Retirees are too frugal!

[NW-Bound]

I just ran across an article that says that many retirees are too frugal, despite having the means to spend more.

"Those who have higher incomes are generally living too frugally," says Matt Fellowes, founder and CEO of United Income.

After spending a lifetime saving money, it can feel unsettling to begin pulling cash from accounts that were previously off-limits. "It's a psychological issue," says Nancy Skeans, CEO of Schneider Downs Wealth Management Advisors in Pittsburgh. It's something even her more affluent clients experience. "They are really apprehensive about spending $30,000 or $40,000 for a new car," she says, even when they can clearly afford it.​

Does that ring a bell here? Heh heh heh...

What a contrast with articles saying that retirees are broke. Actually, both stories are correct. Many retirees don't do that well and have no money to spend, while the fat cats like the ones on this forum can spend but don't wanna. Heh heh heh...

We need more people like Robbie to stimulate the economy. Heh heh heh...


For more, see:
https://money.usnews.com/money/reti...-seniors-frugal-and-why-that-may-be-a-problem

 

[RobbieB]

Yeah Baby!

Between the ring for baby, the hot tub and the cement work I spent 20 grand this month.

Blow more dough -

 

[Chuckanut]

The problem is that the big spenders are the ones who are broke while the LBYM folks can’t find the willpower to spend.

 

[REWahoo]

The problem is that the big spenders are the ones who are broke while the LBYM folks can’t find the willpower to spend.

+1

Tough to be a "Goldilocks" retiree...

 

[Yarnstormer]

Can’t imagine ever dropping 40k on a car - and it’s laughable to expect to live off of my projected social security!

 

[Birdie Num Nums]

It's not that I don't have the willpower to spend. (Bought a nice 2TB Seagate external drive at Costco today for $70 plus tax. Currently backing up my files as I write.)

I do not spend "that much" because I already have what I want and need--material possession-wise. Some 90%-plus of my annual expenses are for the usual day-to-day stuff.

 

[HillCountry]

I would think worry about health care might be the biggest hindrance for retirees to spend money.

I need to budget 30k today's dollar for HC. Sure it is a new car every year.

 

[VanWinkle]

It's not that I don't have the willpower to spend. (Bought a nice 2TB Seagate external drive at Costco today for $70 plus tax. Currently backing up my files as I write.)

I do not spend "that much" because I already have what I want and need--material possession-wise. Some 90%-plus of my annual expenses are for the usual day-to-day stuff.

I have been looking at that same hard drive, let me know how you like it!!

VW

 

[Birdie Num Nums]

I have been looking at that same hard drive, let me know how you like it!!

VW

Great so far! It's about the size of a small smart-phone. My previous external HD, also a Seagate that I bought at Costco a few years ago, cost more $, had much less memory, was much larger in size, and required an AC plug-in that this one does not.

 

[RobbieB]

Can’t imagine ever dropping 40k on a car - and it’s laughable to expect to live off of my projected social security!

I think that new Lincoln on my list will be ~80 grand. But that will be my first new car ever and I'm 62.

Blow more dough!

 

[street]

Not hard for me to believe that. lol I have a very hard time spending money I do but I'm very cautious. Today I needed to replace a GFI receptacle that went bad. The cost of a new one was about 16 bucks and I hated to spend that much but I needed to get everything up and running. Lol

 

[Another Reader]

I think that new Lincoln on my list will be ~80 grand. But that will be my first new car ever and I'm 62.

Blow more dough!

I just checked the Yukon Denali. Roughly the same.

Next car will probably be a Camry hybrid getting 50 MPG. Gas tax in California is going up 20 cents next Wednesday.

I did splurge and stocked up on low sodium Wheat Thins at 3/$5.00 at Safeway's Five Dollar Friday sale. Picked up some Haagen-dazs ice cream on sale while I was there as well.

 

[Jerry1]

It's not that I don't have the willpower to spend. (Bought a nice 2TB Seagate external drive at Costco today for $70 plus tax. Currently backing up my files as I write.)

I do not spend "that much" because I already have what I want and need--material possession-wise. Some 90%-plus of my annual expenses are for the usual day-to-day stuff.

I have been looking at that same hard drive, let me know how you like it!!

VW

I got this one instead. Been backing up some old drives for the past couple days and it's working well.

https://www.bestbuy.com/site/wd-my-...able-hard-drive-black/5605533.p?skuId=5605533

Cost per TB is just a little over $25. Amazing compared to the last one I bought which I believe was a Seagate 500GB for about $100.

