan whenever one can be had and consider it well worth the price. This is our biggest splurge item.

[Dash man]

Quote:

Originally Posted by palomalou Not really saving it for anything ecept the fact that we have no children and hence will end up having to self-fund what ever befalls us in old-old age. We probably will spend a bit more this year. I think it may have to do more with the fact that we by and large already have everything we need and just that the habit of questioning expenses is so heavily engrained by now... When I am in the hospital (happens more that I would choose, had cancer 8 times) I pay the hefty surcharge for a private room at Sloan whenever one can be had and consider it well worth the price. This is our biggest splurge item.

Plan some great experiences for the two of you while you are young enough to enjoy them!

[Bigdawg]

Quote:

Originally Posted by palomalou Not really saving it for anything ecept the fact that we have no children and hence will end up having to self-fund what ever befalls us in old-old age. We probably will spend a bit more this year. I think it may have to do more with the fact that we by and large already have everything we need and just that the habit of questioning expenses is so heavily engrained by now... When I am in the hospital (happens more that I would choose, had cancer 8 times) I pay the hefty surcharge for a private room at Sloan whenever one can be had and consider it well worth the price. This is our biggest splurge item.

So happy that you are a survivor and posting here. I believe you have earned the right to blow that dough and/or live life exactly like you want to. Best of luck going forward. Just my opinion but surviving cancer 8 times would get me to take SS ASAP.

[athena53]

Definitely check out the BTD thread!

I base my withdrawals on wanting to keep the average since my retirement under 3.5%. Once I withdraw it, it doesn't go back in if I don't spend it. It goes to charity, home improvements, my grandchildren's 529s or to DS and DDIL. I just listened to an interview with the author of "Die with Zero" and plan to get the book- it solidified a lot of my thinking of spending your money at optimal times in your life and giving away at the right times. When I was stewing over what spending $48,000 (in 1999-2003) on DS' HS education would do to my retirement savings, DH (who was then my fiance) said, "How would you feel if you had a prosperous retirement but DS never found his way in life?" DS was a wise man. The military boarding school was a miracle. Handing him that money now, even compounded, would never have that impact.

Long personal digression, and I'm sure you want to make sure your younger spouse is secure, but is it time to let go of the reins a little?

[Koolau]

Quote:

Originally Posted by palomalou Happy New Year! I don't know that we are as frugal as many of this lovely group, but I always ask two questions before most spending: 1. Is it truly necessary? 2. Do I REALLY want it? My spouse, who does our financial management (with my input ) asked me a few days ago how much I thought we pulled from investments in 2022. I guessed 2.5%, because somehow I thought it was below 4% by the way he asked. He said, "Close-2.2%." I guess we are doing okay. We have been retired almost 9 years and live in NYC. Spouse does a little part-time free-lancework, I think just because he enjoys it, because the pay is insignificant. He took SS at 62, and I will start later this year at 68 1/2.

We all have to spend in a way that makes us comfortable. I do think that slowly opening the purse strings is a good idea - even if it is only to gift to family, charity, etc.

Honestly, we don't want any more stuff. Our travel is mostly to see kids/friends. We buy what we want, when we want it. So, gifting brings much more pleasure with the excess. YMMV

[pacergal]

Op--those are great questions to ask ourselves!

Best wishes for good health in the future, enjoy life now, spend as you want--it seems you could spend more if desired. Any items on your wish list? Go for it!
If your DH works because he enjoys it, good for him.

[aja8888]

I am now a widower as my wife passed on December 8th, 2022. I was out having breakfast with our DD yesterday and chatting about what I am going to do with the rest of my life and she asked, "what are you going to use your nest egg for now that she is gone?"

I said I have no big spending plans and may sell the "paid for house" and bank the money and get an apartment to save on expenses.

My daughter said "why"....I said I don't know....

I'm still healthy but that can change any day.

I need to rethink this spending stuff and the OP should too!

[djsander]

My DW has always been frugal, but we never go without. Her philosophy has always been once it goes in to our accounts it doesn’t come out. When given the chance of voluntary early retirement it was a quick yes. Her comments at the time were aren’t you glad we diligently saved so we can retire. Fast forward almost 2 years. She got new glasses toward the end of the year $$ and then we replaced our two toilets $$. Then the gas bill comes in higher than expected. She is fretting about how we have to watch our spending. I did a quick check and our withdrawal rate comes in at around 1.9%! Delaying SS as long as possible and it will pretty much cover our expenses. We do have a nice house, nice car and enjoy life so I guess it’s all ok.

[braumeister]

Quote:

Originally Posted by aja8888 I need to rethink this spending stuff and the OP should too!

I recommend getting together for a beer with RobbieB.

[Teacher Terry]

Aja, do what makes you happy. If you would rather be in an apartment versus the house then do it. But don’t do it to save money because it appears that you have plenty. If you like the house but not the work then hire the work out.

[aja8888]

Quote:

Originally Posted by Teacher Terry Aja, do what makes you happy. If you would rather be in an apartment versus the house then do it. But don’t do it to save money because it appears that you have plenty. If you like the house but not the work then hire the work out.

The house is full of memories and I don't need 2,000 square feet. I'm going looking at apartment s this coming week.

[aja8888]

Quote:

Originally Posted by braumeister I recommend getting together for a beer with RobbieB.

That would fix things!

[Car-Guy]

Quote:

Originally Posted by aja8888 The house is full of memories and I don't need 2,000 square feet. I'm going looking at apartment s this coming week.

I don't recall for sure, but don't you still have a sports car(s) in addition to your daily driver? Do you still "tinker" in the garage and/or with your car(s)? Etc. I guess you can keep your golf clubs in an apartment easy enough, but........ Just asking....

[aja8888]

Quote:

Originally Posted by Car-Guy I don't recall for sure, but don't you still have a sports car(s) in addition to your daily driver? Do you still "tinker" in the garage and/or with your car(s)? Etc.... Just asking....

Sold the Mustang convertible this last summer. I have lost my desire to tinker with old cars anymore. Plus, it's getting physically harder to do. So I am a one car family. And I have been passing my enormous inventory of tools to relatives over the last year or so.

It did hurt me to have to pay someone for an oil change, though.

[Car-Guy]

Quote:

Originally Posted by aja8888 Sold the Mustang convertible this last summer. I have lost my desire to tinker with old cars anymore. Plus, it's getting physically harder to do. So I am a one car family. And I have been passing my enormous inventory of tools to relatives over the last year or so. It did hurt me to have to pay someone for an oil change, though.

I can relate to much of that. I sold all my collectables and most of my tools in the past few+ years. I still like to maintain my daily drivers but that doesn't take much time or effort with new cars.

[aja8888]

Quote:

Originally Posted by Car-Guy I can relate to much of that.

I hear you and I am closing in on 80 later this year. I'm also having more fun playing golf.

[Car-Guy]

If I might ask and you care to share, are you planning to stay in the Woodlands area? As I'm sure you are aware, there's a bazillion new apartments in the area. Not sure how many are good for seniors but I'm sure/hope there are plenty. Wish you the best in finding a new place regardless.

[Teacher Terry]

Quote:

Originally Posted by aja8888 The house is full of memories and I don't need 2,000 square feet. I'm going looking at apartment s this coming week.

I am much happier in my condo which is 855 sq ft which I bought after the divorce. IT would have been painful to stay in the house and I didn’t need the space. It’s quick and easy to clean. Sometimes a change of scenery is just what we need.