Paranoid about $$$ Running Out

[W2R]

I am more worried about running out of time.

Me, too. The older I get, the more I wish I was immortal somehow.

 

[RunningBum]

You can't plan for every catastrophe so there is no 100% guarantee that you'll have enough money. However, keep in mind that this is true even if you were still working, right?

For me, I have some buffer in my nest egg, and I also have some fat in my budget I can cut out if needed. If I need to dig deeper, I can downsize my house and make other tougher budget cuts. If it really gets awful, I'll find a way to deal with it, but I can't lose sleep over something that almost certainly will not happen.

 

[Midpack]

I suffer from the same malady as the OP with a projected WR at 2.5% or less, though I'm only about 1½ years into retirement, with 40 years ± to go. It would be nice to splurge now while we're better able to enjoy it, but with so many decades to go we just can't do it. However, fortunately we don't feel at all deprived. If we spent more it would mostly be just increasing the frequency of the things we already do/spend money on. We'll loosen up as the years pass if real returns allow. Still hoping to die broke, though we know the odds are against it...

 

[Accidental Retiree]

DH has concerns similar to those of OP. he hates to "deplete" all the money we worked so hard to save for 30 years.

 

[W2R]

Still hoping to die broke, though we know the odds are against it...

I know that is often said, by many others here, and it is said lightly at times. So, the following is not meant as any sort of criticism at all. Still, I have to say it.

We don't like to think of death and our last year on earth, but I am imagining how it might be if nearly broke. Most likely I would be physically and mentally deteriorating at that point, perhaps bedridden, and quite helpless and vulnerable, perhaps all alone in the world and being cared for by a minimum wage worker who could care less about me.

Imagine knowing that one was nearly broke under such circumstances. I would be terribly distressed, worrying about who would feed me if I was broke. Perhaps they would even throw me out by a dumpster if I could not pay for my room and care, or at least I would worry about that in my helpless state. Even if close to death, one still does not know exactly when the Grim Reaper will come.

Honestly, I do not hope to die broke. It sounds like a miserable way to go.

 

[Accidental Retiree]

DH has concerns similar to those of OP. he hates to "deplete" all the money we worked so hard to save for 30 years.

Misfire....To continue

Despite all my spreadsheets and projections for 5 years out and beyond, he does not always feel all that stable.

I finally asked HIM to set up a spreadsheet that HE updates each month. It has helped a bit for him to see that despite what he sees as depletion, balances increase. We just move the money around.

He will be even happier when he sees what our new Wellesley has been doing.

Unless W2R writes the WH** word again.

The transition has taken us about 4 years, but with 4 years of numbers behind us, I think we are finally settling in.

 

[BigNick]

If you think you are covered, you likely will be fine. You can't control catastrophe, so barring catastrophe ( in which case we are all in the same boat), LBYM and stay flexible with your budget/spending.

I think this is the key. If the only thing that would derail your plans is the kind of catastrophe that FIREcalc hasn't already seen (that's including 1929), then everything else about society would be in a pretty bad way anyway. It's not like you'd suddenly be broke and your neighbours would all be buying new cars with your money - in fact, the resulting massive deflation would be a huge boost to retirees with a decent chunk of cash, and disastrous for the working stiffs with debts.

 

[Midpack]

I know that is often said, by many others here, and it is said lightly at times. So, the following is not meant as any sort of criticism at all. Still, I have to say it.

We don't like to think of death and our last year on earth, but I am imagining how it might be if nearly broke. Most likely I would be physically and mentally deteriorating at that point, perhaps bedridden, and quite helpless and vulnerable, perhaps all alone in the world and being cared for by a minimum wage worker who could care less about me.

Imagine knowing that one was nearly broke under such circumstances. I would be terribly distressed, worrying about who would feed me if I was broke. Perhaps they would even throw me out by a dumpster if I could not pay for my room and care, or at least I would worry about that in my helpless state. Even if close to death, one still does not know exactly when the Grim Reaper will come.

Honestly, I do not hope to die broke. It sounds like a miserable way to go.

Sorry to elicit such concerns for you or anyone else. If I do achieve the 'die broke' objective it won't be as you fear, it would be with a SPIA covering at least our basic expenses if necessary, and we'll also want to leave a bequest for charity/family. But there may be no portfolio beyond that. There's no real chance of 'living under a bridge eating crunchy* cat food' at the end.

And as I said, the odds of actually making it work out are remote at best.

Again, sorry. Never meant to make light of the goal at all...

*Sarah in SC's recommendation.

 

[REWahoo]

I think there are distinct differences in how one defines "dying broke". My view of the term is by the time DW and I expire we will have spent virtually all our savings and have almost nothing left for our heirs once the bills are paid from our estate.

W2R's view of "dying broke" is far more frightening: running out of money while it is still needed to buy the necessities of life - even if that is to simply pay someone to feed me and change my diaper.

I like my view better.

 

[W2R]

Sorry to elicit such concerns for you or anyone else. If I do achieve the 'die broke' objective it won't be as you fear, it would be with a SPIA covering at least our basic expenses if necessary, and we'll also want to leave a bequest for charity/family. But there may be no portfolio beyond that. There's no real chance of 'living under a bridge eating crunchy* cat food' at the end.

