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More Money Than You'll Ever Need
Old 06-07-2017, 07:44 AM   #21
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More Money Than You'll Ever Need

"You can never be too rich or too thin".

Wallis Simpson - The Duchess of Windsor
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Old 06-07-2017, 08:01 AM   #22
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Originally Posted by candrew View Post
"You can never be too rich or too thin".

Wallis Simpson - The Duchess of Windsor
Not sure I'd agree with either of those. Too rich and you'd need handlers/bodyguards/ and a somewhat isolation lifestyle (but maybe that's not too bad ), etc. Too thin (anorexia) is really not good.

This reminds me of the song "Too much fun"

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Old 06-07-2017, 08:18 AM   #23
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For our lifestyle and recreational pursuits, we have more than we need. DW is still working, so we are not yet in SWR mode. To quote myself from a discussion I had just yesterday with a friend, regarding retirement savings and retirement future, "we won the game."
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Old 06-07-2017, 08:22 AM   #24
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Well into our 8th year of retirement and this year we will start giving money to our kids as we believe we have more than we'll ever need. Between us we are currently drawing 4 private pensions, and we both have US and UK SS to come.
Sounds like my ole man. He has 6 income streams and enough to last. I tried to show him in a spreadsheet, but he still lives way below his means.

He has millions at 66 and 6 income streams...3pensions, 2SSAs, RentIncome and RMDs at 71. It baffles me how cheap he lives, 18yr old truck, hasn't remodeled his home in 34 years although he is starting to do some work, replacing doors and painting. He won't buy anything unless its on "sale" and obsesses over getting something for nothing. He has over 100k in cash just sitting there.

He isn't one to give, he will loan. Kinda sad to see actually but I guess god willing when I get old I will have a pile late in life.

When I mention the Gift Exclusion limits he laughs at me every time, even though it's tax advantage.
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Old 06-07-2017, 08:26 AM   #25
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We may have more money than we need, but certainly not more than we could spend. The good thing is that I don't feel like spending a lot.
+1
this year, we are spending a bit more than budgeted due to DD wedding cost over runs, but she and new SIL are very much worth it. We are also gifting to our kids each year.
But who knows what the next 20-30 years will bring? We are still LBYM folks and put money into savings from our pensions each month. I am blessed to be in this position and do not take it for granted. We worked and saved hard to get here.
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Old 06-07-2017, 08:27 AM   #26
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All I need to do is to check out the price of a business-class ticket to Sydney, let alone first class, to remind myself that I am not that rich.
That's basically how I feel, even though I am pretty confident I have more than enough money to cover any and all reasonable needs and wants for the rest of my life.

I was curious, so I just checked the cost of round-trip business class ticket to Rome from my neck of the woods here in metro Atlanta, and I found some—at around $2,400—that I could pretty easily afford. As long as I don't discover the "need" to take more than one or two such flights per year, I should be A-OK. That's actually a pretty encouraging realization!
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Old 06-07-2017, 08:43 AM   #27
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We're all on our knees to two things. Inflation could rise its ugly head again and take away purchasing power. And none of us know how long we're going to have on this earth.

I think we're fine financially in the short and long run--pending any great changes.
However, my wife and I still live frugally because that's the way we were raised. We continue to take our one or two international trips per year, but otherwise pinch pennies.

Our children have been offered more than most. Some are well educated and productive members of society and some are not. But we're past saving and living conservatively so they can spend our money. If there's money left over, that's fine. But we're now living for ourselves and enjoying it.
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Old 06-07-2017, 08:49 AM   #28
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At my age, I am increasingly concerned about leaving so much that the IRS gets a large piece via the estate tax. I'm working on disposing of the less productive real estate in a tax efficient manner and increasing the cash flow to spend more, as the LBYM squirrel it all away habit is very difficult to break. Also setting up a plan to have most of the estate, especially anything over the estate tax limit, go to worthy charities (few and far between).

Even if we hit eight figures, I don't think I will get over the fear of "not enough" because of "what if..." More income off unleveraged assets may help to assuage that fear. Debt payoff is also on the agenda, despite favorable leverage.
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Old 06-07-2017, 09:01 AM   #29
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Not sure I'd agree with either of those. Too rich and you'd need handlers/bodyguards/ and a somewhat isolation lifestyle (but maybe that's not too bad ), etc. Too thin (anorexia) is really not good.
In light of the obesity & savings rates in America, that quote may indeed have relevance!
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Old 06-07-2017, 09:03 AM   #30
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+1. I am in the process of disbursing my RMD's among our 4 children (Her two and my two). They need the money now not in 20 (God willing) years
Very wise! Give it to the children and any other worthwhile causes one selects while one can enjoy giving it away and helping others.
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Old 06-07-2017, 09:26 AM   #31
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Back in 2002, I was nervous because our portfolio had become marginal owing to the tech meltdown. I actively managed the portfolio with great success for 5 years then we bought a snowbird place for 6 months and switched to mostly dividend payers by selling all my risky growth stocks to buy the snowbird place.

Then we were hit with the meltdown! We held on and survived. Plus we reduced our SWR by 60% (but back filled with an annual trip to Europe) by living in Mexico for 6 months. Now 10 years later, we are looking at ways to reduce stash. It will not be with boats and cars! Been there, did that!

Right now we have increased our FI position, mostly by not reinvesting divies and interest. We are patiently waiting for the sale!
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Old 06-07-2017, 09:29 AM   #32
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A recent popular thread about having more money in retirement than before retiring got me to thinking.

Are there any who visit this forum beyond ever having any money troubles, in fact, have way more than enough to last way beyond your lifetime?

If so, how do you look at money? It's there, you know it's there and you just go on living your life?

