For those retired at least 10 years, what about the money?

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flyingaway
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For those retired at least 10 years, what about the money?

Post by flyingaway » Sat Dec 09, 2017 10:56 am

For those retired at least 10 years, in your early or middle 70s, and if you find you have much more than what you planned in your portfolio, due to the current bull market, what do you plan to do with the extra money?

Blowing it away (on what), telling your children that they are lucky, donating to the charities, or other ways?

(Retirement planning is really tough, you have to worry about both insufficiency and extra-sufficiency.)

Dandy
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Re: For those retired at least 10 years, what about the money?

Post by Dandy » Sat Dec 09, 2017 12:55 pm

I was forced to retire in 2008 so I almost qualify. It was quite scary to retire then and I saw my nest egg for from pretty sure I have enough to maybe I don't. Jobs weren't available especially for a 60 year old, etc., etc. Luckily the great bull market along with a pension has enabled my moderate allocation of less than 50% equities to grow to almost double what it was a the low point despite withdrawals for 10 years waiting to reach age 70 - next month.

My children are hard working as are their spouses and we all live in a high cost of living area. We met with them to go over our financials and decided to gift them a nice sum each year -- about 80% of my RMD after taxes. We called it early inheritance. Plan to take the RMD in early January and kick off the process. We wanted to reduce their stress, see them and our grandchildren enjoy life a bit more but not endanger our own financial situation.

Each year we expect to meet and go over our finances with them - so they can be assured we are ok financially and mentally. This was hard for me since I never discussed our finances with anyone before. But we feel good about the decision.

obgraham
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Re: For those retired at least 10 years, what about the money?

Post by obgraham » Sat Dec 09, 2017 12:58 pm

No change in my plans. Markets go up and markets go down. We stay the course.

Sure, I'm happier when it goes up, and I moaned a lot in 2008.

We're living okay in retirement, now 17 years in, and net worth is close to the same now as when we retired. Can't complain about that.

Always passive
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Re: For those retired at least 10 years, what about the money?

Post by Always passive » Sat Dec 09, 2017 1:13 pm

I retired late 2003 and even with the crisis of 2008 and never more than 40% in equity, I have been able to help my daughter buy a nice place after she got married, and although both, she and her husband make decent money, I often spoil them and the grand children. This winter I am taking my son in law and the 6 year grand daughter skiing, she for the first time, to Italy. That is what I do with the extra money and I love it!

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Re: For those retired at least 10 years, what about the money?

Post by RadAudit » Sat Dec 09, 2017 1:40 pm

Retired for about 7 years. Very early 70s.
obgraham wrote:
Sat Dec 09, 2017 12:58 pm
No change in my plans. Markets go up and markets go down. We stay the course.
+1

Things are a little too unsettled for me just yet. DW is finishing (?) up remodeling the house. RMDs kicking in this year. Really don't know how taxes will work out this year or next. Really don't know how I'll feel during the next downturn. And, yes. I've run Taxcaster (?). And, I think my AA is OK. And, yes. I have more than 15 years in RLEs in a bond fund.

May be in a couple of years, I'll feel different.
FI is the best revenge. LBYM. Invest the rest. Stay the course. - PS: The cavalry isn't coming, kids. You are on your own.

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Re: For those retired at least 10 years, what about the money?

Post by littlebird » Sat Dec 09, 2017 1:41 pm

Almost 30 years in, now "blowing it" on spouse's assisted living care. Live comfortably, but don't forget: very old age is as different from early retirement as going off to college is to toddler-hood. :wink:

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praxis
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Re: For those retired at least 10 years, what about the money?

Post by praxis » Sat Dec 09, 2017 3:01 pm

obgraham wrote:
Sat Dec 09, 2017 12:58 pm
No change in my plans. Markets go up and markets go down. We stay the course.

Sure, I'm happier when it goes up, and I moaned a lot in 2008.

We're living okay in retirement, now 17 years in, and net worth is close to the same now as when we retired. Can't complain about that.
+1

12 years in, but still too early to declare I've got too much and need to change spending habits. The unknowns of health issues, long term care costs and politics affecting taxes and SS keep me conservative in planning for our future. This mind set of loosening my frugal habits and splurging is so foreign to my nature I'm not doing very well at it.

I think of us as modest spenders. It's fair to wonder, with our net worth, why we don't spend more money than we do on ourselves, our kids and other options like charities. We are opening 529 funds for our two grandchildren (and we're still paying for one son's grad school) our kids will get nice checks for Christmas, we take big trips more than once a year and own a second home.

