More Money Than You'll Ever Need

[Elbata]

A recent popular thread about having more money in retirement than before retiring got me to thinking.

Are there any who visit this forum beyond ever having any money troubles, in fact, have way more than enough to last way beyond your lifetime?

If so, how do you look at money? It's there, you know it's there and you just go on living your life?

Something I see here, many retirees realize their money keeps growing with a low withdrawal rate and they believe they need to spend more.

I would guess it becomes a matter of financial maturity to realize that you have so much money and you're just are going to die with a high net worth.

 

[Whisper66]

....Are there any who visit this forum beyond ever having any money troubles, in fact, have way more than enough to last way beyond your lifetime? If so, how do you look at money? It's there, you know it's there and you just go on living your life?

We have no money troubles and shouldn't run out or we wouldn't have retired early. We just continue to manage our money in much the way we always have. Since we have "extra", we donate money to charity and gift to our children. Whatever's left over will be dispersed via our will.

 

[Souschef]

We have no money troubles and shouldn't run out or we wouldn't have retired early. We just continue to manage our money in much the way we always have. Since we have "extra", we donate money to charity and gift to our children. Whatever's left over will be dispersed via our will.

+1. I am in the process of disbursing my RMD's among our 4 children (Her two and my two). They need the money now not in 20 (God willing) years

 

[Blue Collar Guy]

I think i have enough for a few lifetimes. If my pension goes bust, and the stock markets have an unprecedented crash, and social security doesn't pay out, and my medical coverage ends and my wife divorces me, i might have trouble.

 

[Koolau]

I suppose there may be some who have "more than they will ever need" but my gut tells me, few actually believe that - without at least some reservations. With my income and stash and at my age, I see no "typical" scenario which would leave me penniless. Having said that, who knows what life will bring? So I continue to spend carefully, give generously and plan for the "what ifs." I think it's human nature. The only way I can conceive of having so much that I would no longer "worry" is if I hit the lottery. And, what is it they say? "You can't win if you don't play." So I guess I'll never be in that situation. Heck, even then, I'm sure I would still be careful with money - hopefully also more generous. YMMV

 

[NW-Bound]

Having more money than I ever need? Not possible!

All I need to do is to check out the price of a business-class ticket to Sydney, let alone first class, to remind myself that I am not that rich.

 

[traineeinvestor]

I probably do. However, since it's all savings (no pensions, social security, annuities etc) and the plan is to live off the rents, dividends and interest, my expectation is that either (1) our expenses will grow faster than our income streams and I will die broke or (2) our income streams will grow faster than our expenses and I will die leaving DW and my children with a reasonable amount of net worth. I prefer the latter.

 

[Alan]

Well into our 8th year of retirement and this year we will start giving money to our kids as we believe we have more than we'll ever need. Between us we are currently drawing 4 private pensions, and we both have US and UK SS to come.

 

[chris2008]

A good problem to have.
We retired on DHs pension and up to now have only taken from savings to pay into and increase my pension and longer travelling. In 2019 my pension will start and from then on the savings would only be touched like for a new car every 10 years.
My mom lives in assisted living on her pension. Never touched her savings so far at 88.
Unless we need end of life care or develop severe dementia we should be good.
I might increase giving extras to nephews and nieces and their kids and increase donations once my pension starts.
I have sponsored kids in poor countries since I started university. Might increase that, too.

 

[Music Lover]

My COLA pension that pays about a third more than I need each month. That's good enough for me to have no worries at all.

 

[scrabbler1]

While the taxable portion of my portfolio has been spinning off slightly more monthly and quarterly dividend income than I need to cover my expenses, once my "reinforcements" begin to arrive in about 6 years I will have much, much more money than I will ever need. I kinda knew this but it became more evident when I ran my long-term financial picture through Fidelity's RIP program a few times in the last 10 years.


I do have a dream of one day owning a house (instead of the small co-op apartment I have been living in for the last 28 years), something which will become far easier once those reinforcements arrive. I would have to redo my long-term financial picture to include house ownership and its additional expenses along with having fewer investible assets before I make such a leap.


My main goal is to make it to age ~60 (I am 54 now) financially intact, something I should achieve fairly easily with a SWR around 2.5%.

 

[Car-Guy]

Anyone who has read my post on this site should know I'm not a LBYM type. Not even close. Haven't been in more than 20 years. Do I have enough? I think so unless the US dollars goes completely bust. Started gifting last year to my only heir, who needs the money now and I plan to continue to do so up to the non taxable limits (or more). My spend rate has been going up each year since I retired but my NW is still up over 15% and I have a very low percentage of my NW in the market. BTW, no pension here, except SS. As I'm getting older, I'm realizing that my spend rate will probably start going down soon since I just can't do all the things I want anymore. Age is catching up, so my NW "could" increase even faster.

My biggest mistake in the past ~10 years is not retiring sooner than I did.

 

[Danmar]

Retired almost 11 years. Currently aged 66. There is no reasonable way we could run out of money with a very generous pension and a very large portfolio which has grown since retirement. We enjoy a very well funded retirement. But I dont think I think of money differently than others with less funding. Maybe there is another 0 or two on the end of my issues? I've gifted probably 7 figures to my daughter and have paid much more than that in alimony.

There are still financial issues. When to give? How much? Do I really need a new boat? Money issues never go away but they can certainly change. The "need" part of the equation is open to circumstances and interpretation. My "needs" would certainly not be your needs. Fully expect to die with very high net worth but would like to keep it down somewhat by spending/gifting more now. Some "problems" are better than others.

