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"Even retirees with less than $200,000 in retirement savings aren't spending down their nestegg in retirement.

The findings challenge conventional wisdom among advisors and widely respected academic theories about lifecycle consumption developed by Nobel Laureate Franco Modigliani. In fact, more than one-third of the retirees in all three wealth groups grew their assets in retirement.


As Rayvt counsels, "Somebody is eventually going to buy an expensive toy with your money. It may as well be you."

intercst "


Good article - though I think it takes some practice for folks to
live below or within their means. And if 1/3rd grow their assets - 2/3rds
do not. I always figure the setting up of a budget does a couple things for
folks - it gives them a better idea of where their money goes - and it gives them
a tool to plan what they want to do in the future.
Saving money and avoiding spending money is pretty straightforward - matching
a family's expectations with their financial reality is somewhat more

Some far in our forced early retirement, the routine spending has been less than
planned - but the emergency fund has been needed to handle the unexpected events
several times - blown head-gasket on a car, alternator failure on a second car,
and a couple of home repairs. Once we verify the tax situation for last year we
should have a clear picture of what retirement should look like - but right now
I agree that needs are more affordable than most "worst-case" financial analysis
tests predict.

So far.
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