Retirees are too frugal!

[Danmar]

I definitely think that many "well off" retirees spend much less than they "could". Heck, we have people here with 7 figure (or more) investment balances who live off their pensions/SS alone when they could comfortably spend tens of thousands of dollars more every year and still never have to worry about running out of money. They'll almost certainly die with a larger balance than the average person will ever reach.

Personally, I plan to spend as much as I can without feeling like I'm risking running out of money after I retire. Due to the last part of that statement, I expect that my first 5 or more years will likely involve spending less than hindsight will tell me I could have.

Agree. For instance when people talk about their Firecalc results, I hardly ever hear of anyone who feels comfortable with a success ratio less than 90% This means they are very likely to have more at the end than when they started. I’ve been retired for 11 years and have generally just spent divs. Now with the portfolio up quite a bit I’m going to liquidate extra amounts to spend.

Took me up till now to get over that idea of “never spending principle”. Also, in my case, I seem to be pretty flexible in my spending. That is, if I have more to spend I seem to be able to find worthwhile things/activities to spend it on. Many people apparently can’t.

 

[imoldernu]

We don't think about money very often.
I guess what we spend, is mostly from habil. Truthfully, can't even think of anything we'd buy, even if we had the money to spend.
I guess the term is "comfortable in our own skins".
So the Cadillac is now old enough to drink, and the lincoln, less than a year behind. Love the comfort, love the ride, and the looks are becoming "Classic". Book value of the Cadillac has gone up 300% in the past 3 years...
Love the leather, love the ride, love the JBL and BOSe sound systems, and now that we don't drive very much, really like the low upkeep.
http://www.early-retirement.org/forums/f27/best-value-in-a-luxury-car-80923.html#post1701956

Now... about the diamond rings...and thereby hangs a tale. Senior in college, and working all summer long, and three meals a day in the fraternity kitchen doing dishes for 56 guys... for the whole school year... for four years. that and Summer work as a life guard and then waterfront director at the Maine State YMCA Camp. Back then, pay worked out to about $.60/hr, and free meals. (Imagine... the school costs $62,500/yr, today).

In Senior year, 1957, proposed to Jeanie... Yeah.. the diamond. So she was in school at BU, in Harvard Square... (Read that "Money"). A few of her classmates were engaged, and the big thing was "the diamond". Not to be outdone, my trip to Kay Jewelers. I really couldn't afford the 'setting', never mind the diamond. The diamond they showed me was $300... and so small, I couldn't hardly see it. OMG... her classmates would laugh her out of the room!
"Wait...wait!..." the saleslady spotted my dejection... Out from under the counter, a 1/2 carat biggie. For me... $200. Never mind the viewer... that baby was HUGE!... $20/mo. for two years. A week later... in her living room... the formal, "on his knees" proposal interrupted only by the milkman, coming to the door... Our first congratulations. Thrill of a lifetime... and then to go back to her dorm, to show off that gleaming beauty. Life's highpoint!!!.

It was only a few months later that Doug, my best friend, quietly pointed out that there was a big piece of black carbon, floating around in the middle of that magnificent jewel. Sobeit... DW has a one of a kind diamond unmatched throughout the world, and throughout the centuries.

My original post here on ER, was Sharing 23 years of frugal retirement. Somehow, in retrospect, the word frugal doesn't seem appropriate. It's no longer a matter of trying to "save"... Although we don't look at anything resembling a "budget", a look at our net worth YTY, shows ever decreasing expenses, even though it's not intentional.

Hmmm... spoke too soon. Yesterday DW bought two brand new lampshades at the Salvation Army store, for a total of $6.99 for both. I looked them up on google, found they are indeed new and current, and sell for $49.95 each.

I guess it's just a way of life.

 

[Jeffman52]

Yes! Wunna these days I'm gonna plunk down a $20 tip on a $20 lunch to a deserving server. It will make their day and I won't miss it. I would go $50 but I think my LBYM reflex would probably kick in and cause me to go spastic. I left my barber a big tip at Xmas and he ran out of the shop and caught me driving away.

