Do You Still Try to Save Money?

[BarryRX]

All my life I have been saving money towards my retirement. Now that I am retired, I have a certain income each month. What I should be doing is spending that monthly income, but I can't seem to break old habits and I try to save at least 15% of that income each month. I was just wondering if anyone else is still a "serial saver"?

[shcisamax]

It is in my genes...in fact, I have a double whammy. Old New England Yankee.

[Mikeod]

Me too. After all those years of deferring income, saving, planning for major expenditures, etc., it's hard to just spend. We sometimes talk about doing something then think about the expense and start worrying about what it does to our retirement accounts. One problem is that along the way, we had a goal related to our ages, i.e., retire at a particular age. Now we have the funds we accumulated, but we don't know how long they must last. So, do we do what we want and risk running low, or conserve and risk not doing things we've always wanted to experience?

I thought it was supposed to get easier!!!! :sigh:

[CaptJohn]

So, do we do what we want and risk running low, or conserve and risk not doing things we've always wanted to experience?

I thought it was supposed to get easier!!!! :sigh:

That IS a tough one! From what I've read of older folks, most say they regret not doing things. When I was in Hawaii in the early 70's, I saw a lot of widows in wheelchairs who saved with their husbands to go there but their husbands didn't live long enough to make the trip. I've kept that rememberance when there were things I wanted to do.

[rjm1cc]

All my life I have been saving money towards my retirement. Now that I am retired, I have a certain income each month. What I should be doing is spending that monthly income, but I can't seem to break old habits and I try to save at least 15% of that income each month. I was just wondering if anyone else is still a "serial saver"?
If you income will not grow with inflation then you should save some money to cover inflation. If this is not a problem then I would take the unspent money each week and put it in a separate bank account. Then I would try and find things to spend the money on.

[l2ridehd]

You need to set up a plan. That plan should include and income and expense budget. You should look at your investment strategy and build a SWR (safe withdrawal rate) that works for you based on your age and longevity expectations. Develop the budget first. What you need to meet all your expenses. Then look at your income. Pensions, SS, and then see how much you need to withdraw each month from your investments to make those match. Standard seems to be 4% annually, but you need to make sure that works. If you can do it with only 3% or 3.5% so much the better. Keeping your AA (asset allocation) at a safe balance (standard is age in bonds the rest in stock) and meet your expenses with a 3% withdrawal rate, adjusted each year for inflation, you should never go broke.

[asianthree]

saving for the next house, almost there, can't think of when we are not putting away money

[justjim]

True old habits are hard to break if its saving money or something else. However, too many times I've seen people become the "prisoner" of their own money. Personally, I like to give excess money to help our kids NOW when they need it the most and enjoy it as they are raising those grand kids. Also, we have setup funds to help with the grand kids education. Its a lot more rewarding to see what funds we might give now while we are alive than when we pass on. There is the Church and other charities that help those not as fortunate as us who can use our help while we are still living too, We too have saved and worked all our lives so we can enjoy retirement. Its probably time to quit saving and spend some of what you have so you can see for yourself the results of the blessing of your giving.

[Vinny]

That IS a tough one! From what I've read of older folks, most say they regret not doing things. When I was in Hawaii in the early 70's, I saw a lot of widows in wheelchairs who saved with their husbands to go there but their husbands didn't live long enough to make the trip. I've kept that rememberance when there were things I wanted to do.

I have been spending most of my life. New cars every two years, latest tech toys, etc.. My father saved his whole life and had a heart attack 6 months after he retired that still limits him. My mother has Alzheimers at 65. A friend saved for extensive world travel with his wife after retirement and his wife's died a a month after retirement. He took me aside and told me to do it while I can because the future is uncertain. Rencently had a new TV friend get sick and die suddenly in the space of four days within a year of retiring. So many have told me that they regret wasting their youth by saving for their old age.

I live for today and so far tomorrow has taken care of itself. If I need more, I earn more. Always been able to make money to meet my lifestyle. I can die tomorrow with no regrets or unfinished business. My wife and I have not denied ourselves anything and we have had a great life as a result.

[graciegirl]

Yes. You never know when you will need it.

