Spending down assets/investments

A good financial planner should be able to help answer that question....how much to spend, when to start, and how much is needed in investments to maintain an income/money to pass on to children, etc.

That's a tough call & I, too, would be interested in reading others' experience with this. In trying to realistically calculate how much I'll need to live on in retirement, it occurred to me that it's really like gambling on how long one expects to live. Quite frankly, I worked hard to earn what I have & I don't really want to leave much when I go, & I know my family's on board with that.

My aunt & uncle had no children and my uncle did well enough to be able to retire at 58. He golfed 5 days a week until he was 66 and then had a massive stroke and lingered for two years.

But boy, did he enjoy those 8 years of fun and freedom. They bought a condo on Maui and spent months there every year. He did everything first class - including his airline tickets to and from Hawaii. My aunt used to tell him to save more - but who knew he would die so young?

My aunt lived until 76 and then died suddenly in her sleep. She had saved enough money to last until she was 100. Until the last year, when I got her to lease a Subaru, she drove Escorts and kept her cars for 10 years at a time. When she took her mandatory distributions...she put the money back into investments.

My sister and I got substantial inheritances - but I wish she had enjoyed the money herself while she was alive. She always wanted to visit her parents' hometown in Italy, but never made it there.

I say, ENJOY life and don't worry about your heirs. Make some of those purchases that will make your life easier while you can enjoy them!

Your FUTURE is NOW!!!!

On 4/23/2014 VCamp2748 said:

That's a tough call & I, too, would be interested in reading others' experience with this. In trying to realistically calculate how much I'll need to live on in retirement, it occurred to me that it's really like gambling on how long one expects to live. Quite frankly, I worked hard to earn what I have & I don't really want to leave much when I go, & I know my family's on board with that.

It certainly is a gamble especially considering any needs for nursing home care. We looked into long term care insurance years ago, but due to my husband's diabetes, etc., he was turned down.

We have no children and we too don't want or need to leave inheritance. We are already retired and living comfortably but not extravagantly and are still saving each month. That will change slightly when one of us dies as neither elected a survivor annuity benefit on our pensions.

Guess a financial planner may be in order. We did have one years ago and they kept telling us we could expect to purchase what ever we wanted. I didn't buy that especially after the financial down turn. Thanks for your reply.

On 4/23/2014 Allegheny said:

On 4/23/2014 VCamp2748 said:

That's a tough call & I, too, would be interested in reading others' experience with this. In trying to realistically calculate how much I'll need to live on in retirement, it occurred to me that it's really like gambling on how long one expects to live. Quite frankly, I worked hard to earn what I have & I don't really want to leave much when I go, & I know my family's on board with that.

It certainly is a gamble especially considering any needs for nursing home care. We looked into long term care insurance years ago, but due to my husband's diabetes, etc., he was turned down.

We have no children and we too don't want or need to leave inheritance. We are already retired and living comfortably but not extravagantly and are still saving each month. That will change slightly when one of us dies as neither elected a survivor annuity benefit on our pensions.

Guess a financial planner may be in order. We did have one years ago and they kept telling us we could expect to purchase what ever we wanted. I didn't buy that especially after the financial down turn. Thanks for your reply.

My aunt & uncle both took out life insurance policies on each other to help, since my uncle's survivor pension was reduced upon his death. Their investment guy set it up.

On 4/23/2014 bathina said:

A good financial planner should be able to help answer that question....how much to spend, when to start, and how much is needed in investments to maintain an income/money to pass on to children, etc.

Excellent advice.

You need to keep enough to cover unforeseen expenses, illnesses, etc.

You need to decide if you would like to leave anything and how much to descendants.

Also, if you would like to leave some to charity.

But also maybe you can afford to have things that you previously wouldn't think of. A newer car, a vacation, any kind of major purchase.

It's good to talk to someone who can advise you on these things.

Nothing wrong with continuing to have a conservative attitude about spending. If you're anything like me, you don't need to spend money on "stuff" because you already have what you need & only need to occasionally replace something. So, quite honestly, if I were you, I'd be thinking about some fun spending - vacations to places you've always wanted to see, memberships at museums, theaters, etc. If the economy looks like it's going to tank again, you'd just cut back on those activities until you felt comfortable again.

My FIL lives a very frugal lifestyle....stuff is just stuff....he prefers a quiet minimal life....his late model car works like a charm....his home is well maintained....granted his furnishing are pre 1970 but still in good condition and well cared for....he doesn't need the latest and greatest to feel fullifilled or satisfied with his life....he did splurge and get a tracfone last year so he could have a phone on him for emergencies when he is outside.

I find the older I get the more I respect his way of life and the less important stuff is to me.

On 4/23/2014 VCamp2748 said:

Nothing wrong with continuing to have a conservative attitude about spending. If you're anything like me, you don't need to spend money on "stuff" because you already have what you need & only need to occasionally replace something. So, quite honestly, if I were you, I'd be thinking about some fun spending - vacations to places you've always wanted to see, memberships at museums, theaters, etc. If the economy looks like it's going to tank again, you'd just cut back on those activities until you felt comfortable again.

Thanks for your kind words of inspiration. I giggled, because even my fun spending is practical. I want one of those John Deere Gators, so we can plow snow and I can haul around mulch, etc. But then I would have to build another shed to store it.