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I don't care for the word "acceptable" in the thread title.
"Acceptable" carries a moral connotation.
....
I find the entire original post somewhat bizarre. OP, do you feel guilty about your proposed purchase? Why else would you seek the approval of strangers?
E.R.
I did not read the thread title or the OP's post the same way that you did.
Quote:
Originally Posted by Tall Traveler
I just wanted to get the opinion of retirees, especially those that have been retired for a number of years, what percent of your wealth do you consider acceptable to spend on cars in retirement?
Wife retired at 54 a couple years back and I'm getting ready to retire in the next few months and I was wanting to get the opinion of retirees.
It is clear to me that the OP just want to know what criteria other retirees use to decide how much to spend on a car FOR THEMSELVES.
The question which I bolded simply means "what is personally acceptable to a person?". The OP neither asked people to judge his purchase decision nor to decide for him how much of his wealth that he should spend.
The OP emphasized seeking opinions especially from people who have been retired for a number of years. My read is that since he has not retired, he does not have a good feel for what level of spending is appropriate or prudent in retirement.
Bottom line is that I think you and maybe few others read too much between the lines. I neither find the question bizarre nor think that the OP feels guilty about his proposed purchase.
I just wanted to get the opinion of retirees, especially those that have been retired for a number of years, what percent of your wealth do you consider acceptable to spend on cars in retirement?
Wife retired at 54 a couple years back and I'm getting ready to retire in the next few months and I was wanting to get the opinion of retirees.
We bought a new car recently for wife and I'm thinking of buying a very exciting car for myself and added together, it would constitute about 5% of our wealth (we won't have a note, pay cash)....do you think that's too much and if so, what do you recommend or if you think that's too little or not a problem, I want to hear that too.
Our pensions, investment income, SS should be easily sufficient to live on. Yes, we could conceivably get by on one vehicle but we are both pretty active and we live in an outer suburb so public transportation is not really feasible.
OP, honestly, by the time one is retired, one should be past the stage of wanting "exciting" cars. One should go for what's practical. How long do you usually keep your cars? Until they die, or for a few years, then trade them in? Has your policy in that regard changed, now that you'll both be retired? I think the important thing is to be realistic, and to keep in mind that unforeseen expenses can happen in retirement. Especially in the later years, when one might need home health care, which is very expensive.
My brother and his wife will soon both be retired, and they're planning on buying used cars, only, from now on. She's a nurse, so she plans on putting in a weekend here and there, to keep a trickle of income happening, but they're still battening down the economic hatches, to play it safe. You're at a stage of life when nothing can be taken for granted, even your nest egg. Bear in mind that during the dot-com bubble burst, people lost about `1/3 of their investment funds, just from that. That really hurt people who were retired. Also bear in mind that the Glass-Steagal Act, which prevented debacles like the 2008 home loan and securities fiasco, has never been reinstated. The root cause of that crisis was never addressed. Your nest egg is still vulnerable to another similar crisis, to name only one of many factors that can, and some of which probably will, negatively impact your retirement funding.
It's best to be cautious and prudent in ordering one's priorities and deciding what to spend, and what to spend it on, IMO.
OP, honestly, by the time one is retired, one should be past the stage of wanting "exciting" cars. One should go for what's practical. , IMO.
really ? says who ?
the biggest group buying luxury cars is always those in their 70's . why shouldn't they ? if they have the dough why not buy a luxury or performance car ?
all our financial situations are different . exciting cars will always be a part of many retiree's lives. I can't appreciate them here with all our congestion or my love for fine cars would never end until I did .
My financial advisor told to finance my new car with 0.9% rather than pay a lump sum My car 's worth is approximately 2.5% of my investments. It is the nicest car I have ever owned and I really enjoy it.
the biggest group buying luxury cars is always those in their 70's . why shouldn't they ? if they have the dough why not buy a luxury or performance car ?
all our financial situations are different . exciting cars will always be a part of many retiree's lives. I can't appreciate them here with all our congestion or my love for fine cars would never end until I did .
This literally happened on Wednesday when I picked my kid up from school:
My son (5 years old...has started to pick up my passion for cool cars): OOH! Look, mom! A red Corvette. Me: I see it. My daughter (3): Where?! Where!? My son: Oh. It has an old guy sitting in it. Me: HEY! Be nice. Also, who do you think has enough money to buy cool cars? Older people or younger people? My daughter: Where is the corvette? Where is red corvette!?? I wanna see the old guy! My son (grumbling): Older people. Me: Right. My son: But mom. You have a nice car and you're not old. Me: ............ Me: Who wants milkshakes!!!!??? My son: ME! VANILLA!!!!' My daughter: Chokwate! I want chokwate!
OP, honestly, by the time one is retired, one should be past the stage of wanting "exciting" cars. One should go for what's practical. How long do you usually keep your cars? Until they die, or for a few years, then trade them in? Has your policy in that regard changed, now that you'll both be retired? I think the important thing is to be realistic, and to keep in mind that unforeseen expenses can happen in retirement. Especially in the later years, when one might need home health care, which is very expensive.
My brother and his wife will soon both be retired, and they're planning on buying used cars, only, from now on. She's a nurse, so she plans on putting in a weekend here and there, to keep a trickle of income happening, but they're still battening down the economic hatches, to play it safe. You're at a stage of life when nothing can be taken for granted, even your nest egg. Bear in mind that during the dot-com bubble burst, people lost about `1/3 of their investment funds, just from that. That really hurt people who were retired. Also bear in mind that the Glass-Steagal Act, which prevented debacles like the 2008 home loan and securities fiasco, has never been reinstated. The root cause of that crisis was never addressed. Your nest egg is still vulnerable to another similar crisis, to name only one of many factors that can, and some of which probably will, negatively impact your retirement funding.
It's best to be cautious and prudent in ordering one's priorities and deciding what to spend, and what to spend it on, IMO.
What a horrible way to live ones few remaining years. I have a Jeep Wrangler Rubicon I use to hit the trails with my fellow retirees. I'm looking at a convertible to hit the road with another group of retirees. I still haven't decided on whether or not to replace the airplane I sold when I retired. My idea of retirement isn't sitting around reading books and old reruns of Mayberry RFD. And forget about being "practical". I didn't work a lifetime so I could retire and be "practical".
I agree . jeep wrangler sahara with a 2018 Subaru outback being made now .
I worked my entire life at not being poor since that is how I started out . we scrimped ,saved and learned all we could about investing .
the goal has always been to live better in retirement than we did while raising a family and having to save .
we don't want a step down in retirement , we want a step up in what we do .
Yeah, but...
As another Outback owner, you're buying a middle market appliance. You could easily afford a premium luxury car but you picked a fairly modest one instead. I agree with your purchase decision 100% but with the net worth you have written about, you could spend 2x+ more for a car and not impact your financial outcome.
Here's mine parked slopeside in Vermont. I ski. With good snow tires, it's a great winter car and not so expensive that I have to worry much about it rusting to bits from Vermont road salt. It has a 7 year/100k extended warranty on it so my ownership costs are bounded. I'll likely start car shopping sometime in year 8. I should be retired by then. I'll probably replace this one with a similar winter-capable appliance.
like i said i always owned bmw's but i finally got my record clean of speeding tickets . without driving at higher speeds and appreciating the handling and control there is little in it for me as far as owning them .
i traded mine in for the wrangler sahara and got more use out of the wrangler as i took it hunting ,fishing and in deep snow .
i love higher end cars but unless i can use it's qualities it is just a tease to me .
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I agree . jeep wrangler sahara with a 2018 Subaru outback being made now .
