retirees too nervous to blow that dough

If you get to zero, is the reverse mortgage not a way to let you keep goin'? :)
 
CRLLS said:
While working I saved for retirement. For me, that meant being able to continue living at the level of comfort that I had become accustomed to. Now that I am retired, I find that that "accustomed to" level is still comfortable. I don't desire more. I have no worries. The biggest issue with "Spending that dough" is that nobody knows whether our savings/investments need to cover the next 10 minutes or the next 40 years, let alone what the markets will do for the next 40 years. Better safe than sorry IMO. If I leave money on the table when I go (more than likely) I will have no regrets.
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That's my feeling. I'm very happy with what I'm spending right now and the W/D rate is running at 3.5% annually. Higher SS will kick in at 70 (in 4 years) when I file on my own record. There's still a lot of uncertainty- the markets, the economy, how many more dental implants I'll need, whether or not I'll need LTC for 10+ years... If I need LTC I don't want Medicaid to choose where I end up. I want to leave in a margin of safety.
 
Similar to others. I’m too new to this to start spending more than planned. In fact, two years in at 58/63 and we feel pretty good that we’re spending a bit less. I don’t mind if I die with some money on the table. Leaving money to the dear daughters is not a negative in my mind. Plus, the cushion in our retirement plan, the money we think we’ll leave on the table, is more accurately classified as long term care insurance. While it would be okay to leave DD’s nothing, I really really don’t want to be a financial burden on either of them.

When we’re in our 80’s we can re-evaluate loosening up the purse strings, but the current spending plan is pretty comfortable and despite all the planning, one never knows. I’d rather die rich than live broke. I think my current plan strikes a good balance.
 
Jerry1 said:
I’d rather die rich than live broke. I think my current plan strikes a good balance.
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Amen. Our approach exactly. As they say, it's not hard to be young and poor, but it sure sucks to be old and poor. I'm loosening up a little, but I sure don;t want to struggle later.

My heirs will thank me if I die as the richest body in the graveyard...
 
Keeping with my plan. Discretionary built in, plus already upping the WR% for 8 years when in our 60's to hold off SS collection until 70.
 
Dtail said:
Keeping with my plan. Discretionary built in, plus already upping the WR% for 8 years when in our 60's to hold off SS collection until 70.
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We plan to follow your plan. But, if one dies before they're 70, does the spouse still get spousal benefit? This concern will alter our decision to take pension at 100%, 50% or single life annuity with no spousal benefit. I assume if DH passes before 65 when pension kicks in, that's gone too. We had this discussion yesterday, so I'm not being sneaky with this question. :)
 
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Rianne said:
We plan to follow your plan. But, if one dies before they're 70, does the spouse still get spousal benefit? This concern will alter our decision to take pension at 100%, 50% or single life annuity with no spousal benefit. I assume if DH passes before 65 when pension kicks in, that's gone too. We had this discussion yesterday, so I'm not being sneaky with this question. :)
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No, spousal benefit dies with the spouse. Someone has to be drawing SS for there to be a spousal benefit. However, if you are at least 60 years age you can file for survivor's benefit. Between 60 and your full retirement age it will be a reduced amount from whatever your spouse was receiving. If you wait until full retirement age it will be 100% of what your spouse was receiving. You can let your own ride until you are 70 to collect all delayed retirement credits. Once you are 70, if your own is higher, then you can switch. If the survivor is higher, you just stay on survivor.
 
DW and I are fortunate enough to be able to give ourselves a monthly allowance beyond bills. The allowance is $2000/month each. This is a "no questions asked" spend as you like allowance. It has really freed up any Fear/guilt of "Blow That Dough'.

The allowance was based off a monthly budget we calculated from a withdrawal rate that we feel safe and comfortable with. Lol, my conservative nature still likes to save that monthly allowance. Have it built to $18k right now!
 
NW-Bound said:
If you get to zero, is the reverse mortgage not a way to let you keep goin'? :)
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Yes it is! The method of last resort. Even takes care of the onerous task of real estate sale.
 
Jerry1 said:
...When we’re in our 80’s we can re-evaluate loosening up the purse strings, but the current spending plan is pretty comfortable and despite all the planning, one never knows. I’d rather die rich than live broke. I think my current plan strikes a good balance.
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I am not craving for anything now, so I don't know what I would want to blow dough on when I am 80.

But something might just come up, or I change my mind. Last night, my mother came for dinner, and she brought me some mailing to ask me about it. It's a dinner invitation to one of the local fancy steakhouses to talk about stem cell therapy.

Aye, aye, aye... What is it a cure of? Everything! It fixes all pains, and makes you younger. A fountain of youth! I told my mother that it is for people who are so desperate that they would try it at great cost because they are about to die and cannot take it with them anyway. Aye, aye, aye...


RobbieB said:
Yes it is! The method of last resort. Even takes care of the onerous task of real estate sale.
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I have two homes, and selling one would get me goin' for a few years. My kids would have to share one home instead of inheriting one house a piece, but hey, that's more than what I get in inheritance.

