retirees too nervous to blow that dough

Big_Hitter

Big_Hitter

Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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https://www.bloomberg.com/news/arti...th-money-to-spare-are-sitting-on-their-wealth

"Many of the recovery’s biggest beneficiaries feel anxious. And financial advisers say even very rich clients often have a crippling reluctance to fully enjoy their money. "

"BOTTOM LINE - Wealthy retirees’ reluctance to draw down their savings is trapping millions of dollars that could be stimulating the economy."

so start spending money you skinflints! :LOL:
 
I've got the answers, but I'm not giving them away for free

Of course, some of these people have no problem spending their fortunes on luxury real estate, private jets, or generous philanthropy. Your more typical millionaire, though, is often tightfisted. Retirement experts and financial advisers disagree on exactly why.
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The author should dismiss those disagreeing retirement experts and financial advisors, and consult me. I can tell him exactly why often-tightfisted millionaires don't spend fortunes on luxury real estate and private jets. Those goodies are the province of the VERY wealthy. "Your more typical millionaire" is a person with 1 million bucks, not hundreds of millions.
 
Interesting article. I would say that is very true for most and spending down is losing your security blanket.
I for one just don't like to spend, too spend.
 
I think almost everyone would agree that there's a point where "enough" crosses into "more than I could possibly ever need", but emotionally it's hard when we are in that situation to ever admit our situation is the latter. It's related to OMY Syndrome, I think, where we say "if I just had a little more, I know I'd feel secure." But it's like the sign that says "Free Beer Tomorrow", or like waiting for Godot.
 
You slackers needs to pick it up, no excuses. Boats, second homes, you can do it!
 
Mdlerth said:
The author should dismiss those disagreeing retirement experts and financial advisors, and consult me. I can tell him exactly why often-tightfisted millionaires don't spend fortunes on luxury real estate and private jets. Those goodies are the province of the VERY wealthy. "Your more typical millionaire" is a person with 1 million bucks, not hundreds of millions.
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Precisely. A million bucks in the portfolio will generate $40k per year pre-tax. Add in another $40k for two social security checks and you're talking $80k per year pre-tax, so maybe $65-70k per year after tax. That's a very middle class life, at least around here. If the house is paid for, you probably can take one cruise or foreign vacation per year and buy a new, sensible car every 5 years or so. But that's about it.
 
I'm one of those wealthy millionaires, yet I'll have a yearly pre-tax drawdown for spending of $49,000/yr which only kicks up to $53,000 pre-tax when SS kicks in, which will be offset by higher health care costs due to Medicare and higher taxes, so my discretionary spending can remain constant. There's no room in there for that private jet. lol
 
'Taint happening here - we just keep padding the cushion against all attempts to spend and against logic telling us we have a great sufficiency and need no more. Example: we have three Iphones; a 5S with 64G for the gal, who has it close to full and makes that phone work and do tricks like no one else; a 16G 5S for me which makes phone calls; and a 5 for the rental helper. So we are looking at replacing the phones, which I bought used. The gal is trying to convince herself to get the latest Iphone with big storage for a $1000 or so. But we can buy new in the box 128G 6S iphones on Ebay for $250 each. Get three for less than the cost of one of the latest I-iteration. So why spend the extra money?...
 
Yes, a million dollars is not worth a million dollars anymore.

Does anybody remember the old TV show The Millionaire. In that show an anonymous benefactor (with fancy name of John Beneford Tipton) chose to give certain ordinary people One Million Dollars. At that time (the 1950's, IIRC) that meant no more need to work, owning a big house with servants, and plenty of the good life, for the rest of your life.

Today, while a million bucks would certainly be welcome by the vast majority in the USA and Canada, it does not necessarily guarantee such a high standard for life in the USA. Perhaps if one moved to Panama?

Here's an old episode of that show staring a very young Betty White. It gets interesting at about 2 minutes.

 
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Don't wanna be the richest man in the graveyard. Look at Koch, he might actually be that guy now.
 
mickeyd said:
I always thought that his name was John "Bearsford" Tipton.
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I recall it being pronounced the way you spelled it too, but its actually spelled John Beresford Tipton.
 
calmloki said:
'Taint happening here - we just keep padding the cushion against all attempts to spend and against logic telling us we have a great sufficiency and need no more. Example: we have three Iphones; a 5S with 64G for the gal, who has it close to full and makes that phone work and do tricks like no one else; a 16G 5S for me which makes phone calls; and a 5 for the rental helper. So we are looking at replacing the phones, which I bought used. The gal is trying to convince herself to get the latest Iphone with big storage for a $1000 or so. But we can buy new in the box 128G 6S iphones on Ebay for $250 each. Get three for less than the cost of one of the latest I-iteration. So why spend the extra money?...
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Glad I’m not alone in the 16G 5S club! I’m hoping when the new models are announced next month the 64G 8 Plus will drop in price at least a hundred bucks so I can upgrade. The battery is shot which is no big deal unless I’m roaming around on foot somewhere. I didn’t know how bad the battery was until my last vacation to Bangkok and then there were a few days where I was sweating it since I was relying on mapping software to get where I needed to go.
 
