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
inbox788
Posts: 5400
Joined: Thu Mar 15, 2012 5:24 pm

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

Post by inbox788 » Sat Sep 08, 2018 2:43 pm

drawpoker wrote:
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.
You can say that again!

I'm also at that stage where getting rid of stuff that's been accumulated over the years is a higher priority. However, I haven't reached the stage where I've accumulated too much cash to get rid of yet. I'm getting rid of stuff, but I'm keeping some of that cash to get back any stuff I shouldn't have gotten rid of yet.

OP, #1 for now.

RudyS
Posts: 1261
Joined: Tue Oct 27, 2015 10:11 am

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

Post by RudyS » Sun Sep 09, 2018 10:35 am

drawpoker wrote:
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.
same for me.

flyingaway
Posts: 1873
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 » Sun Sep 09, 2018 11:45 am

inbox788 wrote:
Sat Sep 08, 2018 2:43 pm
drawpoker wrote:
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.
You can say that again!

I'm also at that stage where getting rid of stuff that's been accumulated over the years is a higher priority. However, I haven't reached the stage where I've accumulated too much cash to get rid of yet. I'm getting rid of stuff, but I'm keeping some of that cash to get back any stuff I shouldn't have gotten rid of yet.

OP, #1 for now.
I have told my wife do not buy anything durable anymore.

User avatar
aspirit
Posts: 139
Joined: Wed Jan 03, 2018 12:52 am
Location: Bos/Mia-south

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

Post by aspirit » Sun Sep 09, 2018 12:41 pm

With new and ever improved medical treatments in the pipeline as well as LTC concerns and associated expenses for the well healed costing over 100k annually I suspect few have more money than necessary. Lets be realistic, not fool-hearty .
Time & tides wait for no one. A man has to know his limitations.

User avatar
DanMahowny
Posts: 476
Joined: Sun Aug 06, 2017 8:25 pm

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

Post by DanMahowny » Sun Sep 09, 2018 12:55 pm

interesting thread. We're in this spot right now.

Leaning toward buying some land, and building a house. But not sure.

Don't have much interest leaving money to kids or charity. If we don't increase spending, we'll probably dump money into lifetime annuity instead of give it away.
Funding secured

flyingaway
Posts: 1873
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 » Sun Sep 09, 2018 1:02 pm

aspirit wrote:
Sun Sep 09, 2018 12:41 pm
With new and ever improved medical treatments in the pipeline as well as LTC concerns and associated expenses for the well healed costing over 100k annually I suspect few have more money than necessary. Lets be realistic, not fool-hearty .
+1
There might be a $1MM shot in the future that could make someone 20 years younger.

mirror
Posts: 111
Joined: Mon Jan 26, 2015 11:24 pm

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

Post by mirror » Sun Sep 09, 2018 1:07 pm

#1.
I'm with Saul on this one, I want the last check I ever write to bounce.
https://m.youtube.com/watch?v=fwqW1laFbg0

EnjoyIt
Posts: 1545
Joined: Sun Dec 29, 2013 8:06 pm

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

Post by EnjoyIt » Sun Sep 09, 2018 1:23 pm

aspirit wrote:
Sun Sep 09, 2018 12:41 pm
With new and ever improved medical treatments in the pipeline as well as LTC concerns and associated expenses for the well healed costing over 100k annually I suspect few have more money than necessary. Lets be realistic, not fool-hearty .
With the overly pessimistic withdrawal rates of 3% or less most people will have way more money than they need in retirement and will be making some heir very rich. Lets be realistic and not waste opportunity.

Even with 4% withdrawal rates about half the people historically end up with a lot more money than they started. Even if 4% is overly optimistic we can say 25% of us who retire will have more money than they started and very likely should be able to spend more. The reality is that as long as we are flexible in our spending and not retiring on a very tight budget, over the years we will likely spend less when the markets are doing poorly. Even if we don't plan on spending less our emotions and our brains will curtail spending. That alone will almost guarantee one's wealth to rise over the years which should allow for some small lifestyle creep as well. This is our plan.

btenny
Posts: 4499
Joined: Sun Oct 07, 2007 6:47 pm

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

Post by btenny » Sun Sep 09, 2018 1:28 pm

We have been retired a long time and had good luck and ok health. Did good sized QCDs to three charities this year due to our good fortune. Plan to repeat this every year. Also took a big cruise for fun. Now my wife wants a luxury car or suv. But I am moving slow as I want to leave some to our kids down the line. Plus new cars seem way over priced but that is another post.

