What will you do when you find you have more money than expected?

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
flyingaway
Posts: 1915
Joined: Fri Jan 17, 2014 10:19 am

What will you do when you find you have more money than expected?

Post by flyingaway » Mon Sep 03, 2018 10:35 pm

Before you retire, you have an estimate of your expenses (budget) in retirement and build a portfolio to support that budget. If, after a few years in retirement, due to some reasons (better than expected market returns, unused buffer, unexpected inheritance, etc.), you have more money to spend. What will you do with the additional money?
(1) Upgrade your lifestyle and spend more money; or
(2) Maintain your lifestyle (more or less), leave the additional money to children or charities?

moghopper
Posts: 134
Joined: Fri Oct 18, 2013 10:07 am

Re: What will you do when you find you have more money than expected?

Post by moghopper » Mon Sep 03, 2018 10:37 pm

At first, I was going to say "A little of both". But honestly, I expect to save to a point where I have my maximum desired lifestyle. So, I'm going with choice "2."

drawpoker
Posts: 2055
Joined: Mon May 19, 2014 6:33 pm
Location: Delmarva

Re: What will you do when you find you have more money than expected?

Post by drawpoker » Mon Sep 03, 2018 10:39 pm

(2)

Because health/health care costs/ is a crap shoot, what seems like a lot of :moneybag could suddenly shrink considerably.

HIinvestor
Posts: 1690
Joined: Tue Apr 08, 2014 3:23 am

Re: What will you do when you find you have more money than expected?

Post by HIinvestor » Mon Sep 03, 2018 10:51 pm

So far, we have used this money to travel, support a relative who has chronic health issues and help max-fund another relative’s Roth IRA via Backdoor Roth IRA contributions, as well as invest in his company via a significant gift. The rest of the extra funds we save.

We are happy and surprised to be more financially comfortable than expected.

User avatar
Jazztonight
Posts: 937
Joined: Wed Feb 28, 2007 12:21 am
Location: Lake Merritt

Re: What will you do when you find you have more money than expected?

Post by Jazztonight » Mon Sep 03, 2018 11:06 pm

What will I do?

I'm doing it. Living to the best of my ability, taking care of myself, adding adventures, making sure I don't waste too much of whatever time is left.

The same as I'd do regardless of how much money I have.
"What does not destroy me, makes me stronger." Nietzsche

User avatar
Watty
Posts: 14358
Joined: Wed Oct 10, 2007 3:55 pm

Re: What will you do when you find you have more money than expected?

Post by Watty » Mon Sep 03, 2018 11:21 pm

flyingaway wrote:
Mon Sep 03, 2018 10:35 pm
If, after a few years in retirement,.....
A few years is usually not enough.

I retired just over three years ago and I calculate my net worth twice a year. I just calculated it and with the strong stock market and getting lucky and not having any large unexpected expenses my net worth is essentially the same as when I retired.

I was prepared for it to be down some by now since I retired before I turned 59 so the six years until I am 65 will be some of my more expensive years since I an not getting Social Security or Medicare yet.

Even if I am $50K ahead of plan a 4% safe withdrawal rate would only give me an extra $2,000 a year. That might be $1,800 a year after taxes or $150 a month. That is not enough to make a significant change in my spending other than a small splurge now and then.

I am also at the point where I am more interested in getting rid of "stuff" than getting more "stuff".

drawpoker
Posts: 2055
Joined: Mon May 19, 2014 6:33 pm
Location: Delmarva

Re: What will you do when you find you have more money than expected?

Post by drawpoker » Tue Sep 04, 2018 12:10 am

Watty wrote:
Mon Sep 03, 2018 11:21 pm
....I calculate my net worth twice a year.................am also at the point where I am more interested in getting rid of "stuff" than getting more "stuff".
Only twice a year? :shock:
I do mine twice a month. Sometimes more. It just feels so Gooood.. :D

Agree 100% on your 2nd point. Getting rid of stuff, not adding more, best way to go.

User avatar
munemaker
Posts: 3519
Joined: Sat Jan 18, 2014 6:14 pm

Re: What will you do when you find you have more money than expected?

Post by munemaker » Tue Sep 04, 2018 12:13 am

moghopper wrote:
Mon Sep 03, 2018 10:37 pm
At first, I was going to say "A little of both". But honestly, I expect to save to a point where I have my maximum desired lifestyle. So, I'm going with choice "2."
+1

Keep in mind that the "better than expected market returns" can be followed by years of worse than expected market returns, and that unused buffer? Well, it may eventually have to be used. The inheritance is real money, of course.

