• 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5

Can you plan for a retirement of 20-30 years or is it too long?

#1
After someone retires, do they change spending habits or not?
This article speaks about eating out 3X a week, take multiple cruises every year, have all daughters and wind up paying for multiple weddings. Most of what is written here seems utterly bizarre and out of character to both new and older retirees to me.
 
Let's hear your thoughts and comments.
  Reply
#2
There seems to be a cottage industry in forecasting doom and catastrophe for future retirees, and the country at large, due to rampant lack of retirement preparedness. Interestingly, the articles written for the past couple of decades keep predicting this, but they rarely actually examine the state of retirement in America and whether or not their forecasts are validated. (Although there has been a bit written lately about an increasing trend in senior bankruptcies, often driven by health care costs.)
  Reply
#3
I agree that health care costs can wreck retirement plans, as can illness. 
 
To me, retirement planning is not just about finances, but also about health and wellness, which can save a great deal of money.  And it does not cost anything to take a walk, limit alcohol and maintain an appropriate weight.  In fact, it may save a great deal in medication expenses.
 
All of these articles focus on working longer to reach a predetermined number which keeps changing.  I guess focusing on achieving and maintaining health and wellness will hurt the financial planning industry.
 
But, I must admit that although I was a penny pincher for the first five years of my retirement at age 56, I did spend a chunk of savings this year for traveling, making improvements to my townhouse, leasing a new vehicle, eating out at restaurants, etc.
 
I just think that you have to treat yourself when times are good and cut back when things are slow or when I reach my 100th birthday.  Then, I will decorate my walker or wheelchair.
  Reply
#4
Nothing has actually changed since retirement -we're empty nesters now; but my activities and indulgence are much the same as always.  I actually have more funding available for annual budgeting in retirement -that surplus goes into a LTC fund (self-insured).  I figure 200k should be a good LTC  starting point and let the market forces grow it until we need it (with a stop-loss in place).
 
I actually planned for 40 years, ref age 59.  It's nice to have a quarterly budget surplus -not so in preretirement with kids and retirement saving priorities.  Now, I can buy what I like without a concern of falling out of budget.  It's nice to say (self-talk)...why not?
  Reply
#5
Given that I retired early, it's quite likely I'll have a retirement of 30 years or so, possibly longer as longevity (90's) runs in the family. So yes, I've planned for that, and my approach is to maintain a good portion of my portfolio in growth equities. My net worth has increased at least 7% per year each year since retiring (even after mortgage and other expenses) so that's my long term strategy: you're unlikely to run out of money as long as your portfolio is growing.
 
Now as to the assumptions in that article, I find them quite off-base. As I age, I have less interest in eating out (too rich, too much salt), and also a bit surprisingly to me, I have less interest in travel as well. I've already traveled to most every place I've wanted to go, all over Europe, Asia, South America, and the prospect of lugging bags through airports and waiting in line to take off my shoes and get x-rayed is less and less appealing each year. My kids are grown up and on their own, so no weddings to pay for; outside of getting together for a family dinner now and then and buying a birthday present for my grandson, there just aren't many expenses these days, in fact, many costs have gone down as for instance I now qualify for a senior discount on real estate taxes and other things. Nor do I have any inclination to buy a fancy car; who would I be trying to impress?
  Reply
#6
Read the article and thought this journalist is 'full of soup' but maybe I am a lone wolf. I retired with a plan and an idea that after raising my children and being the parent it was time for us to turn around and enjoy the 'good life'. Whatever that good was/is and where ever it leads is up to our imaginations and pocket books.

So now I travel when I want, where I want and I charter jets, because airports hassles are a joke and I never know when the mood moves me. I also like the train (must be from my childhood thinking I was Casey Jones ) including the Amtrak Auto Train. One day when the powers that be settle down I'll take the round the world trip starting with a jet from NJ to Ireland (because everyone is a Leprechaun) and onto the Orient Express and Trans Siberian Railway then over the Bridge on the River Kwai (It's definitely not like the movie) and across the Pacific on a Steamer to Burning Man then home on the 20th Century and Cardinals. What can I say, a person can dream, and pigs can fly . I'll revisit those places I've seen and see new ones along the way and maybe take a year or two to complete the trip.
  Reply


Forum Jump:


Users browsing this thread: 1 Guest(s)