Retired, now how do I spend the money?

[RockyMtn]

Pass out $100 bills to strangers each month. Watch them smile. Repeat.

 

[gerntz]

Vs. trying how to spend your money, figure out what you like to do & do it. If there's not enough money, do less. If there's too much money, so what? Just do what you like.

 

[Drake3287]

Thanks for some of the answers, I can certainly think of plenty of "stuff" to buy but that's not the problem. I think in part it's the idea of starting to spend this money that I've been saving my entire adult life. It's almost like a kid saving all his allowance but being afraid to spend it!

Part of my worry is buying a vacation home (these aren't cheap in my area) and being "stuck" with having to use it enough to justify it. Plus the thought of dealing with maintenance/upkeep/snow removal on a second home is an issue I'm sure. As for a tax write off, I'm certainly in need of a new mortgage since our primary house is almost paid off.

As for my wife, she could retire early but as much as she complaints about her job, she still enjoys it. She also gets plenty of vacation time so traveling is still easy of us to do.

 

[W2R]

Part of my worry is buying a vacation home (these aren't cheap in my area) and being "stuck" with having to use it enough to justify it. Plus the thought of dealing with maintenance/upkeep/snow removal on a second home is an issue I'm sure.

There's no rush! Maybe it would be fun for you to wait a few years and just enjoy retired life without all those hassles. In a few years, if/when you decide that you really do want a vacation home, you could buy one.

In retirement, some of us find ourselves thinking, "vacation? vacation from what?". Others want to get away.

 

[brewer12345]

Thanks for some of the answers, I can certainly think of plenty of "stuff" to buy but that's not the problem. I think in part it's the idea of starting to spend this money that I've been saving my entire adult life. It's almost like a kid saving all his allowance but being afraid to spend it!

Part of my worry is buying a vacation home (these aren't cheap in my area) and being "stuck" with having to use it enough to justify it. Plus the thought of dealing with maintenance/upkeep/snow removal on a second home is an issue I'm sure. As for a tax write off, I'm certainly in need of a new mortgage since our primary house is almost paid off.

As for my wife, she could retire early but as much as she complaints about her job, she still enjoys it. She also gets plenty of vacation time so traveling is still easy of us to do.

OK, Scrooge McDuck, just keep the money and roll around in it.

Seriously, if there is nothing you are aching to do with the money, just let it pile up. You have the option to do something with it later. Either that, or find some worthy causes to gift some of the surplus to. Just don't let the having of a pile of excess cash cause you stress.

 

[HFWR]

Hookers 'n blow. Think that will fill out your budget nicely.

Fast cars, fast horses, and fast women. Then waste the rest...

 

[ChrisC]

Thanks for some of the answers, I can certainly think of plenty of "stuff" to buy but that's not the problem. I think in part it's the idea of starting to spend this money that I've been saving my entire adult life. It's almost like a kid saving all his allowance but being afraid to spend it!

Part of my worry is buying a vacation home (these aren't cheap in my area) and being "stuck" with having to use it enough to justify it. Plus the thought of dealing with maintenance/upkeep/snow removal on a second home is an issue I'm sure. As for a tax write off, I'm certainly in need of a new mortgage since our primary house is almost paid off.

As for my wife, she could retire early but as much as she complaints about her job, she still enjoys it. She also gets plenty of vacation time so traveling is still easy of us to do.

Well, some of the answers underscore the fact that some of us just don't get your angst; perhaps, it's why some suggest you just blow off the money and spend it on frivolous things. Now if you truly believe you are afraid to spend your money like the kid that hoards his penny jar, then as an adult you just haven't out-grew this behavior -- not that there's anything inherently wrong with that -- but it would not be behavior I would follow, and to me, it's just like living well beyond your means, but in reverse! The object for many of us is not to be one of the richest guys in the graveyard. You don't have to spend, spend, spend to achieve financial balance in retirement.

But I'm still puzzled by your angst. Even the kid who religiously saves his allowances or puts all his hard earned money underneath his mattress should find pleasant opportunities to spend. What's the point of accumulating the money, anyway?

 

[HFWR]

Certainly, as someone about to FIRE with way less than many here, I do scratch my head occasionally. But I suppose there's a limit to how low I'd be willing to go if I was able to live "higher on the hog"...

 

[brett]

IRetired 2 plus years ago at 58.

Similar situation, pension and financially independent. We always led a modest lifestyle.

We downsized to a condo Not because we had to but because we wanted to. A lock and go so to speak. It was liberating.

We have travelled five months out of the last twelve. Europe, Asia, Fiji, Australia, NZ. Prior to that it was six months inEurope, Africa, and Costa Rica. We have lots more on our bucket list. Experiences are now more important than things to us.

We are in good health but who knows what the future holds. So we are doing it now while we can. And it is getting easier! We don't want to end up saying "wish we had done that".

Now is the time for you to get out and do it...whatever it is

 

[Elbata]

You didn't get where you are by being foolish. I am the same way. I could spend because I could, but I am not like that. I will not retire until I know I can pull 20k a month out at a 2.8 percent return and the money will last for 40 years.

OK. I did the math. You're worth ~$8.5MM.

I think one of the nicest things about having money, is not having to think about money.

 

[pletal]

OK. I did the math. You're worth ~$8.5MM.

I think one of the nicest things about having money, is not having to think about money.

No , not worth 8.5 mm yet. I said I will not retire till I can pull 20k a month out . Just seems like a good round number

 

[RunningBum]

Thanks for some of the answers, I can certainly think of plenty of "stuff" to buy but that's not the problem. I think in part it's the idea of starting to spend this money that I've been saving my entire adult life. It's almost like a kid saving all his allowance but being afraid to spend it!