[Roaddog53]

I have been spending most of my life. New cars every two years, latest tech toys, etc.. My father saved his whole life and had a heart attack 6 months after he retired that still limits him. My mother has Alzheimers at 65. A friend saved for extensive world travel with his wife after retirement and his wife's died a a month after retirement. He took me aside and told me to do it while I can because the future is uncertain. Rencently had a new TV friend get sick and die suddenly in the space of four days within a year of retiring. So many have told me that they regret wasting their youth by saving for their old age.

I live for today and so far tomorrow has taken care of itself. If I need more, I earn more. Always been able to make money to meet my lifestyle. I can die tomorrow with no regrets or unfinished business. My wife and I have not denied ourselves anything and we have had a great life as a result.

Reading this one I can not help but think a few years ago when I was in my office my Finance mgr mentioned Actuary Tables. I asked for an update. Well after a very good explanation, I set out to retire shortly thereafter. I had saved for retirement and had a good plan. It was now time to enjoy life.
The bottom line for those that are curious...GE started the process. All major corporations and others use/used them for determining retirement benefits/costs. I looked back after the update and found it to be true. There were friends/employes/business assoc dying shortly after retirement. The tables are used to determine longevity, but the longer you WORK in a company the shorter your lifespan, and thus the shorter companies pay in retirement benefits. IF you work for fun later, or part time, that was ok.
Just thought I would throw that one in on this saving thread and how people are "working" longer to get that nest egg only to die before they can use it.

[runnermi]

My dad was a great example in saving. He had 26 great years in retirement. Fortunately, it rubbed off on me. I was smart enough to start saving for my retirement when I was 26. It hurt to do it at the time because I wasn't making very much but man, oh man, am I ever glad I did. And I am still socking it away for my "golden years".

I have a girlfriend who retired way before she should. She didn't trust the stock market and would work, then not work for up to 9 months or more at a crack. She 9 years older than I am and now trying to live on Social Security only. It isn't pretty. So, pay me now or pay me later.

I would rather have the money and not need it, than need the money and not have it. I will take my changes with saving. It is life long habit that I am sure I will continue in retirement.

I am not yet retired but the good lord willing and the creek don't rise, I hope to be out of the work force and living my dream in the Villages in 8 to 11 years max. I will come sooner if I can. My job allows me to work from any location. My hold up is an elderly mother who currently needs my help and I will not relocate for my own selfish reasons.

I am coming down, it is just a matter of when.

[Golfingnut]

We find that we need less money as we age, so we vacation and buy when we feel up to it and not when we feel we can based on our financial portfolio. I would rather die broke than die wishing I had done this or that or bought this or that. Don't spend yourself into the poor house, but also NEVER DIE WITHOUT LIVING FIRST. Overspending is foolish, but Over saving is a sign of Paranoia.

[hockyb]

You need to set up a plan. That plan should include and income and expense budget. You should look at your investment strategy and build a SWR (safe withdrawal rate) that works for you based on your age and longevity expectations. Develop the budget first. What you need to meet all your expenses. Then look at your income. Pensions, SS, and then see how much you need to withdraw each month from your investments to make those match. Standard seems to be 4% annually, but you need to make sure that works. If you can do it with only 3% or 3.5% so much the better. Keeping your AA (asset allocation) at a safe balance (standard is age in bonds the rest in stock) and meet your expenses with a 3% withdrawal rate, adjusted each year for inflation, you should never go broke.

This plan, with minor exceptions, has been my plan, since retirement. My exposure is that I have too much in the stock Market. I was hit hard in 2008, but thankfully I had enough pension & SS not to panic. So I stood pat. That has been made up by 2012.

The purchase of a 2nd home in TV in 2010, has reduced my stock, a bit, and the stocks I sold have out performed any appreciation in TV property. That said, the enjoyment of TV has more than matched the lag in appreciation.

I retired from a major company in 1987 and today have more income, by 25%. The stock market and a withdrawel rate of 2% or less has worked for me. That said, I am concerned about exposure to the stock market. The problem for me is that I have always tried to avoid taxes and in 25 years I have been retired, I have run out of tax avoiding options.

[DandyGirl]

I have been spending most of my life. New cars every two years, latest tech toys, etc.. My father saved his whole life and had a heart attack 6 months after he retired that still limits him. My mother has Alzheimers at 65. A friend saved for extensive world travel with his wife after retirement and his wife's died a a month after retirement. He took me aside and told me to do it while I can because the future is uncertain. Rencently had a new TV friend get sick and die suddenly in the space of four days within a year of retiring. So many have told me that they regret wasting their youth by saving for their old age.