Good luck.

gretah
Posts: 150
Joined: Wed Apr 20, 2016 11:14 pm

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

Post by gretah » Sun Sep 09, 2018 8:06 pm

#3 Put more money into my passive income stream

delamer
Posts: 5818
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 » Sun Sep 09, 2018 9:40 pm

btenny wrote:
Sun Sep 09, 2018 1:28 pm
We have been retired a long time and had good luck and ok health. Did good sized QCDs to three charities this year due to our good fortune. Plan to repeat this every year. Also took a big cruise for fun. Now my wife wants a luxury car or suv. But I am moving slow as I want to leave some to our kids down the line. Plus new cars seem way over priced but that is another post.

Good luck.
Why not gift money to your kids now?

The Wizard
Posts: 12160
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 » Sun Sep 09, 2018 9:42 pm

delamer wrote:
Sun Sep 09, 2018 9:40 pm
btenny wrote:
Sun Sep 09, 2018 1:28 pm
We have been retired a long time and had good luck and ok health. Did good sized QCDs to three charities this year due to our good fortune. Plan to repeat this every year. Also took a big cruise for fun. Now my wife wants a luxury car or suv. But I am moving slow as I want to leave some to our kids down the line. Plus new cars seem way over priced but that is another post.

Good luck.
Why not gift money to your kids now?
I do something like that, to a limited degree, helping pay off his obnoxious educational loan...
Attempted new signature...

delamer
Posts: 5818
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 » Sun Sep 09, 2018 9:53 pm

The Wizard wrote:
Sun Sep 09, 2018 9:42 pm
delamer wrote:
Sun Sep 09, 2018 9:40 pm
btenny wrote:
Sun Sep 09, 2018 1:28 pm
We have been retired a long time and had good luck and ok health. Did good sized QCDs to three charities this year due to our good fortune. Plan to repeat this every year. Also took a big cruise for fun. Now my wife wants a luxury car or suv. But I am moving slow as I want to leave some to our kids down the line. Plus new cars seem way over priced but that is another post.

Good luck.
Why not gift money to your kids now?
I do something like that, to a limited degree, helping pay off his obnoxious educational loan...
Right. If you’ve had good fortune, why not help your kids out in their younger years rather than making them wait for a large inheritance that they will get maybe when they’ve retired themselves?

Dottie57
Posts: 4285
Joined: Thu May 19, 2016 5:43 pm

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

Post by Dottie57 » Sun Sep 09, 2018 10:19 pm

Toons wrote:
Tue Sep 04, 2018 2:57 pm
Buy what we desire
Leave what is left to family and charity.
:happy
+1.

Dottie57
Posts: 4285
Joined: Thu May 19, 2016 5:43 pm

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

Post by Dottie57 » Sun Sep 09, 2018 10:21 pm

delamer wrote:
Sun Sep 09, 2018 9:40 pm
btenny wrote:
Sun Sep 09, 2018 1:28 pm
We have been retired a long time and had good luck and ok health. Did good sized QCDs to three charities this year due to our good fortune. Plan to repeat this every year. Also took a big cruise for fun. Now my wife wants a luxury car or suv. But I am moving slow as I want to leave some to our kids down the line. Plus new cars seem way over priced but that is another post.

Good luck.
Why not gift money to your kids now?
+1

SQRT
Posts: 853
Joined: Sat Feb 05, 2011 9:44 am

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

Post by SQRT » Mon Sep 10, 2018 12:55 am

Basically, this happened to me. In the few years prior to retirement (12 years ago at age 56) my net worth doubled unexpectantly. This allowed for a much better funded retirement than we were expecting. What did we do? Mostly Increased our retirement lifestyle. But we did this gradually over several years. Bought 2 more vacation properties, spent more on travel,gave more money away. Did all of this “extra” spending well within our means.

The question you have to answer is “can I productively spend more money”. Many people would answer no but I have found many interesting,fun,and worthwhile things to spend on. Not wastefully either,at least in my opinion. I view giving money away (charities or family) as a form of spending and have given generously. Many fabulous trips where we have included family and friends at our expense.

The question of happiness and spending is complicated. One thing I do know though. We are having a lot of fun. Seem pretty happy too but I suspect that is caused by many things.