I may feel different in two years when I start receiving a SS check and an RMD check at the same time. Especially if they go into my checking account rather than straight into buying more shares. I am grateful for this bull market that has kept our balance even while withdrawing all our cash flow from our portfolio. But I don't feel like I'm a spender.

heyyou
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Re: For those retired at least 10 years, what about the money?

Post by heyyou » Sat Dec 09, 2017 3:09 pm

Retired at 55 in 2005, so the 2000 crash followed by a recovery was practice for the 2008 Crash in retirement which was more scary but bearable, waiting for the eventual recovery. Any supposedly extra money now, could easily evaporate in the next crash, or be needed if the next recovery is delayed.
..............you have to worry about both insufficiency and extra-sufficiency
Using a fixed % WD from the recent portfolio value, helps to define your discretionary spending.

Historical calculations are only a guide to the range of possibilities. Michael H. McClung showed how just a few extra tenths of a percent, unspent in the first decade of each of the few worst retirement periods, avoided going broke late in their third decades. It wasn't much, but it was, just enough to finish the 30th year. He adjusts his initial WD rate by a few tenths of a % inversely to broad stock valuations on retirement day. 2016-17 retirees might consider that.

Ron
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Re: For those retired at least 10 years, what about the money?

Post by Ron » Sat Dec 09, 2017 3:16 pm

All excess funds are put away for the future care of our adult disabled son, assuming we don't need it for our own future medical/support needs before we're gone. Since he's our only "child" and will never have grandchildren, the normal investments in the "future generations" are not within our scope.

We don't consider having any excess funds to ever "worry" about, FWIW.

That's life...

- Ron

retired recently
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Re: For those retired at least 10 years, what about the money?

Post by retired recently » Sat Dec 09, 2017 4:17 pm

I retired in 08/09 and after an initial panic associated with the financial problems at that time all is going well. I was 40 when I retired and almost 50 now. Retirement assets have almost doubled but I have a kid in college and one in high school so we live comfortably but reasonably. Markets seem high so I have prepared myself mentally for a big correction but hope it just slows down instead. My allocation has been about 60/40 stocks/bonds since 2008 and I have tried to stay in funds not individual stocks, except for some occasional trades.

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flyingaway
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Re: For those retired at least 10 years, what about the money?

Post by flyingaway » Sat Dec 09, 2017 6:03 pm

Looks like no one can be sure to have won the game until the last day.

meebers
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Re: For those retired at least 10 years, what about the money?

Post by meebers » Sat Dec 09, 2017 8:41 pm

Retired when I was 55. Only withdraw from our savings has been the RMD's. Otherwise, self sufficient as is.

RudyS
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Re: For those retired at least 10 years, what about the money?

Post by RudyS » Sat Dec 09, 2017 9:04 pm

We have quite a lot now. Ages 76 & 81. IF health holds up, the kids will have a nice inheritance. But this is actually a reserve in case of large end of life expenses. No way to know how this will play out. We are planning to enter a CCRC to try to put some control on this.

Independent
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Re: For those retired at least 10 years, what about the money?

Post by Independent » Sat Dec 09, 2017 10:07 pm

I just turned 70. I've been retired since 2006. The market had a historically bad drop soon after we retired. It's up now, but I don't trust PEs above 20. Something will change in the future. So I'm not giddy about the market.

Our planning for our own expenses worked out fine. We didn't plan on stepping up for close relatives who had severe health problems. That was serious and unexpected. I'm sure it is also very rare, but it can happen.

We still have income and assets that should be able to handle anything but the longest nursing home stays. But, I'm not feeling "rich", like I did when I first retired.

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Re: For those retired at least 10 years, what about the money?

Post by baconavocado » Sat Dec 09, 2017 11:04 pm

flyingaway wrote:
Sat Dec 09, 2017 6:03 pm
Looks like no one can be sure to have won the game until the last day.
I think the other thing these comments show is that spending habits become ingrained in early to mid-adulthood and are hard to change after that. Another way to put it is that when we're younger, things that we can buy have a larger effect on our happiness levels than when we get older, OR, when we're older, it's harder to get a jolt of pleasure by buying a new car, a luxurious vacation, or a big expensive house.

When I was in my 40s I thought, wow, it would be great to have a new Porsche. I might have been able to afford it then but didn't do it, still, kept thinking, one of these days. Now that I'm in my 50s and can surely afford it, I'm like, that doesn't appeal to me AT ALL. Anyway, I'm expecting more of those changes in the future. Hopefully I won't be one of those guys they find in a house full of trash with a couple million in the bank.