I live for today and so far tomorrow has taken care of itself. If I need more, I earn more. Always been able to make money to meet my lifestyle. I can die tomorrow with no regrets or unfinished business. My wife and I have not denied ourselves anything and we have had a great life as a result.

:BigApplause: Me too! Living life with no regrets.

[George Bieniaszek]

Don't save as much per month as I used to when I was working, but I do transfer funds from my checking account to savings every month. Old habits are hard to break. Never know when you need money for the unexpected big expense.

[mickey100]

All my life I have been saving money towards my retirement. Now that I am retired, I have a certain income each month. What I should be doing is spending that monthly income, but I can't seem to break old habits and I try to save at least 15% of that income each month. I was just wondering if anyone else is still a "serial saver"?

I understand what you mean. We are in the same boat sort of. We don't consciously save, but we don't spend all our pension and/or social security either, and we haven't touched our savings. In fact my portfolio has gone up by about $140K since I retired 4 years ago, and I imagine my husband's has too. We travel extensively, and buy a few clothes, go out to eat once a week, but we tend to be frugal, a habit that you seem to have. We've never been the type to buy the most expensive house on the street; we don't drive fancy cars; we do most all maintenance around the house ourselves, and I guess it just has added up over the years. Its a difficult habit to break. I estimate my savings will outlive me, which I don't want, but its hard to change your personality to purchase material things, when its really not in your nature to do so. In fact, I find some people who have such a need for material excess to be shallow and pretentious, and I tend to avoid them.

[Villages PL]

As long as there's a possibility of living to 115+ I will be quite content to keep saving money, even though I think I may already have enough. No one can predict how much inflation there will be in our future. Luckily, I only need to spend a small fraction of my income to be happy.

I no longer need what I thought I would need to be happy. When I was young I thought I would need a big expensive house, expensive sports car, big expensive vacations, frequent steak dinners at expensive restaurants, etc.. But now that I can afford it, I don't want any of that. I'd rather have a large cushion of stock-equity and the feeling of security that comes with it. No matter what my needs might be in the future, I hope to be able to afford it and not be a burden on anyone else.

[2BNTV]

My viewpoint is to spend enough in that you don't deny yourself too much but save enough for a major expenditure. It's worked so far for me.

I will spend more once I'm retired on travel but I will adhere to the 4% rule for the mandatory withdrawal rate. That will suffice as my needs are fairly simple to satisfy.

I think all seniors want to leave something for their children so I will hopefully leave something of value other than memories.

[Pturner]

Been saving since I was a kid with a little Christmas Club account. Been saving my whole adult life. It'll be a hard habit to break. Never been a big spender. Never been a high roller.

Sign me...

Living in a material world
But not a material girl.

[sueandskip]

I have been spending most of my life. New cars every two years, latest tech toys, etc.. My father saved his whole life and had a heart attack 6 months after he retired that still limits him. My mother has Alzheimers at 65. A friend saved for extensive world travel with his wife after retirement and his wife's died a a month after retirement. He took me aside and told me to do it while I can because the future is uncertain. Rencently had a new TV friend get sick and die suddenly in the space of four days within a year of retiring. So many have told me that they regret wasting their youth by saving for their old age.

I live for today and so far tomorrow has taken care of itself. If I need more, I earn more. Always been able to make money to meet my lifestyle. I can die tomorrow with no regrets or unfinished business. My wife and I have not denied ourselves anything and we have had a great life as a result.

If your mother is only 65 you are really young ?

[sueandskip]

:BigApplause:We find that we need less money as we age, so we vacation and buy when we feel up to it and not when we feel we can based on our financial portfolio. I would rather die broke than die wishing I had done this or that or bought this or that. Don't spend yourself into the poor house, but also NEVER DIE WITHOUT LIVING FIRST. Overspending is foolish, but Over saving is a sign of Paranoia.

[jimbo2012]

Yep, we're saving for our kids inheritance.

Luckily they don't need it, so we can play.

[Cantwaittoarrive]

As long as my investments continue to best inflation I have fun with it. If my investments stop beating inflation then I will start saving again. Right now my investments are growing faster than I can spend it.

