I've found that its best to spend what you are comfortable with. Spending more just to spend doesn't even sound right. My goal is to live a long stress free happy life. So far so good !
I have been saving for most of my career. I noticed that people who were age 65 said to travel and enjoy life when you are younger. At age 50 I switched to part time work and started enjoying my savings. I purchased a new mountain bike and now travel with family.
For me, unspent money buys peace of mind and piles of un-needed stuff create stress. I live small and debt free the resort town where I've been for 35 years. If my estate can provide some small measure of wealth for my progeny after I'm gone then so be it.
I feel the same, not a big stuff and things person. Quite content on basic things and a paid off home and car. So I amassed excess money that hopefully someone can enjoy after I’m gone. But it’s all good because I’m content.
Rather the “uncertainty of financial “ older people should be thinking about the “uncertainty of health”. So, the smart thing to do is LIVE IT UP while ya can ! I retired at 60, now 72 and travel the world about 9 months a year. I’m spending an enjoying the heck outa life !
You are the exception to the norm, Ive yet to figure out why most wealthy folks insist on leaving it all behind for irresponsible offspring to squander it all .
Thank you for this video as a recently re tired 67 year old I still feel the need to be frugal but have well enough to last me to 100 years old according to my CPA. I guess old habits are hard to break but I’m trying to feel better about spending on Travel and our house needs some TLC.
It sort of depends on sequence of returns, I've seen people "shoe string" retire into an up market and 4 months later the market tanks and they are locking in loses left and right by selling shares at a bad time. Some folks retire without "enough" cash ready to go to weather a 18 month storm. Totally blows up their plans . But yeah if you have a 90-100 percent shot at success, go ahead and boost spending a bit in the early retirement years while you can still climb stairs, haven't yet broken a hip , because once that happens it's mostly "Matlock" and "Murder she wrote" reruns for quite a lot of people. .
HI Darryl. At you 8:06 in the video you talk about breaking spending into time periods. Some planners call this the "Go-go, Slow-go and No-go Spending Plan". I think it's an important thing to realize that you should spend more early because your health will change over time causing you to slow down and spend less. I accomplish this by setting aside an amount of cash each year in a bank account called the "Say YES" account. Then when someone asks if I want to fly to Vegas to see U2 at The Sphere, I can say "YES". I don't have to wonder how it affects my retirement, as it is part of the plan.
I understand where you are coming from. I am going to use the "Time Period" method. I have just retired...so we started with an Alaskan cruise...next year its a hike across Costa Rica, and a 12 day Iceland cruise....I also do a monthly mini trip to hike , cycle or visit specific places. I very much doubt we will use all our money...BUT...it is important to us to know there is money there if we need it...
We are 66 and 68 and have been taught our whole lives...often through personal experience.... to save save save for retirement. My father went bankrupt when I was in high school and we lost everything including our home. I've been supporting myself since 17 and know what it is to work 3 jobs and to barely keep a roof over my head. I did not get long term care insurance....premiums were ridiculous expensive. My mother passed at 84 of alzheimer's and my father is 89 with siblings 93, 91 and 87. We are traveling and spending retirement savings down and putting off Social Security for two years. We're trying to balance all of this, but the mentality to SPEND is foreign! That being said, we have one child and a house in addition to savings worth over a million so I don't feel the need to pass on retirement savings...he'll probably get the house. He lives with us and we are helping him now rather than later. Doing the best we can to figure it all out...but it's not easy!
Calculate the monthly payment from your Social Security + ditto from your pension. Is that enough to bring you through the month? If not, what added monthly "allowance" from your savings will make it a comfortable month? When you have loosely set the monthly "allowance" from your savings you can do the math for the next decade or two. The result may be that you find out you can allow yourself e.g. 10, 20 or maybe 3,000 dollars to be spend as "funny money" over a specific period of time - without fearing having to eat cat food much later in life. 🙂These calculations still work for me and it's nice to have a pricy cocktail every once in a while!