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Re: For those retired at least 10 years, what about the money?

Post by Sheepdog » Sun Dec 10, 2017 12:06 am

19 years in a good retirement with net worth growth even without a pension and with a stock allocation of only 23% since 2009. (2008 told me to lower it more.) My wife and I started 3 years ago when I was 81 to gift more to charities compared to early retirement. We are giving more to our long term charities, but we now plan each year a special much larger gift to one special agency to help a special project of theirs; for example, a new humane shelter, a new end of life hospice and a community theater expansion. In our first 3 years in retirement our donations totaled 5% of our spending. In the last 3 years our donations totaled 14.2% of our spending, most of which was funded using QCDs. (Our net worth continues to grow even with this.) We are planning to continue this trend. We are now talking about which agency's project will get the larger gift in 2018. It is a joy that we feel that we can do that.
Last edited by Sheepdog on Sun Dec 10, 2017 12:27 am, edited 1 time in total.
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Re: For those retired at least 10 years, what about the money?

Post by Dale_G » Sun Dec 10, 2017 12:24 am

flyingaway wrote:
Sat Dec 09, 2017 6:03 pm
Looks like no one can be sure to have won the game until the last day.
Well put.

I retired in October 2001. Today the invested assets are 2.5 times what they were on the date of retirement (1.8 times inflation adjusted).
baconavocado wrote:
Sat Dec 09, 2017 11:04 pm
I think the other thing these comments show is that spending habits become ingrained in early to mid-adulthood and are hard to change after that. Another way to put it is that when we're younger, things that we can buy have a larger effect on our happiness levels than when we get older, OR, when we're older, it's harder to get a jolt of pleasure by buying a new car, a luxurious vacation, or a big expensive house.
And baconavacado is also right. I'd rather pull weeds instead of shopping for a new car - and you couldn't give me a bigger/fancier house if I had to spend more than an hour to pick it out.

I hope the kids figure out how to spend it.

Dale
Volatility is my friend

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flyingaway
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Re: For those retired at least 10 years, what about the money?

Post by flyingaway » Sun Dec 10, 2017 1:28 am

baconavocado wrote:
Sat Dec 09, 2017 11:04 pm
flyingaway wrote:
Sat Dec 09, 2017 6:03 pm
Looks like no one can be sure to have won the game until the last day.
I think the other thing these comments show is that spending habits become ingrained in early to mid-adulthood and are hard to change after that. Another way to put it is that when we're younger, things that we can buy have a larger effect on our happiness levels than when we get older, OR, when we're older, it's harder to get a jolt of pleasure by buying a new car, a luxurious vacation, or a big expensive house.

When I was in my 40s I thought, wow, it would be great to have a new Porsche. I might have been able to afford it then but didn't do it, still, kept thinking, one of these days. Now that I'm in my 50s and can surely afford it, I'm like, that doesn't appeal to me AT ALL. Anyway, I'm expecting more of those changes in the future. Hopefully I won't be one of those guys they find in a house full of trash with a couple million in the bank.
I have similar feeling about cars. Although my friends have been talking about luxury cars they have these days when we are together to play cards, I am the only one who does not even own a car any more. I had my days with luxury cars, but I am now enjoying taking bus to work.

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Re: For those retired at least 10 years, what about the money?

Post by Gnirk » Sun Dec 10, 2017 1:40 am

We are in our 70’s. DH retired 11 years ago, no pension. We didn’t spend a lot before retirement and we don’t spend a lot now. 90% of our Investments are in taxable accounts and have grown, but we’re still frugal compared to our friends, and compared to what we could spend. DH is, or will be, paying for all four granddaughters college expenses ( those not covered by scholarships), and has bought or will buy each of them a good used car for their 16th birthday.

I also retired 11 years ago and have a small pension from a previous job. We are a second marriage of 20+ years, and have separate finances. He’s planning on leaving a low seven-figure legacy to each of his two adult children, one of whom will blow through it like a Hurricane. I’ve suggested a spendthrift trust for her half of his estate, but he won’t do it even though he knows it will be gone in a few years.

I’m 5 years younger, and If I outlive him, I will sell the house and either buy or rent a small condo and will use my investments to supplement my small pension. I’ll have enough to be comfortable, with perhaps some left over for my two adult children if it’s not spent on long term care.

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Re: For those retired at least 10 years, what about the money?

