Are you a "Save every penny for retirement" or "Live life now" type person?

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PrivatePilot

Ironus Butticus
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Just thought it would make for an interesting discussion. As per the title, do you save hard for retirement at the expense of living your life quite the way you wish you could currently, or do you spend a lot now at the expense of later, knowing that tomorrow is never guaranteed?

I used to save a lot more than I do now.

However, starting about 6 or 8 years ago I had a real perspective shift after watching a number of my coworkers never make it to the "enjoyment" stage of life despite being the types who saved every penny, worked 70-80 hour weeks, and never seemed to really splurge on anything.

One guy worried endlessly about his stocks and how much it every little bear run would cost him in retirement. He died a few years before he was due to retire.

One guy worked every single hour he could possibly legally work, and even some that he wasn't technically legally able to work (but fudged so he could) 46 weeks of every year, only stopping for his 6 weeks of vacation which he took in one big shot. He finally retired, headed off into the sunset seemingly prepared to enjoy it, and died 3 weeks later. Never collected a single pension cheque.

Several others made it 2-5 years and passed away. I know one guy I really enjoyed working with who retired about 4 years ago who now has cancer and is counting his days.

A few have made it decent lengths of time, but several ended up so crippled from the realities of my industry that they've struggled to enjoy retirement because their bodies have become a jail to them.

So, knowing that I might very well be in the same boat as several of these guys (The trucking industry is physically hard on your body, & the average lifespan is 61!), I had a perspective shift and decided to live my life now, not later. Because later may never happen. And even if I do reach "later", the rigors of ~40 years in the industry may, by that point, have me so banged up that I won't be able to enjoy myself.

So we vacation, a lot. We travel with our RV, a lot. I ride, a lot. My wife rides too, albeit less lol. We think nothing of throwing a money at fun weekends away, dinners out, having fun with friends, and spur of the moment vacations and getaways. Yeah, we're lucky to be in a situation where we can afford to do that, but I know that some think we're pissing it all away now and won't be able to enjoy life perhaps to it's "fullest" in retirement as a result.

But what if you never actually reach retirement?
 
More on the frugal side here...splurged on a trailer last year, but other than that, don't really spend a lot...I can retire end of June 2029 with full pension so our plan is to splurge then...house is already paid too so that could be a source of income if necessary
 
My wife and I have already set ourselves up for retirement, so now we enjoy life. We travel, do cruises. One trip that’s been on my bucket list for a long while that now is coming up, a real African safari.
 
I am trying to set myself up for retirement have no debt. A bit in the bank now I just need time and to figure out what would make me happy. I have a 10 year old truck and no desire for a new one, don't want a new bike and at 50 am not ready to retire. Might start taking Monday's off as I don't seem to have free time that isn't dedicated to the kids. I do feel maybe having kids younger might have been good but would be much harder at the same time.

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Yeah, don't get me wrong, we still save, we have RRSP's and all that good stuff (and very little debt), but we're both lucky to have pensions as well (assuming I ever get to collect on mine, a lot of guys don't make it there it seems), but if we had been in the "save every penny at the expense of living life" camp 10-15 years ago, we'd be retired by now.

The tradeoff of spending more now is that we'll retire later, but again, come full circle to that big question - if there isn't a "later", it sure seems like I'd have made the right decision today.
 
My friend's retirement plan was to not save and live for today figuring when he retired he would work on weekends to supplement his income. He got dementia so bad he wasn't able to work at all and so his wife, who just turned 70, has been working full time in order to make ends meet and can't afford to retire. Not a good plan, I prefer to have the nest egg. Been retired 9 years and enjoying every minute of it.
 
I won't have a pension and all signs point to retiring with a mortgage. On the upside that means any war chest I scrape together carries on as family money. I want it big enough that passive income covers our expenses. I have quite a ways to go before that happens. Realistically, when I am ~60. My wife will have a good pension at about the same time so she spends everything. Some friction but ultimately not a bad balance overall.

