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Author: workwayless Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1488  
Subject: "Barebones" Retirement for many Date: 10/5/2006 4:33 PM
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http://www.onwallstreet.com/article.cfm?articleId=3307

<snip>

One of the surprising findings from the research world is the large number of households that experience a sharp drop in spending at retirement--a much steeper slide than the 70%-to-80% rule would suggest (at least if they were doing their planning right). It's not clear whether this decline is intentional, but for many individuals, there's a much bigger drop in their standard of living than one would expect. This suggests that more of us are willing to settle for a bare-bones retirement.



This article's findings does not surprise me. I have long suspected that needing to replace 70-80% of your post retirement income was self serving for the investment services industry. The trick to living on a barebones budget is to still have a fulfilling retirement in other words "Retire Well on Less".
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Author: chooey98 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 996 of 1488
Subject: Re: "Barebones" Retirement for many Date: 10/5/2006 6:07 PM
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A barebones retirement beats wroking, any day!

--Chooey

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Author: FoolNBlue Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 997 of 1488
Subject: Re: "Barebones" Retirement for many Date: 10/5/2006 7:02 PM
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I doubt I'll have a sharp decrease in spending as I am way out of the "normal" range. I suspect some of the drop the article's retirees experience is out of necessity and/or out of living a very conspicuous consumption lifestyle while working. I already watch my spending and doubt that it would decrease much upon retirement. In fact, I suspect it would actually increase since I have a lot of interests that I currently lack the time to pursue.

The biggest problem (nice problem to have I suspect) is that most articles and information available is for the layman. Most of us in the self-selected "FIRE world" are a different breed and thus different rules apply.

FoolNBlue

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Author: workwayless Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 998 of 1488
Subject: Re: "Barebones" Retirement for many Date: 10/5/2006 7:19 PM
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I doubt I'll have a sharp decrease in spending as I am way out of the "normal" range. I suspect some of the drop the article's retirees experience is out of necessity and/or out of living a very conspicuous consumption lifestyle while working. I already watch my spending and doubt that it would decrease much upon retirement. In fact, I suspect it would actually increase since I have a lot of interests that I currently lack the time to pursue.

The biggest problem (nice problem to have I suspect) is that most articles and information available is for the layman. Most of us in the self-selected "FIRE world" are a different breed and thus different rules apply.



Yes that is true for us FIRE folks who are saving a great deal of their income pre-FIRE. If I'm not living on 70-80% of my income now, why on earth would I need to after I retire?

I just think that it is funny: the financial advisor shows folks living it up after retirement--but the reality is most folks downscale.

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Author: sunrayman Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 999 of 1488
Subject: Re: "Barebones" Retirement for many Date: 10/5/2006 11:02 PM
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. . . Most of us in the self-selected "FIRE world" are a different breed and thus different rules apply.



++++
++++



Yup, the conventional wisdom rarely applies to the exceptional. FIRE is definitely being exceptional.


sunray
Pailindromist
& early retiree



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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1000 of 1488
Subject: Re: "Barebones" Retirement for many Date: 10/8/2006 3:34 PM
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Personally, I think the 70-80% number is overly simplistic. It is easy enough to go through your check stubs and figure out what you are really spending and on what, and then to make adjustments for which expenses will he higher in retirement and which will be lower.

This figure is likely to be much more reliable as a planner for retirement than is any fixed percentage of income. One size does not fit all.

Still, if you still have children you are supporting, your expenses can be distorted by those "extra" expenditures. Then the 70 to 80% number might be a reasonable place to begin. It at least gets you started on the road to saving for retirement.

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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1001 of 1488
Subject: Re: "Barebones" Retirement for many Date: 10/8/2006 3:35 PM
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Say, and where do I get my cyber antlers?

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Author: sunrayman Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1003 of 1488
Subject: Re: "Barebones" Retirement for many Date: 10/12/2006 12:05 AM
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Say, and where do I get my cyber antlers?


+++
+++


Ya getz a PAL for the palindrome, 1001!

sunrayman
part-time Palindromist

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Author: RetiredVermonter Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1004 of 1488
Subject: Re: "Barebones" Retirement for many Date: 10/15/2006 5:51 PM
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"A barebones retirement beats working, any day!"

A true statement!

We LOVE our "bare bones" retirement on Social Security plus a little from my IRA now and then!

Work? For some a**hole again? Never.

In fact, work at all? Not if I can help it! I/we love to wake up on a snowy morning, look out over the mountains, smile at each other, and have another cup of coffee (tea for her) as we just plain sit back and do nothing -- unless we feel like it!

Vermonter

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Author: GalinAZ Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1005 of 1488
Subject: Re: "Barebones" Retirement for many Date: 10/16/2006 4:23 PM
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I'm finding there is a drop, but it's not immediate. Since I left 8-5, I initially spent quite a bit on home improvements and other stuff to make life at home full time more to my liking. But once those purchases were paid for, I've experience the drop in expenditures..although it's also apparent that inflation in basics (utilities, groceries, gas) will chip away and require more income in the long run.

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Author: SeattlePioneer Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1006 of 1488
Subject: Re: "Barebones" Retirement for many Date: 10/17/2006 8:18 PM
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<<Since I left 8-5, I initially spent quite a bit on home improvements and other stuff to make life at home full time more to my liking.>>


May I ask what things you spent for, and whether you are satisfied those purchases were worthwhile?


Are there others that you'd consider making?


Thanks,


Seattle Pioneer

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Author: GalinAZ Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1007 of 1488
Subject: Re: "Barebones" Retirement for many Date: 10/19/2006 1:15 AM
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I spent about 2-4K/yr; I replaced sliding glass doors with double pane french doors (and took 3 weeks to paint them); I put in an outdoor patio on the north side with a fountain (very soothing); over-oven microwave, recessed lighting, low-flow toilets; in short, things I've always wanted to change but didn't have the time to coordinate when working. It helps retain the re-sale value and makes it a nicer place to live.

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Author: Gingko100 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1008 of 1488
Subject: Re: "Barebones" Retirement for many Date: 10/19/2006 11:14 AM
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in short, things I've always wanted to change but didn't have the time to coordinate when working.

It's hard to coordinate even the simplest construction project when you work full time! I work from home now, and am very grateful it has allowed me to be here to coordinate a number of construction projects this year and last. I don't know how people who work out of the home do it.

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Author: workwayless Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1009 of 1488
Subject: Re: "Barebones" Retirement for many Date: 10/20/2006 2:45 PM
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I spent about 2-4K/yr; I replaced sliding glass doors with double pane french doors (and took 3 weeks to paint them); I put in an outdoor patio on the north side with a fountain (very soothing); over-oven microwave, recessed lighting, low-flow toilets; in short, things I've always wanted to change but didn't have the time to coordinate when working. It helps retain the re-sale value and makes it a nicer place to live.



I too did something remodeling when I retired. Prior to retirement, I really didn't spend too much time at home. But when I began to spend much more of my time there, I just found that I was no longer satisfied with my home. I'd recommend that RE wannabees plan for this in their budget...

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Author: SeattlePioneer Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1010 of 1488
Subject: Re: "Barebones" Retirement for many Date: 10/20/2006 6:50 PM
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<<I too did something remodeling when I retired. Prior to retirement, I really didn't spend too much time at home. But when I began to spend much more of my time there, I just found that I was no longer satisfied with my home. I'd recommend that RE wannabees plan for this in their budget... >>


Let me ask the same question:

will you tell us what projects you did, and are you satisfied now that the money was well spent?



Seattle Pioneer

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