My wife and I did that this year. We were going to eat at Ruby Tuesday and they couldn't even get a server over to our table to take our order so we left. We went to the Waffle House, got great service on a slow night there and the entire meal was 15 dollars. We left a 30 dollar tip. The smile on her face was worth every penny.

 

[kcowan]

Bought DW an iPhone 8 Plus to replace her 5. She is loving it! But I shopped at every vendor for the best deal and ended up at Virgin Mobile. Old habits are hard to break.

Like Im I was offered a deal on diamond studs with the black speck (on 45 St in the city). I decided to pay the extra for purity!

 

[imoldernu]

Honest to goodness... this just happened.
I thought DW might enjoy remembering so I read her my post (above).

So listen to this... "You left something out!!!" "You didn't mention that right after we got married six months later, I found the bill from the jeweler... You didn't even finish paying for my ring!!!!!!!. I was mad at you for two weeks after I found out".

Can you believe?... 59 years later, and she's still holding a grudge.

 

[RobbieB]

You stiffed the jeweler?

 

[imoldernu]

You stiffed the jeweler?

Never... just hadn't finished paying yet. Still had 14 months to go.

 

[nbseer]

Frugal... until...

I'm frugal in most of my spending.. until disaster strikes! Just had my 25 year old gas oven crap out. Having to buy a new one and it ain't cheap! Makes me glad I don't blow a lot of my retirement money on stuff I really don't need.

 

[RobbieB]

Ah, she didn't know you were on the "diamond credit plan" eh?

 

[Ronstar]

I'm frugal in most of my spending.. until disaster strikes! Just had my 25 year old gas oven crap out. Having to buy a new one and it ain't cheap! Makes me glad I don't blow a lot of my retirement money on stuff I really don't need.

Our 23 year old cooktop has 2 burners that don't work(and parts aren't available anymore). Told DW that at this rate the remaining 2 burners should last another 23 years.

 

[Amethyst]

I knew I'd found the right guy when Mr. A. took me ring shopping (one of those discount jewelry places - we were LBYM even then) and after I picked out a solitaire, he said, "Are you sure? Do you want a bigger one?" and was quite serious. I knew what he made (since we're both govvies) and how much child support he was paying, so I wasn't about to push the envelope! He has always loved to see me wearing jewelry.

 

[Amethyst]

We were in a similar situation, and had to replace a perfectly good countertop when we bought a replacement cooktop, since the kind/size we had was no longer available. Boy, I hated to do that. I even considered buying two hotplates to replace the dead burners.

Our 23 year old cooktop has 2 burners that don't work(and parts aren't available anymore). Told DW that at this rate the remaining 2 burners should last another 23 years.

 

[Throwdownmyaceinthehole]

I always try to take a couple of tens when I fly and give them to the airport bathroom cleaning folks. Talk about a thankless job. I've had them cry and I just try to hand it to them and get out. If I can afford to travel I can afford to tip!

 

[kcowan]

Can you believe?... 59 years later, and she's still holding a grudge.

DW has an amazing memory! She remembers things that I had completely forgotten about. It amazes me.

(sometimes it shocks me)

 

[NW-Bound]

Come to think of it, it is rare that we need to use more than 2 burners at once. Some people may just welcome the burners getting all dead. They would eat out or call for pizza delivery the rest of their life.

Back on being frugal, this year so far has seen me getting very nice investment returns, at the same time that my expenses are the lowest since I started to keep track meticulously (about 7 years ago).

What happens? Well, no change in lifestyle, but no major home repair/improvement this year, no big medical or dental bills, no 2nd daughter to marry off, no college tuition, no big gift to the kids to help them with buying a home.

Perhaps the market god will take it all back soon, but just the return in October was about the same as what I spent YTD.

Can't think of anything big I want to spend money on. Should be thinking about next year travel, but I am too busy designing and planning for the DIY solar/power storage.

 

[braumeister]

Great uncle had plenty of $$$ but did not want to spend it... house was hopelessly outdated... two of the 4 stove burners didn't work but he was too cheap to replace the stove and only needed two burners at a time anyway.

Our 23 year old cooktop has 2 burners that don't work(and parts aren't available anymore). Told DW that at this rate the remaining 2 burners should last another 23 years.