The Wizard
Posts: 12349
Joined: Tue Mar 23, 2010 1:45 pm
Location: Reading, MA

Re: What will you do when you find you have more money than expected?

Post by The Wizard » Tue Sep 04, 2018 2:08 am

Well the increase in portfolio due to better than expected market returns is a slow process, not a windfall.
5-1/2 years into retirement, I have both higher income and higher portfolio balance than when I started, but only a little higher balance, not double.

I've been withdrawing from portfolio for seven years in lieu of SS, but I've kept that pile of money fully invested in my portfolio AA. Had I set aside the total "bridge amount" in cash at the start, my portfolio performance would have been lots worse.

So to answer the question, I've been spending comfortable amounts on increased travel while also letting my portfolio grow a bit. I hope this will provide some cushion when the coming crash arrives...
Attempted new signature...

smitcat
Posts: 1981
Joined: Mon Nov 07, 2016 10:51 am

Re: What will you do when you find you have more money than expected?

Post by smitcat » Tue Sep 04, 2018 7:23 am

Number two.

flyingaway
Posts: 1915
Joined: Fri Jan 17, 2014 10:19 am

Re: What will you do when you find you have more money than expected?

Post by flyingaway » Tue Sep 04, 2018 7:56 am

OP here. I forgot to include my own choice if I were retired.
I think I would choice #2. The reason is that if a larger spending would make me happier, I should have considered to work for a few more years to build a larger portfolio, i.e., my original budget probably did not count enough of my wants.

Nearly A Moose
Posts: 892
Joined: Fri Apr 22, 2016 5:28 pm

Re: What will you do when you find you have more money than expected?

Post by Nearly A Moose » Tue Sep 04, 2018 8:33 am

Very far from retirement. But to the extent I've thought about this in any serious way; assuming my retirement standard of living is pretty good (I'm targeting what we spend now, which with a paid off mortgage would be plenty), I'd be inclined to look for neat and unique opportunities I wouldn't have otherwise been able to do. Eg a luxury all inclusive around the world excursion, high end African safari, space tourism, etc. Experiences, not things. Ideally shared with friends or loved ones. Or fund all my grand kids colleges, or some other way to pass it on in an especially useful manner. Basically, I wouldn't want to increase my baseline recurring costs, but I wouldn't feel the need to just save it. I wouldn't blow an inheritance though. Id view that more as money that I steward than own.
Pardon typos, I'm probably using my fat thumbs on a tiny phone.

skierrex
Posts: 34
Joined: Tue Oct 03, 2017 10:03 pm

Re: What will you do when you find you have more money than expected?

Post by skierrex » Tue Sep 04, 2018 8:39 am

I'd invest in my health, in my case with a new pair of skis and a new bicycle!

Get me out of the house, get some fresh air and get my heart rate up.

Jack FFR1846
Posts: 7961
Joined: Tue Dec 31, 2013 7:05 am

Re: What will you do when you find you have more money than expected?

Post by Jack FFR1846 » Tue Sep 04, 2018 8:41 am

Well, I'm already in this boat, I think. I'm on course to have double what I currently spend, using 4% as a guide. What I'm already doing is making no changes until both kids are done with college and at least full time employed.
Bogle: Smart Beta is stupid

User avatar
Cyclesafe
Posts: 658
Joined: Wed Dec 31, 2014 1:03 pm

Re: What will you do when you find you have more money than expected?

Post by Cyclesafe » Tue Sep 04, 2018 8:43 am

I'm already managing with the goal of bouncing the last check, but my parsimonious past is preventing me from making much of a dent. The excess will go to charity/taxes as we have no legacy intent beyond insuring that a few close relatives spend their last days in comfort.

User avatar
lthenderson
Posts: 3518
Joined: Tue Feb 21, 2012 12:43 pm
Location: Iowa

Re: What will you do when you find you have more money than expected?

Post by lthenderson » Tue Sep 04, 2018 8:45 am

I have a few good charities to bequest and then the kids get the rest so option 2.

User avatar
GoldStar
Posts: 601
Joined: Wed May 23, 2018 10:59 am

Re: What will you do when you find you have more money than expected?

Post by GoldStar » Tue Sep 04, 2018 8:49 am

Probably a combination of (1), (2), and (3)
where 3 = help family while still living; e.g. kids home down payments/grandchildren college tuition and the like).
For (1) I've modeled two larger vacations per year but with extra money might do 3 or 4.