Post by visualguy » Sun Dec 10, 2017 2:03 am

flyingaway wrote:
Sun Dec 10, 2017 1:28 am
I have similar feeling about cars. Although my friends have been talking about luxury cars they have these days when we are together to play cards, I am the only one who does not even own a car any more. I had my days with luxury cars, but I am now enjoying taking bus to work.
Luxury/sport cars are one of those things that many people need to get out of their system, so I see people buying them in middle age, but then switching to something more frugal later because they feel it wasn't worth it. Hard to make the case for spending double or more on a 5-series or an E-Class when compared to a fully loaded Camry/Accord/etc.

I see many retired folks spending a lot of money on expensive travel, though.

Anyway, it's important not to assume that current stock market levels will remain. The market could easily drop significantly, or it could stagnate for a long time.

A big cushion is needed to deal with bad health surprises, changes in SS/Medicare/ACA/taxes, and other bad surprises that life can and does throw at you. Planning is hard in the US because new administrations feel free to make radical changes that you can't imagine happening in other western countries. If you add to that the extreme costs of health care and long-term care, you have no choice but to maintain a very large cushion, and you don't feel truly safe unless you are truly wealthy (i.e. net worth of more than a few million $).

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Re: For those retired at least 10 years, what about the money?

Post by carolinaman » Sun Dec 10, 2017 9:06 am

I am 73 and retired 7 years. I am blessed with a good pension. The pension and our SS more than cover our annual expenses. Our investment accounts have grown by 51% since retirement as we have only spent a fraction of that for remodeling and a couple of expensive maintenance issues.

As most people age, their ability and desire to spend seems to taper off. I think the lifestyle and spending habits of a lifetime become ingrained such that it becomes unnatural and uncomfortable to get really extravagant in spending. At least that is true for us. We live a comfortable lifestyle and have our indulgences though. We have also taken some very nice vacations and hope to continue that.

We expect to leave a nice inheritance to our children and grandchildren and may look to increase our charitable contributions as well. I feel a lot better about that than buying expensive luxury cars or indulging in other expensive luxuries.

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flyingaway
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Re: For those retired at least 10 years, what about the money?

Post by flyingaway » Sun Dec 10, 2017 11:35 am

visualguy wrote:
Sun Dec 10, 2017 2:03 am
A big cushion is needed to deal with bad health surprises, changes in SS/Medicare/ACA/taxes, and other bad surprises that life can and does throw at you. Planning is hard in the US because new administrations feel free to make radical changes that you can't imagine happening in other western countries. If you add to that the extreme costs of health care and long-term care, you have no choice but to maintain a very large cushion, and you don't feel truly safe unless you are truly wealthy (i.e. net worth of more than a few million $).
I definitely agree with this comment. Noone knows for sure about the future. Better with some cushion than barebone.

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Re: For those retired at least 10 years, what about the money?

Post by TonyDAntonio » Sun Dec 10, 2017 11:50 am

flyingaway wrote:
Sat Dec 09, 2017 6:03 pm
Looks like no one can be sure to have won the game until the last day.
Exactly. Unless one has a huge amount of money I've never understood the 'won the game' concept. Think it is related to the 'make god laugh by making a plan' saying.

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Re: For those retired at least 10 years, what about the money?

Post by RadAudit » Sun Dec 10, 2017 11:57 am

flyingaway wrote:
Sat Dec 09, 2017 6:03 pm
Looks like no one can be sure to have won the game until the last day.
I read once that the name of the game is not to die rich, it's not to die poor. I'm beginning to believe it.

Now, all you have to do, is figure out the magnitude and timing of end-of-life health care expenses, black swans, etc., etc. and you are home free.
FI is the best revenge. LBYM. Invest the rest. Stay the course. - PS: The cavalry isn't coming, kids. You are on your own.

larsm
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Re: For those retired at least 10 years, what about the money?

Post by larsm » Sun Dec 10, 2017 12:04 pm

littlebird wrote:
Sat Dec 09, 2017 1:41 pm
Almost 30 years in, now "blowing it" on spouse's assisted living care. Live comfortably, but don't forget: very old age is as different from early retirement as going off to college is to toddler-hood. :wink:
Care to elaborate on your analogy? Be interested in your observations, particularly any surprises that hit you along the way in later years. We're over 21 years in retirement, but just hit 60 mile marker. So observations/surprises in second half of retirement would be of interest...

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Re: For those retired at least 10 years, what about the money?

Post by OrganicFarmer » Sun Dec 10, 2017 3:57 pm

I retired in 2001. I have a military pension. My previous investments had been entirely in apartment complexes, we cashed out those properties and used that capital to buy land in a remote rural part of Maine, where we have built an off-grid farmhouse.