I started saving for retirement right out of high school. At 59 my savings and investments have grown considerably. I've never been afraid to spend it on a good family vacation during my working life. I'll retire next year and plan to enjoy it. I'm not a material guy but do enjoy paying for experiences through travelling. I'll try to spend most of it. So along with my house the kids can enjoy what's left over.
When I first retired 17 years ago I did have trouble spending money. But it takes some time to get your retirement "sea legs" going. While still aware of our finances, today we spend rather freely, traveling and doing what we want. It is a balance, with lifestyle choices. But money is not a collectible, and should not be hoarded. Enjoy it, or do something good with it, while you are alive. And I see no reason to fret with the idea of dying and leaving some money on the table.
Hey Darryl. Off topic question here. What kind of dog do you have? He made a brief cameo in the video and I thought he or she looked cute as hell. Thanks for the retirement tips. I plan on taking your advice. Thanks.
It’s a nervousness of spending . Even with passive income that’s guaranteed the best it can be in my mind I feel like I have no income and I have to be careful because I’m not working and bringing in an income. To me every month it’s like just a big allowance that I didn’t “ work” for so maybe that why I feel guilty spending it on necessities only. I don’t know. And it’s coming in like clockwork every month, but only once a month not weekly like a paycheck used to. So every month the excess I put into investing . Crazy mindset I know.
Why not make it more like a paycheck and have it come every two weeks? I’ve been retired for 11 months at 65 without touching my retirement except for one smaller distribution (holding off on SS). I saw a video about giving yourself a paycheck on a set, regular basis to overcome the psychological effect of not getting one after stopping working. I am in the process of getting this set up which I believe will help me get over the psychological hump of seeing myself having to take bigger chunks from my accounts and be a more normal feeling after having received a regular paycheck for so many years.
@ that’s a great idea you have. I retired at 61 , four years ago. And I had no surprises things worked out just as my goal had been. But I’ve been thinking of retirement or at least getting out of the 9-5 since in my mid 30’s. Never had a job I could say was a dream job , mine has always just been a source of income.
@SECURiMENTWealthMGMT Apologies, I'm agreeing. I think the 4% rule is over used and widely misunderstood. 100% safety equals 100% chance of underspending as you so rightly say.
This article is kind of painful to watch. For crying out loud!!!,....if you dont need anything,...then dont waste it in 'stuff' you dont need,...there are so many charity organizations that are in dire need financial of assistance. Helping good causes will help you feel so much better than a 500 Amazon spending spree for crap you dont even want. Our desire for fullfillment is sourced from deep in our hearts, an inate desire to help our fellow man. That is what will give you fullfillment. (and a decent tax right off!😉)
Hoarding money until death is like dieting and working out 2 hours per day for 30 years, building giant muscles, and then never kicking anyone’s ass. What’s the point😁
If you want to leave a Legacy to your children why not just buy Life Insurance policy for them instead of trying to leave your Retirement account to them, use it to enjoy your Detirement ac ount on YOU!
I've found that its best to spend what you are comfortable with. Spending more just to spend doesn't even sound right. My goal is to live a long stress free happy life. So far so good !
Good for you and thanks for watching!!
I have been saving for most of my career. I noticed that people who were age 65 said to travel and enjoy life when you are younger. At age 50 I switched to part time work and started enjoying my savings. I purchased a new mountain bike and now travel with family.
I want a new bike!!!
Regarding the redditor- why buy junk? Spend on fun and/or experiences! Travel, cleaners, pay for your laundry to be done, etc. you earned it-enjoy it!
Good points! Thanks for watching
For me, unspent money buys peace of mind and piles of un-needed stuff create stress. I live small and debt free the resort town where I've been for 35 years. If my estate can provide some small measure of wealth for my progeny after I'm gone then so be it.
Agreed! You’re already in the resort town. I want people to go to the resort town lol. Thanks for watching!
I feel the same, not a big stuff and things person. Quite content on basic things and a paid off home and car. So I amassed excess money that hopefully someone can enjoy after I’m gone. But it’s all good because I’m content.
