Your Savings Are Worthless If You Don't Do This In Retirement

[Out-to-Lunch]

LTC expenses? Forget about it. What do you think that tank of hydrogen is doing in my closet, god willing I still have the strength and commitment come the time?

I understand what you are driving at, but why hydrogen?? I would think that argon is best for this purpose.

 

[TheWizard]

Most things are worthless if you fail to make use of it.

Umm, a major exception would be many types of INSURANCE...

 

[TheWizard]

We do not worry about funeral expenses, not our problem. We do not have heirs, so again not their problem either. Funeral expense worries are only for the poor, we are not poor.

Those funeral insurance ads for poor people on TV are annoying, checko...

 

[Mr. Tightwad]

It's hard to change your stripes after close to a lifetime of looking for a good value proposition, but I'm trying. Just today bought some things we didn't "need" at Costco while hardly looking at price, but hardly enough to make a dent.

If there is a place to shop/buy without looking at the price Costco is the place.

 

[Sunset]

I understand what you are driving at, but why hydrogen?? I would think that argon is best for this purpose.

Helium is used, and the benefit of having a mickey mouse voice for funny last words

 

[COcheesehead]

I agree the default is $1. But you know that you can specify a minimum residual estate under the "Investigate" tab, right?

Yes, but does everyone know that?

 

[Koolau]

I live in ultra-super-duper-high-cost San Diego and have never lived more inexpensively nor (given current health circumstances) more happily. My neighbor manages a local supermarket so anything and everything that's nearing expiration winds up in the freezer I had to buy to take care of the overload, mostly ribeyes, which is great, since I'm keto almost carnivore.

Housing? I rent a room from a nice woman for 25% of my monthly social security payment. No home repair bills, no nothing like that. I'm fairly disabled but still able to go (adaptive) surfing five, six, sometimes seven days a week. The water is seven minutes away from my room, by minivan. Around town, I go everywhere by electric bike. I've got enough money saved to live in a more opulent fashion but why would I? At my age? Given my health? Given my current state of ease and happiness?

LTC expenses? Forget about it. What do you think that tank of hydrogen is doing in my closet, god willing I still have the strength and commitment come the time?

Cremation costs? Burial costs? Get serious. I signed up for a UCSD program whereupon it gets notified upon you breathing your last breath, then sweeps in, then sweeps out with your mortal remains, and off to the teaching hospital "you" go, free of any costs at all, bingo bango, done done.

anyhow, those are the circumstances and those are the plans. how it all turns out is anyone's guess. and onward i wobble.

Many people would envy your life-style. SO glad it w*rks for you. I loved SDCA when I've visited several times. It was our back-up choice in case the Island thing didn't w*rk out. Blessings!

 

[cloyde]

I understand what you are driving at, but why hydrogen?? I would think that argon is best for this purpose.

according to the related wiki, argon is heavier than air thus making it unsuitable, for various reasons. hydrogen is less dense, making it suitable. the composition of today's helium -- 80% h and 20% air -- also rules it out as an option. used to be 100% helium, making it the go-to.

 

[Surewhitey]

He spoke a lot about the HMRC tax of 40% upon death (over £325k). Pretty steep and a 7 year look back on gifts. Glad I don't live in GB...

Warm hand gifting & using it for your enjoyment is the part that applies to us.

 

[Sojourner]

We certainly don’t plan or expect to die with zero. If all goes well, I hope to die with millions more than we started with. Firecalc has us ending with as much as $29 million if our current spending continues.

The Firecalc numbers are wild. You could die with $1,000,000 or you could die with $30,000,000. I’m sure the reality will lie somewhere between those extremes. Probably toward the lower end, but historically who knows?

You made me look. FIRECalc says that DW and I could end up with around $40MM (average case scenario), but I somehow suspect that we'll end up with far less. We've both adopted the Die With Zero mentality and will be spending the next few decades trying our best to avoid "overaccumulation".

 

[stepford]

It's interesting to note that a lot of us seem have similar maximum FIRECALC end of life estimates (mine's $39M, though of course I have a tiny fraction of that today). I think that speaks to the demographic sorting process that sends moderately well to do retirees here, with different sectors heading to Bogleheads or Mister Money Mustache.

 

[Sojourner]

But paying three or four times more rarely adds even 1% more enjoyment.

It's hard for me to imagine you truly believe this. You're telling me that you don't think spending $120 for a nice, three-star hotel room results in even a 1% better experience than spending $40 for a one-star, roadside motel room? Or that you honestly think driving around in a new $50,000 Lexus RX wouldn't result in 1% more enjoyment than puttering along in an $18,000 Mitsubishi Mirage?

I would agree than spending 3-4x more for some things isn't worth the extra outlay, especially in cases where you're going from luxury to super luxury. But, IMHO, paying to upgrade from "budget" to "premium" versions of many things provides pretty noticeable bang for the buck.

 

[disneysteve]

You made me look. FIRECalc says that DW and I could end up with around $40MM (average case scenario), but I somehow suspect that we'll end up with far less. We've both adopted the Die With Zero mentality and will be spending the next few decades trying our best to avoid "overaccumulation".

I didn't remember the exact numbers so just checked again.