User avatar
camillus
Posts: 526
Joined: Thu Feb 28, 2013 9:55 pm

Re: What will you do when you find you have more money than expected?

Post by camillus » Tue Sep 04, 2018 9:37 am

I would estimate that many/most bogleheads will be in this position, after fretting for decades about having enough, suppressing lifestyle to save, and then finding once retired that you have much, much more than you need.

One of the subcultural flaws here IMO is the tendency to obsess and over-prepare (others might call it hoarding). The tragic irony of the preoccupation with accumulating wealth is that once you have it, you might not be able to enjoy it.

I guess the response is that it's better to be over-prepared than under. Still, something to think about.

Probably 2 for me

NotWhoYouThink
Posts: 2069
Joined: Fri Dec 26, 2014 4:19 pm

Re: What will you do when you find you have more money than expected?

Post by NotWhoYouThink » Tue Sep 04, 2018 11:21 am

I'm willing to risk a bit of lifestyle creep, and will also consider giving more (to family or charity) along the way.

User avatar
Earl Lemongrab
Posts: 5650
Joined: Tue Jun 10, 2014 1:14 am

Re: What will you do when you find you have more money than expected?

Post by Earl Lemongrab » Tue Sep 04, 2018 12:36 pm

The future is an unknown. I have what I expect will be way more than I need. But it's the unexpected that will get you. I have enough that if I need expensive long-term care or medical treatments then it's there. If not, the family gets it, and that's okay. I like them.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

Broken Man 1999
Posts: 1521
Joined: Wed Apr 08, 2015 11:31 am

Re: What will you do when you find you have more money than expected?

Post by Broken Man 1999 » Tue Sep 04, 2018 1:49 pm

Usually when we find we have more money than expected, we take the van in for maintenance/repairs. The dealership can always be counted on to siphon the money down to a reasonable level. Van's air conditioning went out Monday. That ought to be a hefty bill. :shock:

But seriously, just as this long bull market has fattened many portfolios beyond expectations, a down market might/will reduce the gains made over a much shorter period of time.

I choose option 2, as simply increasing spending isn't going to increase happiness for us. Though, spending on family does make them happy, and makes us happy as well. Not sure spending more on family would necessarily make me more happy at the moment, though.

We are both 65, and genes seem to suggest a possibility of a long life for both of us.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven than I shall not go. " -Mark Twain

JoeRetire
Posts: 1647
Joined: Tue Jan 16, 2018 2:44 pm

Re: What will you do when you find you have more money than expected?

Post by JoeRetire » Tue Sep 04, 2018 2:08 pm

flyingaway wrote:
Mon Sep 03, 2018 10:35 pm
Before you retire, you have an estimate of your expenses (budget) in retirement and build a portfolio to support that budget. If, after a few years in retirement, due to some reasons (better than expected market returns, unused buffer, unexpected inheritance, etc.), you have more money to spend. What will you do with the additional money?
(1) Upgrade your lifestyle and spend more money; or
(2) Maintain your lifestyle (more or less), leave the additional money to children or charities?
I'll adjust.

Probably will be much more (2) than (1).

We have been planning our retirement for a number of years now, based on what we need for our desired lifestyle. We didn't have to scale down our lifestyle expectations based on our expected next egg and don't see a need to upscale them if our estimates were incorrect.

User avatar
Artful Dodger
Posts: 480
Joined: Thu Oct 20, 2016 12:56 pm

Re: What will you do when you find you have more money than expected?

Post by Artful Dodger » Tue Sep 04, 2018 2:16 pm

camillus wrote:
Tue Sep 04, 2018 9:37 am
I would estimate that many/most bogleheads will be in this position, after fretting for decades about having enough, suppressing lifestyle to save, and then finding once retired that you have much, much more than you need.

One of the subcultural flaws here IMO is the tendency to obsess and over-prepare (others might call it hoarding). The tragic irony of the preoccupation with accumulating wealth is that once you have it, you might not be able to enjoy it.

I guess the response is that it's better to be over-prepared than under. Still, something to think about.

Probably 2 for me
I agree here with Camillus. I've been working and saving for so long, it's hard to wrap my mind around giving it all up, then living off investments.

Number 2

User avatar
Sheepdog
Posts: 5184
Joined: Tue Feb 27, 2007 3:05 pm
Location: Indiana, retired 1998 at age 65

Re: What will you do when you find you have more money than expected?