The interesting but still unknown long game for me is the kids. If they want to afford a place to live in Canada, there is a good chance that requires a cash infusion. As all of our money is dedicated, if we get any inheritance that will probably get invested and become the kids warchest when they are mature enough to handle it.

My kids are still little. I couldn't pull it off when they were born but for any potential grandkids, I want to put 10K in when they are born. Compounded over 60 years at 10%, that is 3M and sufficient to fund a decent retirement. That lets the grandkids focus on more immediate needs and wants Throughout their lives.

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If I kept the leverage high on the house, I could probably speed up the process but that's a scary position to be in. While it works most of the time, when it doesn't work, it goes spectacularly wrong. I did some borrow to invest that is doing OK but won't make a meaningful difference in my life until retirement. Right now it's just dividends paying a loan and provides no useful cash flow.
 
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Are you a "Save every penny for retirement" or "Live life now" type person?"
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Those are two very extreme lifestyles. I think it's possible to thread the needle somewhere in between. I'd like to think that my wife and I are doing a good job enjoying life in the moment, but we've also saved enough to have a comfortable retirement - as we have been for over a decade now.

While from the outside it may look like we are "live life now" kind of people, the reality is that during our working years, we were Dual (high) Income, No Kids, and we always strove to live within our means. That meant never taking on debt to buy depreciating assets, and only leveraging ourselves for appreciating assets like stocks, RE and education.

The way we both treat money is not as a means to buy goods and services, but as a tool and an opportunity for that money to make more money through passive income and to take advantage of its compounding effect over time.

Classic labour vs capital for income.
 
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I'm set. I should retire. Racing bikes was pretty expensive but I haven't done a lot of it really, just a few years worth. I'll probably dabble in it still but as it is I have enough money to retire and live the good life. But there's two stepdaughters, one who will never be fully out of the house and another in university. So I now sock some money away and thread the needle on the rest.
 
We used to save as much as we could and put off vacations etc. I’d work all the OT I could get my hands on. I’ve watched too many colleagues at work over my years do the same only to pass before retiring or be in too poor health to be able to do what they wanted. So over the past few years the wife and I have taken at least two decent trips a year. Usually cruises. I’m 5 years away from retiring with a decent pension and no mortgage. We have been able to pay for our two kids university/college education and set up accounts for each, which enabled us to pay for one’s wedding and will cover the others, if that is what they want. I’ve had two knee surgeries, I need a new hip and have a bad back. So waiting to get out and see the world isn’t an option. I say get out and enjoy life while you can as there is no guarantee for tomorrow.
 
A divorce with 3 children knocked my equity/savings back to zero so, started over slowly. As you get older, the material things seem to have less significance. Travel and toys are the focus and we make it work for us. Always socked away dollars for pension and education funds for the kids etc. it’s worked out well.

I’ve never had the mindset to buy new toys. They typically have some scars from previous owners so, I get to enjoy them from the driver/riders seat and they still look good in pics. There is something about finding good things at a value. We still thrift store shop and we trade off with friends on things such as helping with a project at one place and then receiving a favour back and we always seem to come out ahead. But, not intentional.

Seen too many folks save up to pass away and let those who didn’t work for it benefit.

Taught my kids to make their own way and helped with their education.

Downsizing and living in a cheaper area helps. Understand as I age, health care and having simple living will likely take over. But, for now I’m doing the best with what I’ve got. Hoping the pensions I’ve contribute towards are enough to top up what ever Pennies I get from the government when that day comes.

I know I’m not inheriting anything from anyone so, what ever it takes better be enough. lol.
 
I lived my first 40 years as a "live life now" person, and that's why I had nothing. My ex and I would buy stupid crap all the time and never think about the debt. About three times during the 20 year relationship, we consolidated with the mortgage to get back to zero, and that's why we owed a third of the purchase price over it when we sold after divorce.

Luckily for me I met an amazing partner who helped me see the light and now I have a great balance of living life now, by going on vacations I always dreamed about, and save almost every penny, so I might actually be able to "barista" fire in 6 years at 50.