RadAudit
Posts: 3005
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 » Mon Sep 10, 2018 5:52 pm

delamer wrote:
Sun Sep 09, 2018 9:40 pm
Why not gift money to your kids now?

I'm not picking on delamer. He raises an interesting question.

I routinely give my children some relatively small amounts throughout the year for various things. (I've had bigger bar bills) But, the question I have is, at what point do you start gifting significant amounts of money to your children? How large should your portfolio be? How big of a buffer should you retain for unknowns? How old should the children be?


As an aside, if I gave any amount of money to the kids I would not expect them to take care of me or DW in case of economic reversal.
FI is the best revenge. LBYM. Invest the rest. Stay the course. - PS: The Calvary isn't coming, kids. You are on your own.

Broken Man 1999
Posts: 1382
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 » Mon Sep 10, 2018 6:06 pm

RadAudit wrote:
Mon Sep 10, 2018 5:52 pm
delamer wrote:
Sun Sep 09, 2018 9:40 pm
Why not gift money to your kids now?

I'm not picking on delamer. He raises an interesting question.

I routinely give my children some relatively small amounts throughout the year for various things. (I've had bigger bar bills) But, the question I have is, at what point do you start gifting significant amounts of money to your children? How large should your portfolio be? How big of a buffer should you retain for unknowns? How old should the children be?


As an aside, if I gave any amount of money to the kids I would not expect them to take care of me or DW in case of economic reversal.
Not knowing what our health issues could be in the future, frankly I don't feel comfortable giving any family members any large amounts of money, save what we have already done. I certainly don't want to end up being a burden on any of our children in the future.

We were generous enough getting them educated, married, and housed in their first homes. Plus shouldering a good portion of the grandchildren's education expenses.

Kinda funny, as I am turning into my father, who always told us he never wanted to be a burden on any of his children. :oops:

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

flyingaway
Posts: 1873
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 » Mon Sep 10, 2018 8:08 pm

RadAudit wrote:
Mon Sep 10, 2018 5:52 pm
delamer wrote:
Sun Sep 09, 2018 9:40 pm
Why not gift money to your kids now?

I'm not picking on delamer. He raises an interesting question.

I routinely give my children some relatively small amounts throughout the year for various things. (I've had bigger bar bills) But, the question I have is, at what point do you start gifting significant amounts of money to your children? How large should your portfolio be? How big of a buffer should you retain for unknowns? How old should the children be?


As an aside, if I gave any amount of money to the kids I would not expect them to take care of me or DW in case of economic reversal.
This is also my concern.

remomnyc
Posts: 544
Joined: Mon Jan 04, 2016 4:27 pm

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

Post by remomnyc » Mon Sep 10, 2018 8:23 pm

I retired relatively early, so I will maintain my lifestyle until I only have 30 years left to fund. Then I will start distributing the excess to family and charities each year, which is my version of lifestyle creep.

delamer
Posts: 5818
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 » Mon Sep 10, 2018 8:27 pm

RadAudit wrote:
Mon Sep 10, 2018 5:52 pm
delamer wrote:
Sun Sep 09, 2018 9:40 pm
Why not gift money to your kids now?

I'm not picking on delamer. He raises an interesting question.

I routinely give my children some relatively small amounts throughout the year for various things. (I've had bigger bar bills) But, the question I have is, at what point do you start gifting significant amounts of money to your children? How large should your portfolio be? How big of a buffer should you retain for unknowns? How old should the children be?


As an aside, if I gave any amount of money to the kids I would not expect them to take care of me or DW in case of economic reversal.
delamer, me, is not a he.

Now that I’ve clarified that...

Obviously, different people will have different comfort levels for gifting to their kids based on their personal finances.

And also, different priorities.

We wouldn’t be donating our RMDs to charities, for example, at the price of gifting our kids money for a house downpayment or contributing to a grandchild’s 529 plan or ensuring a certain level of inheritance.

We aren’t in favor of directly subsidizing our kids’ lifestyles. But, yes, since money is to some degree fungible, every dollar we contribute to a grandchild’s 529 frees a dollar that the parents can then spend on Rolexes (in theory). So you have to know your kids.

