Early Retirement & Financial Independence Community

Early Retirement & Financial Independence Community (https://www.early-retirement.org/forums/)
-   FIRE and Money (https://www.early-retirement.org/forums/f28/)
-   -   Blow that dough (It's official now) (https://www.early-retirement.org/forums/f28/blow-that-dough-its-official-now-89863.html)

Danmar 12-23-2017 08:50 AM

Quote:

Originally Posted by athena53 (Post 1982798)
My plan is that when the market tanks I won't have to decrease my spending.
!

Yes, I understand. A reasonably conservative approach. I am currently spending more than ever but when the market tanks I will just go back to spending divs. My divs are rock solid and werenít cut in 2008-2009.

But I think it also depends on your age. Iím 67,been retired 11 years, and the portfolio is at an all time high. I figure if I donít enjoy things now, I will soon get to the point where all I will want to do is ďsit on the porchĒ (figuratively). This will likely mean a very large legacy left behind. I certainly donít mind leaving a good size legacy but not something outrageous.

Getting the balance right between current consumption, risk, and legacy is something I think about a lot. I am very much in the minority here, it seems.

braumeister 12-23-2017 09:10 AM

Quote:

Originally Posted by Danmar (Post 1984426)
Getting the balance right between current consumption, risk, and legacy is something I think about a lot. I am very much in the minority here, it seems.

Maybe not as much as you think. I'm in the same situation, albeit on a much smaller scale. I'm sure others are as well.

kcowan 12-23-2017 09:26 AM

Just spent a week in a neighboring state (Nayarit) on the beach for a break from our condo in downtown PV. Yea Baby.

Thinking of buying some ETHER as a flyer given the pullback. Having some fun!

Spending down the principle seems to be far away right now. If not now, when? Does not Firecalc assume that?

(Pas de lieu RhŰne que nous. Our French teacher said Pas d'elle yeux Rhone que nous! It took us a while to figure it out!)

Moemg 12-23-2017 09:30 AM

Quote:

Originally Posted by Danmar (Post 1984426)
.



Getting the balance right between current consumption, risk, and legacy is something I think about a lot. I am very much in the minority here, it seems.


I feel the same way .

Danmar 12-23-2017 10:19 AM

Quote:

Originally Posted by braumeister (Post 1984430)
Maybe not as much as you think. I'm in the same situation, albeit on a much smaller scale. I'm sure others are as well.

Yes, probably. But we seem much more interested in discussing honey glazed hams, cognac, wine, knives, shellfish,iPhones, etc. More fun and easier? Well we do live in a consumer society, I guess.

Ed_The_Gypsy 12-23-2017 11:01 AM

Forget legacy for us. My concern is having enough to cover us for late-in-life medical expenses.

aja8888 12-23-2017 11:17 AM

Quote:

Originally Posted by Ed_The_Gypsy (Post 1984495)
Forget legacy for us. My concern is having enough to cover us for late-in-life medical expenses.

Agreed, the legacy is not as much in my mind as the $45 K I blew this year on dental work. That would have been a nice new pickup truck that I could have used (enjoyed?) and left as part of the legacy.

FIREd 12-23-2017 11:38 AM

Quote:

Originally Posted by athena53 (Post 1982798)
My plan is that when the market tanks I won't have to decrease my spending.

Thatís my plan as well. I am only giving myself a 1.35% raise for 2018 (less than the CPI increase for the trailing 12 months). Even if the market dropped 50% tomorrow, my WR would remain well below 4% and I would not have to decrease my spending.

daylatedollarshort 12-23-2017 01:01 PM

I gave myself a $200 a month raise for entertainment earlier in the year but ended up not taking the raise and cutting the entertainment budget by $75 instead. We don't go out less, we just spend less. Over time I just keep finding more and more good deals and ways to save. Last night we went to a ballet performance in the city, walked around the fountains and Christmas lights at Yerba Buena Gardens and had drinks at a roof top bar with pretty city views. For us that was a fun night out so I don't see a need to spend more. The bargain hunting part is half the fun for me.

NW-Bound 12-23-2017 02:28 PM

The market return this year is 6.5x my 2017 expenses. And this year's expenses still included some significant non-recurrent charges that will go away.

So, I should have a lot more discretionary spending, but I do not feel I need anything. Surely, buying a 3rd home will blow that money in a hurry, but I do not want one, so why do I put myself through the hassle?

Quote:

Originally Posted by Danmar (Post 1984426)
Getting the balance right between current consumption, risk, and legacy is something I think about a lot. I am very much in the minority here, it seems.

I do think about it, but not a lot. Not yet anyway. Two reasons: 1) I am not that loaded yet, and 2) I am 61 and still have time to think of things I really "want". I must be sure what I spend money on gives me pleasure and not more hassle.

Quote:

Originally Posted by Danmar (Post 1984476)
Yes, probably. But we seem much more interested in discussing honey glazed hams, cognac, wine, knives, shellfish,iPhones, etc. More fun and easier? Well we do live in a consumer society, I guess.

Consumables are something we all have to buy. So, it's easiest to upgrade these. It is true that they do not really make a dent. To really blow some dough, one needs another home, or at least a luxury car. I do not have enough for, nor want a 3rd home. And having a Tesla in my garage would not bring up my happiness level any.