Now we do pretty well on my pension and a small farm income. Our taxable income is low, and yet 75% of it is disposable income.

Last year my in-laws passed away and we got $800k inheritance that was a combination of 401k and life insurance policies. We have decided to put all of it into refurbishing an apartment complex near our farm.

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Re: For those retired at least 10 years, what about the money?

Post by flyingaway » Mon Dec 11, 2017 9:26 am

OrganicFarmer wrote:
Sun Dec 10, 2017 3:57 pm
I retired in 2001. I have a military pension. My previous investments had been entirely in apartment complexes, we cashed out those properties and used that capital to buy land in a remote rural part of Maine, where we have built an off-grid farmhouse.

Now we do pretty well on my pension and a small farm income. Our taxable income is low, and yet 75% of it is disposable income.

Last year my in-laws passed away and we got $800k inheritance that was a combination of 401k and life insurance policies. We have decided to put all of it into refurbishing an apartment complex near our farm.
That would be a really tough project for me in retirement. I have a friend doing similar things, but before retirement.

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Re: For those retired at least 10 years, what about the money?

Post by btenny » Mon Dec 11, 2017 9:44 am

Now retired 18 years and will be starting RMDs soon. We have more now than when we retired. We spend about 3% to 4% of our money and live comfortably. I guess we will leave some to our charities and some $$$ to our kids unless some major issue occurs. I have mixed feelings about giving my kids a big amount. Both are independent and doing OK but not saving much for various reasons. So I guess they could use the money. But who knows how that will work out. I do know that I am thinking (no action at this time) about moving from 38/72 stocks/bonds to something like 50/50 or even 60/40 as I get older.

Good Luck.

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flyingaway
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Re: For those retired at least 10 years, what about the money?

Post by flyingaway » Mon Dec 11, 2017 10:40 am

btenny wrote:
Mon Dec 11, 2017 9:44 am
Now retired 18 years and will be starting RMDs soon. We have more now than when we retired. We spend about 3% to 4% of our money and live comfortably. I guess we will leave some to our charities and some $$$ to our kids unless some major issue occurs. I have mixed feelings about giving my kids a big amount. Both are independent and doing OK but not saving much for various reasons. So I guess they could use the money. But who knows how that will work out. I do know that I am thinking (no action at this time) about moving from 38/72 stocks/bonds to something like 50/50 or even 60/40 as I get older.

Good Luck.
More is better for the left-over money?

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flyingaway
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Re: For those retired at least 10 years, what about the money?

Post by flyingaway » Mon Dec 11, 2017 10:43 am

RadAudit wrote:
Sun Dec 10, 2017 11:57 am
flyingaway wrote:
Sat Dec 09, 2017 6:03 pm
Looks like no one can be sure to have won the game until the last day.
I read once that the name of the game is not to die rich, it's not to die poor. I'm beginning to believe it.

Now, all you have to do, is figure out the magnitude and timing of end-of-life health care expenses, black swans, etc., etc. and you are home free.
I was thinking today, based on my parents' current situations, that after 75, exactly what kind of life does not matter that much any more. If you want to enjoy your life, do it before 70, better before 65.

likegarden
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Re: For those retired at least 10 years, what about the money?

Post by likegarden » Mon Dec 11, 2017 11:12 am

I am getting Social Security for the last 12 years, wife for 7 years. I also get a pension which is not adjusted for inflation, therefore low inflation over the last years helped. It also helped that we are not big spenders, though bought 2 new cars over the last 4 years. We use an RMD from an IRA to pay for some expenses. We also pay everyday expenses for a son and grandson. Life is good financially.

btenny
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Re: For those retired at least 10 years, what about the money?

Post by btenny » Mon Dec 11, 2017 11:13 am

Wow you guys need to meet some robust oldsters. One friend is 96 and several others are 75 plus. They all ski 100 days or more every winter. Many times they ride the first chair. See below.

https://www.tahoedailytribune.com/news/ ... after-him/
http://70plusskiclub.org/
https://www.youtube.com/watch?v=yR-OX_KiFdY

Then there is the governor of California, Jerry Brown. He is going strong at 79. See below.

https://en.wikipedia.org/wiki/Jerry_Brown

So do not slow down and think positive.

Good Luck.

TheNightsToCome
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Re: For those retired at least 10 years, what about the money?

Post by TheNightsToCome » Mon Dec 11, 2017 11:17 am

flyingaway wrote:
Mon Dec 11, 2017 10:43 am
RadAudit wrote:
Sun Dec 10, 2017 11:57 am
flyingaway wrote:
Sat Dec 09, 2017 6:03 pm
Looks like no one can be sure to have won the game until the last day.
I read once that the name of the game is not to die rich, it's not to die poor. I'm beginning to believe it.