Post by Sheepdog » Tue Sep 04, 2018 2:28 pm

First I would like to be able to fund any long term care in a good facility for the length of time required for my wife and/or me. Beyond that, #2
It's not what you gather, but what you scatter which tells what kind of life you have lived---Helen Walton

RickBoglehead
Posts: 966
Joined: Wed Feb 14, 2018 9:10 am

Re: What will you do when you find you have more money than expected?

Post by RickBoglehead » Tue Sep 04, 2018 2:45 pm

Hookers and blow...

Always wanted to say that. Now I said it. Would never do it...

It would have to be a lot over to adjust a few years in. But if we got 20% growth for 4 years, I would spend more. Already figure the kids will get too much.

User avatar
Toons
Posts: 13016
Joined: Fri Nov 21, 2008 10:20 am
Location: Hills of Tennessee

Re: What will you do when you find you have more money than expected?

Post by Toons » Tue Sep 04, 2018 2:57 pm

Buy what we desire
Leave what is left to family and charity.
:happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

User avatar
Will do good
Posts: 686
Joined: Fri Feb 24, 2012 8:23 pm

Re: What will you do when you find you have more money than expected?

Post by Will do good » Tue Sep 04, 2018 3:02 pm

We were always aimed for #2.

delamer
Posts: 6267
Joined: Tue Feb 08, 2011 6:13 pm

Re: What will you do when you find you have more money than expected?

Post by delamer » Tue Sep 04, 2018 3:05 pm

GoldStar wrote:
Tue Sep 04, 2018 8:49 am
Probably a combination of (1), (2), and (3)
where 3 = help family while still living; e.g. kids home down payments/grandchildren college tuition and the like).
For (1) I've modeled two larger vacations per year but with extra money might do 3 or 4.
Agreed.

Speaking as someone who received a substantial inheritance after I had already retired, Goldstar’s #3 is an important additional option for me.

User avatar
jazman12
Posts: 218
Joined: Tue Jan 26, 2016 4:38 pm

Re: What will you do when you find you have more money than expected?

Post by jazman12 » Tue Sep 04, 2018 3:28 pm

forget you have it and go about your business until one day when you want something really bad and you start calculating cost benefit...simply get it!
Act soon... time is running out

Golf maniac
Posts: 132
Joined: Wed Dec 27, 2017 2:02 pm
Location: Charlotte NC

Re: What will you do when you find you have more money than expected?

Post by Golf maniac » Tue Sep 04, 2018 3:51 pm

I have been in retirement for 3 years and we have been watching our balances grow fairly significantly over that timeframe. We have kept our lifestyle constant with no major changes. However, over the next 10 years we are going to increase our travel budget for a couple of nice trips each year. While we are healthy we want to enjoy our retirement and see places we haven’t seen when working and saving. Also, when SS kicks in the amount we will need to withdraw from retirement funds will reduce dramatically. The last thing I want to do is get to 70 with a big pot of money and regret we didn’t travel and enjoy ourselves.

It really is a balance for us, making sure we have “enough” but not being so tight that we don’t enjoy these great years.

8track
Posts: 19
Joined: Fri Feb 17, 2012 11:20 pm

Re: What will you do when you find you have more money than expected?

Post by 8track » Tue Sep 04, 2018 4:17 pm

We found ourselves in that enviable position at the beginning of this year. We took quite a bit of our assets off the table, lowering our equity percentage to the lower end of our ISP range (25%) and placing a good bit of the fixed income side in guaranteed funds to supplement our pensions in style hopefully for the rest of our lives. So in short we substantially de-risked our portfolio, took care of our projected spending needs with secure funds and left the rest to grow long term for any unexpected expenses down the road, all more or less in accordance with William Bernstein’s advice in his excellent series of books on retirement planning

CedarWaxWing
Posts: 628
Joined: Sun Nov 02, 2014 12:24 pm

Re: What will you do when you find you have more money than expected?

Post by CedarWaxWing » Tue Sep 04, 2018 4:34 pm

2

Get in the habit of doing more conversions of Roths to the top of the current income tax bracket.

User avatar
HomerJ
Posts: 11838
Joined: Fri Jun 06, 2008 12:50 pm

Re: What will you do when you find you have more money than expected?

Post by HomerJ » Tue Sep 04, 2018 5:29 pm

Pay for my grandkids college.

Fly business class.

Take the whole extended family on vacations (but they can all ride back in coach).

If the portfolio is STILL growing past that, and I'm pretty old, start giving it away to charities and the kids BEFORE I die.
The J stands for Jay

H-Town
Posts: 1272
Joined: Sun Feb 26, 2017 2:08 pm

Re: What will you do when you find you have more money than expected?

