Do you believe in saving for the future?

[TheRobSJ]

Hopefully you still have a Will of some sort.

Like those before me, a trust. Goes to my wife if she outlives me. Then her new young husband will buy that jet boat with it that I’ve been holding off on.

 

[GAJ]

Like those before me, a trust. Goes to my wife if she outlives me. Then her new young husband will buy that jet boat with it that I’ve been holding off on.

:laughing

So have you discussed her Will in case she outlives you?

We have a trust but also a will.

In case my daughter and us both go together we even have that covered as well.

We even covered the scenario where if all four of us go at the same time including her husband as we have nephews, nieces and my one brother who, um, didn't make the best life choices! :laughing

 

[Mike95060]

And no Jesse I’m not adopting you. I know you’ll just blow it all on Camero parts.

Clearly you should be adopting me so I can blow that wad on my 57.

 

[two wheel tramp]

A will is fairly simple, unless you're trying to leave to a bunch of people. While it does force you to contemplate mortality, you will feel better when it's done.

But you will still have probate.

With a kid, a living trust is great option. You control everything as long as you are alive, and it passes on without any probate at all. There's always paperwork for the estate, but it's minimal.

:applause

Thank you, Ernie!

 

[bikeama]

John Goodman sums it up nicely in The Gambler as "the position of fuck you".

https://youtu.be/xdfeXqHFmPI

Dilbert covered it also. I had this framed on my desk the last week I worked.

 

[HappyHighwayman]

To the OP, what are you suggesting otherwise? Spend all your money, save nothing for retirement? Mooch off family, friends and the state?

Have you never sacrificed today for the future? Do you say f you to your future self and not exercise or eat healthy, EVER, because you can't find balance?

Life is balance. Life is about making choices and not getting everything you want.

 

[Yakoo752]

Dilbert isn't Fuck You money though

 

[jt2]

My balance was going all in on fun in my 20's and then becoming mature with my money in my 30's and more so in my 40's and beyond.

That's pretty much the same path I followed. Not one I'd recommend, but have managed to make it work pretty well for having a late start.

I think the truth is the balance.

Live for today but save some for tomorrow.

Exactly. :thumbup

The rationale behind the 4% "rule" is that you can live off the annual 4% without touching the principal. So if it holds true, then you could live off of the original principal in perpetuity. I've got an old fashion pension to pad the difference otherwise it would be a bit nerve racking.

I think the 4% rule is excessively conservative, unless your plan is to leave a nest egg for someone else to enjoy. Nothing wrong with that, if that is the intent. A withdrawal rate of 5% is probably safe, especially if you can follow an adaptive spending plan (i.e., spend/withdraw less in down cycles).

I believe that you need more than two million put away to retire early. Social security definitely helps, but I'm in a position where if the politicians take it away I'm still okay.

I'm sure you know this but it really depends on your expenses. Check out firecalc.com . You can play with a lot of variables using the tabs near the top, including asset allocation, SS and so on.

Owning a rental property in retirement sounds way too much like work to me. I want nothing to do with that. :x

Yeah, never again -- at least in the people's republic of California.

I'm just as concerned about dying with too much money as with not enough. That means you effed up and could've retired much sooner during your prime years of good health. I'd rather err on the side of retiring too soon and adjust lifestyle later on in retirement to accommodate.

<snip>
It would be my life's biggest regret to die with $8.9M in my portfolio.

I agree completely!

I read a book a few years back called "Die Broke". Most of it I didn't really resonate with, but one line stuck with me: "Your last check should be to the undertaker... and it should bounce"

.

 

[afm199]

I think the 4% rule is excessively conservative, unless your plan is to leave a nest egg for someone else to enjoy. Nothing wrong with that, if that is the intent. A withdrawal rate of 5% is probably safe, especially if you can follow an adaptive spending plan (i.e., spend/withdraw less in down cycles).


.

I've more or less used the 4% rule for quite a few years. Although my rule also stipulates that ideally net worth increases every year to match inflation. I don't think I have ever taken out more than 4%.

However, speaking from experience, I have no desire to increase withdrawl above 4 %. As you get older, you realize that unless you are one of the very lucky, when you are in your seventies, your ability to move back into the work force is almost non existent. So you become more dependent on that nest egg, not less.

 

[900ss]

"Your last check should be to the undertaker... and it should bounce"
.

I'm stealing that! I'll print and give it to my son; he won't be happy because when me and SWMBO are gone, whatever is left is all his. All except what the trust attorney will take.......:teeth

 

[HappyHighwayman]

I'm likely going to inherit a substantial amount of money when my father dies but 1. I hope he never dies 2. I live as if I won't

He's also only 72 in good health so fingers crossed.

 

[JesasaurusRex]

Fixed.

As has been said, there’s no guarantees. You just don’t know when it’s your time. Quite honestly I’d give up 25% of my net worth right now to have the knowledge of when it actually is over for me. That way I could plan out my financial future a little better.