Is there a theme developing here?

 

[Amethyst]

Not to mention the ones who clean rest stop bathrooms. The Augean Stables come to mind.

I always try to take a couple of tens when I fly and give them to the airport bathroom cleaning folks. Talk about a thankless job.

 

[Chuckanut]

LOL! Was it a big jar?

No, probably a bit smaller than the normal jars. But, no seed oils and it has the slight off-white color of the Mayo I had in Brussels years ago. Maybe better? I'll let you know.

In any event one jar won't break the food budget. But, if it is not any better than 'ordinary' Mayo, I won't buy it again.

 

[FANOFJESUS]

Priced....and BOUGHT.... a new F250 4 x 4 for just under $40k

Just doing our part for the economy (and still under 3% WR)

I remember when homes sold for that and I am only middle age. Kind of scary to think about.

 

[audreyh1]

No, probably a bit smaller than the normal jars. But, no seed oils and it has the slight off-white color of the Mayo I had in Brussels years ago. Maybe better? I'll let you know.

In any event one jar won't break the food budget. But, if it is not any better than 'ordinary' Mayo, I won't buy it again.

I've been using avocado oil mayo, but bought it from HEB I think.

 

[GravitySucks]

Our 23 year old cooktop has 2 burners that don't work(and parts aren't available anymore). Told DW that at this rate the remaining 2 burners should last another 23 years.

Instead of the $220 for a control board I went to Home Depot and picked out a range. It came with a ding in it so they knocked $75 off.

So for the week
$800 tires.
$350 for oven.
$350 dentist bill I forgot to pay before the 6 week trip.
$350 for repair of fence wind damaged while I was on the trip.
$850 Home owners insurance came due.

All stuff budgeted for. All expected. But still feels tough when it all hits at once on top of the travel expenses.
Therapist says it's normal to have feelings that are at odds with reality when it comes to money. She says most all of us have our relationship to money set at an early adult age. Hence my sig ~ a poor man with a bit of money.

 

[ScottS]

Well said
As an old farmer told me when i was a young man:
He had never seen a hearst pulling a U-Haul!

They don't have a luggage rack on top, either[emoji4]

 

[W2R]

Instead of the $220 for a control board I went to Home Depot and picked out a range. It came with a ding in it so they knocked $75 off.

So for the week
$800 tires.
$350 for oven.
$350 dentist bill I forgot to pay before the 6 week trip.
$350 for repair of fence wind damaged while I was on the trip.
$850 Home owners insurance came due.

All stuff budgeted for. All expected. But still feels tough when it all hits at once on top of the travel expenses.

Wow, that's awful! I guess we all have weeks like that sometimes, but mentioning that probably doesn't help even a little bit. Hopefully you won't have another week like this one, for a very long time.

 

[GravitySucks]

Wow, that's awful! I guess we all have weeks like that sometimes, but mentioning that probably doesn't help even a little bit. Hopefully you won't have another week like this one, for a very long time.

Thanks. In reality the range and fence plus a hundred bucks for furnace filters and lawn mower / snow blower gas is all the home maintenance expenses I had this year.- way under budget.
The tires could have been done since June. 50,000 miles on old pair.
The dentist was part of a $500 bill and add in $200 in doctor and therapist copays for the year and I'm damn lucky there!
Somehow every October I get that surprise home owners bill.

It's been a decent year, just the ingrained feelings about the money and timing make it tough.
So even though the week was bad, the year was better than expected.

 

[W2R]

Thanks. In reality the range and fence plus a hundred bucks for furnace filters and lawn mower / snow blower gas is all the home maintenance expenses I had this year.- way under budget.
The tires could have been done since June. 50,000 miles on old pair.
The dentist was part of a $500 bill and add in $200 in doctor and therapist copays for the year and I'm damn lucky there!
Somehow every October I get that surprise home owners bill.

It's been a decent year, just the ingrained feelings about the money and timing make it tough.
So even though the week was bad, the year was better than expected.

Well hey, there's a lot to be said for that! I am glad the whole year wasn't so bad.