 

[daylatedollarshort]

Personally, I'm trying to declutter, not add more stuff to the house, and we don't have expensive hobbies.

 

[HadEnuff]

I just forked over 30K for a new CRV for DW. Once I do the math and calculate that it's the way to go for me, I'm OK with it.
I wouldn't have bought a Ford or a Chevy, but with her new Honda, and my 2 year old Toyota, I figure we're good for a decade.
Now, back to recycling my dryer sheets.

 

[DrRoy]

The problem is that the big spenders are the ones who are broke while the LBYM folks can’t find the willpower to spend.

Yep, both are true.

Can’t imagine ever dropping 40k on a car - and it’s laughable to expect to live off of my projected social security!

I just forked over 30K for a new CRV for DW.
Now, back to recycling my dryer sheets.

Ours comes in next week at 32.9K. I RE'd 7 months ago and this will be the first dip into the investments. Also recovering this AM after the Eagles concert last night. Was good, but not the same without Glenn.

 

[donheff]

I've considered stopping telling DW when the portfolio hits new highs since she always says "we should start spending more." I am thinking about replacing my 8 year old Lexus hybrid SUV. That would involve a $30+ cash expenditure and DD is getting married next year so that is another big pop. The concept of spending the cash doesn't bother me but liquidating equities to free up cash does. Go figure.

 

[Senator]

Can’t imagine ever dropping 40k on a car - and it’s laughable to expect to live off of my projected social security!

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

 

[braumeister]

I have no problem treating myself to the occasional luxury as long as the total spending for the year is no more than the tools like FIRECalc say I can safely spend. In fact, the older I get the less resistance I have to spending, because if not now, when?

 

[aaronc879]

The problem is that the big spenders are the ones who are broke while the LBYM folks can’t find the willpower to spend.

Sure there are some who made good money but spent it all and now have to live on their $25-30K/yr SS. There are many more who never made more than $25K/yr while working hard on a full time basis for decades and are now physically unable to work and have to live on their $15K/yr SS. Those are the ones I have sympathy for, not the big spenders who had a chance to save but chose not to.

 

[Bamaman]

I just checked the Yukon Denali. Roughly the same.

Next car will probably be a Camry hybrid getting 50 MPG. Gas tax in California is going up 20 cents next Wednesday.

I did splurge and stocked up on low sodium Wheat Thins at 3/$5.00 at Safeway's Five Dollar Friday sale. Picked up some Haagen-dazs ice cream on sale while I was there as well.

We just bought a 2018 Camry hybrid. 50 to 52 mpg in town. Running 75 to 80, it drops to 48 mpg. And it is a car of the future. It is actually quite quick in acceleration.

 

[flintnational]

The problem is that the big spenders are the ones who are broke while the LBYM folks can’t find the willpower to spend.

+1

Paraphrased from Millionaire Next Door. Husband - Honey I reviewed our finances and we are now millionaires. Wife - That's nice dear. (While she continues clip coupons at the kitchen table)

FN

 

[Car-Guy]

Can’t imagine ever dropping 40k on a car -

Clearly, I'm on the wrong board to be talking to anyone about the price of cars.

 

[Tadpole]

I didn't want to retire to becoming a full time housekeeper so I bought a small house (1200-1300 ft). I don't have room for stuff so I can only buy something if I am willing to get rid of something of equal floor/shelf space. When I signed up for SS restricted application, we had been living without any SS for me so the 1/2 of my husband's SS became my mad money (I called it my Amazon budget). Sigh, between my small house and hesitation to spend, I may spend 2 months of my Amazon budget per year. And, like some others, backup drives and similar small objects are purchases I do make without hesitation. I really need two new computers as ours are 2010 era purchases. It doesn't look like it will happen as I procrastinate over what to buy and, especially, how much money am I willing to spend. I'm not even a generous person as I have trouble even buying birthday presents. Saving becomes a sickness to the point that spending is stressful.

 

[Car-Guy]

We just bought a 2018 Camry hybrid. 50 to 52 mpg in town. Running 75 to 80, it drops to 48 mpg. And it is a car of the future. It is actually quite quick in acceleration.

I might get that if I added up the MPG of 3 or 4 of my most fuel efficient cars. Maybe.