Most retiree will never draw down their portfolio?

[ShokWaveRider]

lol, my late husband was Portuguese and he had a saying, "Americans live to work while everyone else works to have a life". I find there is a big kernel of truth to that. Rarely do I see post (and I admit that I'm new here so maybe I'm missing them) about anyone enjoying their money, and god forbid you admit to buying something "frivolous" such as a boat but it seems that it's all so when we get old and broke down we'll have a nice nursing home. Don't get me started on 95% of the financial advice I see on the net. they all start off with some story of a older worker who is going to be forced onto the streets.

Experience also colors one's judgement. My husband, my baby brother and my best friend all died within the last 4 years ALL before the age of 56. so all the sacrificing and denial did not do them a bit of good,although we did blow a wad of cash on my brothers casket since he was retired navy, we got a lot of fancy navy emblems on the box. So not spending money because I may need it when I'm 90 has absolutely no weight with me. not gonna do it, so in that respect I'm the "odd duck" on these boards. I've always responded better to "rewards" than to "doom".

Hear Hear!!!!! Al La, take SS when YOU think you should not when others think you ought to.

 

[UpAnchor]

I still remember the time we stopped by St. Thomas, and ate crab dumped on a table over butcher paper at a restaurant on the pier. Came back to my rental car and found a parking ticket due to overtime parking. I told my wife no way I was going to pay that ticket. They never tracked me down and hassled me about it.

Do they have a better system to track parking violators now, I wonder?

Well I remember some places doing a pretty good job of that even back then. In the mid 90's I thought I could get away with something similar in Christchurch, NZ. A couple of months later my credit card was charged via the rental car company. And it wasn't cheap.

 

[NW-Bound]

If the market crashes and takes away 1/2 of your stash, will you miss it?

Yeah, I'd miss it and that could cause a "adjustment" to my plans...

Well, some people here "pre-adjust" their spending to 1/2 of their stash. That way, nothing changes when the sky falls. It won't hit their head because they are already walking on their knees.

 

[athena53]

In the past 2 years since I retired our assets are pretty much unchanged. I'd really prefer for them to increase, but selling and downsizing came with a heavy out-of-pocket cost. Would I go back and NOT fully enclose the screened-in porch off our kitchen facing the lake for $26K? Heck, no. Same with all our travel. DH, age 77, just had a vertebroplasty after a fall last week and, although it's reduced his pain, it may take awhile to see the full extent of the improvement and he may not get back to his pre-fall state. If he doesn't, well, we have lovely memories of all the trips we've taken together so far in the 19 years we've been together.

I can understand wanting to have a big "pile", though. I once got into an argument with my Economics professor in college. He said that money had no utility; its utility was in what it could buy. To me, it's a security blanket.

 

[Mulligan]

That's what I have been telling my Dad. He seems a bit frustrated at the amount of $ he has accumulated over his life and feels like there is nothing he wants to do with it. He doesn't express much regret, but I do know he wishes he had traveled more before Mom got sick. But, as I remind him, they traveled A LOT before and after he retired, and I think that they had slowed down on that considerably a few years before Mom wasn't able to travel (and enjoy it). I think it's good he has a good amount of $, because if he gets ill, he has the means to stay in the home for a long while and I know that is what is most important to him.

That is all my dad does it count it and save it in case either "goes into the home". Anytime I suggest him to splurge on something all he says is "Im not doing it, you don't know how hard I worked for my money".


Sent from my iPad using Tapatalk

 

[Lsbcal]

...
I can understand wanting to have a big "pile", though. I once got into an argument with my Economics professor in college. He said that money had no utility; its utility was in what it could buy. To me, it's a security blanket.

I had to look up utility in economics and here is a short answer version:

In economics, utility is a measure of preferences over some set of goods and services. The concept is an important underpinning of rational choice theory in economics and game theory, because it represents satisfaction experienced by the consumer of a good. A good is something that satisfies human wants.

So of course a "security blanket" satisfies some of us. It is very real to many of us even though not a material item. Hence, I would think that money has utility to purchase a security blanket. Does this seem reasonable?

 

[CaliforniaMan]

I had to look up utility in economics and here is a short answer version:
So of course a "security blanket" satisfies some of us. It is very real to many of us even though not a material item. Hence, I would think that money has utility to purchase a security blanket. Does this seem reasonable?

