I’m a retired middle school administrator. We had a behavior incentive program where kids earned points for doing the right things like being on-time, having completed homework, helping a peer…. Students points accumulated in an account. They could redeem points for things at a school store. Some merchandise was clothing, bikes, electronics. The points did not roll over at the end of the year. I asked a 6th grade girl who had the highest point total at the end of the year what she was going to use her points for. She looked up at me and said, “Nothing. I just like watching the number get bigger. “
So, yes it would be nice to upgrade life with retirement money when you know you have more than you had working. However and this seems odd. Some of us really don't want much more than we already have. New cars, better cars, better cloths, bigger or nicer houses won't make me any happier than I am. Only thing I needed that I wanted actually happened before retirement. Not saying I won't want a few more things when not working, but they will be few and far between. Nothing anyone considers as a luxury even interests me. But knowing if I want something I can probably get it is good enough.
Spending down doesn't have to mean spending on yourself, it can be helping (gifting) money to family members, donating to charities, buying land next to a town park and donating it to the park, you're only limited by your imagination. I am going to have a serious problem upping my standard of living in retirement but when I hit RMDs it's going to get ugly and I'll be looking for places to send the money I don't need.
Good general concepts! Goals should include to enjoy each day, and have a monthly budget for fun( beyond needs). Not a huge fan of bucket lists(as they just set up the chance for “failure”) but absolutely am a fan of enjoying daily life, whether that being a trip or simply taking a bike ride with your partner. We don’t know when we will die, whereas we have a rough idea of when the money runs out. Savor each day! Most people run out of time before they run out of money! My nearly 87 yo father was asking for a few more months at the end so he could finish a book he was writing! Bittersweet for sure!
My Mom's financial advisor had to remind my Mom that she was no longer saving for a rainy day, it was raining already and she should spend on what she wanted without real concern at that point. I have tried to take that mindset to heart for my own situation. Excellent points about how to structure your new wants over old needs-based thinking.
Underrated finance channel, I enjoy listening to this type of content and the various opinions and ideas on youtube. I am financially secure by anyone's measure, but the hard part on planning for not working is what to do with my free time and other issues around leaving the work force. Enjoy your material and the comments on all of your videos. I learn a lot from the comments, maybe more than the videos sometimes.
I retire next year. I have a $5 million net worth. I'm a miser and I don't apologize for it. I have no particular goals or ambitions. I'll never let the YOLO crowd shame or otherwise influence me. Find your own happiness on your own terms.
An important topic that most need to understand far better. This video was both effective and very useful; it can be difficult to keep on balance. Thank you for sharing this thought provoking information Eric! Larry O. Ca.
I have been guilty of the "Moving Principal" mindset at times. LOL. This seems to happen more when I look at my finances over a shorter period of time. I try to ignore this number as meeting income needs is more important to me. I can do more to control this versus the market fluctuations of the investment worth.
Meh. I believe in relative frugality. I grow my assets so I can spend more in the future, and I've taught the next generation to do the same. The idea of "spending down" my assets is sickening.
Most underrated finance channel. Keep it up and audience will follow
I’m a retired middle school administrator. We had a behavior incentive program where kids earned points for doing the right things like being on-time, having completed homework, helping a peer…. Students points accumulated in an account. They could redeem points for things at a school store. Some merchandise was clothing, bikes, electronics. The points did not roll over at the end of the year. I asked a 6th grade girl who had the highest point total at the end of the year what she was going to use her points for. She looked up at me and said, “Nothing. I just like watching the number get bigger. “
Sound advice clearly explained. One of my favorite channels.
Hands down, the most worthwhile financial advice on TH-cam. Thank you again, Eric. I never miss an episode and revisit older ones.
I'm honored, thank you!
So, yes it would be nice to upgrade life with retirement money when you know you have more than you had working. However and this seems odd. Some of us really don't want much more than we already have. New cars, better cars, better cloths, bigger or nicer houses won't make me any happier than I am. Only thing I needed that I wanted actually happened before retirement.
Not saying I won't want a few more things when not working, but they will be few and far between. Nothing anyone considers as a luxury even interests me. But knowing if I want something I can probably get it is good enough.
Yes, I have no interest in trying to impress anyone.
Spending down doesn't have to mean spending on yourself, it can be helping (gifting) money to family members, donating to charities, buying land next to a town park and donating it to the park, you're only limited by your imagination. I am going to have a serious problem upping my standard of living in retirement but when I hit RMDs it's going to get ugly and I'll be looking for places to send the money I don't need.
Good general concepts!
Goals should include to enjoy each day, and have a monthly budget for fun( beyond needs).
Not a huge fan of bucket lists(as they just set up the chance for “failure”) but absolutely am a fan of enjoying daily life, whether that being a trip or simply taking a bike ride with your partner.
We don’t know when we will die, whereas we have a rough idea of when the money runs out. Savor each day!
Most people run out of time before they run out of money!
My nearly 87 yo father was asking for a few more months at the end so he could finish a book he was writing! Bittersweet for sure!
My Mom's financial advisor had to remind my Mom that she was no longer saving for a rainy day, it was raining already and she should spend on what she wanted without real concern at that point. I have tried to take that mindset to heart for my own situation. Excellent points about how to structure your new wants over old needs-based thinking.
Underrated finance channel, I enjoy listening to this type of content and the various opinions and ideas on youtube. I am financially secure by anyone's measure, but the hard part on planning for not working is what to do with my free time and other issues around leaving the work force. Enjoy your material and the comments on all of your videos. I learn a lot from the comments, maybe more than the videos sometimes.
I retire next year. I have a $5 million net worth. I'm a miser and I don't apologize for it. I have no particular goals or ambitions. I'll never let the YOLO crowd shame or otherwise influence me. Find your own happiness on your own terms.
An important topic that most need to understand far better. This video was both effective and very useful; it can be difficult to keep on balance. Thank you for sharing this thought provoking information Eric! Larry O. Ca.
Another great video, Eric. Thank you for this very helpful information.
Great explanation of the frugality inertia issue.
Truth.
Love this video. Thank you!
Can't wait to learn a Japanese in retirement at 9:10
Very well done 👏 ✔️ 👍
Wow, it’s like you can read my mind!
I thought that was a great analogy.
This was great as usual.
I have been guilty of the "Moving Principal" mindset at times. LOL. This seems to happen more when I look at my finances over a shorter period of time. I try to ignore this number as meeting income needs is more important to me. I can do more to control this versus the market fluctuations of the investment worth.
OMG…. Hidden goal….Eric is also a mind reader.
Your 6'8" wow, you must hate the main cabin....I do and I am only 5'8"
I have a goal to live nicely but hope to not use it all. I want to leave some for my kids.
Wow, had no idea you were 6’8” tall there is no reference in the videos to gauge that by. Yea flying must not be much fun when you are that tall.
Meh. I believe in relative frugality. I grow my assets so I can spend more in the future, and I've taught the next generation to do the same. The idea of "spending down" my assets is sickening.
“Learn A Japanese?”