Rather the “uncertainty of financial “ older people should be thinking about the “uncertainty of health”. So, the smart thing to do is LIVE IT UP while ya can ! I retired at 60, now 72 and travel the world about 9 months a year. I’m spending an enjoying the heck outa life !
You are spot on my friend. Thanks for watching!
You are the exception to the norm, Ive yet to figure out why most wealthy folks insist on leaving it all behind for irresponsible offspring to squander it all .
Beautiful
Thank you for this video as a recently re tired 67 year old I still feel the need to be frugal but have well enough to last me to 100 years old according to my CPA. I guess old habits are hard to break but I’m trying to feel better about spending on Travel and our house needs some TLC.
Best of luck and thanks for watching!
It sort of depends on sequence of returns, I've seen people "shoe string" retire into an up market and 4 months later the market tanks and they are locking in loses left and right by selling shares at a bad time. Some folks retire without "enough" cash ready to go to weather a 18 month storm. Totally blows up their plans . But yeah if you have a 90-100 percent shot at success, go ahead and boost spending a bit in the early retirement years while you can still climb stairs, haven't yet broken a hip , because once that happens it's mostly "Matlock" and "Murder she wrote" reruns for quite a lot of people. .
Great comment. Thanks for watching!
HI Darryl. At you 8:06 in the video you talk about breaking spending into time periods. Some planners call this the "Go-go, Slow-go and No-go Spending Plan". I think it's an important thing to realize that you should spend more early because your health will change over time causing you to slow down and spend less. I accomplish this by setting aside an amount of cash each year in a bank account called the "Say YES" account. Then when someone asks if I want to fly to Vegas to see U2 at The Sphere, I can say "YES". I don't have to wonder how it affects my retirement, as it is part of the plan.
I love the idea! I may have to record a short about that. Thanks for watching!
Also give to charity -for $30K USD you get up to $7K USD tax savings-be grateful and still make money!
Yes, indeed. Thanks for watching!
I understand where you are coming from. I am going to use the "Time Period" method. I have just retired...so we started with an Alaskan cruise...next year its a hike across Costa Rica, and a 12 day Iceland cruise....I also do a monthly mini trip to hike , cycle or visit specific places. I very much doubt we will use all our money...BUT...it is important to us to know there is money there if we need it...
Sounds great! Have fun in Alaska and thanks for watching!
We are 66 and 68 and have been taught our whole lives...often through personal experience.... to save save save for retirement. My father went bankrupt when I was in high school and we lost everything including our home. I've been supporting myself since 17 and know what it is to work 3 jobs and to barely keep a roof over my head. I did not get long term care insurance....premiums were ridiculous expensive. My mother passed at 84 of alzheimer's and my father is 89 with siblings 93, 91 and 87. We are traveling and spending retirement savings down and putting off Social Security for two years. We're trying to balance all of this, but the mentality to SPEND is foreign! That being said, we have one child and a house in addition to savings worth over a million so I don't feel the need to pass on retirement savings...he'll probably get the house. He lives with us and we are helping him now rather than later. Doing the best we can to figure it all out...but it's not easy!
Great stuff. Thanks for watching!
Calculate the monthly payment from your Social Security + ditto from your pension. Is that enough to bring you through the month? If not, what added monthly "allowance" from your savings will make it a comfortable month? When you have loosely set the monthly "allowance" from your savings you can do the math for the next decade or two. The result may be that you find out you can allow yourself e.g. 10, 20 or maybe 3,000 dollars to be spend as "funny money" over a specific period of time - without fearing having to eat cat food much later in life. 🙂These calculations still work for me and it's nice to have a pricy cocktail every once in a while!
Good stuff! THX for watching!
A biking tour through France is exactly my plan. Not lavish,but quite straightforward for UK people
Have fun and thanks for watching.
That sounds really good.