There is no one answer to how much and when to gift to kids. My preferences in part reflect that I received a large inheritance after I retired. A dollar to me at that point was much less valuable than a dollar would have been when our kids were in college.

moneywise3
Posts: 382
Joined: Mon Nov 22, 2010 6:54 pm

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

Post by moneywise3 » Mon Sep 10, 2018 9:12 pm

That would be the most desirable problem to have! I would do nothing but ask for more of it.

SQRT
Posts: 853
Joined: Sat Feb 05, 2011 9:44 am

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

Post by SQRT » Tue Sep 11, 2018 2:16 am

delamer wrote:
Mon Sep 10, 2018 8:27 pm


Obviously, different people will have different comfort levels for gifting to their kids based on their personal finances.

And also, different priorities.



There is no one answer to how much and when to gift to kids. My preferences in part reflect that I received a large inheritance after I retired. A dollar to me at that point was much less valuable than a dollar would have been when our kids were in college.
Agree. This topic was raised recently in a thread about paying for your childrens’ education. Seems to me that if you have the resources, paying for or subsidizing their education might be a good use of funds. In addition assistance with a house down payment,especially in HCOL cities might also be a good idea. We have done both as well as including them in fabulous trips, and paying initiation fees for social/athletic club.

Our gifts are designed to allow my daughter (and now son in law) to have things that would have been difficult for them to acquire on their own at their age. Seems a little suboptimal to give it to them on our demise when they are likely to be in their 60’s and have little use for the funds. We like to see the results of our generosity.

Obviously, you don’t want to create a sense of entitlement or reduce their work ethic. This has not been a problem in our case. But every family is different.

RadAudit
Posts: 3005
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 » Tue Sep 11, 2018 8:05 am

delamer wrote:
Mon Sep 10, 2018 8:27 pm
There is no one answer to how much and when to gift to kids.
I'm beginning to believe that insight. :happy
Obviously, you don’t want to create a sense of entitlement or reduce their work ethic.
Simple, not easy. Takes a lot of work to achieve that state before you get to giving money to them.

Kinda funny, as I am turning into my father, who always told us he never wanted to be a burden on any of his children.
I once read on this forum that never being a burden was one of the bigger gifts you could give to your kids.
Last edited by RadAudit on Tue Sep 11, 2018 8:12 am, edited 1 time in total.
FI is the best revenge. LBYM. Invest the rest. Stay the course. - PS: The Calvary isn't coming, kids. You are on your own.

flyingaway
Posts: 1873
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 11, 2018 8:09 am

RadAudit wrote:
Tue Sep 11, 2018 8:05 am
delamer wrote:
Mon Sep 10, 2018 8:27 pm
There is no one answer to how much and when to gift to kids.

I'm beginning to believe that insight. :happy
My elder son went to a private college and costed us a lot of money. My younger son goes to a state university. We saved the difference in a Fidelity account and invested. This money is earmarked for my younger son. But we do not plan to tell him, in case we need the money for our care. I don't know if that is fair.

SQRT
Posts: 853
Joined: Sat Feb 05, 2011 9:44 am

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

Post by SQRT » Tue Sep 11, 2018 8:26 am

RadAudit wrote:
Tue Sep 11, 2018 8:05 am

Obviously, you don’t want to create a sense of entitlement or reduce their work ethic.
Simple, not easy. Takes a lot of work to achieve that state before you get to giving money to them.
Good point. In the case of my daughter, she just seemed to be a hard working ,unentitled person from the start. Almost built in to her personality from the start, Never asked for anything. Not sure I can take much credit for this. This has certainly made it much easier for us to be generous to her.

Pigeye Brewster
Posts: 200
Joined: Thu Oct 05, 2017 7:33 pm

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

Post by Pigeye Brewster » Tue Sep 11, 2018 9:39 am

flyingaway wrote:
Tue Sep 11, 2018 8:09 am
RadAudit wrote:
Tue Sep 11, 2018 8:05 am
delamer wrote:
Mon Sep 10, 2018 8:27 pm
There is no one answer to how much and when to gift to kids.

I'm beginning to believe that insight. :happy
My elder son went to a private college and costed us a lot of money. My younger son goes to a state university. We saved the difference in a Fidelity account and invested. This money is earmarked for my younger son. But we do not plan to tell him, in case we need the money for our care. I don't know if that is fair.
It is your money, so you get to determine what is fair.

shell921
Posts: 84
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 » Tue Sep 11, 2018 10:42 am

"We like to see the results of our generosity. "


YES- I think it is called "Giving with a warm hand...."