So, consumables it is. Even there, I only eat and drink so much. I like to travel, but doing too much of it, then it becomes tedious like work.

Chuckanut 12-23-2017 02:48 PM

Yes, consumables it is for me also.
  • Faster Internet.
  • $15 a bottle wine bought from a local wine store replaces some of my $5-$12 bottles from Costco and TJ's. And, it is part of the buy from local business that I like to support.
  • grass fed beef
  • a bottle of fancy bourbon recommended by folks on this site
  • cashmere travel sweater
  • searching for a very nice Fine Art matte photo paper to replace the cheaper and more ordinary paper I have been using.
  • upped contributions to charitable causes that put at least 85% of the money to good use. (OK, not my consumable, but consumed by others.
And, while not a consumable, probably the most expensive vacation year yet.

I am looking to upgrade some of my photo gear, but as of today I just can't justify the expense against the added benefit. Spending for the sake of spending is not my idea of Blowing Dough.

wmc1000 12-23-2017 03:16 PM

Just got done replacing 800 sq. ft of carpet with wood flooring. Was going to do it in 2018 but DW convinced me we could "do it ourselves" when she saw it discounted 20%.

I guess it was a win-win because we are still on target with our budgeted 2017 numbers and now we remove it from the 2018 budgeted numbers too!

Spanky 12-23-2017 04:03 PM

We spend a lot more this year for new windows, furnace, and water heater. Next year, we probably need to spend $$ on roof and car.

GalaxyBoy 12-23-2017 04:11 PM

One of the kitties has developed chronic kidney disease so she’s doing her part to move the money out of my account.

unclemick 12-23-2017 04:36 PM

Quote:

Originally Posted by Danmar (Post 1984426)
Yes, I understand. A reasonably conservative approach. I am currently spending more than ever but when the market tanks I will just go back to spending divs. My divs are rock solid and werenít cut in 2008-2009.

But I think it also depends on your age. Iím 67,been retired 11 years, and the portfolio is at an all time high. I figure if I donít enjoy things now, I will soon get to the point where all I will want to do is ďsit on the porchĒ (figuratively). This will likely mean a very large legacy left behind. I certainly donít mind leaving a good size legacy but not something outrageous.

Getting the balance right between current consumption, risk, and legacy is something I think about a lot. I am very much in the minority here, it seems.

Ditto.

Post 70 1/2 sharing with my new found Pals at the IRS those non Roth portfolio parts is legacy I have mixed emotions about. Also the mental adjustment from early ER 'cheap SOB' to spend it before you croak is a work in progress.

heh heh heh - :rolleyes: ;D

W2R 12-23-2017 04:51 PM

Quote:

Originally Posted by Spanky (Post 1984609)
We spend a lot more this year for new windows, furnace, and water heater. Next year, we probably need to spend $$ on roof and car.

Once you are done with that, you probably won't have any more big irregular expenses for years! Those are most of the big ones for a house, it seems to me.

Oh, that is.... unless your teeth are bad. Dental implants can really add up. ;D

flintnational 12-23-2017 05:15 PM

While you folks were debating spending, I was out..... well, spending. We just returned from a short cruise this week. Okay, it has been planned for awhile and in our regular budget. We did buy two glasses of wine on board to supplement the 2 bottles we brought on board. Clearly our increased net worth is causing us to throw caution to the wind. With tip, the wine was $12 per glass. :)

MuirWannabe 12-23-2017 05:24 PM

Quote:

Originally Posted by Chuckanut (Post 1984585)
Yes, consumables it is for me also.
  • Faster Internet.
  • $15 a bottle wine bought from a local wine store replaces some of my $5-$12 bottles from Costco and TJ's. And, it is part of the buy from local business that I like to support.
  • grass fed beef
  • a bottle of fancy bourbon recommended by folks on this site
  • cashmere travel sweater
  • searching for a very nice Fine Art matte photo paper to replace the cheaper and more ordinary paper I have been using.
  • upped contributions to charitable causes that put at least 85% of the money to good use. (OK, not my consumable, but consumed by others.
And, while not a consumable, probably the most expensive vacation year yet.

I am looking to upgrade some of my photo gear, but as of today I just can't justify the expense against the added benefit. Spending for the sake of spending is not my idea of Blowing Dough.



Do tell. What bourbon did you choose to blow dough on?

NW-Bound 12-23-2017 05:58 PM

Quote:

Originally Posted by flintnational (Post 1984641)
While you folks were debating spending, I was out..... well, spending. We just returned from a short cruise this week. Okay, it has been planned for awhile and in our regular budget. We did buy two glasses of wine on board to supplement the 2 bottles we brought on board. Clearly our increased net worth is causing us to throw caution to the wind. With tip, the wine was $12 per glass. :)

The last cruise we took, we had an unlimited booze package. Even then, I took only 3-4 drinks a day. Could not blow more dough on booze if I wanted to. Guess I could have ordered some premium and rare shots.

SteveNU 12-23-2017 06:09 PM

New kitchen and some living room furniture this year $$$. Even paid someone to do the lawn for the last half of summer and told my DW she could let the hairdresser color her hair instead of doing it at home! ☺


All times are GMT -6. The time now is 08:08 PM.

Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2022, vBulletin Solutions, Inc.