No. of Recommendations: 1
People who have not accumulated a portfolio have no idea of SWR and tend to think the purpose of a large sum of money is to be spent. The faster the better.

And that is why they have not accumulated a portfolio! ;-)

I have 2 siblings--one just retired, and the other is considering retirement soon. The one recently retired was able to buy a modest home from the equity proceeds on the sale of her previous home. Other than the home, she has only a $90K nest egg, part of which she already spent to buy a car. She thinks she's doing fine. When I discussed SWR and similar concepts with her in the past, she simply assured me that she will never live to 90 and can always get a reverse mortgage on her home. In the meantime (big surprise), she is now spending another $10K of the $90K to enclose the rear patio on her home. I know that it is only a matter of a few years before she's depleted her nestegg, but she feels she can comfortably live on SS benefits. Her perspective of "Oh well, everything will work out in the end" is beyond me, but at least she has 4 children that I expect she can turn to if things get rough--I'm just hoping she doesn't turn to me.

My other sibling just turned 59 1/2 and quickly raided her 401K to pay off her credit card debt. She has no children she can 'fallback' on, and she doesn't own a home, but is planning on retiring soon. I have no idea how she expects to do it.

In short, at family gatherings, these two always show up in brand new clothes and jewelry, while I wear clothing I've owned for 10+ years. They show up with expensive gifts, while I contribute a decent bottle of wine, or a nice dessert. I dread the day that they come to me for help, as I (hope to) have just barely enough for me to retire comfortably.

I think I will start the 'losing so much money in the market' rumour soon regarding myself in the hope of avoiding what I foresee will be major family conflicts.

2old
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