DesertDiva
Posts: 155
Joined: Thu Mar 01, 2018 12:49 pm

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

Post by DesertDiva » Tue Sep 11, 2018 1:04 pm

mirror wrote:
Sun Sep 09, 2018 1:07 pm
#1.
I'm with Saul on this one, I want the last check I ever write to bounce.
https://m.youtube.com/watch?v=fwqW1laFbg0
I never bought into the last-check-bouncing strategy. IMHO, it assumes you know precisely when you are going to die.

I've had to advise family members that if they plan to die broke, they better have a plan B because unless they choose their expiration date ahead of time, they may live longer than they realize. A few of them have stopped to think about the implications of what they were saying.

delamer
Posts: 5818
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 11, 2018 1:09 pm

Pigeye Brewster wrote:
Tue Sep 11, 2018 9:39 am
flyingaway wrote:
Tue Sep 11, 2018 8:09 am
RadAudit wrote:
Tue Sep 11, 2018 8:05 am
delamer wrote:
Mon Sep 10, 2018 8:27 pm
There is no one answer to how much and when to gift to kids.

I'm beginning to believe that insight. :happy
My elder son went to a private college and costed us a lot of money. My younger son goes to a state university. We saved the difference in a Fidelity account and invested. This money is earmarked for my younger son. But we do not plan to tell him, in case we need the money for our care. I don't know if that is fair.
It is your money, so you get to determine what is fair.
True.

That said, our position was that we’d provide an undergraduate education at a mutually agreed upon college (meaning that we’d pay if we agreed the cost was worth it) for each kid.

But no balancing of the scales if one kid’s education was more expensive.

To me, it is like braces — if one kid needed braces and one didn’t, we wouldn’t gift the kid lucky enough to have aligned teeth any money.
Last edited by delamer on Tue Sep 11, 2018 1:11 pm, edited 1 time in total.

SQRT
Posts: 853
Joined: Sat Feb 05, 2011 9:44 am

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

Post by SQRT » Tue Sep 11, 2018 1:10 pm

DesertDiva wrote:
Tue Sep 11, 2018 1:04 pm
mirror wrote:
Sun Sep 09, 2018 1:07 pm
#1.
I'm with Saul on this one, I want the last check I ever write to bounce.
https://m.youtube.com/watch?v=fwqW1laFbg0
I never bought into the last-check-bouncing strategy. IMHO, it assumes you know precisely when you are going to die.

I've had to advise family members that if they plan to die broke, they better have a plan B because unless they choose their expiration date ahead of time, they may live longer than they realize. A few of them have stopped to think about the implications of what they were saying.
Agree. Bouncing the last check is a nice thought but virtually impossible to put into practise unless you know your expiry date well in advance.

Of course you could annuitize your portfolio and still try to bounce your last check but chances are you will bounce quite a few before that.

I would rather just leave a reasonable legacy.
Last edited by SQRT on Tue Sep 11, 2018 1:46 pm, edited 1 time in total.

User avatar
Earl Lemongrab
Posts: 5268
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 11, 2018 1:29 pm

To "bounce the last check" you'd have to be running so close to the margin that any new financial need would have been a disaster. I can't understand why that would be a goal. I like to have a substantial reserve. If I have a need for someone to come in and help me, then money is there. If I have to go into a facility for a time, the money's there and I can afford to pick the one I want.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

latesaver
Posts: 68
Joined: Thu Aug 03, 2017 3:35 pm

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

Post by latesaver » Wed Sep 12, 2018 4:39 pm

I would probably upgrade steak purchases to USDA Prime from Choice

and, as george costanza said, i'd tell my wife to "go ahead, get the lobster"

flyingaway
Posts: 1873
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 12, 2018 5:15 pm

Earl Lemongrab wrote:
Tue Sep 11, 2018 1:29 pm
To "bounce the last check" you'd have to be running so close to the margin that any new financial need would have been a disaster. I can't understand why that would be a goal. I like to have a substantial reserve. If I have a need for someone to come in and help me, then money is there. If I have to go into a facility for a time, the money's there and I can afford to pick the one I want.
We have children for our left-over money. If not, then I might regret to have worked too long if I have lots of money left before I die.
Last edited by flyingaway on Wed Sep 12, 2018 6:48 pm, edited 1 time in total.

