Been Getting SS for 3 months now, having trouble spending it. How about you?

[Sue J]

I've been collecting my small SS benefit for 4 years. In the first month I decided to spend it on new outdoor furniture, a nice table and chairs. After that it just goes into general savings because stuff breaks and sh!t happens. I like to have a big emergency fund.

Luckily we don't need it for monthly expenses. I just like to save it.

 

[Badger]

I'm glad that I don't feel the need to spend every last cent of income that I get, such as SS. I save any extra and invest it. My old age expenses have to be self-funded, because I have only one child and have zero intention of sponging off her (or taking even one cent from her) when I get old. She has had enough problems of her own already in life without a dependent mom to support.

Frank is retired on a shoestring. We are not married and I would never ask or expect any financial assistance from him as I become aged and helpless. He does not need me as a financial dependent either, at this time in his life. Besides, I pride myself on my independence, always have.

If I need assisted living or nursing home care, or other services or facilities to help me deal with aging, I want to have enough money to pay for it. And this all needs to be self-funded. People say that the very aged spend less than they did when younger, but I am skeptical of that as a general rule (except when it comes to travel).

On the other hand, if I am wrong and I somehow miraculously go through very old age without spending a single thing on care or facilities, well, that's OK; I am one of the lucky ones with heirs who fully and completely deserve anything they might get when I die. Which hopefully will be many, many years from now! Right now I'm only a spritely young thing, just 75 years old and diabetic with a walker.

I worked a bit longer than necessary for the same reason. I want to make sure my wife is well taken care of if I go first. That was the plan my father had that I learned from him. Since the grown children are hers from a previous marriage I know she will have them for advocate support. Me not so much. Even though I feel close to them they are 55 and 60 and have their own families and issues to deal with as they age. I don't intend to saddle them with my situation so I will fend for myself. If that becomes the case then I hope I am still mentally capable during my last years.

Cheers!

 

[Sojourner]

No siblings or cousins? Your money to do with as you please but I would always start with family.

IMHO, just because someone is "family" does not mean they are more deserving of charity than others. Family is just an accident of birth and typically has no relation to actual need or to anything resembling "fairness" when it comes to receiving free money.

DW and I have no children, yet we both have numerous cousins, nieces, nephews, etc. Personally, I would be much more inclined to gift excess money to a local food bank, homeless shelter, or animal rescue group than to almost any of my extended family. There is one cousin who's had a rough life, is financially strapped, but who's a really good guy and would be very high on my list of gift/charity recipients... but the others? Not so much. They don't really need it, wouldn't much appreciate it, and it wouldn't noticeably change their lives for the better.

 

[W2R]

I worked a bit longer than necessary for the same reason. I want to make sure my wife is well taken care of if I go first. That was the plan my father had that I learned from him. Since the grown children are hers from a previous marriage I know she will have them for advocate support. Me not so much. Even though I feel close to them they are 55 and 60 and have their own families and issues to deal with as they age. I don't intend to saddle them with my situation so I will fend for myself. If that becomes the case then I hope I am still mentally capable during my last years.

Cheers!

Exactly! We are thinking the same way about this. Initiative, self reliance, and independence are all qualities that I have tried to foster within myself, for my whole life, and I'm not changing at this point.

 

[gauss]

TIP more when you go out and feel good about it?

 

[Beldar]

After all the years od LBYM (B being Below) I am still having difficulty in changing my spending habits. I was wondering if anyone else here has the same dilemma.?

DW & I will be in the same situation shortly with SS income & RMDs.

May I suggest a slow upgrade to "Business" or "First Class"...not necessarily in flight but in lifestyle? New clothes, furnishings, cuisine, perhaps a newer car. When we have to have additional income that we really don't require I presume some BTD upgrade will be in order.

We have no heirs and already give what we feel is appropriate to a few local charities so we may enjoy the challenge.

_B

 

[brett]

At one point a number of years ago my spouse accompanied me to the Acura dealer showroom.

The plan was to buy a new vehicle. At one point in my life this would have been a pleasurable experience. Showroom, new car smell, etc.

