Quote:
Originally Posted by Caymus
I understand all that. The problem (as I see it) is that I have always lived too fugally and have done so for years. Doing my work years most of my income went into investments or taxes. I was hoping to find a mathematical model that tells me how much to spend based on my assets. Maybe I need a psychoanalyst instead.  |
Here's the mathematical model. Calculate the number of years until your death. Divide the amount of your assets exceeding living expenses by the number of years you calculated to death. Spend that much.
Sounds like you are going to have a problem accepting spending money in retirement. The alternative is to keep accumulating as you like to do and leave it to your heirs or give it to charity. My personal philosophy is to spend whatever I want to spend on any frivolous thing I can think of that gives me pleasure and enjoyment. When I've depleted the excess assets then I will no longer be able to spend. I'll either die before I've depleted the assets and what's left will go to my heirs, or I'll reach a point where there is nothing left to spend and the heirs will get nothing.