And as I said, the odds of actually making it work out are remote at best.

Again, sorry...

*Sarah in SC's recommendation.

Ah! Much better than my imagined scenario. Thanks.

 

[W2R]

I think there are distinct differences in how one defines "dying broke". My view of the term is by the time DW and I expire we will have spent virtually all our savings and have almost nothing left for our heirs once the bills are paid from our estate.

W2R's view of "dying broke" is far more frightening: running out of money while it is still needed to buy the necessities of life - even if that is to simply pay someone to feed me and change my diaper.

I like my view better.

I like Midpack's view even better than yours, since we never seem to know the exact timing of our demise. An SPIA at that age could be a comfort.

 

[Animorph]

Sorry to elicit such concerns for you or anyone else. If I do achieve the 'die broke' objective it won't be as you fear, it would be with a SPIA covering at least our basic expenses if necessary, and we'll also want to leave a bequest for charity/family.

Seems like an SPIA (actually multiple SPIA's sized to fit state insurance I guess) would be a great solution for someone afraid they'll run out of money. At the very least it's a bit of risk diversification. With a decent portfolio you can hold SPIA's as a later in retirement Plan B purchase, or buy one every few years to minimize inflation and interest rate change problems.

 

[Midpack]

With a decent portfolio you can hold SPIA's as a later in retirement Plan B purchase.

That's exactly our plan, hopefully out at age 75 or more if then (annuitization hurdle, blah, blah, blah...). If all goes well, we'll never buy one, but as a means to die broke without running out, a SPIA is hard to beat as far as I can tell.

 

[Delaney]

I feel better knowing that others have an irrational fear of running out of money. Before retiring I bought all the big ticket items I wanted--tv, a new car and a kitchen remodel. I'm glad I did that then because I didn't stress about the costs. Now, I have the time and incentive to be very frugal and I would have worried more about each decision in the kitchen remodel.

When I was working, I was afraid of running out of time. I think its tragic for people who die without ever experiencing the joy of retirement. Once I had been retired for a year, I breathed a sigh of relief that if I died tomorrow, I didn't "miss out". I was grateful that at least I have one year or freedom---not everyone gets that.

 

[Ronstar]

I feel OP's pain. After working and saving (and watching net worth grow) for 38 years, the last thing I want to experience is a reduction in net worth. For me, I don't know if its a fear of running out of money or simply a numbers thing where I don't want to see NW go down. Hopefully this is a common trait among among early retirees that eventually wears off.

 

[REWahoo]

... I don't know if its a fear of running out of money or simply a numbers thing where I don't want to see NW go down. Hopefully this is a common trait among among early retirees that eventually wears off.

A dislike of seeing your net worth go down never wears off. OTOH, it pales in comparison to the fear of having to return to work to prevent that from happening.

 

[NW-Bound]

I thought it was greed that made me want to see NW keep increasing, increasing...

About w*rk, well, we had all done it before, so it should be just like old hat. No? Why be afraid?

 

[Ronstar]

A dislike of seeing your net worth go down never wears off. OTOH, it pales in comparison to the fear of having to return to work to prevent that from happening.

Thanks for the insight. So far, since I'm new to this RE stuff and still working part time, the fear of returning to work full time (at least while DW is still working FT) is not as bad as the fear of dwindling net worth. But I can feel the tides turning the other direction where going to work is similar to having a root canal.

 

[Ronstar]

....About w*rk, well, we had all done it before, so it should be just like old hat. No? Why be afraid?

No, w*rk now is not the same as it used to be when we were young. The older one gets, the more apalling w*rk becomes. Thus the fear. If someone starts running low on $, it's almost incomprehensible to go through that stage again.

 

[RockyMtn]

It is comforting to know that others feel my trepidation in similar ways. I guess as time goes on and I see that hopefully dividends, pensions and SS cover the bulk of my expenses I will have less hesitancy to spend. Until then I'll try and win a few more $$$'s from the boys at the golf course.

Thanks for all of the comments.

 

[NW-Bound]

Just joking. Work has started to interfere more and more with my RV and travel plan too.

Still, when one has no option, he can swim for quite a bit of distance, if the alternative is drowning.

 

[REWahoo]

About w*rk, well, we had all done it before, so it should be just like old hat. No? Why be afraid?

After tasting freedom, who desires to return to prison?

 

[jankl]

Hi. I've been lurking around 2 years. A big thanks to this group, I have learned a lot.

Anyway, I retired in June this year and amazed (and a little dismayed) at how easy it has been to spend. But only on travel because that was my huge goal upon retirement. As for the rest of expenses, nothing has changed, frugal per usual. DH is a little more nervous. I liked the idea of having him educated on the details. He won't be doing any spreadsheets soon, but I am working on making him more comfortable.

Thanks again.

 

[NW-Bound]

After tasting freedom, who desires to return to prison?

Prison is not such a bad place, as they house you and they feed you.

 

[REWahoo]

Prison is not such a bad place, as they house you and they feed you.

Let me know if you still feel that way after meeting your new cellmates.