[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!!!!

[CaptJohn]

Originally Posted by mikeod

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!!!!

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]

Originally Posted by 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"?

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]

Originally Posted by CaptJohn

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]

Originally Posted by Vinny

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]

Originally Posted by 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.

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]

Originally Posted by Vinny

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.

Me too! Living life with no regrets.