Part of my worry is buying a vacation home (these aren't cheap in my area) and being "stuck" with having to use it enough to justify it. Plus the thought of dealing with maintenance/upkeep/snow removal on a second home is an issue I'm sure. As for a tax write off, I'm certainly in need of a new mortgage since our primary house is almost paid off.

As for my wife, she could retire early but as much as she complaints about her job, she still enjoys it. She also gets plenty of vacation time so traveling is still easy of us to do.

You'll get used to spending down the money. It didn't take me long to change my mindset. Maybe it helped that I went part-time for a few years, so I was only saving with ESPP and a 401K match, so I transitions from saving a lot -> more or less breaking even -> living off my savings. It also helps that in good years, you can spend money and still have more than you did at the start of the year.

Don't buy the 2nd home just to get a mortgage. Tax write offs are usually less important in retirement. If you think it's going to be a headache or you find yourself going there just to use it, not because you want to, it won't be worth it.

Really, there's no need to do anything drastic now. Spend no more than you feel comfortable with at first. When you find you're way ahead of the game you'll be more at ease spending more, or giving some away.

 

[Bestwifeever]

Maybe your kids will have kids; then you can use your nest egg for part of their college expenses. It probably won't be enough.

 

[H2ODude]

Similar situation. ER was not a goal, but by 60 had had enough and several factors leave us with projected safe income far below what has been a very nice lifestyle that really doesn't deny us anything we value. Four years later, and the portfolio having grown about 25% despite 3% WR, it's really dawning on us that all the projections that we love are based on 100% success, i.e. worst case. So we've just started to care less about some of the frugalities. Traded the perfectly good 2003 Acura in for a BMW 435 convertible. Went halves with a buddy on sailboat (and I don't really know how to sail!) and just bought a new mountain bike that cost what a new car did not that long ago. Portfolio's still growing, pension is static (no COLA but possible) and WR still below 3%. Also started a charitable trust to put some of the capital gain heavy funds from the brokerage.

My point is, give it time, get used to the growing safety buffer, and just look for ways to either give it away or try some new stuff. Time is not standing still. Good luck.

 

[38Chevy454]

Travel or spend the money on experiences now while you have good health. Too many examples of people that have good financial health and then some medical issue comes up and then it does not matter how much money you have.

You said you don not want or need luxuries, so buying a vacation home may be a good way to increase the experiences bucket. If you do not have a nice newer car go ahead and get one.

It really is an emotional change of perspective that you need to deal with. Logically you know you have plenty and have the discipline to have it work out.

You wife needs to quit so you can both enjoy the retirement to full extent.

 

[bizlady]

Maybe your kids will have kids; then you can use your nest egg for part of their college expenses. It probably won't be enough.

Or help with weddings or first homes....

Do what feels right for you and appreciate what a great position you are in. You have lots of years left. Most importantly, enjoy life- we never know how long that will last.

 

[marko]

I'll introduce you to my DW. She'll fix your spending problem in about 3 1/2 minutes.

 

[imoldernu]

Hmmm...

“The joke concerns twin boys of five or six. Worried that the boys had developed extreme personalities – one was a total pessimist, the other a total optimist – their parents took them to a psychiatrist.”

“First the psychiatrist treated the pessimist. Trying to brighten his outlook, the psychiatrist took him to a room piled to the ceiling with brand-new toys. But instead of yelping with delight, the little boy burst into tears. 'What's the matter?' the psychiatrist asked, baffled. 'Don't you want to play with any of the toys?' 'Yes,' the little boy bawled, 'but if I did I'd only break them.'”

“Next the psychiatrist treated the optimist. Trying to dampen his out look, the psychiatrist took him to a room piled to the ceiling with horse manure. But instead of wrinkling his nose in disgust, the optimist emitted just the yelp of delight the psychiatrist had been hoping to hear from his brother, the pessimist. Then he clambered to the top of the pile, dropped to his knees, and began gleefully digging out scoop after scoop with his bare hands. 'What do you think you're doing?' the psychiatrist asked, just as baffled by the optimist as he had been by the pessimist. 'With all this manure,' the little boy replied, beaming, 'there must be a pony in here somewhere!'”

 

[Walt34]

Buy a large boat or an airplane. That'll take care of it.

 

[Ticker]

"The bottom line is, I've done a great job in saving for retirement but now I'm afraid to spend the money. This has to be a common problem for people like myself who have spent so many years saving money but find it hard to part with"

What a relief, I thought I was the only one... 6 months into ER and I am below budget, but still worry unnecessarily about it. Must be the DNA......

 

[travelover]

Buy a large boat or an airplane. That'll take care of it.

Or a horse.

 

[audreyh1]

Definitely don't buy stuff just to spend. Definitely not a vacation house just to sink $$ somewhere. Thing own you if you don't watch out.

We like to spend on travel, good food, and we gift plenty.

 

[hnzw_rui]

Just curious, what did you do for a living to get the 100% pension and 100% lifetime medical coverage?

OP worked for the government. Pay isn't always as good as private but the benefits (if you work long enough) are really nice.

 

[Davis65]

Or a horse.

Why spend the money? Just look for a pile of manure and start digging

 

[Marita40]

If all goes well--and it no doubt won't (pessimist here)--I may actually have some money in retirement to be a small-scale philanthropist, or at least enough to have the delight of gifting in unexpected ways. I'd love to be the secret person who slips $5000. into the Salvation Army kettle, for example. I'd suggest if your needs and wants are taken care of that you make a plan for more giving back. And count your many blessings.