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The Q isn't about how much we can fill our days with if only we had enough cash to pay for it all.
The Q is about where the saturation point for contentment with what we do have is reached.
who said it is about contentment ? i don't see that anywhere being discussed .
your trying to squeeze something in to definitions that don't apply because the word means something different to all of us . to some it may be just spiritual and not even apply to materialistic things .. .
as i said above i always wanted our retirement to be a better life than we had while working ,saving and raising a family . it was to be our reward and our time to do and experience things we put on hold earlier in life or didn't have the money to do .
you are taking what you think retirement life should be and trying to tell others they spend to much if they reduce their cost of living and move the budget to the discretionary side . .
Last edited by mathjak107; 01-30-2017 at 05:39 PM..
I have noticed several people saying they would not do something like funding kids' college or paying debt off unless they were maxing their 401k. What is the reason for thinking you need to put in the absolute maximum allowed by law, instead of simply an amount that is appropriate for your expected expenses, age, etc.? Not all of us want to have a super-lavish retirement at the expense of a somewhat better life now.
edit: Mods can move to Personal Finance, I meant for it to go there.
Excuse me, but you seem to have no clue about retirement. You cannot have too much money available when you cease working.
You have one shot at accumulating enough to retire on.
Super lavish! That's funny!
Maybe so, but it isn't as simple as 401k off limits while IRA isn't.
For practical purposes IRAs are very safe, with biggest exceptions being IRS and domestic relations. The rest depends on your state, someone with an IRA in Arizona can feel a lot safer than someone in California. Here is a list of specific state laws:
But what will you do with all the extra time no longer spent working & commuting?
Here's a hint: It'll chew up most of that 25%, etc that you think you won't need.
Spoken as an absolute like this = utter nonsense. After I retired I certainly didn't spend 25% of previous income on time fillers. Here is where most of my time went before started traveling more:
1. More hiking on local trails (use less gas getting to trail heads than commuting)
2. More fishing (probably less $100/year on additional tackle)
3. More reading kindle (free, library has thousands)
4. More naps
5. More video games (Steam sales, also less than $100/year addition cost)
6. Movie day every week at dollar theater (maybe $400 for both of us)
7. Wife goes to far more yoga/pilates type classes at the YMCA, but same monthly cost
8. More cooking at home (cheaper than eating out at work)
The only thing I can imagine broke $100 for additional costs was we started making it to every happy hour with friends instead of occasionally. We're talking once a week, maybe $25 a pop = $1,300.
That is less than $2,000 in additional spending money to fill time that I didn't have before, which is far less than 25% of our last year's income. Offset that with no more eating lunch at work, way less gas used, work clothes for wife, etc. and in my experience your claim on post-retirement spending is quite misplaced.
Are you retired? I'd be interested to hear how you're spending an additional 25% of your last year's income on time filler to keep yourself happy, what did you start golfing every day?
It's the nature of the venue... few seem capable of digesting subtleties.
Quote:
After I retired I certainly didn't spend 25% of previous income on (various things)
Good for you. In your experience... would you describe your pattern as typical or not?
But the question, the premise, is about what would likely be done if that 25% was available to be spent.
Not having it makes it easier to not spend it.
The Q isn't about how much we can fill our days with if only we had enough cash to pay for it all.
The Q is about where the saturation point for contentment with what we do have is reached.
Let me tell you from experience.
Contentment is helping your grown children with 10's of thousands of dollars so they can get a bigger down payment together on their first home. Contentment is putting them through college and even grad school without them having a lifetime of debt as a result. Contentment is about making life easier for a child born with genetic and/or other disabilities.
Contentment is then having enough left that you and your wife or partner can take care of yourselves in the event of virtually any calamity. Once that is done, contentment - at least for us - is chasing the endless summer (to some degree). Once the need for workaday is no longer there, why not be sailing or hiking near the water or watching things grow and birds singing?
In our case we have different values than most. We never go to concerts or shows. But they are there - without a few minutes - if we wanted to. We never go out to eat for much exceeding $30 - but that's because we haven't found food (in most cases) better than we can cook.
There is nothing we couldn't do if we wanted to...we just prefer simple things. Farm grown popcorn just happens to appeal to us more than caviar. An old T shirt much more than fashion. An older car much more than one we have to worry about each scratch on.
Did I mention we have 3 houses? All in world-class areas?
So, as I said, it's a choice of the Buffet of Life. We aren't touring churches in Europe or Cruising. We are taking care of our kids and trying to "be here now" as many days as we can.
Others have their ways - but back to the OP - money does not buy happiness, but the lack of it certainly can cause some misery. And the misery of HAVING to work in one's old age if one does not want to may rank high up the list. So save, save, save.
Well the best scenario is to max out, pre tax , your employer 401k, and get that match. Secondly, a Roth IRA after tax account, max if you can, and ability to touch in case of dire need.
These monies saved, straight out your check, will go un noticed and mentally labeled untouchable. If money is at free reach like an ATM card, there is less restraint.
Most people manage to save lots of money, and get better interest doing things this way.
Maybe so, but it isn't as simple as 401k off limits while IRA isn't.
For practical purposes IRAs are very safe, with biggest exceptions being IRS and domestic relations. The rest depends on your state, someone with an IRA in Arizona can feel a lot safer than someone in California. Here is a list of specific state laws:
Spoken as an absolute like this = utter nonsense. After I retired I certainly didn't spend 25% of previous income on time fillers. Here is where most of my time went before started traveling more:
1. More hiking on local trails (use less gas getting to trail heads than commuting)
2. More fishing (probably less $100/year on additional tackle)
3. More reading kindle (free, library has thousands)
4. More naps
5. More video games (Steam sales, also less than $100/year addition cost)
6. Movie day every week at dollar theater (maybe $400 for both of us)
7. Wife goes to far more yoga/pilates type classes at the YMCA, but same monthly cost
8. More cooking at home (cheaper than eating out at work)
The only thing I can imagine broke $100 for additional costs was we started making it to every happy hour with friends instead of occasionally. We're talking once a week, maybe $25 a pop = $1,300.
That is less than $2,000 in additional spending money to fill time that I didn't have before, which is far less than 25% of our last year's income. Offset that with no more eating lunch at work, way less gas used, work clothes for wife, etc. and in my experience your claim on post-retirement spending is quite misplaced.
Are you retired? I'd be interested to hear how you're spending an additional 25% of your last year's income on time filler to keep yourself happy, what did you start golfing every day?
You are not living in USA, is that correct assumption.
we all earned different incomes and had different lifestyles in different areas while working . why should it be any different in retirement ?
for folks to dictate what is enough or spending to much for others or tell those with the means where they should live or what is "contentment " , is nonsense .
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