Post by H-Town » Tue Sep 04, 2018 5:38 pm

flyingaway wrote:
Mon Sep 03, 2018 10:35 pm
Before you retire, you have an estimate of your expenses (budget) in retirement and build a portfolio to support that budget. If, after a few years in retirement, due to some reasons (better than expected market returns, unused buffer, unexpected inheritance, etc.), you have more money to spend. What will you do with the additional money?
(1) Upgrade your lifestyle and spend more money; or
(2) Maintain your lifestyle (more or less), leave the additional money to children or charities?
A little bit of both but more on (1) and less on (2). It might change depends on how I feel. Mah Money, Mah Rules! :twisted:

flyingaway
Posts: 1915
Joined: Fri Jan 17, 2014 10:19 am

Re: What will you do when you find you have more money than expected?

Post by flyingaway » Wed Sep 05, 2018 9:11 am

HomerJ wrote:
Tue Sep 04, 2018 5:29 pm
Pay for my grandkids college.

Fly business class.

Take the whole extended family on vacations (but they can all ride back in coach).

If the portfolio is STILL growing past that, and I'm pretty old, start giving it away to charities and the kids BEFORE I die.
I also like to give the money to the kids before I die, the problem is that I do not know when I will die. It is unlikely that I can get back the money that I already give out, if later I find that I need it.

User avatar
House Blend
Posts: 4501
Joined: Fri May 04, 2007 1:02 pm

Re: What will you do when you find you have more money than expected?

Post by House Blend » Wed Sep 05, 2018 9:25 am

The Barenaked Ladies have this all figured out.

Among their suggestions:
* switch to Dijon Ketchup
* buy her a fur coat (but not a realfurcoat that's cruel)

User avatar
El Greco
Posts: 305
Joined: Tue Aug 23, 2016 2:21 pm

Re: What will you do when you find you have more money than expected?

Post by El Greco » Wed Sep 05, 2018 9:33 am

Dance!

jdb
Posts: 1485
Joined: Wed Dec 05, 2012 8:21 pm

Re: What will you do when you find you have more money than expected?

Post by jdb » Wed Sep 05, 2018 10:50 am

Just mailed 9 envelopes this morning each addressed to charities, each containing a QCD check. And spoke with my Vanguard rep to order two more checks to charities. And mentioned to my wife this morning that was not easy giving away money to charities, need to do due diligence to make sure worthy. So yes, my RMD all going to QCDs. Good luck.

PinotGris
Posts: 547
Joined: Tue Feb 14, 2012 9:38 pm

Re: What will you do when you find you have more money than expected?

Post by PinotGris » Wed Sep 05, 2018 11:10 am

HIinvestor wrote:
Mon Sep 03, 2018 10:51 pm
So far, we have used this money to travel, support a relative who has chronic health issues and help max-fund another relative’s Roth IRA via Backdoor Roth IRA contributions, as well as invest in his company via a significant gift. The rest of the extra funds we save.

We are happy and surprised to be more financially comfortable than expected.
Can you explain this a bit more? Is it merely you withdraw from your Traditional IRA, pay the taxes, and then deposit the funds into your relative's Roth? We fund my son's Roth currently by transferring our appreciated stock to his account.
Thanks

jehovasfitness
Posts: 553
Joined: Mon Jan 22, 2018 2:26 pm

Re: What will you do when you find you have more money than expected?

Post by jehovasfitness » Wed Sep 05, 2018 11:37 am

RickBoglehead wrote:
Tue Sep 04, 2018 2:45 pm
Hookers and blow...

i said the same thing in another thread and got a board warning LOL
:sharebeer

michaeljc70
Posts: 3746
Joined: Thu Oct 15, 2015 3:53 pm

Re: What will you do when you find you have more money than expected?

Post by michaeljc70 » Thu Sep 06, 2018 10:10 am

Definitely spend more. Due to retiring early (40s), my projected spending is a little lower than I'd like. A windfall or good investment returns would maybe give me a couple extra vacations a year and the ability to go away for the winter. I don't have much desire to spend more on cars, clothes, furniture, etc. (material things).

wootwoot
Posts: 181
Joined: Tue Jan 27, 2009 7:37 pm

Re: What will you do when you find you have more money than expected?

Post by wootwoot » Thu Sep 06, 2018 10:27 am

Count your blessings.

RadAudit
Posts: 3058
Joined: Mon May 26, 2008 10:20 am
Location: Second star on the right and straight on 'til morning

Re: What will you do when you find you have more money than expected?

