We retired five years ago with zero debt and relatively low expenses. We live in Montana and all our passions are local and inexpensive: backpacking, canoeing, cross-country skiing, family, gardening, wildlife photography, etc. We hate flying and love Montana! We are spending on Roth Conversions to minimize of tax liability and large Required Minimum Distributions (RMDs).
100% agree that spending declines in mid to late retirement. As to the “smile”, it is wrong for many. The chance of needing to increase spending in late life is quite hit or miss. That is unlike the beginning or middle which is pretty universally applicable. We have 4 elderly parents in their late 80’s. Both dads died in a matter of a few weeks with no major spending need. Both moms still alive, one is independent, but doesn’t spend much. The other moving into an ALf with mild dementia. Renting out her home more than covers her care needs with her Social Security. None of our parents had portfolios that lasted past 75. None of them were ever homeless or hungry. There is a tiny chance of needing expensive Long Term Care, but those that have no money still get taken care of if needed by programs like Medicaid.
Just a note to US viewers. If you live in the UK the state pays for long term healthcare if you don’t have the money to do so. Where I live, there is a tax specifically for LTH and the homes are well run and regulated, avoiding some of the horrible abuse stories we hear. I am extremely fortunate insofar as my savings mean I can afford to pay for 2 full time live-in carers when (and if) I get to that stage, and I bought my retirement home with that in mind but if I lose it all I can still get the healthcare I need, and paid for over the years through my taxes.
Here’s a sobering fact. We going around saying that we have “X” saved for retirement. We actually “x” invested. You blink an eye and you have $10K less than you had yesterday.
Bill Perkins' Die With Zero has a main point rhat focus on "time bucketing" where there are certain things you can do this decade that you just won't in the next decade. We need to identify these things and do what we can whike we can.
I was reading about the 'retirement smile' recently, although I cannot remember if it was the seminal paper. The authors emphasized that the 'smile' was found in moderate income retirees, but less so or not at all in the affluent.
Thank you for the great content and your expertise. I retired 10 years ago and planned to travel until I slowed down. But Covid and along with caregiving responsibilities took the winds out of my sails. So where now I'd be in the down part of the smile, fortunately I have my health and mobility and will plan to get some reasonable travel in.
We retired five years ago with zero debt and relatively low expenses. We live in Montana and all our passions are local and inexpensive: backpacking, canoeing, cross-country skiing, family, gardening, wildlife photography, etc. We hate flying and love Montana!
We are spending on Roth Conversions to minimize of tax liability and large Required Minimum Distributions (RMDs).
100% agree that spending declines in mid to late retirement. As to the “smile”, it is wrong for many. The chance of needing to increase spending in late life is quite hit or miss. That is unlike the beginning or middle which is pretty universally applicable.
We have 4 elderly parents in their late 80’s. Both dads died in a matter of a few weeks with no major spending need. Both moms still alive, one is independent, but doesn’t spend much. The other moving into an ALf with mild dementia. Renting out her home more than covers her care needs with her Social Security. None of our parents had portfolios that lasted past 75.
None of them were ever homeless or hungry.
There is a tiny chance of needing expensive Long Term Care, but those that have no money still get taken care of if needed by programs like Medicaid.
Enjoy life while you can
Just a note to US viewers. If you live in the UK the state pays for long term healthcare if you don’t have the money to do so. Where I live, there is a tax specifically for LTH and the homes are well run and regulated, avoiding some of the horrible abuse stories we hear. I am extremely fortunate insofar as my savings mean I can afford to pay for 2 full time live-in carers when (and if) I get to that stage, and I bought my retirement home with that in mind but if I lose it all I can still get the healthcare I need, and paid for over the years through my taxes.
Here’s a sobering fact. We going around saying that we have “X” saved for retirement. We actually “x” invested. You blink an eye and you have $10K less than you had yesterday.
My parents went the opposite direction. Bought a bigger house in retirement, had expensive hobbies, went bankrupt in retirement.
Bill Perkins' Die With Zero has a main point rhat focus on "time bucketing" where there are certain things you can do this decade that you just won't in the next decade. We need to identify these things and do what we can whike we can.
Great book!
Always a wealth of knowledge, Nick.
I was reading about the 'retirement smile' recently, although I cannot remember if it was the seminal paper. The authors emphasized that the 'smile' was found in moderate income retirees, but less so or not at all in the affluent.
Thank you for the great content and your expertise. I retired 10 years ago and planned to travel until I slowed down. But Covid and along with caregiving responsibilities took the winds out of my sails. So where now I'd be in the down part of the smile, fortunately I have my health and mobility and will plan to get some reasonable travel in.
Glad it was helpful!
Thank you.