Something I see here, many retirees realize their money keeps growing with a low withdrawal rate and they believe they need to spend more.

I would guess it becomes a matter of financial maturity to realize that you have so much money and you're just are going to die with a high net worth.
I believe you hit the nail on the head for us. We're in our 8th year of retirement (retired 58/57), but unfortunately have no pensions and rely on SS (at 62) and our investments for retirement income.

We've always had a LBYMs lifestyle which has allowed us to save a considerable amount of funds, but it wasn't a steady diet of hotdogs and beans to get there. We live a comfortable life (before and after retiring early).

We don't feel like we need to ramp up the spending due to a nice growth in our investments and an extremely low withdrawal rate. We buy/do what we want (still suffering from our LBYMs lifestyle), and hope to have a high net worth left to leave to our children.
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Old 06-07-2017, 09:47 AM   #33
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I think it is highly unlikely we would ever run out of money. If we downsized we could live off the rent from our current house alone or less than pensions + SS, not including investment income. Or if I worked half time I could probably cover all our expenses.

But I like the math challenge and bargain hunting part of saving money, reducing expenses and increasing easy side income. There's a lot of homeless people where we live so I'm okay with still saving money and leaving what we don't need for LTC to our adult kids and charities that help the less fortunate. I don't do any volunteer work right now so I figure leaving money to charity will be my way of giving back to our community.
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Old 06-07-2017, 09:56 AM   #34
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I should be set if my so-far stable spendrate doesn't rise by a lot and if nothing major goes missing. So I'd rephrase that as "more than I'm likely to ever spend" because some kind of financial disaster is always a possibility.

Maybe its meaning has taken on a darker shade over the years? Decades ago I saw it as an exciting opportunity to gain but lately it's more of a headache of a responsibility to preserve. Yeah backwards from the proper attitude of responsibility to accumulate first and opportunity to enjoy later. So different kind of worries I suppose.

I have no qualms about a growing stash and checking out at my peak. To me spending and income have never been coupled, I've spent according to what I thought I needed and I earn as much as I think I can get. Maybe that's why my OMY has stretched out so long, as long as a paycheck is low hanging fruit, I'll probably keep taking it. My spending has been gated by what may be a utility curve with a lower ceiling than the norm. IOW to me this isn't about accumulation for future enjoyment, it's been my way of life. Just thankful my upbringing left me on the right side of Micawber's rule.
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Old 06-07-2017, 10:12 AM   #35
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That's basically how I feel, even though I am pretty confident I have more than enough money to cover any and all reasonable needs and wants for the rest of my life.

I was curious, so I just checked the cost of round-trip business class ticket to Rome from my neck of the woods here in metro Atlanta, and I found some—at around $2,400—that I could pretty easily afford. As long as I don't discover the "need" to take more than one or two such flights per year, I should be A-OK. That's actually a pretty encouraging realization!
I just checked, from LAX to London business class on Virgin is about $8,000 on British Airways is $11,000. I need two tickets so it's about $22,000.
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Old 06-07-2017, 10:13 AM   #36
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Are there any who visit this forum beyond ever having any money troubles, in fact, have way more than enough to last way beyond your lifetime?

If so, how do you look at money? It's there, you know it's there and you just go on living your life?
I'm not sure if I fit into this category or not. If my expenses are never more than they have been in recent years, then sure, I guess I have more than I will need.

But who can say what future health care, assisted living, or nursing home costs may be in 20-30 years?

Who knows if I will end up with cancer or something and incur a lot of uncovered medical expenses?

Who knows if "Katrina II" will hit New Orleans in a few weeks and wipe out my dream house and everything in it, and Frank's house next door as well? Insurance only goes so far.

What if we have double digit inflation? War? Famine? Epidemics? Meteors? Political/economic collapse or social unrest?

It's nice to have some extra just in case the unexpected becomes reality some day. My relatives are mostly dead and I have the full responsibility of independently taking care of myself no matter what the future may bring.

That said, I have made an effort to spend more since I know that I can't take it with me after I die. However, due to stock market conditions, I find that the percentage of my portfolio needed is still less than it was, even though I spend more now.

I have had worse problems, that's for sure.
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Old 06-07-2017, 10:27 AM   #37
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I have way more money than I will probably ever spend, as well as two (non-COLA) pensions, and eventually SS.

Unfortunately it's because the nest egg that was built for two people retiring at 55/50 is now a nest egg for one 50-year-old. With no direct heirs. And the hobbies and pursuits that we spent so much money on (foodie-ism, travel) aren't things that are as interesting to do alone (yet, anyway).

But it means I'm not going to worry a whole lot about LTC insurance, and that if I ever do go to Australia, it would probably be in first class, as mentioned up-thread.
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Old 06-07-2017, 10:30 AM   #38
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It's hard to know the future. That's why I prefer not to be overly confident because I can't predict the future.
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Old 06-07-2017, 11:05 AM   #39
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I just checked, from LAX to London business class on Virgin is about $8,000 on British Airways is $11,000. I need two tickets so it's about $22,000.
Hmm... seems like you are citing the most expensive options. A quick check of Google Flights shows numerous nonstop LAX to London business class flights available for a wide range of dates and numerous carriers for $4,500 or less. I found some flights/dates for around $2,600 if you're willing to deal with two stops. I suppose if it has to be Virgin or BA, nonstop, and within the next couple weeks, you could end up paying $8K or more. To avoid these ultra high fares, I never limit myself to just a select few airlines, and I always plan international travel many months in advance.
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Old 06-07-2017, 11:14 AM   #40
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For me, it all depends on the spend rate at the end. At current spend rates, we have more than enough. If we both end up in an expensive Alzheimer's care unit for a decade, it will all be gone.
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