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-   -   Blow that dough (It's official now) (https://www.early-retirement.org/forums/f28/blow-that-dough-its-official-now-89863.html)

RobbieB 12-23-2017 06:45 PM

Good for you, I'd do it too.

Wifey let one of her friends (who was a pro stylist) color her hair in our house. That stuff stinks. The nose you save is your own - :)

dtbach 12-23-2017 07:09 PM

We will be doing a lot more travel next year and upgrading meat, wine, booze, etc. It's hard to spend the windfall.

iloveyoga 12-23-2017 07:44 PM

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.[/QUOTE]

+1

RobbieB 12-23-2017 07:51 PM

I'm still trying to get the balance right. I'm having trouble blowing dough as fast as I make it. My net worth continues to rise therefor I'm not blowing dough as fast as I should.

I want to see my net worth decreasing. Then I'll worry about blowing dough too fast.

One problem at a time - :)

W2R 12-23-2017 08:01 PM

Quote:

Originally Posted by RobbieB (Post 1984686)
I'm still trying to get the balance right. I'm having trouble blowing dough as fast as I make it. My net worth continues to rise therefor I'm not blowing dough as fast as I should.

I want to see my net worth decreasing. Then I'll worry about blowing dough too fast.

One problem at a time - :)

Me too. But y'know, I'm having so much fun playing free games on my new "2017 iPad" that I bought on Black Friday, that I don't want to stop to look for other ways to spend money. Not yet.

What a terrific value that iPad was for the money! Anyway, my point is that when you get that deck done you'll probably be too busy out there with your sweetie, hot tubbing, grilling, and having fun, to shop for other things for a while.

Danmar 12-24-2017 07:08 AM

Quote:

Originally Posted by NW-Bound (Post 1984579)
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?



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.



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.

Thoughtful post. You appear to be an extreme example of someone whose spending could easily increase if you wanted it to. You have said you like to see the balance of your portfolio climb, so you should be deriving quite a bit of pleasure from that.

I agree that spending for spending’s sake is sub optimal. I also agree that at age 61 you have time to think more about the balance between current consumption/risk/legacy. At some point though, you will need to address it. I’m older than you and feel it’s an issue that’s relevant for me now.

Yes, also agree, that to seriously move the “spending dial” multiple homes, luxury cars, luxury travel, large boat, large gifts, are probably the most effective “tool”. Consumables are really pretty inconsequential. Easy to identify and discuss though. Happy Holidays.

Danmar 12-24-2017 07:16 AM

Quote:

Originally Posted by RobbieB (Post 1984686)
I'm still trying to get the balance right. I'm having trouble blowing dough as fast as I make it. My net worth continues to rise therefor I'm not blowing dough as fast as I should.

I want to see my net worth decreasing. Then I'll worry about blowing dough too fast.

I would think that in a market that’s increasing at close to 20% this year, you don’t really want to see your net worth decline. See my previous post for ways to really “blow the dough” if you are serious though.

Major Tom 12-24-2017 07:29 AM

Quote:

Originally Posted by GalaxyBoy (Post 1984613)
One of the kitties has developed chronic kidney disease so she’s doing her part to move the money out of my account.

Sorry to hear that GalaxyBoy, but it's good you at least have the money to take care of her in the first place. Quite a few people I know stress over not being able to afford to take their pets to the vet. Being able to pay for the care for our animal companions is a luxury in itself.

NW-Bound 12-24-2017 09:22 AM

Quote:

Originally Posted by Danmar (Post 1984780)
...Yes, also agree, that to seriously move the “spending dial” multiple homes, luxury cars, luxury travel, large boat, large gifts, are probably the most effective “tool”. Consumables are really pretty inconsequential...

If one has a lot of money, charity is the best way to dispose of some, if one does not want to spoil his children rotten. I read that Bill Gates would be worth $150B if he did not give away to his foundation. His net worth is $90B now.

It is a lot easier for Bill Gates to give away 90% of his money than for me to give away 10% of mine, the simple reason being that I still do not know if I will have enough. The market may turn, and I may find myself hoping to survive on 4% WR instead of drawing only 2.5% that I do this year.

In the future, if my finance continues to do well, I will step up the charity donation as well as funding my grandchildren's education, if I will have any. I can also fund my children's Roth accounts. I have given them money and helped them get established. They are doing very well right now compared to their peers, and I do not want to pump more money to them and cause them to become dependent.

kcowan 12-24-2017 10:19 AM

Quote:

Originally Posted by W2R (Post 1984630)
Oh, that is.... unless your teeth are bad. Dental implants can really add up. ;D

Our friend finally had a big dental procedure before coming to PV last year and she spent the time feeling like crap. When she got back to Canada, they discovered bacteria from the operation had settled around her aortic valve. Open heart surgery resulting from indiscreet tooth surgery! Look after your teeth!

(One thing I am doing this year is spending on essentials without budgeting. After January, I will reconcile and see how we made out.)

Scuba 12-24-2017 10:25 AM

Quote:

Originally Posted by RobbieB (Post 1984314)
Yeah, you can go crazy on audio stuff for sure. I'm not that crazy, but I like vacuum tubes - :)



Years ago, the first time DH & I went shopping for an A/V system at a high end store, they asked us what our budget was. We really hadn’t set a budget, but we quickly did when they told us you could spend anything from hundreds to hundreds of thousands!

calmloki 12-24-2017 10:26 AM

Perhaps this thread could be combined with the "prepay funeral expenses" thread. A way to stretch out the time for blowing the dough beyond one's demise.