I hope it will not come to that though. :)
 
Me too. It really is the method of last resort, expensive and a long list of conditions and requirements. But better than a house with no food to eat or heat to warm or light to see.
 
Llep said:
Glad I’m not alone in the 16G 5S club! I’m hoping when the new models are announced next month the 64G 8 Plus will drop in price at least a hundred bucks so I can upgrade. The battery is shot which is no big deal unless I’m roaming around on foot somewhere. I didn’t know how bad the battery was until my last vacation to Bangkok and then there were a few days where I was sweating it since I was relying on mapping software to get where I needed to go.
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You can buy a portable power bank for $20 and bring with you when you go on travel. It can recharge your phone twice each time it is charged full.
 
NW-Bound said:
I have two homes, and selling one would get me goin' for a few years. My kids would have to share one home instead of inheriting one house a piece, but hey, that's more than what I get in inheritance.

I hope it will not come to that though. :)
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RobbieB said:
Me too. It really is the method of last resort, expensive and a long list of conditions and requirements. But better than a house with no food to eat or heat to warm or light to see.
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Unless your house is a multi-million-dollar one, you do not live off it for very long anyway.

Let's say your home is $1M. How long do you live off that? Remember that without a paid-for home, your cost of living will be higher to pay rent, unless you move into a van down by the river.

It is sobering to realize how much money a comfortable lifestyle costs, even with no frills.
 
flyingaway said:
You can buy a portable power bank for $20 and bring with you when you go on travel. It can recharge your phone twice each time it is charged full.
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I have one! I haven’t used it yet in the wild just tested around the house.
 
jebmke said:
must be one hell of a spread sheet to fill up a 43 inch monitor.
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My spreadsheets typically have about 10 worksheets, and some worksheets have 600+ rows...and the work sheets are all cross-referenced. 43" isn't large enough to see the whole thing, but my 31.5" monitor helps!
 
NW-Bound said:
I am not craving for anything now, so I don't know what I would want to blow dough on when I am 80.
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I dont' know about you, but my 82-year old father is still travelling, upgrading his house, and would love to buy another car (but can't afford it due to all of the travel). He's still dating...
 
NW-Bound said:
Unless your house is a multi-million-dollar one, you do not live off it for very long anyway.

Let's say your home is $1M. How long do you live off that? Remember that without a paid-for home, your cost of living will be higher to pay rent, unless you move into a van down by the river.

It is sobering to realize how much money a comfortable lifestyle costs, even with no frills.
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Yes assuming the house is paid for (because you are old and grey) You don't have to pay rent and you don't pay the reverse mortgage either. You do have to live in it and pay the taxes and insurance as well as the upkeep. I don't suspect you would be living large.
 
By delaying SS till 70, I have found that a 2% return on my stash plus SS will give me a nice 6-figure income to spend each year. It's more than what I am spending now. That 2% return can come from just dividend. And I have been busy selling options to enhance the stock yield. It's fun too.

Fortunate, I know. But money is not everything. A guy can come down anytime with a terrible disease that no money can cure.

It's just nice to not have to worry about money, in order to free your mind to worry about other stuff. :)
 
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One of several reasons why I opted to take a pension annuity was to avoid feeling like we had to curtail spending because the market was down...or even in the toilet. There were other reasons...tax, financial, etc. but having a constant base income was definitely on the list of pros.
 
brett said:
One of several reasons why I opted to take a pension annuity was to avoid feeling like we had to curtail spending because the market was down...or even in the toilet. There were other reasons...tax, financial, etc. but having a constant base income was definitely on the list of pros.
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Thankfully, I didn't have to make that decision on my pension. The buyout offered was valued at a lot less than the worth of the guaranteed monthly payment. It's not a large pension, but it's not a trivial amount either.
 
I am delaying my SS, but have forgotten that it is like a fixed income that allows me to have more in equity. And I have always had high equity AA, but it is not as much risk as it first appears.

Okeydoke. I will look to ramp up my stock AA from the current 63% back to 80%. But being a market timer and stock picker at the same time, I will proceed only when I have done a bit of homework.
 
I'm getting more $$ all the time (SS, mortgage paid off, kids out of college) and am starting to think, why sacrifice?? Getting balcony on cruises (vs inside), moving up to Hilton, Marriot, etc for hotels, appetizers/desserts at meals, Helo trips on vacations, etc.


I spent 40+ years slaving, living cheap, etc. Now it's my time to experience the better things in life.
 
Yeah Baby!

All those years of self denial are over. Done. Gone with the wind like my job!

Now it's time for a little self indulgence - :)

Lobster Fettuccine Alfredo (with fresh Maine lobster) for supper tonight!
 
RobbieB said:
Yeah Baby!

All those years of self denial are over. Done. Gone with the wind like my job!

Now it's time for a little self indulgence - :)

Lobster Fettuccine Alfredo (with fresh Maine lobster) for supper tonight!
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I like the way you think!!
 
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