My dad hated his job. He was just holding out on retiring as long as he could and then planned to not start collecting SSI until he was 70 to maximize the payment. If he had known he wasn’t even going to make it to 70, he would’ve retired much much earlier. He died with tons saved up for a future he’d never see. I suppose I’m glad that he didn’t spend it all, because my mom is pretty healthy and while she money of her own for the future, now she has even more. Unfortunately she’s very frugal too and doesn’t spend too much. She just lives off his SSI now and is leaving the 401k money in place as long as legally allowed (she was very happy about no forced distribution for 2020).

I have no kids. My wife is older then me and I will theoretically outlive her. Which means all the generations of my family’s accumulated wealth ends with me. I’d like to live life to the fullest, but want to keep something in the hold for whatever may come up like a major medical situation or whatever. But I don’t want to come to the end and leave money on the table.

And no Jesse I’m not adopting you. I know you’ll just blow it all on Camero parts.

:nchantr

 

[Eldritch]

:nchantr

I can hear all the little weeping Camaros, crying out for help.

 

[bikewanker]

I loosely followed the Budman theory of life, racing at 30 years of age. Master Card Racing was priceless until the winter payoff. Probably mid 40s before I seriously saved in retirement plans. I joined the Army out of boredom and to pay for school then I used a VA loan for a house in my 20s because I sucked at saving. 20 years ago we saved for a year to do a euro motorcycle tour and several years ago I started traveling whenever. No children has helped the balance of enjoying the here and now/then versus maintaining a moderate lifestyle to have the $ to enjoy my present retirement. I never felt like a planner more like a daydreamer that thought I should try things, rentals being an example. Bought Reno Retire house at a good time and could live off of SSI and use savings for the really good stuff. In my early 60s I became aware of health care cost before I considered the VA. About the same time realized they tax your SSI! I’ve got a Deed upon Death for the rental house and while I’ve written a will plan to do a trust. I’ve never made what I would call Bay Area money but look forward to carefree retirement.
Life’s been good to me so far but I sure would like to use my new passport.

 

[Caddywumpus]

Rob adopt me...

I'll blow it on vettes

 

[TheRobSJ]

Rob adopt me...

I'll blow it on vettes

Just inheriting the one I have now in 30-40 years would be pretty lucrative for someone. Value on that particular model has actually gone up in the past year. One just sold on BAT for almost 30k over original MSRP.

 

[N4teTheGreat]

Retirement I just can't visualize. Not a single male in my family has made it past 80, and Alzheimers is likely. I've got my 401k pre tax maxed every year and started paying into a post tax 401k as well. That'll never be enough to retire and despite working out 4 - 5 days a week my body is starting to give me hints at the tender young age of 43 that riding bikes and bicycles, heck even walking, is probably going to be a lot more uncomfortable.

My ideal plan would be to have enough money to quite the corporate world and go do something that pays less but interests / fulfills me more. Mid-life semi-retirement maybe? Would be fun to have more time for long road trips or ambitious vacations now, and then as I start running lower on energy / physical capability reeling that in and just doing 9-5 at a job I enjoy to wrap up my life. Only way that is going to happen though is most likely to sell my condo and leave the bay area for cheaper digs though, bit of a catch 22.

 

[littlebeast]

Dilbert isn't Fuck You money though

‘fuck you’ money has always been my mantra, starting at 15 years old. left home when i was 17 and told my parents to fuck off. they were surprised at what i had squirreled away, and that i could survive on it. been that way ever since (surprising others with the lack of financial hold they think they have on me). IMO - it’s pure unadulterated freedom.

 

[TheRobSJ]

‘fuck you’ money has always been my mantra, starting at 15 years old. left home when i was 17 and told my parents to fuck off. they were surprised at what i had squirreled away, and that i could survive on it. been that way ever since (surprising others with the lack of financial hold they think they have on me). IMO - it’s pure unadulterated freedom.

Surprising others is exactly what “fuck you money” is for us mortals. Sure everyone thinks the expression means you’re like Bruce Wayne and can just throw millions around to flex or get your way. And yeah I guess if you’re a true one percenter, maybe that’s the definition. But to me, it’s just being able to say, hey pal I don’t work here because I need the money.

 

[bikeama]

‘fuck you’ money has always been my mantra, starting at 15 years old. left home when i was 17 and told my parents to fuck off. they were surprised at what i had squirreled away, and that i could survive on it. been that way ever since (surprising others with the lack of financial hold they think they have on me). IMO - it’s pure unadulterated freedom.

Surprising others is exactly what “fuck you money” is for us mortals. Sure everyone thinks the expression means you’re like Bruce Wayne and can just throw millions around to flex or get your way. And yeah I guess if you’re a true one percenter, maybe that’s the definition. But to me, it’s just being able to say, hey pal I don’t work here because I need the money.

FU Money to me is being able to retire or quit your choice. Now everyone's idea of retirement is different. For some, it is just getting by and not working. For others, it is the private jet. For me, it is having enough to do what I want and when I want. And for what I might want to do I have to be able to drop $100K+ and not change my style of living. So far life is good.