 

[Ronstar]

We may have more money than we need, but certainly not more than we could spend. The good thing is that I don't feel like spending a lot.

 

[marko]

I've been thinking about this for a while now.

Of course, we're in the midst of a good bull run, but even so, recent runs of FireCalc and a few others have us possibly leaving waaay too much behind 25+ years from now.

Other than my newly found dear niece "redduck", we have no direct heirs and recent family issues have changed our spending habits and increased our income. Also an inheritance I've never counted on is looking more and more imminent. I turn 65 next week and realized that in 15 short years I'll be 80--if I'm lucky.

We've recently decided to goose the spending a tad. Looking at 2 new luxury car leases, some house updates and more first class flights even for short hauls. (sorry redduck!)

DW does her best to reduce the portfolio but even then we seem to have been underspending. (next scene!)

 

[Dash man]

We have more than we need, and are loosening the purse strings a little. We're remodeling our Florida condo, leaving next week for three weeks in Europe including a two week Baltic cruise, and flying first class to Seattle to visit my son, daughter in law and grandson. The kids should get plenty since we won't spend like this every year. We're increasing gifts to our church too.

 

[sanfanciscotreat]

Feeling very comfortable with our current NW, income and spending levels.
Would have to reach a NW of about 10 million to feel bulletproof and that will likely not happen unless the bull market continues for many years. As an observation, there seems to be a lot of posters who have a significant pension income which I and many others now retired or planning to retire will not have.

 

[Joylush]

A recent popular thread about having more money in retirement than before retiring got me to thinking.

Are there any who visit this forum beyond ever having any money troubles, in fact, have way more than enough to last way beyond your lifetime?

If so, how do you look at money? It's there, you know it's there and you just go on living your life?

Something I see here, many retirees realize their money keeps growing with a low withdrawal rate and they believe they need to spend more.

I would guess it becomes a matter of financial maturity to realize that you have so much money and you're just are going to die with a high net worth.

That's a good question and analysis. I am fortunately in this boat. The only concerns are how to protect what's left as much as possible from taxation and the worry about the best way to leave it in hopes it will last beyond the next generation. We still have worries, just different ones.

 

[Rustic23]

I am in the more than we need, but not more than we could spend.

However, I can't predict the future, and I would rather leave the kids money, than borrow from them because something no one is forecasting come along. We spend on what we want, we stay happy, but we prepare to wake up tomorrow.

 

[bradaz2488]

Being only 4 years into ER and 44 years (no pension) left in the plan I'm not mentally there yet to say "I know" I have more money then I need. Our plan has us dying at 95 with ~50% of our initial ER nestegg (today $), but this also assumes no SS benefits. I figured these two buffers would help guarantee we would not run out of money under any worst case scenario (except asteroid). I know that there are people on this forum that would say I should be spending more now, but the thought of running out of money is way more scary then dying with too much. IMO with a 40+ ER plan there are just too many variables with inflation, heathcare, SS and future return rates. For me it is one of those things I have to discover on my own as we travel down the ER road. I'm sure we will increase/decrease spending as our financial situation changes and our ER maturity grows. I'll feel very lucky if one my last thoughts on this earth is I should have spent more money when I was younger. Just my take on it right now. I reserve the right to change my mind in the future

 

[candrew]

"You can never be too rich or too thin".

Wallis Simpson - The Duchess of Windsor

 

[Car-Guy]

"You can never be too rich or too thin".

Wallis Simpson - The Duchess of Windsor

Not sure I'd agree with either of those. Too rich and you'd need handlers/bodyguards/ and a somewhat isolation lifestyle (but maybe that's not too bad ), etc. Too thin (anorexia) is really not good.

This reminds me of the song "Too much fun"

 

[mystang52]

For our lifestyle and recreational pursuits, we have more than we need. DW is still working, so we are not yet in SWR mode. To quote myself from a discussion I had just yesterday with a friend, regarding retirement savings and retirement future, "we won the game."

 

[kgtest]

Well into our 8th year of retirement and this year we will start giving money to our kids as we believe we have more than we'll ever need. Between us we are currently drawing 4 private pensions, and we both have US and UK SS to come.

Sounds like my ole man. He has 6 income streams and enough to last. I tried to show him in a spreadsheet, but he still lives way below his means.

He has millions at 66 and 6 income streams...3pensions, 2SSAs, RentIncome and RMDs at 71. It baffles me how cheap he lives, 18yr old truck, hasn't remodeled his home in 34 years although he is starting to do some work, replacing doors and painting. He won't buy anything unless its on "sale" and obsesses over getting something for nothing. He has over 100k in cash just sitting there.

He isn't one to give, he will loan. Kinda sad to see actually but I guess god willing when I get old I will have a pile late in life.

When I mention the Gift Exclusion limits he laughs at me every time, even though it's tax advantage.

 

[pacergal]

We may have more money than we need, but certainly not more than we could spend. The good thing is that I don't feel like spending a lot.

+1
this year, we are spending a bit more than budgeted due to DD wedding cost over runs, but she and new SIL are very much worth it. We are also gifting to our kids each year.
But who knows what the next 20-30 years will bring? We are still LBYM folks and put money into savings from our pensions each month. I am blessed to be in this position and do not take it for granted. We worked and saved hard to get here.