Saving too Much

[Totoro]

(BTW the best hotels were Banks Mansion in Amsterdam, Du Danube in Paris and Casselburgh in Brugges)

I recommend Banks Mansion to all foreigners - it's probably the best on offer in Amsterdam. Pulitzer is a nice runner-up.

 

[ElizabethT]

OK that's it. After reading through this thread I am going to stop hemming and hawing about replacing our downstairs carpeting with wood and just do it. And also upgrade our RV to one slightly larger. I'd been planning to push both out to 2017 simply to avoid bumping our SWR, but can see the ridiculousness of hanging on to it 'just because.'

And that's with many lines of income stream still to come once we turn 65.

 

[Danmar]

When I was working we saved a very high proportion of our comp. We weren't trying to be frugal, and in fact given how much we spent even then, no one would think we were. After retirement if turned out that our resources would support an even higher spend. So we spent more, mostly travel and purchasing two more homes. 10 years into retirement, I figure we can spend even more. Not sure what though, other than gifting. Still working on it however, new boat, expensive sporty car, expensive first class trips with family or friends? I don't know. Boy life is good!!

 

[audreyh1]

OK that's it. After reading through this thread I am going to stop hemming and hawing about replacing our downstairs carpeting with wood and just do it. And also upgrade our RV to one slightly larger. I'd been planning to push both out to 2017 simply to avoid bumping our SWR, but can see the ridiculousness of hanging on to it 'just because.'

And that's with many lines of income stream still to come once we turn 65.

Good for you!

 

[audreyh1]

I recommend Banks Mansion to all foreigners - it's probably the best on offer in Amsterdam. Pulitzer is a nice runner-up.

Hmm - I'll have to check that out sometime. Of course we stay just down the street from my brothers place which is incredibly convenient.

 

[Mulligan]

Sometimes this LBYM really drives me nuts. I've been perfectly happy with my non smart cell phone with zero capabilities other than functioning as a phone for many years. Then a certain Trombonier mentions a $20 smart phone and I go ahead and buy the damn thing with a Tracfone 180 minutes card for another $20. I figure I'll play a little with it put it down and never think about it again. NOOO! I start playing with it and find I like it - this is really cool. Now I'm thinking of bigger and better and costlier mo' data, mo' memory, mo' display . Jeez where does this stop...

Dont beat yourself up Ejman. I bought my first smartphone a month ago. The plan was only $5 more than dumb phone and the phone was less than a $100. Already I enjoy checking my stocks on the golf course and weather forecast at my disposal. Even used the Google Maps app to find me a few locations. It also has helped me kill time at the airport already. No return ever to the dumb phone again.


Sent from my iPad using Tapatalk

 

[Sunset]

I saved too much by accident. I had enough in 2008 but then recession so worked longer, recovery and extra savings to double enough then mom died suddenly so inheritance.
I retired 2.5 years ago and have made 143K on investments and spent 70K so up 73K so far from more than double enough.
Most of the 70K I withdrew I gave away as gifts and got a new roof. Day to day spending is cheap, same old house and car, SS covers the mortgage and food so only need about 10K-15K from investments for taxes and insurance and utilities so a 1-2% withdrawal rate.

Time to take some trips and if you don't like planning the details, just sign up for the tour type.
Was at lunch yesterday and a woman told me how she took a cruise tour of Italy area, the ship stops in various ports and you go see the sites, only unpack once in the 2 weeks.

 

[Major Tom]

We will have no problem spending at an appropriate and safe level when the time comes.

Therein lies the conundrum for some folk - deciding what an "appropriate and safe level" actually is.

Waddaya talking about? A 1% WR is entirely appropriate, and you'd better believe that it's safe!

 

[youbet]

Most of these articles imply that spending more money equals more retirement happiness, but the topic is certainly debatable, especially after a certain point. I don't think Bill Gates would be any happier spending more money on himself than he already does.

Yes, but not many have a Bill Gates level of wealth........

