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What a silly article. People spend what they need to spend. Plenty of people have portfolios that are large enough that they simply don't get spent down as the person doesn't need that much.
The above link is about the author of the article this thread is based on. He is a forced retired journalist who now does free lance work for Barons on retirement.
I haven't because I haven't needed to. My savings are still growing from income. I got used to not spending and held off to 70 for social security. I do have some projects that I could, and should, tackle but I also have inertia.
Location: Was Midvalley Oregon; Now Eastside Seattle area
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Quote:
Originally Posted by ChessieMom
What a silly article. People spend what they need to spend. Plenty of people have portfolios that are large enough that they simply don't get spent down as the person doesn't need that much.
agree 100%.
After 40 years of being careful, planning, and advice...retirement has finally come thru...
sort-of.
No where, no how, no who, no why to spend retirement money.
I even applied for a parttime job yesterday-just to do something other than play with the trading accounts and be home to irritate DW.
The article is about the habits of retirees with money, not about those without money.
Quote:
A big predictor of how someone will spend in retirement is how they spend while they’re working. ....(those) that tend to save money while working tend to keep saving money after they retire. And clients that tended to overspend while working keep doing so as retirees.
The problem with those that overspend when working is that they don't save much for retirement. Savers continue to save when can spend and spenders tend to spend when should save.
Another reason retirees don't spend down might be related to a frugal upbringing. If you were raised by cheapskates and have spent your entire life being careful with money and forgoing luxuries, it's hard to unlearn those habits.
I had a frugal upbringing so there's that, but now I am also concerned about inflation. I have no children to look out for me when I'm no longer able to care for myself, so I want to be sure that I have the resources to enter a life care community when and if the time comes. Those facilities are already either out of my price range or close to it. So I want to grow my assets as much as possible. That means continuing to be smart about money and not blowing it on unnecessary luxuries.
Dopey article..the fact is most retirees with dough tend to spend around 3 to 4% inflation adjusted ….
90% of the time a 50/50 portfolio has ended 30 years with more than you started with ..adjusted for inflation that means you spent down more than half thirty years later if you end with the same thing
Make no mistake...
If I knew when I was gonna croak I'd spend it ALL.
Every last dime.
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