Now, all you have to do, is figure out the magnitude and timing of end-of-life health care expenses, black swans, etc., etc. and you are home free.
I was thinking today, based on my parents' current situations, that after 75, exactly what kind of life does not matter that much any more. If you want to enjoy your life, do it before 70, better before 65.
Why do you say this? My parents are 78 and have a very happy, full life.

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flyingaway
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Re: For those retired at least 10 years, what about the money?

Post by flyingaway » Mon Dec 11, 2017 11:26 am

TheNightsToCome wrote:
Mon Dec 11, 2017 11:17 am
flyingaway wrote:
Mon Dec 11, 2017 10:43 am
RadAudit wrote:
Sun Dec 10, 2017 11:57 am
flyingaway wrote:
Sat Dec 09, 2017 6:03 pm
Looks like no one can be sure to have won the game until the last day.
I read once that the name of the game is not to die rich, it's not to die poor. I'm beginning to believe it.

Now, all you have to do, is figure out the magnitude and timing of end-of-life health care expenses, black swans, etc., etc. and you are home free.
I was thinking today, based on my parents' current situations, that after 75, exactly what kind of life does not matter that much any more. If you want to enjoy your life, do it before 70, better before 65.
Why do you say this? My parents are 78 and have a very happy, full life.
My mother will be 80 next year and has minor dementia. She just spent a month in hospital and is confined in bed at least for the near future with multiple health problems. My father will be 86 in a few months and has high blood pressure and other minor problems. He has never left his hometown after retiring at 59 (he does not like travel).

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Re: For those retired at least 10 years, what about the money?

Post by littlebird » Mon Dec 11, 2017 11:28 am

larsm wrote:
Sun Dec 10, 2017 12:04 pm
littlebird wrote:
Sat Dec 09, 2017 1:41 pm
Almost 30 years in, now "blowing it" on spouse's assisted living care. Live comfortably, but don't forget: very old age is as different from early retirement as going off to college is to toddler-hood. :wink:
Care to elaborate on your analogy? Be interested in your observations, particularly any surprises that hit you along the way in later years. We're over 21 years in retirement, but just hit 60 mile marker. So observations/surprises in second half of retirement would be of interest...
The only surprises that stand out to me are the happy one of how our assets have increased through the retirement years, but that's certainly a function of the economy in the last 30 years, particularly very low inflation, and our personal style of living and spending; certainly not a general rule to be counted on.

The other surprise, less pleasant, although it should have been perfectly obvious, is the inexorable degeneration of the aging body and mind throughout the years from about 65 on. Yes, I know, many intrepid retirees are still hiking the Himalayas into their mid 80's, but -- don't count on it. The sometimes insidious, sometimes startling, changes from early 60's to late 80's and beyond, although different for each individual, affect every aspect of life, and are just as life-transforming as the changes through childhood, which we are all much more familiar with. So, "Make hay while the sun shines".

btenny
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Re: For those retired at least 10 years, what about the money?

Post by btenny » Mon Dec 11, 2017 11:40 am

The recent advent of joint replacement technology has created a ton of robust oldster who ride and play a lot in really old age. I know that back in the 1980s and before if you got a bad hip or bad knee you just lived with the pain and did not move around as much. So then they did not move around and that caused other issues. Now us oldsters just go to the doctor and get a new knee or hip and do some rehab and we are good to go again for many years. I know first hand tons of oldster with new knees or hips that have made them a new life. It is really wonderful technology.

Same for heart stents and modern cancer cures. They hold off lots of health issues. It really is great how these new technologies have made being older OK and fun.

Good Luck.

DrGoogle2017
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Re: For those retired at least 10 years, what about the money?

Post by DrGoogle2017 » Mon Dec 11, 2017 11:49 am

flyingaway wrote:
Mon Dec 11, 2017 11:26 am
TheNightsToCome wrote:
Mon Dec 11, 2017 11:17 am
flyingaway wrote:
Mon Dec 11, 2017 10:43 am
RadAudit wrote:
Sun Dec 10, 2017 11:57 am
flyingaway wrote:
Sat Dec 09, 2017 6:03 pm
Looks like no one can be sure to have won the game until the last day.
I read once that the name of the game is not to die rich, it's not to die poor. I'm beginning to believe it.