Think of a couple who would really love to visit their grand children on the opposite side of the country twice a year instead of once. They aren't doing it because of expense considerations and it makes them sad. Later, after the financial outcome curtain is pulled back in late life, they realize they could have easily afforded the extra travel for the cherished visits. They were just too infatuated with the numbers of the spreadsheet to grab a little of the money and buy the tickets. Sad.

 

[daylatedollarshort]

Yes, but not many have a Bill Gates level of wealth........

Think of a couple who would really love to visit their grand children on the opposite side of the country twice a year instead of once. They aren't doing it because of expense considerations and it makes them sad. Later, after the financial outcome curtain is pulled back in late life, they realize they could have easily afforded the extra travel for the cherished visits. They were just too infatuated with the numbers of the spreadsheet to grab a little of the money and buy the tickets. Sad.

If retirees do not have enough money for travel for family visits (or basics like groceries, medical care, cancer treatments, housing, helping out family members, or hobbies, etc.) then they probably haven't reached their "certain point" part yet.

There's the oft debated and quoted $75K per year number to be happy. That is over twice the $31,742 the AARP says the average 65+ household income was in 2012, so the $75K number should leave some headroom for visiting the grandkids and other trips. I don't know if there is a universal number for happiness, but most research seems to show people get used to material possessions and at some point buying more and more consumer goods doesn't lead to greater and greater happiness.

 

[RobbieB]

Over the last 2 days my girlfriend & I ate up all the caviar, 2 dozen fresh oysters and (2) 14 oz lobster tails. Washed it down with icy chilled vodka, a couple of absinthes, a few beers and a bottle of Rombauer chardonnay.

The tally came to $600. Not bad for a couple of "home cooked" meals eh?

 

[Danmar]

If retirees do not have enough money for travel for family visits (or basics like groceries, medical care, cancer treatments, housing, helping out family members, or hobbies, etc.) then they probably haven't reached their "certain point" part yet.

There's the oft debated and quoted $75K per year number to be happy. That is over twice the $31,742 the AARP says the average 65+ household income was in 2012, so the $75K number should leave some headroom for visiting the grandkids and other trips. I don't know if there is a universal number for happiness, but most research seems to show people get used to material possessions and at some point buying more and more consumer goods doesn't lead to greater and greater happiness.

We have had this discussion many times. Other studies have found that happiness continues to increase with wealth but at a much slower rate after the basics are covered. This has been my personal experience.

 

[imoldernu]

For us, money is no longer important.

 

[Bigdawg]

I just walk out my front door and pull the crab traps.

 

[Lcountz]

I too have been reluctant to spend, although I definitely can and should....I'm single, no kids, live in a low COL area, and have a pension that covers everything and retiree medical benefits....

Why can't I loosen the purse strings There's nothing I really want right now, that's part of it..

I used to lecture my frugal Mom about spending more of her money ( on herself) while she was alive.....but she did not....

I will NOT die with the crumbs of day old bread on my lips!!!!!!!!!!!

I just have to learn to spend more I guess!!!!!

I too want to die with .01 in the bank!!!!

 

[NW-Bound]

Over the last 2 days my girlfriend & I ate up all the caviar, 2 dozen fresh oysters and (2) 14 oz lobster tails. Washed it down with icy chilled vodka, a couple of absinthes, a few beers and a bottle of Rombauer chardonnay.

The tally came to $600. Not bad for a couple of "home cooked" meals eh?

No, not bad at all.

But where's the Dom Perignon to wash the caviar down, followed by Louis XIII Cognac after dinner and a Cuban cigar?

I too have been reluctant to spend, although I definitely can and should....I'm single, no kids, live in a low COL area, and have a pension that covers everything and retiree medical benefits....

Why can't I loosen the purse strings There's nothing I really want right now, that's part of it..

I used to lecture my frugal Mom about spending more of her money ( on herself) while she was alive.....but she did not....

I will NOT die with the crumbs of day old bread on my lips!!!!!!!!!!!

I just have to learn to spend more I guess!!!!!

I too want to die with .01 in the bank!!!!

You should buy a big boat, or a 2nd home. These will manage to spend the money for you.