I started saving for retirement right out of high school. At 59 my savings and investments have grown considerably. I've never been afraid to spend it on a good family vacation during my working life. I'll retire next year and plan to enjoy it. I'm not a material guy but do enjoy paying for experiences through travelling. I'll try to spend most of it. So along with my house the kids can enjoy what's left over.
Good stuff - Thanks for watching!
When I first retired 17 years ago I did have trouble spending money. But it takes some time to get your retirement "sea legs" going.
While still aware of our finances, today we spend rather freely, traveling and doing what we want.
It is a balance, with lifestyle choices. But money is not a collectible, and should not be hoarded. Enjoy it, or do something good with it, while you are alive.
And I see no reason to fret with the idea of dying and leaving some money on the table.
Good stuff! Thanks for watching!
Hey Darryl. Off topic question here. What kind of dog do you have? He made a brief cameo in the video and I thought he or she looked cute as hell. Thanks for the retirement tips. I plan on taking your advice. Thanks.
Joey is a cavapoo!
It doesn't help that most financial advisors say you need 4-5 million to retire comfortably.
I would never in a trillion years ever say that to anyone EVER.
Those 4 to 5 million fir retirement are WAY OUT OF TOUCH with Majority of people in USA!
PERIOD
I've always been a minimalist and prefer more freedom over more money. Less stuff = less worries and more freedom.
I just want less stuff!!! Thanks for watching.
It’s a nervousness of spending . Even with passive income that’s guaranteed the best it can be in my mind I feel like I have no income and I have to be careful because I’m not working and bringing in an income. To me every month it’s like just a big allowance that I didn’t “ work” for so maybe that why I feel guilty spending it on necessities only. I don’t know. And it’s coming in like clockwork every month, but only once a month not weekly like a paycheck used to. So every month the excess I put into investing . Crazy mindset I know.
You are not alone! Thanks for watching.
Why not make it more like a paycheck and have it come every two weeks? I’ve been retired for 11 months at 65 without touching my retirement except for one smaller distribution (holding off on SS). I saw a video about giving yourself a paycheck on a set, regular basis to overcome the psychological effect of not getting one after stopping working. I am in the process of getting this set up which I believe will help me get over the psychological hump of seeing myself having to take bigger chunks from my accounts and be a more normal feeling after having received a regular paycheck for so many years.
@ that’s a great idea you have. I retired at 61 , four years ago. And I had no surprises things worked out just as my goal had been. But I’ve been thinking of retirement or at least getting out of the 9-5 since in my mid 30’s. Never had a job I could say was a dream job , mine has always just been a source of income.
You will be the richest guy in your cemetery.
Isn’t Chicago too cold to retire???! I also live in Chicago, but I am not sure if I keep living in Chicago after retirement 😅
At least it’s beautiful today!!!
The 4% rule has a lot to answer for!
I can’t tell if you agree with me or you’re mocking me. Whatever the case I think there are better ways and thanks for watching.
@SECURiMENTWealthMGMT Apologies, I'm agreeing. I think the 4% rule is over used and widely misunderstood. 100% safety equals 100% chance of underspending as you so rightly say.
This article is kind of painful to watch. For crying out loud!!!,....if you dont need anything,...then dont waste it in 'stuff' you dont need,...there are so many charity organizations that are in dire need financial of assistance. Helping good causes will help you feel so much better than a 500 Amazon spending spree for crap you dont even want. Our desire for fullfillment is sourced from deep in our hearts, an inate desire to help our fellow man. That is what will give you fullfillment. (and a decent tax right off!😉)
Good points. Thanks for watching.
Great advice for extroverts
Thx for watching!
Hoarding money until death is like dieting and working out 2 hours per day for 30 years, building giant muscles, and then never kicking anyone’s ass.
What’s the point😁
Great airplanes on your page. My son is a pilot at American.
If you want to leave a Legacy to your children why not just buy Life Insurance policy for them instead of trying to leave your Retirement account to them, use it to enjoy your Detirement ac ount on YOU!
Yes. I agree but it can be expensive to keep a policy going for a long time. Thanks for watching.