Retirees are too frugal!

[W2R]

I can tell you that my girlfriend just loves hers;

I see her looking at it all the time -

I don't love diamonds at all - - what I love is when they are a gift of love from someone who means the world to me. So when you see her mooning over that ring, remember it is very likely you, not the ring, that she is thinking of.

 

[pb4uski]

? If one has an older car that runs well and is in good condition, why buy a new car that will lose $3,000 to $5,000 in value, when it leaves the dealership?

Having bought two new vehicles over the last couple years .... better mileage, better safety features (rear view camera, blind spot protection, etc.).... and most of all because it gave us satisfaction and we could afford it... just a little less that will go to the kids in the whole scheme of things but we'll get a lot of satisfaction and enjoyment out of the new vehicles.

 

[Major Tom]

So when you see her mooning over that ring, remember it is very likely you, not the ring, that she is thinking of.

+1

De Beers certainly did a great job with their marketing campaign.

 

[audreyh1]

The diamond museum in Amsterdam was an enjoyable visit. Especially the geology and cutting technology.

But I don't wear any and couldn't care less. DH quickly discovered gifts of jewelry didn't matter to me.

 

[NW-Bound]

When I indulged my wife with the "diamond upgrade", she was happy with the purchase and it was reason enough for me.

Now, she wants to plant a lot of "stuff" in the backyard, and I have been out there tilling the soil and mixing in manure as soil amendment. Oh well, I get some needed exercise out of that activity, so it is not all bad.

 

[RobbieB]

I don't love diamonds at all - - what I love is when they are a gift of love from someone who means the world to me. So when you see her mooning over that ring, remember it is very likely you, not the ring, that she is thinking of.

Hehe, thanks!, Yeah, I know. She just flattens out her hand and looks and smiles. I asked her if she wanted the box.

She declined and said "I'm never taking it off my finger"

 

[Danmar]

Having bought two new vehicles over the last couple years .... better mileage, better safety features (rear view camera, blind spot protection, etc.).... and most of all because it gave us satisfaction and we could afford it... just a little less that will go to the kids in the whole scheme of things but we'll get a lot of satisfaction and enjoyment out of the new vehicles.

This reflects my view as well. Also, for me, getting a new car is fun and exciting. But, obviously, you don’t want to go overboard. In addition, getting into a totally different technology (Tesla) might appeal to some? Sometimes we forget how much cars have improved over the last 10-20 years. But if you still like “old Betsy” and dont think new cars are “better” , stay the course.

 

[Amethyst]

Because a new car is nice and you can't take the money with you?

? If one has an older car that runs well and is in good condition, why buy a new car that will lose $3,000 to $5,000 in value, when it leaves the dealership?

 

[Amethyst]

That's the spirit!

Hehe, thanks!, Yeah, I know. She just flattens out her hand and looks and smiles. I asked her if she wanted the box.

She declined and said "I'm never taking it off my finger"

 

[TrvlBug]

? If one has an older car that runs well and is in good condition, why buy a new car that will lose $3,000 to $5,000 in value, when it leaves the dealership?

I used to be of the same mindset until we purchased our 2016 with all the safety bells and whistles available. Our other car was a 2009 that we intended to keep until it fell apart. Problem was, I always had to remember which car I was driving and that the 2009 would not beep at me as i was approaching that retaining wall . As we could easily afford it, it made sense to trade it in for a 2017 model. DH is happy as a clam as it's his new car. He hasn't had a new car in decades as he traveled a lot and always inherited the old car which spent half it's life at the car park .

 

[HadEnuff]

two years ago I was pushed into a new vehicle because my 14 year old Tundra was going to need about 5K worth of work. Speaking strictly of $, it might have been a better investment than the new Highlander I replaced it with, but retirement was imminent, and I wanted a better road vehicle.
I was not that enthused about it, but once I did it, I enjoyed the newer technology, especially "blind spot monitoring"...
So...when DW's 11 year old Subaru started acting up, I really wanted her to have something new, reliable, and with blind spot monitoring.
If we get anything like the 11-14 years we got out of the last two vehicles, we'll never even notice we spent the money.