My 2nd home is also giving me a workout, redoing my deck. Yes, I am still working on it, and only about 1/3 done. But these top-grade Trex boards turn out so nice, who needs stinkin' real wood that still rotted, splintered, cracked, and shrank despite the annual staining?

 

[NW-Bound]

I just walk out my front door and pull the crab traps.

Nice!

For a long time, my dream was to get a waterfront home on the Puget Sound, preferably on Bainbridge Island facing Seattle across the water. It is so that I could row my canoe out to check my crab trap, and haul it in for dinner. Dungeness crab is sooo good.

And on a cloudy, rainy, and cold day, I would stay inside drinking coffee laced with rum, watching the ferry carrying the poor workers to/from Seattle.

Yes, money can buy a bit more happiness, I think. Or not. I need another $1M to find out. Oh wait. After paying for such home, I would need another $1M or perhaps more in order to generate the WR to sustain such house.

OK, enough of this dreaming non-sense. Back to the deck building.

 

[B0bL0blaw]

If saving a surplus grants you peace of mind that you wouldn't have without the surplus, it is not "too much" but rather is just right.

 

[2017ish]

... 10 years into retirement, I figure we can spend even more. Not sure what though, other than gifting. Still working on it however, new boat, expensive sporty car, expensive first class trips with family or friends? I don't know. Boy life is good!!

Here you go: Falkland Islands & South Georgia Tour | National Geographic Expeditions

DW has this one on her list--although we won't be in a position to take family and friends!

 

[Just_Steve]

If retirees do not have enough money for travel for family visits (or basics like groceries, medical care, cancer treatments, housing, helping out family members, or hobbies, etc.) then they probably haven't reached their "certain point" part yet.

Just curious, how go you budget for cancer treatments?
As someone who has been touched with the big "C" I couldn't possibly see how that could be budgeted for or considered "basics". My brush with cancer cost just under $500K from diagnoses through treatment. If it weren't for insurance I have no clue how it would have been paid for.

 

[daylatedollarshort]

Just curious, how go you budget for cancer treatments?
As someone who has been touched with the big "C" I couldn't possibly see how that could be budgeted for or considered "basics". My brush with cancer cost just under $500K from diagnoses through treatment. If it weren't for insurance I have no clue how it would have been paid for.

Okay, then if you want a more detailed answer insurance premiums, co-pays, out of network charges, medical travel and deductibles needed for cancer treatments and disability insurance premiums if still working. We have a family member needing surgery this year (not cancer related but still a big expense) and I've budgeted an extra $10K in related expenses over and above insurance premiums.

 

[Bigdawg]

Nice!

For a long time, my dream was to get a waterfront home on the Puget Sound, preferably on Bainbridge Island facing Seattle across the water. It is so that I could row my canoe out to check my crab trap, and haul it in for dinner. Dungeness crab is sooo good.

And on a cloudy, rainy, and cold day, I would stay inside drinking coffee laced with rum, watching the ferry carrying the poor workers to/from Seattle.

You've got the Dungeness, I'll bring the Blue and we'll meet in Kansas City for some BBQ. Wishful thinking. Oh well. For some reason houses on the Chesapeake Bay (well, actually the Potomac River) can be less expensive than one would think. I am actually surprised my house isn't worth double. Great when I bought. Not so great when I sell.

I decided on two more years so I'm not into my SWR yet. We are starting on the declutter stage so anything material we would buy would defeat that purpose.

 

[Danmar]

Here you go: Falkland Islands & South Georgia Tour | National Geographic Expeditions

DW has this one on her list--although we won't be in a position to take family and friends!

Thanks, been to the Falklands , OK An Antarctic cruise is on our list. But family issues will keep us close to home for a while.

 

[Just_Steve]

Okay, then if you want a more detailed answer insurance premiums, co-pays, out of network charges, medical travel and deductibles needed for cancer treatments and disability insurance premiums if still working. We have a family member needing surgery this year (not cancer related but still a big expense) and I've budgeted an extra $10K in related expenses over and above insurance premiums.

Got it, makes sense now.

 

[ducky911]

Open up a restaurant seems to be the most popular way of taking care of your problem. I recommend a pizza place.