Mdlerth said:
The author should dismiss those disagreeing retirement experts and financial advisors, and consult me. I can tell him exactly why often-tightfisted millionaires don't spend fortunes on luxury real estate and private jets. Those goodies are the province of the VERY wealthy. "Your more typical millionaire" is a person with 1 million bucks, not hundreds of millions.
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:D :LOL::LOL:

heh heh heh - And a certain nostalgia for being a really 'cheap SOB'. Aka 'dance with the one that brung ya'. ;) :rolleyes: :greetings10:
 
There's nothing like a couple of days of market going down 2% each day that brings out the cheapskates. Heh heh heh...
 
Big_Hitter said:
https://www.bloomberg.com/news/arti...th-money-to-spare-are-sitting-on-their-wealth

"Many of the recovery’s biggest beneficiaries feel anxious. And financial advisers say even very rich clients often have a crippling reluctance to fully enjoy their money. "

"BOTTOM LINE - Wealthy retirees’ reluctance to draw down their savings is trapping millions of dollars that could be stimulating the economy."

so start spending money you skinflints! :LOL:
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Ever since I quit 24 yrs ago all the economic data has told me I have been able to spend 50-60% more than I have been and enjoy the higher standard of living that would have brought. But I'm sitting on it. I figure I'm comfortable enough. I have no grand desires or expensive hobbies/habits. And, ultimately, this is the USA. All decisions must be economic before anything else. I have to forecast and cover a large amount of future downside potential that can be dealt with only with money. And the probability of various downsides, no matter how small, is not as important as their possible severity. Better have some "extra."

If the you want to stimulate the economy slicing people's pie thinner and thinner is not the way. All that stimulus, that really, by all known economic theories and principles should have been in the economy all along, is being held in Swiss and Cayman Island bank accounts. The trickle-down mavens are the one's who are supposed to be pumping money into the economy. Not prudent, parsimonious workers/savers.
 
While working I saved for retirement. For me, that meant being able to continue living at the level of comfort that I had become accustomed to. Now that I am retired, I find that that "accustomed to" level is still comfortable. I don't desire more. I have no worries. The biggest issue with "Spending that dough" is that nobody knows whether our savings/investments need to cover the next 10 minutes or the next 40 years, let alone what the markets will do for the next 40 years. Better safe than sorry IMO. If I leave money on the table when I go (more than likely) I will have no regrets.

When I write I, I mean "we" as both DW and I feel the same.
 
I have been spending less than I used to while still working and having children in college, yet have more discretionary spending money now. That is good enough.

Being a cautious guy, I also know that market return can change drastically and stay low for a decade easily as it did in the past. I believe in consumption averaging, so that I will not have to cut back later.

And if the pessimism proves untrue, am I going to regret not blowing more dough? Nah. If I am still alive then, I can still blow some dough. And if I am dead or sick, well dead people do not complain, and sick people complain about other things than not being able to blow dough. :)
 
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We don't feel the need to spend much more. Maybe a bit more once we're off the ACA limits, as we've put off some home improvements. Between happiness studies (less materialism + clutter), reducing our carbon foot print, and not wanting to worry about running out of money, we'll be keeping our spending levels more or less where they are at. I would like to leave money to our kids and favorite charities.
 
Yeah, I'll take that Learjet and an order of fries to go with it!

NW-Bound said:
There's nothing like a couple of days of market going down 2% each day that brings out the cheapskates. Heh heh heh...
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I guess the next time the market strings together a few up days, we'll see lots more hits on the Blow That Dough thread! :)
 
Mdlerth said:
I guess the next time the market strings together a few up days, we'll see lots more hits on the Blow That Dough thread! :)
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I dunno. The market is not likely to set a new high anytime soon. And we have to allow time for people to look at their accounts to see how the market god has blown mucho money for them.

I know about mine. Have been looking at it since the market opened this morning, and selling call options to salvage about 1/10 of the loss.
 
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The article talks about people having more than they could ever need, but doesn't mention an amount. Because realistically, you can think you have more than you might ever need, but you never really know that. So a little extra cushion is always nice. And that's why many people may be more conservative than is likely necessary.
 
I sure am glad I don't suffer this affliction. But I can see how increasing fear as you age could be a factor.
 
I enjoy giving it away more so than spending it. I have a hard time figuring out what I'd want more of or better of enough so that it would be worth the extra.
 
I just spent 3 grand on a redo of the "office". New floor, paint, built a new desk, hung a 43 inch monitor on the wall and a 36 inch soundbar. Got a new solid oak file cabinet coming, and going to put a new color laser printer on it.
 
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