[2 Oldcrabs]

I save every month so my wife can spend it the next month!:22yikes:

[mac9]

Back in the 60's, my father gave me $10/week allowance. I was required to save half and use the rest towards my expenses, lunch, records, etc. When I started working, I automatically saved half. After marrying and buying a house, I was appalled that we could no longer live on one salary and save the other. In due time, we reverted to living on one salary. Now we are retired and feel that we can afford to do anything we want to do. Yes, we still save a little in that we live on our SS and pensions. Our investments have gone untouched. After having lived a lifetime of saving for the future, it is difficult to think in other terms, but, slowly, we are learning that this is the future and it's time to reap the rewards of saving. We are totally debt free and play as often as we want. Believe me, we have no intention of leaving this world with much left.

[Down Sized]

That IS a tough one! From what I've read of older folks, most say they regret not doing things. When I was in Hawaii in the early 70's, I saw a lot of widows in wheelchairs who saved with their husbands to go there but their husbands didn't live long enough to make the trip. I've kept that rememberance when there were things I wanted to do.

We have an abundant of widows in T V with this same scenario.

[dotti105]

Vinny, I feel you have the right idea. When it all comes down to it, we will regret more the things we did not do, than the things we did!

[Ripcord13]

It is in my genes...in fact, I have a double whammy. Old New England Yankee.

Same here, been saving since I had a paper route as a kid, worked part time while I was still in high school, invested in CD's when they paid double didget % rates. I still invest in growth stocks, never really negelected myself of much, always had the things I wanted but still being frugal. My outlook is go and earn the money and treat yourself right without being foolish and stay out of debt. No debt is a solid foundation.

Rip,

[inda50]

I think that part of the answer lies in " quality of life'' .

[asianthree]

almost have the down for next house:a040:

[hotrodgirl]

I have always been a saver of sorts, but not to the point of self-denial. However, I find that in retirement, I don't sweat the small stuff. If I want the ice ream that is not on sale, so be it! If I want extra legroom of the flight I get it. But neither do I want to throw my hard earned money away!!

[rubicon]

We (wife and me)are savers and we are not inclined to believe that we deserve this or that. We are debt free well diversified and need little to live on. We periodically go out to eat but prefer and take pride in trying different receipes at home. We apply prudent spending habits to maximize utility of our dollars.

We both maximize our 401k early on and after retiring moved them to an IRA At this point the only reason that we would withdraw from our savings is because the government requires it by 70.5 otherwise we would leave it intact for our children who will need it given what is going on now.

We continue to invest excess funds.

When we decided to retire we made the assumption that we would live as long as the longest parent had lived then added 5 years.

If all we do results in an earlier demise or a disability then their will be funds to assist us.

Living with no regrets for us means not spending money for things we really don't need or want or that leave us with buyers remorse.

To each his own

[rjm1cc]

We both maximize our 401k early on and after retiring moved them to an IRA At this point the only reason that we would withdraw from our savings is because the government requires it by 70.5 otherwise we would leave it intact for our children who will need it given what is going on now.


To each his ownMight want to do a little research on the taxes your children will face if they inherit your IRA's. It might be better if you take more than the MRD out each year and pay the income tax on the distribution. Your children will have to start taking money from the IRA's and it will be taxable at their rate. Maybe subject to state taxes also.

[CFrance]

True old habits are hard to break if its saving money or something else. However, too many times I've seen people become the "prisoner" of their own money. Personally, I like to give excess money to help our kids NOW when they need it the most and enjoy it as they are raising those grand kids. Also, we have setup funds to help with the grand kids education. Its a lot more rewarding to see what funds we might give now while we are alive than when we pass on. There is the Church and other charities that help those not as fortunate as us who can use our help while we are still living too, We too have saved and worked all our lives so we can enjoy retirement. Its probably time to quit saving and spend some of what you have so you can see for yourself the results of the blessing of your giving.

I'm with you on the helping the kids part. I would much rather see them enjoy some of their inheritance now when things are tight for them and raises and job promotions are slim. If they question it, I just say, "Don't worry... if we run out we're coming to live with you!"

[rubicon]

Might want to do a little research on the taxes your children will face if they inherit your IRA's. It might be better if you take more than the MRD out each year and pay the income tax on the distribution. Your children will have to start taking money from the IRA's and it will be taxable at their rate. Maybe subject to state taxes also.

Good thought I'll investigate that aspect.

Thank You