Planning to spend more in the go go years?

[Teacher Terry]

My friends that died in mid 60’s said they were glad they traveled during their younger years.

[enjoyinglife102]

I'm firmly in the camp of taking advantage of the good health years (early 60's now). Hopefully that's a long time but since so much of what's discussed here is based on probabilities and best estimates, the odds are not in one's favor as the years pass by. It's not in my DNA to spend frivolously but I'll definitely stretch the budget at this stage of my life for something I value.

[Moemg]

I am so glad I traveled a lot in my 40,50 and 60's . At some point travel losses it's luster so do it while you can or want to .

[DawgMan]

Ok, since I sparked this dialog, I will ratchet it up a little and ask where your indulgences are, more specifically where you know there was no way in hell you would have indulged yourself before due to that frugal gene we all have. It will be relative and could be as simple as flying first class. I will start with a recent experience... I have always been a "buy a 2 - 3 yr old used car guy" to minimize the depreciation hit. None the less, I like cars and have justified buying some nicer cars accordingly (currently own a 2015 BMW 650 Grand Coupe I bought 3+ yrs ago... love it!). Nice cars are probably my biggest vice, yet I live significantly below my means. So fast forward to this past 7 days... I am in the BMW dealership shopping for a car for my wife (new X5) with plans to indulge myself in this $80K car. My frugal nature says "don't do it dumb ass!" but my "hey, you deserve this and can easily afford this" side say just do it if you really want it. I will ratchet it up 1 more level... saw the new M850 Coup on the showroom... absolutely beautiful. $125K... I actually thought about it for a minute...

Ok, so where are you just saying WTF, let;'s do it/buy it?!

[RunningBum]

http://www.early-retirement.org/foru...8-a-90646.html
http://www.early-retirement.org/foru...9-a-95591.html

[audreyh1]

We are definitely trying to do more now while we can and very cognizant of the go go years.

It just happens that we still don’t exceed a somewhat conservative withdrawal rate at current higher portfolio levels.

We’re also considering giving heirs a major advance.

[footenote]

Honestly, could have kept WR at 4% this year
Overage will mostly consist of putting a decent deck on the house

This homebody gets a huge kick outta home improvements:
it's my "car I don't really need" indulgence

[NW-Bound]

Quote:

Originally Posted by DawgMan ... It seems as though most here implement a much more more conservative strategy by targeting a WR in the 3% - 4% range based on initial projected expenses as opposed to say a planned more aggressive WR of 5% for the "go go years" and then say 3% for the "slow go years" and then perhaps 2% for the "won't go years" (i.e. only)...

We were never in the "go go years". We skipped straight to the "slow go" phase.

[Teacher Terry]

NW, go go for us meant 2 trips a year for 2 weeks and a few 4 day ones. That’s nothing for some people.

[NW-Bound]

I found out that one long trip each year was about all I could do. So, I have been alternating between a 2-month RV trek one year, with a 5 to 6-week international trip the next year.

I already have 2 homes. I guess I can blow more dough in a fancy car for each of us, but neither of us cares for one. My wife does not even care to drive.

So, I don't see how to spend 5% WR. But I do not see that as a problem.

WR is headed to 2.5% this year, unless the market tanks, and I lose 50%. Then, it will be 5% WR for me.

[Scuba]

We definitely planned to withdraw more in the early years, partly because SS and a pension will kick in later and partly because we are traveling a lot while we can. We planned on a 25% reduction in travel and entertainment at age 75 and 50% at 80. So far we are ahead of where we planned after 2.5 years of ER since the market has done so well.

[Bryan Barnfellow]

Quote:

Originally Posted by Teacher Terry In the past 6 years we have traveled more trying to take advantage of our good years.

Likewise for us in the past four years since ER.

-BB

[ckelly78z]

Children, and Grand Children would sure appreciate some financial help if you have extra $$ laying around...don't wait to spread it around, do it while you can see the results, and feel the love.