 

[RobbieB]

? If one has an older car that runs well and is in good condition, why buy a new car that will lose $3,000 to $5,000 in value, when it leaves the dealership?

Because I want to.

 

[jazz4cash]

From time to time I have thought of getting a generator. Mostly in the early days when the power used to go out with some regularity due to all the housing construction me thinks. Power much more reliable now, so not so much.

However if I do it will be powered by natural gas so all I'll need to do is start it and run it regularly and change the oil. Not have to worry about stale gasoline and draining same.

All the NG gensets I've seen automatically run a short exercise cycle weekly so all you'll need to do is change oil and filter. We were in the market for one but reliability of local utility has improved ever since we got a portable unit. New whole house units have sophisticated transfer switches that can balance loads so you can connect the whole house to a relatively small unit if you don't need to run everything at once.

 

[RobLJ]

I just spent 42k for an offroad Silverado, but it will let us get to hikes anywhere in the Sierras and West Coast. (The yewts gave us 6k for our Legacy which will fit their baby seat in the back for the grandbaby, so it was more like 36k.)
Frugal on!

 

[FI_RElater]

Go and price a new truck. It will look like they are giving away those $40K cars...

Priced....and BOUGHT.... a new F250 4 x 4 for just under $40k

Just doing our part for the economy (and still under 3% WR)

 

[RobLJ]

You go, Dude!

Priced....and BOUGHT.... a new F250 4 x 4 for just under $40k

Just doing our part for the economy (and still under 3% WR)

 

[Danmar]

All the NG gensets I've seen automatically run a short exercise cycle weekly so all you'll need to do is change oil and filter. We were in the market for one but reliability of local utility has improved ever since we got a portable unit. New whole house units have sophisticated transfer switches that can balance loads so you can connect the whole house to a relatively small unit if you don't need to run everything at once.

We got a 15kw generator at our lake house a few years ago. Runs on propane with a big “torpedo” tank out back. Tank still about 60% full after 4-5 years. Enough capacity to run everything g at once other than electric furnace. Especially important to have electricity there because without it the water pump doesn’t work and if no water, no toilets. Every week it runs for 5 minutes. I get a guy to come in every year and change oil, etc. Glad I have it.

 

[Scuba]

This was my thought as well. Don’t spend now because you are concerned that the market will drop. Dont spend when the market drops. When do you spend?

We have changed our thinking on this recently. Portfolio average total returns about 15% CAGR for last 5 years. Up till this year just spent divs. Now decided to take some money off the table. Spending a bit like a drunken sailor. More than doubled travel expense, planning 2 major reno’s for next year, large gift to daughter, would buy a couple new cars if needed but old ones are relatively new, lots on clothes, gifts, etc. Life is really good.

Edit to add. Just put a new car in the 2019 budget. Also, forgot we ordered a new boat for next year. Yippee.

Have you seen the new Tom Brady Aston Martin? Beautiful car, only 12 made. A bit rich for my budget but fun to read about it!

 

[Scuba]

I have no problem spending as long as I feel like what I'm spending on is a good value. DH & I love to travel and have exceeded our travel budget our first year of ER. We enjoy dining out and regularly spend $100+ for dinner, $50+ for a nice lunch out. I love good food so I'm not frugal at all with groceries, although I try not to waste money and pay more for something I know is way cheaper somewhere else (we buy most cheese at Trader Joe's - good quality and 30-50% less than grocery store). We also enjoy gifting to friends, family and charities.