Current spending of 150K and me claiming SS at 70 (DW is already collecting) and living to 95 has us ending between $4.3M and $33.7M with an average of $15.5M. I am perfectly okay with falling anywhere on that range.

 

[RetiredHappy]

I didn't remember the exact numbers so just checked again.

Current spending of 150K and me claiming SS at 70 (DW is already collecting) and living to 95 has us ending between $4.3M and $33.7M with an average of $15.5M. I am perfectly okay with falling anywhere on that range.

I put in spending of $240k and I think my max was like $29M.

 

[PatrickA5]

Those Firecalc maximums sure do look great! Problem is most of us won't come close to living to the age we put in Firecalc. Put in an age based on life expectancy and those max numbers come way down. Very unlikely my kids will end up with the $20 million figure I see as the max (age 95). Much more likely is they will get to split around $3 - $5 million (or less).

 

[RetiredHappy]

Those Firecalc maximums sure do look great! Problem is most of us won't come close to living to the age we put in Firecalc. Put in an age based on life expectancy and those max numbers come way down. Very unlikely my kids will end up with the $20 million figure I see as the max (age 95). Much more likely is they will get to split around $3 - $5 million (or less).

FireCalc asks you for your spending horizon, which means you get to determine your life expectancy. The possible max number that is thrown out has to do with a bull market every year based on your life expectancy. The reality is that one half of the couple has the likelihood of living beyond 90.

 

[ShokWaveRider]

It's interesting to note that a lot of us seem have similar maximum FIRECALC end of life estimates (mine's $39M, though of course I have a tiny fraction of that today). I think that speaks to the demographic sorting process that sends moderately well to do retirees here, with different sectors heading to Bogleheads or Mister Money Mustache.

We are spending ours, Firecalc be damned.

 

[Sunset]

according to the related wiki, argon is heavier than air thus making it unsuitable, for various reasons. hydrogen is less dense, making it suitable. the composition of today's helium -- 80% h and 20% air -- also rules it out as an option. used to be 100% helium, making it the go-to.

That just doesn't seem true.

As I've read many cases of people using the common helium used in balloons dying from breathing in too much.

The third purest grade of compressed helium is balloon helium
" Balloon-grade helium is the least pure, at about 97.5% helium, with higher allowable impurity levels "

Don't know why some site thinks compressed helium is 20% O2, as that is practically compressed air which is ~78% Nitrogen and ~21% O2 and 1% other gases.

 

[YellowSubmarine]

Umm, a major exception would be many types of INSURANCE...

Yep, qualified that with "most".

 

[Rianne]

I just read that CPI is 3.8%. It would be nice if Firecalc let you put in the most recent CPI data. If/when inflation hits 4% I’d like to add that to my calculations.

 

[cyber888]

Right now, I'm spending $67,000 per year including $22K for travel, because our basic spending is around $45,000 including healthcare. No mortgage No Debt and living in a low-cost Southern area.
In 2+ years, I'm upping my fixed income to $84,000 (or $7000/mo), adding fix annuities, so I have a higher base income, with travel cost increasing.
If I only know that I won't survive beyond 100-103 years old instead of 110 - 115, I could increase my spending sooner. Do you guys simulation for 100 yrs old or 110 ?

 

[disneysteve]

Those Firecalc maximums sure do look great! Problem is most of us won't come close to living to the age we put in Firecalc. Put in an age based on life expectancy and those max numbers come way down.

They do come down, but they are still big numbers.
Age 95: $4.3 to $33.7M, avg. $15.5M
Age 87: $3.4 to $25.4M, avg. $10.9M
Age 82: $2.6 to $22.3M, avg. $9.0M

 

[Diogenes]

Those Firecalc maximums sure do look great! Problem is most of us won't come close to living to the age we put in Firecalc. ...

Yes, they're astronomical... for some folks here, they'll be in the billions. Be young enough today, assume enough longevity, crank the withdrawal rate to zero, allocate aggressively to stocks, and assume an unremittingly rosy scenario for the stock market. We're not going to be passing Musk or Buffett or Bezos, but for some of us, three commas are still what the math predicts [this is not a personal statement].

However, one is reminded of the merits of humility. The best-case scenario is rarely realized. I'd worry more about what happens in the worst case, than dream of possibilities in the best-case.

 

[RetiredHappy]

Right now, I'm spending $67,000 per year including $22K for travel, because our basic spending is around $45,000 including healthcare. No mortgage No Debt and living in a low-cost Southern area.
In 2+ years, I'm upping my fixed income to $84,000 (or $7000/mo), adding fix annuities, so I have a higher base income, with travel cost increasing.
If I only know that I won't survive beyond 100-103 years old instead of 110 - 115, I could increase my spending sooner. Do you guys simulation for 100 yrs old or 110 ?

In our case, the longer our life expectancies the higher the leftover amount. I modeled 95 vs. 90 vs. 85 and the longer the duration, the bigger the pile.

If you have less leftover the longer the life expectancy, then maybe you are spending the right amount. Depending on your genetics, you would want to adjust life expectancy accordingly.

 

[Dtail]

IIRC, the highest ending total follows the 1982 beginning year retiree vs just a never ending bull market.