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Old 04-11-2016, 07:40 AM
 
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There is a fine line between frugal , cheap , and just denying things that make retirement fun and the reward for reaching that point when you have the dough.
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Old 04-11-2016, 08:00 AM
 
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Originally Posted by mathjak107 View Post
There is a fine line between frugal , cheap , and just denying things that make retirement fun and the reward for reaching that point when you have the dough.
Bada Bing!
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Old 04-11-2016, 10:28 AM
 
Location: Central Massachusetts
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Originally Posted by TuborgP View Post
If you have a large enough cash flow being frugal is off the table in the minds of some. I made a comment years ago about being frugal and was told in here that I made to much to be frugal. Go figure. However we are no longer by any stretch frugal.

The wife and I are considered frugal. We don't think we are. We do things in a less than expensive way. But no means do we buy something less expensive when it is something that a more expensive item will last a long time. Case in point. I once spent $1400.00 for a vacuum that only recently just broke and it is because the person using it didn't know enough, The vacuum was 28 years old.

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Originally Posted by mathjak107 View Post
There is a fine line between frugal , cheap , and just denying things that make retirement fun and the reward for reaching that point when you have the dough.
Exactly and what good is saving for retirement if you can't enjoy it.
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Old 04-11-2016, 10:59 AM
 
Location: NC Piedmont
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I think some of the "tightwad to the end" stories are true, but I think the incidence is far less than what many posters would have you believe. It is a commonly cited reason for rationalizing against denying yourself something now because of a retirement savings goal.
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Old 04-11-2016, 01:01 PM
 
Location: RVA
2,165 posts, read 1,266,382 times
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Originally Posted by hikernut View Post
Getting back to the original question...

If a person is only concerned with maximizing their safe spending level, .......

So the net result is the following. His SS check increased by $1464/yr and his portfolio income decreased by $1018/yr, for a net improvement of $446. And of course this is for just one year. If he has enough cash to defer for five years, the improvement will be $2230/yr.
That amount is for 62 to an FRA of 67. After 67, the increase in SS per year is 8%. Plus as I pointed out, there is a gain of up to about $1000/yr if delay to 70 in reduced federal taxes, more if your bracket is higher. The net increase per year, over the amount it costs you from a fully taxable savings, that you would be "giving up" up based on the 4% rule, then is roughly an added $5500 a year, that helps reduce the time for "break even" based on missing SS payments from 62 to 70. Still not a slam dunk to delay, but another "hmmmm, thats one more financial incentive I don't have to do anything to take advantagr of at age 80!"

Had not considered that specific deferred annuity aspect of it. Is there even such a thing as a government insured delayed annuity that one can take out at 62, payable in monthly installments for a total of $200k, that at 70 pays you a COLA adjusted $20k a year, that is only taxed at 85% of the paid amount, and has a 50 to 100% spousal survivor benefit? I'm thinking....not. Thanks for pointing that out!
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Old 04-11-2016, 01:19 PM
 
29,782 posts, read 34,871,258 times
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Originally Posted by golfingduo View Post
The wife and I are considered frugal. We don't think we are. We do things in a less than expensive way. But no means do we buy something less expensive when it is something that a more expensive item will last a long time. Case in point. I once spent $1400.00 for a vacuum that only recently just broke and it is because the person using it didn't know enough, The vacuum was 28 years old.



Exactly and what good is saving for retirement if you can't enjoy it.
Funny about vacuums, we are getting a Dyson Absolute
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Old 04-11-2016, 02:40 PM
 
71,584 posts, read 71,751,865 times
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I recently learned that when they measured the speed of light in a vacuum they used an electrolux
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Old 04-11-2016, 03:00 PM
 
Location: RVA
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Ouch! That's so bad at so many levels I can't even start!
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Old 04-11-2016, 03:47 PM
 
Location: Central Massachusetts
4,800 posts, read 4,847,776 times
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Originally Posted by TuborgP View Post
Funny about vacuums, we are getting a Dyson Absolute

FWIW the $1400 dollar vacuum I got was a Rainbow. They go for 2100 brand new now. When my wife told me the salesman coming to sell us that vacuum I told her that he had better knock my socks off with it. After about 15 minutes I was sold.

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Originally Posted by mathjak107 View Post
I recently learned that when they measured the speed of light in a vacuum they used an electrolux
Did the speed of light lose?
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Old 04-11-2016, 03:56 PM
 
Location: RVA
2,165 posts, read 1,266,382 times
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Wow, I had a friend in college in 1978 that tried to sell Rainbows one summer. IIRC they were $900. He sold one. They were loud and dumping out the water seemed like to much work. Great suction for sure.
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