Post by RadAudit » Thu Sep 06, 2018 11:39 am

After eight years in to retirement I'd just obsess over whether or not I will have enough for future known and unknown unknowns.
FI is the best revenge. LBYM. Invest the rest. Stay the course. - PS: The Calvary isn't coming, kids. You are on your own.

shell921
Posts: 142
Joined: Fri Jul 06, 2018 5:13 pm

Re: What will you do when you find you have more money than expected?

Post by shell921 » Thu Sep 06, 2018 11:56 am

RadAudit wrote:
Thu Sep 06, 2018 11:39 am
After eight years in to retirement I'd just obsess over whether or not I will have enough for future known and unknown unknowns.
:happy

2015
Posts: 2080
Joined: Mon Feb 10, 2014 2:32 pm

Re: What will you do when you find you have more money than expected?

Post by 2015 » Fri Sep 07, 2018 11:04 am

RadAudit wrote:
Thu Sep 06, 2018 11:39 am
After eight years in to retirement I'd just obsess over whether or not I will have enough for future known and unknown unknowns.
This.
Risk is what happens after you've accounted for everything else.

Wilderness Librarian
Posts: 70
Joined: Sat Jun 23, 2018 8:50 pm
Location: Idaho

Re: What will you do when you find you have more money than expected?

Post by Wilderness Librarian » Fri Sep 07, 2018 12:47 pm

A few years back I would have said unquestionably #2. Now my answer is more complex. Single no kids (like it that way) I bought LTCI while in mid50s and annuitized TIAA Traditional at retirement and will delay SS until 70 (these two will more than cover basic living expenses). I have no incentive or desire to leave much cash behind but I do want enough to handle unexpected (which I hopefully already have in form of I-bond). So I would go for a modified #1 possibly annutizing another batch of TIAA spend it on travel and vigorous outdoor activities while I had the health to do so and medical after that.

My feelings are partially generated by seeing my parents pass away and while grateful for inheritance wish they had spent more on themselves. As for accumulation / deaccumulation I am doing both right now. I am still getting rid of some of my parents stuff and mine from previous years and adding what I plan to use in retirement that I did not have time for before. As for #3 - I have already done that. Did a lot for my parents in their final years and after kept the family house in my name and had relatives stay in it rent free until I could afford to retire and move back in.

brennok
Posts: 189
Joined: Wed Jun 01, 2016 10:18 pm

Re: What will you do when you find you have more money than expected?

Post by brennok » Fri Sep 07, 2018 10:52 pm

It depends on how much more money we are discussing.

If my net worth has doubled, probably not much different. If my net worth has gone up by a factor of 10 or more, I would definitely do 1.

It would have to jump to a point I didn't feel I would ever be at risk of going broke before I would significantly change my habits.

User avatar
Prokofiev
Posts: 950
Joined: Mon Feb 19, 2007 9:45 pm
Location: New Orleans

Re: What will you do when you find you have more money than expected?

Post by Prokofiev » Sat Sep 08, 2018 1:54 am

What I have done being in this position myself, is reduce risk in my portfolio. I no longer need to get 3-6% real from my investments and I have learned to value the stability of an inflation indexed, guaranteed income over a higher-risk, volatile stock heavy portfolio. As such, I am investing a much larger portion of my assets into a TIPS ladder and will consider possibly annuitizing some of my portfolio in the future.

Even at 0% real ROR, I am very confident in having enough to meet my future needs. My ladder averages .75% real and I have only 33% now in equities - headed for 25-30% if TIPS rates continue to rise. I will always hold a minimum core position of 25% in stocks.
Everything should be made as simple as possible, but not simpler - Einstein

Momus
Posts: 538
Joined: Tue Feb 21, 2012 9:23 pm

Re: What will you do when you find you have more money than expected?

Post by Momus » Sat Sep 08, 2018 2:01 am

Order take out every damn day... 2x/day. Heck, use Uber eat to deliver it straight to me.

Yes, I have a small goal since I can't even do that.

User avatar
wander
Posts: 2555
Joined: Sat Oct 04, 2008 9:10 am

Re: What will you do when you find you have more money than expected?

Post by wander » Sat Sep 08, 2018 12:44 pm

flyingaway wrote:
Mon Sep 03, 2018 10:35 pm
(1) Upgrade your lifestyle and spend more money; or
(2) Maintain your lifestyle (more or less), leave the additional money to children or charities?
We can do both!

Post Reply