On the other hand, we don't spend a lot on clothes or cars, and we're cutting back on wine. The wines we used to buy were $15-$25/bottle and most of them are now $25-$40/bottle. So we look for less expensive wines that still taste good as I'm not willing to double our wine budget. We live in a 1,600 sq ft condo so can't buy much new stuff without getting rid of something else, so we don't spend much on "stuff." We have also resisted the temptation to buy a second home. Spending a bit more one year is a lot different than spending on something that will require continued additional spending every year.

We are still settling into retirement and with the market up this year, we should still have a higher portfolio after Year 1 of ER despite a little higher spending than planned. I'm sure when the market has some rough years we'll rein in a bit.

As others have said, we worked hard so we could have a similar or better lifestyle in ER than we did while working, so we aren't about to start pinching pennies now.

 

[Amethyst]

Some of the most frugal retirees are probably the ones who craved freedom most avidly. They traded greater gain for earlier freedom, while knowing this would mean watching their spending forever.

I know an old hippie (70) (old hippie is what he proudly calls himself) who claims to live on $10,000 a year. He inherited a small house in a low COL area. His lifelong passion is music festivals, to which he gains free admission by being the guy at the entrance who hands out wristbands. He has tons of music festival friends and not a care in the world.

 

[RobbieB]

Oh yeah, this is easy to see. Everyone is different. If you retire really early you have to watch more closely than if you are later to the game. A bankroll that only has to last 30 years can be spent larger than that same roll that has to last 50. Some have children, some have medical, some have children with medical.

Everyone is different and the only thing that matters is to do what's right for you.

 

[mickeyd]

Touring with his sons and daughter.
Missed last years 50 th anniversary Alice's Restaurant tour.

"You can get anything you want at Alice's Restaurant, excepting Alice"

 

[H2ODude]

Didn't read all the replies here. I just don't get the implied need to spend all you safely can if you just don't want more than what you have and than what you do. Didn't get here by spending all I could when working, so why now? Even at a 3% with the pension and some SS we have about 30% more income possible than needed. But that's just OK. I look at my 2011 truck w 30k miles and think I ought to just get a new one. WHY? This one does everything I want it to, looks fine, runs fine, and has new tires. I sure don't give a ___ what anyone thinks about what I drive.

I've written about this sentiment before. I just don't get the angst about not having/doing all you COULD if you just spent what you can. It makes no sense. To me anyway. Something has to have value to me part with money for it. It would if I had $20 million. Yes we could start gifting to the kids now, but they don't need it and they live about as well or better than we did, and save for retirement. Would their lives be better if we started "funding" their retirement? Their lives might involve more spending but would they be better?

 

[Danmar]

Have you seen the new Tom Brady Aston Martin? Beautiful car, only 12 made. A bit rich for my budget but fun to read about it!

Too rich for me too. Aston Martins have a reputation of being expensive for what you get in actual performance. My brother in law had one, I drove it and wasn’t too impressed.

 

[Danmar]

Didn't read all the replies here. I just don't get the implied need to spend all you safely can if you just don't want more than what you have and than what you do. Didn't get here by spending all I could when working, so why now? Even at a 3% with the pension and some SS we have about 30% more income possible than needed. But that's just OK. I look at my 2011 truck w 30k miles and think I ought to just get a new one. WHY? This one does everything I want it to, looks fine, runs fine, and has new tires. I sure don't give a ___ what anyone thinks about what I drive.

I've written about this sentiment before. I just don't get the angst about not having/doing all you COULD if you just spent what you can. It makes no sense. To me anyway. Something has to have value to me part with money for it. It would if I had $20 million. Yes we could start gifting to the kids now, but they don't need it and they live about as well or better than we did, and save for retirement. Would their lives be better if we started "funding" their retirement? Their lives might involve more spending but would they be better?

Cant argue with your line of reasoning. But in the end you can only spend it or give it away (I view this as a form of spending) now or later. So you have to deal with all your money sooner or later. Spending for spending sake is wasting it, in my view. That doesn’t seem to be what people are saying though (well maybe Robbie). Somebody in your position might want to look at more charitable giving? Now or later?