No. of Recommendations: 32
intercest quoting article: '"Other studies have found affluent older Americans hoarding money. Last year, a study in the Journal of Financial Planning found that the wealthiest fifth of U.S. retirees were spending 53 percent less than they could have. Meanwhile, the poorest 40 percent generally spend more than they safely should; the median retiree spent about 8 percent less than the safe amount."'

Yep. Habits are especially hard to break for old people who have established them over a lifetime.

I am in my early 60's and many of my baby boomer friends fall in those two camps.

They either have saved all their lives and are still working and saving out of fear of falling short, or they are still working and spending what they make because they have given up all hope of saving enough.

There is no logic to it at our age. It's just habit.

That is why I encouraged my daughters to start Roth IRAs the instant they finished college and entered the workforce and even gave them dollar for dollar matches in the early years. They would save $2.5K and I would match it. Now they do it themselves and seek my advice rarely.

I also tell them, 'we are spending your inheritance' just like Dad did 40 years ago. When I finally saw how much he had saved it was a total surprise. When he died at the age of 93 and left behind a small estate I was able to leave it invested because I had spent a lifetime saving and investing.

I hope to set the groundwork for my daughters to follow that path. So I encourage them to work and save and I make it clear that they can expect nothing from me. I might surprise them, but it won't do them any good if they haven't deeply ingrained habits of working and saving first.

I don't think anybody can change the behavior of those of us who have reached older age on a different path.
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