The utility to me is that I can use it to purchase my own time.

 

[NW-Bound]

Another way to look at it is that money represents options. What can you do with money?

"They say money isn't everything, but look how many things it is" -- Anon.

The moment you spend it, you have just that one good, but all the other options are lost. That is why people like to keep money.

It's also why I keep posting that quote by Mignon McLaughlin. When she said that "Money is much more exciting than anything it buys", I think she meant that money represents all the options one can think of. It can be a car, a boat, a plane, a home. Once you spend it to buy a boat, the possibility of it turning into a plane is gone.

If you do not spend money, you can think of all the things money can be, and that can be enough for some people to be happy.

 

[athena53]

I agree on the possibilities. I'm a jewelry fanatic and I get a kick out of going past a high-end jewelry store and knowing I could afford anything I wanted. Would I actually buy a $100k bauble? No, I mostly go to the grocery store, the church and the gym. But I COULD afford that tiara!

 

[RobbieB]

Yes, the real cost of buying something is not buying something else.

What is the cost of having millions and not buying anything?

Mignon and I will agree to disagree.

 

[braumeister]

It's all relative, of course.
I used to always urge my mom to spend some of her small stash, but she was a child of the Depression and couldn't do it.

In the end, her last couple of years were in assisted living and memory care facilities that were costing nearly $7K a month (5 years ago) and mostly wiped out her savings. That's the way she wanted it, so no problem.

Those costs will be much higher if I get to that age, so I prudently make sure my projections can handle it.

 

[Lsbcal]

Another way to look at it is that money represents options. What can you do with money?

"They say money isn't everything, but look how many things it is" -- Anon.

The moment you spend it, you have just that one good, but all the other options are lost. That is why people like to keep money.

It's also why I keep posting that quote by Mignon McLaughlin. When she said that "Money is much more exciting than anything it buys", I think she meant that money represents all the options one can think of. It can be a car, a boat, a plane, a home. Once you spend it to buy a boat, the possibility of it turning into a plane is gone.

If you do not spend money, you can think of all the things money can be, and that can be enough for some people to be happy.

Nicely said. I'll have to remember this when I start feeling guilty about not spending enough. Ever searching for the most happy compromise.

 

[Mulligan]

Nicely said. I'll have to remember this when I start feeling guilty about not spending enough. Ever searching for the most happy compromise.

I never was as frugal with my money during the time most should be to save for retirement. But I have a pension that I only spend 60% of each month, so saving wasnt a real priority. BUT....Over the last 10 years I have really ramped it up and investment income is starting to snowball appreciably. So now, I greatly enjoy buying things with my money, but it mostly is pieces of electronic paper with some claim to an ownership in dividends such as AILLL, BGLEN, and CTWSO. I really love blowing my money on these things more than crap I already bought and blown through over the years.


Sent from my iPad using Tapatalk

 

[UpAnchor]

For sure . I bought some clothes at the Salvation Army and didn't even wait until Wednesday's Half Off for Senior's Day.

What?? And I thought Wednesday's 25% off at Goodwill was the best deal in town. Man, have I left some money on the table...

 

[NW-Bound]

... now, I greatly enjoy buying things with my money, but it mostly is pieces of electronic paper with some claim to an ownership in dividends such as AILLL, BGLEN, and CTWSO...

Ah, the joy of stock collection, even though they are now just some symbols and no longer come with a paper certificate.

I do not have earned income anymore, and to buy something I must first sell something else. Stock buying is no longer a single decision, but two; sell first then buy. So, it is tougher and slows my trading down quite a bit.

 

[Retch The Grate]

By the way, I had no Tabasco, so ate the oysters with a slice of Jalapeno and lemon juice. Please don't hang me.

Those oysters look delicious. My family clam recipe is: littleneck clam on the half shell, a thin shaving of garlic, a splash of tobasco sauce, a slice of bacon on top, cook under a boiler till the juice is boiling, serve. So good. Oysters I really like raw however even though they are filter feeders.

 

[NW-Bound]

... littleneck clam on the half shell...

It means you have to pry them open first. I am too lazy to do that with any shellfish. In fact, I have never learned to shuck anything.

Costco occasionally has live mussels. I would get them and cook them the way the Belgians do Moules Marinières.