Now, all you have to do, is figure out the magnitude and timing of end-of-life health care expenses, black swans, etc., etc. and you are home free.
I was thinking today, based on my parents' current situations, that after 75, exactly what kind of life does not matter that much any more. If you want to enjoy your life, do it before 70, better before 65.
Why do you say this? My parents are 78 and have a very happy, full life.
My mother will be 80 next year and has minor dementia. She just spent a month in hospital and is confined in bed at least for the near future with multiple health problems. My father will be 86 in a few months and has high blood pressure and other minor problems. He has never left his hometown after retiring at 59 (he does not like travel).
I agree with you. My in-laws lived until 86 and 91, they didn’t travel after age 70. My MIL was a brisk walker, I was no match for her even in my early 40s.
This is why I want to do international travel as much as I can, then just US travel, then just in state, then just local drive. You got to know your limits.

DrGoogle2017
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Re: For those retired at least 10 years, what about the money?

Post by DrGoogle2017 » Mon Dec 11, 2017 11:53 am

btenny wrote:
Mon Dec 11, 2017 11:40 am
The recent advent of joint replacement technology has created a ton of robust oldster who ride and play a lot in really old age. I know that back in the 1980s and before if you got a bad hip or bad knee you just lived with the pain and did not move around as much. So then they did not move around and that caused other issues. Now us oldsters just go to the doctor and get a new knee or hip and do some rehab and we are good to go again for many years. I know first hand tons of oldster with new knees or hips that have made them a new life. It is really wonderful technology.

Same for heart stents and modern cancer cures. They hold off lots of health issues. It really is great how these new technologies have made being older OK and fun.

Good Luck.
My in-laws did not have any of those problem and they didn’t travel either after age 70. They were brisk walkers, did plenty of travel when they were younger. I don’t like people to think it’s normal to go skiing or bungee jumping(like George Bush Sr) either.
However they did play low impact activities like ballroom dancing and cricket. They never been to the hospital for any major problem, maybe given birth was one time, the other time the birth was at home. They only used the hospital near end of life.

TheNightsToCome
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Re: For those retired at least 10 years, what about the money?

Post by TheNightsToCome » Mon Dec 11, 2017 11:59 am

flyingaway wrote:
Mon Dec 11, 2017 11:26 am
TheNightsToCome wrote:
Mon Dec 11, 2017 11:17 am
flyingaway wrote:
Mon Dec 11, 2017 10:43 am
RadAudit wrote:
Sun Dec 10, 2017 11:57 am
flyingaway wrote:
Sat Dec 09, 2017 6:03 pm
Looks like no one can be sure to have won the game until the last day.
I read once that the name of the game is not to die rich, it's not to die poor. I'm beginning to believe it.

Now, all you have to do, is figure out the magnitude and timing of end-of-life health care expenses, black swans, etc., etc. and you are home free.
I was thinking today, based on my parents' current situations, that after 75, exactly what kind of life does not matter that much any more. If you want to enjoy your life, do it before 70, better before 65.
Why do you say this? My parents are 78 and have a very happy, full life.
My mother will be 80 next year and has minor dementia. She just spent a month in hospital and is confined in bed at least for the near future with multiple health problems. My father will be 86 in a few months and has high blood pressure and other minor problems. He has never left his hometown after retiring at 59 (he does not like travel).
Health problems are very limiting, and they are more likely at older ages, but one can still have good health and a fulfilling life beyond 65, 70, or 75. I agree it's best not to take good health for granted, whether that is for next year or 20 years from now.

However, I don't like to travel either. Trust me, that isn't a tragedy.

rgs92
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Re: For those retired at least 10 years, what about the money?

Post by rgs92 » Mon Dec 11, 2017 12:06 pm

The problem with those cheap cars like Camry and the like is that they are awfully uncomfortable and cramped and seem to be getting smaller to the point where they are impossible to sit in (for me at least).

As I get older, comfort is a paramount concern and I find a a larger and more expensive car is a necessity, and it has nothing to do with vanity or proving anything.

It's torture to sit in a drive one of these new cars that seem to all be designed for someone of very small stature.

Northster
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Re: For those retired at least 10 years, what about the money?

Post by Northster » Mon Dec 11, 2017 12:16 pm

Faced with leaving a large sum as an inheritance, likely when the recipients are middle-aged and may have already put a child through college I have decided to gift some of the money now when they need it more. It won't make a big dent in the final total but I think will have a more beneficial effect now than later.

AlwaysaQ
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Re: For those retired at least 10 years, what about the money?

Post by AlwaysaQ » Mon Dec 11, 2017 1:23 pm

It is hard to give it away when you are not sure if you will need it. I have no children so my nieces and nephews are my heirs. I don't want to have to go begging to them because I gave too much away.

