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04-23-2015, 03:22 PM
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#1
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Thinks s/he gets paid by the post
Join Date: Aug 2013
Posts: 1,660
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You Only Live Once
If you had $4,000,000 and 40 years to live would you:
1. Plan to spend about the same per year
2. Spend a $1,000,000 on your wildest dreams and then go with 75% of option 1.
3. Spend variably based on your energy/desires at the time (knowing the decision changes future spending).
4. Stick with a safe spending level. Maybe spend more later or give it away.
5. Another plan. This is the dumbest question ever posed.
I have always planned for option 1 but am now thinking 2 or 3 makes more sense.
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04-23-2015, 03:33 PM
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#2
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Recycles dryer sheets
Join Date: Dec 2011
Location: Chicago area
Posts: 431
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We`re sorta in that demographic and are closest to #4 spending <4% a year. But we separated out a good portion of our portfolio into a "fun money" bucket that can be spent according to #2 and #3, IE if we spend it all, it won't impact our SWR.
Sent from my SM-T237P using Early Retirement Forum mobile app
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04-23-2015, 03:36 PM
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#3
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: May 2013
Location: Les Bois
Posts: 5,761
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5
__________________
You can't be a retirement plan actuary without a retirement plan, otherwise you lose all credibility...
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04-23-2015, 03:37 PM
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#4
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jul 2006
Posts: 11,401
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4
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04-23-2015, 03:38 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Mar 2015
Location: philly
Posts: 1,219
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 Quote:
Originally Posted by RetireAge50
If you had $4,000,000 and 40 years to live would you:
1. Plan to spend about the same per year
2. Spend a $1,000,000 on your wildest dreams and then go with 75% of option 1.
3. Spend variably based on your energy/desires at the time (knowing the decision changes future spending).
4. Stick with a safe spending level. Maybe spend more later or give it away.
5. Another plan. This is the dumbest question ever posed.
I have always planned for option 1 but am now thinking 2 or 3 makes more sense.
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LOL probably go for number 2.
My husband died at a very early age, 53. that is my greatest regret that we didn't do so many things because we were always so worried about living to 90
Now I force myself not to do that. this year I've got 4 vacations planned with various loved ones.
cruise with my sons
Montreal jazz festival with my sister
Charleston sc to research my family history
walt Disney world for a 10 day family reunion.
Now I'm not much of a "thing" person. I'll probably make one more large purchase in my life but when I go to my casket people will definitely be saying
"man we didn't think that girl would stay still long enough to be buried" 
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04-23-2015, 03:46 PM
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#6
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Recycles dryer sheets
Join Date: Mar 2014
Location: .
Posts: 382
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I'm more or less that demographic. 4.
__________________
“We always may be what we might have been.” -- Adelaide Anne Procter
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04-23-2015, 03:46 PM
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#7
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2014
Posts: 7,053
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#3. We are spending more now because I know as we age we will naturally want to do less as I have seen with others.
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04-23-2015, 03:53 PM
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#8
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Recycles dryer sheets
Join Date: Mar 2014
Location: Laguna Hills
Posts: 137
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#4 with occasional deviation towards #3.
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04-23-2015, 03:54 PM
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#9
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2007
Location: New Orleans
Posts: 47,500
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I'd just keep spending the same amount as I normally spend right now, because that's what I am used to and I am happy at this level of spending.
I'm not sure which number that corresponds with. Maybe it's #1 unless that means spending a higher amount that doesn't change from year to year.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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04-23-2015, 03:56 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Posts: 3,085
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#6 Make a money bed.
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04-23-2015, 04:00 PM
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#11
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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I think I would end up spending under a million on a woodland compound with acreage and after that have very low expenses, sticking with a 3% draw on the balance of the funds.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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04-23-2015, 04:03 PM
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#12
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Moderator
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 25,340
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Between 1 and 4. Not quite a million splurge but some, then hold it to sustainable levels.
__________________
When I was a kid I wanted to be older. This is not what I expected.
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04-23-2015, 04:03 PM
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#13
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: May 2008
Posts: 6,506
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Disagree
You only twice, forget the money!
__________________
There must be moderation in everything, including moderation.
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04-23-2015, 04:21 PM
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#14
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Moderator
Join Date: Apr 2012
Location: San Diego
Posts: 14,212
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I would do a downsized #2.
I wouldn't set aside 1/4 of the 4M... but I'd carve out a chunk to cover expensive bucket list items... maybe 3-400k. I think 3.6M is more than enough to live comfortably going forward. Especially since I'm not in the 4M demographic now... so this would be a big expansion of my budget. LOL.
__________________
Retired June 2014. No longer an enginerd - now I'm just a nerd.
micro pensions 6%, rental income 20%
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04-23-2015, 04:26 PM
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#15
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Full time employment: Posting here.
Join Date: Apr 2015
Posts: 903
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Somewhere between 2 and 3 for me. I'd likely allocate an allowance for fun money in the yearly budget.
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04-23-2015, 04:34 PM
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#16
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gone traveling
Join Date: Sep 2013
Posts: 1,248
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5: Another plan aka "my plan":
Invest it in equity ETFs VTI, VXUS, VWO, VIG, SCHD and spend dividend yield.
I think I would be looking at about 90-95k income growing at 7-8% a year with 0% in federal taxes.
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04-23-2015, 04:54 PM
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#17
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Sep 2012
Location: Seattle
Posts: 6,023
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I would spend $3mil and use the remaining $1mil to buy cloud storage for an i-Brain (coming in 2055 to an Apple store near you!) so I could live forever.
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04-23-2015, 06:06 PM
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#18
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Aug 2013
Location: Texas
Posts: 10,936
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2.5 (mostly#3 but with a touch of #2)
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04-23-2015, 06:13 PM
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#19
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,373
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I would probably do a downsized version of #2 (two new vehicles, winter condo, new boat and a few other toys which would total $300k at most) and then #3.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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04-23-2015, 06:31 PM
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#20
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Moderator Emeritus
Join Date: May 2007
Posts: 12,901
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I'd go with #2 and spend a $1M on a home in California. Hum, wait I could do this now, yet I am not looking to buy. So I'd probably be boring and pick #4. 
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