mirror
Posts: 111
Joined: Mon Jan 26, 2015 11:24 pm

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

Post by mirror » Wed Sep 12, 2018 6:32 pm

Some people are too literal. If one said they would drive their car until the wheels fell off someone would chime in about that being a safety hazard to others in the road...

flyingaway
Posts: 1873
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 12, 2018 6:49 pm

latesaver wrote:
Wed Sep 12, 2018 4:39 pm
I would probably upgrade steak purchases to USDA Prime from Choice

and, as george costanza said, i'd tell my wife to "go ahead, get the lobster"
I am buying good beef cuts now.

latesaver
Posts: 68
Joined: Thu Aug 03, 2017 3:35 pm

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

Post by latesaver » Thu Sep 13, 2018 8:14 am

mirror wrote:
Wed Sep 12, 2018 6:32 pm
Some people are too literal. If one said they would drive their car until the wheels fell off someone would chime in about that being a safety hazard to others in the road...
+1

User avatar
jabberwockOG
Posts: 1393
Joined: Thu May 28, 2015 7:23 am

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

Post by jabberwockOG » Thu Sep 13, 2018 8:54 am

We are maintaining lifestyle despite seemingly lower than expected expenses versus portfolio growth. Fortunately what we consider fun activities in retirement are mostly extremely cheap for us to fund. Also neither one of us feel the need to engage in the expensive unwashed horde dominated disaster that has become "vacation travel" these days.

This is a thread topic that clearly reflects the state of the market in the last few years. Like most folks, our portfolio has also continued to grown well in excess of our spending since I retired (age 60) almost 3 years ago. But my typical long term view on finances makes me cautious about all the paper profits in the last few years. They could easily disappear completely in an unexpected market or world event or just be eroded away with inflation over a relatively short time-frame.

So certainly not complaining about having retired into a robust bull market but like anything else in life, usually nothing very good or very bad lasts for very long so I am pretty certain there will be posts very different than this one before too long.

tesuzuki2002
Posts: 490
Joined: Fri Dec 11, 2015 12:40 pm

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

Post by tesuzuki2002 » Thu Sep 13, 2018 6:20 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?
2

tesuzuki2002
Posts: 490
Joined: Fri Dec 11, 2015 12:40 pm

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

Post by tesuzuki2002 » Thu Sep 13, 2018 6:21 pm

skierrex wrote:
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.
Where do you ski at??

flyingaway
Posts: 1873
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 » Thu Sep 13, 2018 8:21 pm

jabberwockOG wrote:
Thu Sep 13, 2018 8:54 am
We are maintaining lifestyle despite seemingly lower than expected expenses versus portfolio growth. Fortunately what we consider fun activities in retirement are mostly extremely cheap for us to fund. Also neither one of us feel the need to engage in the expensive unwashed horde dominated disaster that has become "vacation travel" these days.

This is a thread topic that clearly reflects the state of the market in the last few years. Like most folks, our portfolio has also continued to grown well in excess of our spending since I retired (age 60) almost 3 years ago. But my typical long term view on finances makes me cautious about all the paper profits in the last few years. They could easily disappear completely in an unexpected market or world event or just be eroded away with inflation over a relatively short time-frame.

So certainly not complaining about having retired into a robust bull market but like anything else in life, usually nothing very good or very bad lasts for very long so I am pretty certain there will be posts very different than this one before too long.
That is what I am worried about. Do we have to give back what we got in the past few years?
Last edited by flyingaway on Thu Sep 13, 2018 10:05 pm, edited 1 time in total.

EddyB
Posts: 532
Joined: Fri May 24, 2013 3:43 pm

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

Post by EddyB » Thu Sep 13, 2018 9:32 pm

flyingaway wrote:
Sun Sep 09, 2018 1:02 pm
aspirit wrote:
Sun Sep 09, 2018 12:41 pm
With new and ever improved medical treatments in the pipeline as well as LTC concerns and associated expenses for the well healed costing over 100k annually I suspect few have more money than necessary. Lets be realistic, not fool-hearty .
+1
There might be a $1MM shot in the future that could make someone 20 years younger.
How many additional years would you work in your fifties or sixties, or how much would you reduce spending in your early retirement, in the hope that at, say, 85, you could get a second shot at being 65?

Post Reply