I'm doing ok finishing up 22 years of retirement but have home improvements and planned health expenses in the budget for next year.

btenny
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Re: For those retired at least 10 years, what about the money?

Post by btenny » Mon Dec 11, 2017 1:25 pm

Northster. I really want to understand your plans and your motives. I have been having similar thoughts. How do you think giving your kids some money at middle age will effect there desire to work hard and save? Are they going to buy a bigger house? A better car? Or just go on a nice vacation? Do you see that as reducing their drive or just helping them have a better life? Are your kids likely to receive $$ help from their spouses side or at their in laws passing? How does this figure into your thoughts and plans?

Good Luck.

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flyingaway
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Re: For those retired at least 10 years, what about the money?

Post by flyingaway » Mon Dec 11, 2017 1:55 pm

AlwaysaQ wrote:
Mon Dec 11, 2017 1:23 pm
It is hard to give it away when you are not sure if you will need it. I have no children so my nieces and nephews are my heirs. I don't want to have to go begging to them because I gave too much away.

I'm doing ok finishing up 22 years of retirement but have home improvements and planned health expenses in the budget for next year.
Northster wrote:
Mon Dec 11, 2017 12:16 pm
Faced with leaving a large sum as an inheritance, likely when the recipients are middle-aged and may have already put a child through college I have decided to gift some of the money now when they need it more. It won't make a big dent in the final total but I think will have a more beneficial effect now than later.
It is difficult to decide if I have enough in my 50s, that is why I would like to know if it would be easier to know in 70s. I guess if you have two times (50X annual expenses?) what you need at 70s, you know you have enough.

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Dale_G
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Re: For those retired at least 10 years, what about the money?

Post by Dale_G » Mon Dec 18, 2017 12:09 am

I have well more than enough. I make only minimal gifts to the heirs. They have enough of their own, are in the same tax bracket and wouldn't spend additional gifts anyway. From the family wealth perspective it is better that they get it later with a stepped up basis.

But overall, it requires time and energy to spend money beyond the everyday living stuff. Fine dining? No interest if I am expected to wear anything but a tee shirt and shorts/dungarees.

Dale
Volatility is my friend

zengolf2011
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Re: For those retired at least 10 years, what about the money?

Post by zengolf2011 » Mon Dec 18, 2017 8:14 am

littlebird wrote:
Sat Dec 09, 2017 1:41 pm
Almost 30 years in, now "blowing it" on spouse's assisted living care. Live comfortably, but don't forget: very old age is as different from early retirement as going off to college is to toddler-hood. :wink:
Helpful comment, thank you and good luck. I'm ten years into retirement (71 y.o.). All's well so far, thanks to great equities growth with low volatility after a breathtaking start. Remember 2008? I was heavily in equities! I bought after the drop, so things have worked out fine, but I realize I dodged a bullet. I remain mindful that things could have worked out much differently, and thankful for the life I have. I appreciate the benefits of a balanced portfolio now.

zengolf2011
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Re: For those retired at least 10 years, what about the money?

Post by zengolf2011 » Mon Dec 18, 2017 8:51 am

zengolf2011 wrote:
Mon Dec 18, 2017 8:14 am
littlebird wrote:
Sat Dec 09, 2017 1:41 pm
Almost 30 years in, now "blowing it" on spouse's assisted living care. Live comfortably, but don't forget: very old age is as different from early retirement as going off to college is to toddler-hood. :wink:
Helpful comment, thank you and good luck. I'm ten years into retirement (71 y.o.). All's well so far, thanks to great equities growth with low volatility after a breathtaking start. Remember 2008? I was heavily in equities! I bought after the drop, so things have worked out fine, but I realize I dodged a bullet. I remain mindful that things could have worked out much differently, and thankful for the life I have. I appreciate the benefits of a balanced portfolio now.
Just realized I didn't respond to the point of the OP! DW & I have pretty simple tastes, but we don't hesitate to spend for things that enrich our lives. Every day is a gift! And I use the rest of the money to try to provide well for her when I'm gone.

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tennisplyr
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Re: For those retired at least 10 years, what about the money?

Post by tennisplyr » Mon Dec 18, 2017 8:51 am

Retired almost 7 years and in my mid-sixties. Just starting to think about "will I really need all of this". Since I'm a cheapskate, it's really difficult for me to spend in general. I think I'm going to try to pick up speed on using it, it's going to be a challenge!
Those who move forward with a happy spirit will find that things always work out.

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