We were there for forty five minutes. She thought that I had finally made a buy decision.

I had. I decided to keep my 15 year old Camry because I liked it as much as anything on the dealer floor, new car leather smell aside. The new cars did nothing for me.

So we spent the money, and more, on travel. Still driving older vehicles but doing 4-5 months of international travel each year.

 

[Time2]

If you can't spend it, maybe help a friend out. No, I didn't mean me!

I have a weekly breakfast with the guys, "table of useless knowledge". One of them is 96 yrs old, a couple of us, me at 68 and there is an 84 year old, keep suggesting the 96 yr old adopt us, but so far he has not done it.

 

[djsander]

My wife is a life long saver. We are living on savings and a fairly good severance payment. The intent was wait until I make it to 67 for SS, but we’ve had some extra expenses since retiring and relocating. The housing cost was more than our original budget. The thought now is 65 as SS at that point will cover all our expenses + about 25-40% left over. We are at about a 2% withdrawal rate and it will effectively be zero except if we want to BTD which is hard for her. She has always said it has to last 40 years mentality, don’t spend it as you don’t know what will happen. We are in our 60s and I tell her we can lower the number of years left and she still says no we could easily live to 100! The up side is we have enough to be comfortable and enjoying retirement. I’m happy she is a saver although at times it gets frustrating. Trying to convince her we really are doing good takes some work. We are staring on our trip planning so life is good. Just enjoy life you are in a good place.

 

[djsander]

I have a weekly breakfast with the guys, "table of useless knowledge". One of them is 96 yrs old, a couple of us, me at 68 and there is an 84 year old, keep suggesting the 96 yr old adopt us, but so far he has not done it.

I have a friend which I have breakfast with once a week. We sometimes go out and he usually buys or his wife goes out and brings it back. Him and I socialize if at their place and she doesn’t mind as we can monitor her 93 year old mom while she does other things. I try to pay them, but he says he has no one to leave it to and neither does she. Neither have children. I keep asking them to adopt my wife and I, but no luck.

 

[TheWizard]

The first thing I do is: I don't distinguish between my various sources of retirement income.
I have pension/annuity income, SS income, and withdrawals from tax-deferred sufficient to meet my required minimum, all hitting my checking account each month.

It's true that I don't spend all that income each month. The excess goes into my taxable investment account.
I expect to need $40,000 to buy a new car before long, so it's good that I've been stockpiling excess income, see?

This is how wealthy people manage their finances...

 

[jebmke]

The first thing I do is: I don't distinguish between my various sources of retirement income.
I have pension/annuity income, SS income, and withdrawals from tax-deferred sufficient to meet my required minimum, all hitting my checking account each month.

It's true that I don't spend all that income each month. The excess goes into my taxable investment account.
I expect to need $40,000 to buy a new car before long, so it's good that I've been stockpiling excess income, see?

This is how wealthy people manage their finances...

turns out the money has no idea where it came from and the payee doesn't care.

 

[HI Bill]

Each person had his/her own priorities. If I were in this boat, I'd use it for house improvements, a new car, first class travel upgrades, and some five-star hotel rooms! After upgrading the home theater speakers and projector. Ooops. Just spent the first decade of installments at least! At 57, my stamina is reduced, and my SO is having some health issues, which is imparing our travel budget. Seeing a good friend die at 67, I'm more inclined to spend now, and downsize later.

 

[Palmtree]

The first thing I do is: I don't distinguish between my various sources of retirement income.
I have pension/annuity income, SS income, and withdrawals from tax-deferred sufficient to meet my required minimum, all hitting my checking account each month.

It's true that I don't spend all that income each month. The excess goes into my taxable investment account.

That's pretty much what we do, but the excess goes into a separate account that is treated like a slush fund for unexpected expenses, travel, "I want to buy X" or whatever we want.

 

[jollystomper]

If I can work my plan to take SS at 70, we would likely use some of the SS "excess" as gifts (either directly or as investments) to our kids and grandkids - particularly since this inheritance "source" will be reduced when one of us dies and eliminated when both of us are dead. But I would increase spending on ourselves, I just do not know what specifically yet.