Oh, life can be so good, and it really does not have to cost a whole lot, although eating the same at a restaurant along the pier in Ostend gives it that extra je-ne-sais-quoi from the ambience. A good Belgian beer of course kicks it up several notches. Reminiscing about this brings tears to my eyes. I have photos of it somewhere.

Note: following photo linked from the Web, not mine.

 

[daylatedollarshort]

What?? And I thought Wednesday's 25% off at Goodwill was the best deal in town. Man, have I left some money on the table...

Ross Dress for Less in our area has 15% off on Senior Tuesday, and that is for new merchandise, already deeply discounted. Our local Goodwills actually have higher prices than Ross for most goods, and the Ross stuff is new while Goodwill is mostly used. Ross is hard to beat. I just got two purses and a foaming soap dispenser there on Senior Discount Day. The foaming type dispensers uses less soap so it was really a bargain.

Buying things new at full price, what fun is that? Where's the challenge, the thrill of victory, the thrill of the hunt?

 

[Moemg]

I can understand wanting to have a big "pile", though. I once got into an argument with my Economics professor in college. He said that money had no utility; its utility was in what it could buy. To me, it's a security blanket.

Me too, Last week my washer broke and I can remember the days when that would have been a problem . Now I just order what I want and have it delivered . To me money means not sweating the small & medium stuff .

 

[braumeister]

Costco occasionally has live mussels. I would get them and cook them the way the Belgians do Moules Marinières.

Making my mouth water. My favorite mussel restaurant in Brugge has a menu listing probably at least 20 different ways of serving them. I'll be over there later this month and seriously looking forward to it.

Not to mention the real (Belgian) frites!

 

[NW-Bound]

Arghhh! Belgian frites! You had to mention it. I am envious now.

But lemme tell you, same as French baguettes, they have bad, bad glycemic index.

Of course if you walk around as much as they do, you burn all that excess glucose.


PS. The mussel dishes are only different in the sauce. Cooking at home, one can experiment and try them all. When we visited, we ate moules et frites several times and had a different style each time, but of course could not exhaust them all.

PPS. Here's another photo from the Web for more mouth watering. See the bread for dipping in the sauce. Arghh! This is torture. See the glass of beer? I am driving myself insane.

 

[JDARNELL]

I have read the article 2 or 3 times and they really aren't telling me anything I know or what my CFP told me a couple a weeks ago. CFP is a service provided to me by USAA so no out of pocket. Clearly the habits and critical reasoning skills that helped get me here are not really changing. Kids college bill is starting in 45 days. Today I went to the local bank and opened a 529 so I can deposit the cash have them write the check to the school and avoid the 4.63% state tax. Also went to purchase something and realized the store is having a 25% sale on Saturday so I will pick it up then. Don't mind spending if it is something that I feel the value is there. Just nothing that I really want at this point. I suspect once kids get launched spending will go way down. We will see.

JDARNELL

 

[NW-Bound]

...I suspect once kids get launched spending will go way down...

That's what I thought.

Mine are 30 and 27, self-supporting and doing well. So, I thought I would have plenty of money left over from not having to pay their tuition. Hah!

And some posters here say that retirees need to spend more. Not with this guy. You want to see me broke or going back to work?

 

[Hermit]

.... Arghh! This is torture. See the glass of beer? I am driving myself insane.

That's what I thought.

Mine are 30 and 27, self-supporting and doing well. So, I thought I would have plenty of money left over from not having to pay their tuition. Hah!

And some posters here say that retirees need to spend more. Not with this guy. You want to see me broke or going back to work?

You're hitting all the hot buttons this evening!

It is obviously time for a beer! - Just broke out a cold one.

I am in complete agreement on the kids. Mine are 25 and 26. If this continues until they are 29 and 30, I definitely won't have to worry about too much money!

 

[audreyh1]

It means you have to pry them open first. I am too lazy to do that with any shellfish. In fact, I have never learned to shuck anything.

Costco occasionally has live mussels. I would get them and cook them the way the Belgians do Moules Marinières.

Oh, life can be so good, and it really does not have to cost a whole lot, although eating the same at a restaurant along the pier in Ostend gives it that extra je-ne-sais-quoi from the ambience. A good Belgian beer of course kicks it up several notches. Reminiscing about this brings tears to my eyes. I have photos of it somewhere.

Note: following photo linked from the Web, not mine.

Moules frites!