[Ronstar]

Our go-go years started about 6 years ago when I was 58. Spent a lot of dough and did a fair share of go-going since then. But we may have entered the slow-go phase. Now sold the snowbird condo and hunkering down for a while. No big trips planned - just a couple of week long ones. No big expenditures planned.

[PatrickA5]

Quote:

Originally Posted by ckelly78z Children, and Grand Children would sure appreciate some financial help if you have extra $$ laying around...don't wait to spread it around, do it while you can see the results, and feel the love.

Just sold our rental to DD with a $50K discount to pay for down payment. Plan on giving other DD and DS each $50K for down payments on homes in the near future. Of course grandkids are spoiled on a daily basis, but they don't cost much (yet). But, these big (for us) gifts are pretty much the end of the bank of Mom and Dad. DS has a year of college left and then he's off the payroll. It will be nice to concentrate our expenses on only ourselves - if that ever actually happens.

I guess these are the go-go years for us, but we really don't go much of anywhere. A couple of short domestic vacations per year. We're early 60's and imagine our expenses will drop dramatically in our mid 60's and then again in our 70's. I haven't yet tried to forecast any of our expenses later in life, but will probably make that a project to work on soon.

I know my Dad was spending less than $20K per year during his 80's & 90's, but didn't need LTC.

[W2R]

Quote:

Originally Posted by PatrickA5 I guess these are the go-go years for us, but we really don't go much of anywhere. A couple of short domestic vacations per year. We're early 60's and imagine our expenses will drop dramatically in our mid 60's and then again in our 70's.

Why do you think that will happen? I am puzzled. I am sure you have a good reason for assuming this, but personally at age 71 I don't see that happening. Like you, I never engaged in a lot of expensive international travel.

Here's a chart covering my first 10 years of retirement:

[Teacher Terry]

W2R, I think expenses drop if you travel and go to a lot of events. Then you age and don’t go as much. Since you never did those things I can see why yours wouldn’t change. At times we have spent 10-15k/year traveling and 800/month on plays, festivals, eating out, etc. We aren’t now but have in the past.

[PatrickA5]

Quote:

Originally Posted by W2R Why do you think that will happen? I am puzzled. I am sure you have a good reason for assuming this, but personally at age 71 I don't see that happening during my first 10 years of retirement. Here's a chart:

Mainly due to kids being completely off the payroll. A decent percentage of our current expenses involve paying for college, insurance, phone, food, etc. for our DS. We also do vacations with DS and his girlfriend which will stop once they get jobs, etc. I anticipate overall expenses going down a good 25% over the next two or three years and leveling off from there. I doubt we do much (if any) traveling in our 70's and project food expense will go down as we won't eat out as much. Once on Medicare, our medical expenses "might" go down, but they could go up too.

[W2R]

Quote:

Originally Posted by Teacher Terry W2R, I think expenses drop if you travel and go to a lot of events. Then you age and don’t go as much. Since you never did those things I can see why yours wouldn’t change. At times we have spent 10-15k/year traveling and 800/month on plays, festivals, eating out, etc. We aren’t now but have in the past.

Good point. PatrickA5 said he doesn't travel except domestically, but maybe he is spending thousands each year on plays and festivals. Or perhaps he has some other expense that he expects will drop out.

For me, eating out costs the same at age 70 as it did at age 60. I don't eat as much food, but I choose more expensive menu items because I like the luxury of being able to do that. Maybe that's just me.

[NW-Bound]

Quote:

Originally Posted by Teacher Terry ... At times we have spent 10-15k/year traveling ...

We are still doing this, but don't know how long it will last.

The thread on "Overtourism" has been hitting home. I need to find more off-the-beaten-path places to go on my RV trek, but I am getting tired too of driving long distances.

It will not be long now before y'all see me post the purchase of two rocking chairs in the "Blow Dough" thread.

Oh wait! I already have that at the high-country boondocks home. I am all set.