 

[rk911]

our SS flows into our checking acct from which bills are paid. we don't go out of our way to spend those dollars or our pension dollars.

 

[audreyh1]

No SS yet.

We take our annual withdrawal as a % of Dec 31 portfolio value so for us the SS will be extra income as well as pay for Medicare including IRMAA.

 

[athena53]

It's true that I don't spend all that income each month. The excess goes into my taxable investment account.

I expect to need $40,000 to buy a new car before long, so it's good that I've been stockpiling excess income, see?

This is how wealthy people manage their finances...

Yeah, I think the people on this Board get it. Just because it came in doesn't mean you need to spend it right away. (Corollary: Just because you have limits left on your credit card doesn't mean it's more money you can spend.) I think there's also a lot more careful thinking about whether a particular splurge is something we'll genuinely enjoy and not just buying because that's what everyone else is buying.

 

[Sunset]

Once again ..... I have No (Zero) issues with what to spend it on, just pulling the trigger to do so. After all the years od LBYM (B being Below) I am still having difficulty in changing my spending habits. I was wondering if anyone else here has the same dilemma.?

Yes.
We are naturally cheap.

But it's really struck home to me, how most and eventually all old people stop traveling.
So if you are still inclined to travel, do it now, because later you won't be able.
That thinking allows me to pick a trip that will cost $10K or more.

 

[Badger]

Yeah, I think the people on this Board get it. Just because it came in doesn't mean you need to spend it right away. (Corollary: Just because you have limits left on your credit card doesn't mean it's more money you can spend.) I think there's also a lot more careful thinking about whether a particular splurge is something we'll genuinely enjoy and not just buying because that's what everyone else is buying.

+1 I never was one to try and keep up with the Jones. At first it was because my parents weren't in the position to and they always considered preparing for the future when Dad retired and taking care of the family. Great role model.
The future is here for me and now I can but don't care what the Jones are spending.

Cheers!

 

[Midpack]

TIP more when you go out and feel good about it?

+100. Most of the people relying on tips haven’t had the good fortune we’ve had, what not tip generously when service is good or better?

 

[Midpack]

Many simple upgrades in life:

Donate
Try new restaurants, order without looking at the price too much
Really nice sheets and linens, extra sets make laundry day that much easier
Tip generously.

+1.

We do all these things.

And I highly recommend the best sheets and towels you can find. We’ve switched to top quality linen sheets and the plushest towels we could find. We all spend many hours a days in bed, not for everyone but we prefer linen sheets over even the best cotton sheets. Wish we’d “discovered” linen sheets 40 years earlier.

https://www.brooklinen.com/collections/linen-sheets

https://www.brooklinen.com/collections/super-plush-towels

 

[latexman]

TIP more when you go out and feel good about it?

Agree. I recall what a lousey tipper I was during college. Now, if I get a server who is going to college, I tip large. If they go to my alma mater, I tip X-large. It does make me feel good.

 

[ShokWaveRider]

Yes.
We are naturally cheap.

But it's really struck home to me, how most and eventually all old people stop traveling.
So if you are still inclined to travel, do it now, because later you won't be able.
That thinking allows me to pick a trip that will cost $10K or more.

I would not say we are cheap, having owned a few major exotic cars in my time, nice cars "were" my passion as a younger man and I always had a toy car until my late 50's, not so much now. I liked to maintain and repair them myself. Frugal yes, all were purchased well and sold for more than I gave. To me being Frugal is NOT being cheap, it is being wise with one's money and assets. I do not think that can ever change. We are currently in the process of looking into and booking our Xmas holiday getaway, still takes a lot of research and mulling.

 

[Koolau]

I made a deal with DW. When we took our SS, we that we would spend it (All but 3 months to cover additional Taxes). We are having trouble spending it. We use it as disposable income. Our other income covers all our expenses and then some.

What do you do?

Live in Hawaii.