Scuba 12-24-2017 10:38 AM

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 weren’t cut in 2008-2009.



But I think it also depends on your age. I’m 67,been retired 11 years, and the portfolio is at an all time high. I figure if I don’t enjoy things now, I will soon get to the point where all I will want to do is “sit on the porch” (figuratively). This will likely mean a very large legacy left behind. I certainly don’t 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.



DH & I are still in our 50’s. We agreed pre-ER not to buy another home or a boat, at least not until we get through the first 5-7 years of ER. We are spending whatever we want on travel and consumables and more than we anticipated on charity/gifting, but until we feel we’re safely past sequence of return risk, and there is more certainty on healthcare (either because we’re on Medicare or costs have somewhat stabilized), we don’t feel comfortable ramping up our spending too much.

If our portfolio is close to or more than what we have now when we’re 65, I think we will either gift a lot more or perhaps consider another home, a smallish boat, or both.

NW-Bound 12-24-2017 10:39 AM

Quote:

Originally Posted by Scuba (Post 1984868)
Years ago, the first time DH & I went shopping for an A/V system at a high end store, they asked us what our budget was. We really hadn’t set a budget, but we quickly did when they told us you could spend anything from hundreds to hundreds of thousands!

Yes. They can help you blow off any amount that you have. Whether you can hear any difference, or if there is really any difference besides the price tag, is another matter. The most important thing is to blow money.

The above said, if I were rich, I would not mind owning some of the large expensive speakers. Even if my hearing is not good to hear the difference, these are built by craftsmen, and they look good, the finishing perfect. They are like nice pieces of furniture. I cannot say the same thing about electronics.

Looking4Ward 12-24-2017 10:55 AM

Quote:

Originally Posted by CaptTom (Post 1982804)
To those of you struggling to find a way to spend your money, just buy a boat.

They say you can make a small fortune with a boat. It's easy. Start with a large fortune, and buy a boat.

I might even know where you can find a captain :whistling:

As someone who's owned one boat or another most of my life I'd say that while this is true it's not always true.

I had a list of toys that I wanted to get and enjoy during the early years of my retirement. My first full year of retirement, I bought a new Jeep. Second year, a new diesel pickup and travel trailer. And this third year, another boat.

I thought long and hard about the boat because the idea was competing with the idea of getting some channel front property on the coast. But this last hurricane season brought a dose of reality and I decided that being on a freshwater inland lake would satisfy my desire to be on the water.

And I've always believed that you make your money when you buy a boat, not sell it. In other words, I was able to get an older 35 foot Mainship in relatively great condition for less than one year's worth of depreciation on a newer one. It needs some work, but I could also use a project and enjoy making things look new again.

The kicker is that I was able to get a slip at a marina for less than what my utility bills were on my lakefront home. The slip includes water and electric (the boat has 2 A/C systems so it can use quite a bit of electricity). So I can enjoy the recreational aspect of being on the water without the expense of high property taxes and risk of hurricane.

I accumulated these toys while staying close to my established WR and now that my wish list has been fulfilled I can spend a lot of time enjoying them while spending less.

RobbieB 12-24-2017 11:05 AM

A boat and a monthly rent slip are in next years plans - :)

haha 12-24-2017 12:08 PM

Quote:

Originally Posted by albireo13 (Post 1983767)
Nope, I won't blow my dough on iCrap.

Spend if you need to. Don't if you don't need to.

Finally something makes sense. As does buying lobster if you really want it. But deciding ,"Now I have plenty money so I want to see if I can throw some away", to me that makes zero sense.

I think

Ha

RobbieB 12-24-2017 12:44 PM

To me also. I mean who would buy stuff they don't want? You know other than medical expenses? Nobody wants a root canal, but if you have a cracked and infected tooth you will be first in line for a root canal.

As mentioned, I truly enjoy my luxuries to the point of shipping direct from the source. Maine lobsters shipped in from Maine taste better than grocery store lobsters. I find that Wagyu beef is way better than prime, so it's worth the 400% premium.

Have fun whatever that is for you. If you're happier counting your stack than spending it, by all means continue counting - :)

NW-Bound 12-24-2017 12:50 PM

Wouldn't it be nice to be able to count like a true rich man?

"One million, two million, three million..."

I'll never get that rich. :)

It's really mind-boggling when you think how some people count their money, if they do.

"One billion, two billion, three billion..."

I don't think these billionaires ever talk about "blowing some dough". If they did, it would be like a tornado. :laugh:

ejman 12-24-2017 01:34 PM

Quote:

Originally Posted by NW-Bound (Post 1984971)
Wouldn't it be nice to be able to count like a true rich man?

"One million, two million, three million..."

I'll never get that rich. :)

It's really mind-boggling when you think how some people count their money, if they do.

"One billion, two billion, three billion..."

I don't think these billionaires ever talk about "blowing some dough". If they did, it would be like a tornado. :laugh:

Careful what you wish for. They got "that rich" in Zimbabwe in a hurry pretty soon they were saying : "one trillion, two trillion, three trillion..." According to Wikepedia : "fourth Zimbabwe dollar," occurred in February 2009, and dropped 12 more zeros from the currency. It was thus worth 10 trillion trillion original dollars:


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