I hate myself for wasting so much, but at the same time, I am glad I can be a real life example to my kids of what not to do. My parents never talked about money, so I really had no idea how to budget or plan for retirement. Now, I drive my kids crazy be telling them everything and advising them on what to do. I think there's almost nothing more important to teach our kids, than financial literacy.

And something else I started doing as a midlife crisis was to lose weight and start exercising. All the stories about people passing away or not enjoying their retirement, I wonder how many would have if they had put some work into their health. Money is great, but being healthy is even better.
 
Mixture of both. I retired a year and a bit ago. I've never been the type to have the biggest and newest possible house, or the fanciest and newest car that the bank will let me have. No kids, either. I'll never own a McMansion on a country estate, and I drive a Chevy, not a Mercedes. All that has helped. I took one proper big vacation in 2009, then regularly starting in 2018.

I don't owe anything to anyone, and I have enough passive income to live reasonably comfortably ... provided that global events don't throw a spanner in the works, so I'm holding off with plans for another trip to Europe until I get a better sense of which way things are going.
 
Robp said:
And something else I started doing as a midlife crisis was to lose weight and start exercising. All the stories about people passing away or not enjoying their retirement, I wonder how many would have if they had put some work into their health. Money is great, but being healthy is even better.
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Retirement has given me the time to walk 4 to 6 km every day ... except days like today. (too cold and blustery) Doctor has no concerns other than cholesterol being higher than he'd like.
 
Oddly, I've been thinking about the time machine bit where if you knew back then what you know now scenario. Some stuff was obvious, Buy Microsoft not Nortel. A little more push and risk taking on my part would have put a bigger pile of coin in my pocket but we're OK and don't have to freak out if something breaks down.

The two big things I would have liked to change would be music and travel. While you can learn to play a guitar later in life you never get to the level where you could discuss compositions with Eric Clapton, Chet Atkins or Lenny Breau (If Breau and Atkins were alive).

Travel is fine if you're happy doing the group tour thing but one has to build up street smarts if you want to experience out of the way stuff.

My wife and I both had parents that came with baggage so we both have "What if" personalities and live more for tomorrow than today because "You never know..". The parental issues have created dysfunctional offspring in every direction.

I'm trying to shift gears into a more realistic pattern. My accountant tells me too many of his clients will die with too much money in the bank but for many it's hard to change. When you change your lifestyle you change your friends.

The biggest problem is world economics. Idiotic politics are creating chaos. You can't trust the government to bail you out and if you have resources set aside to take care of yourself they will go after that.

Life is a travel triangle with corners A, B and C. You start at A wanting to go directly to C but situations get you to B. Lay that on a topographical map or oceanic chart and if going back to A is impractical or impossible, plot your best course from B to C. The short cuts are usually treacherous. Can you handle them?

Old Newfie saying: The longest way round is usually the fastest way home.
 
nobbie48 said:
I'm trying to shift gears into a more realistic pattern. My accountant tells me too many of his clients will die with too much money in the bank but for many it's hard to change. When you change your lifestyle you change your friends.

A number of financial planners have told me that you don`t want to be the wealthiest person in the cemetery, sound advice. Thing is, my folks lived through hard times and got me into saving and investing at age 17. I`m 67 now, retired for 8 years, no debt, single ( long ago divorced ), no kids, living in a large home with two company pensions and all the Gov`t handouts and a bunch of savings and investments. While stable and secure I feel I`ve missed out on lots, my last vacation was in 1998, I`m reluctant to splurge or do much of anything except essentials. This kinda` outlook, without doubt, came from my folks I believe. I`m trying to loosen up but all my plans are still very calculated, I`m looking at a new H-D Low Rider ST but it carries an eye watering msrp. I know the clock is ticking but my formative years and upbringing don`t want to move on it. I really don`t know if you can have it both ways. I count my blessings every day and understand that my normal day is a lifetime dream for many, I just don`t know.
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I’ve always been a spender , I like nice stuff . Partial to Ducati , and nice cars . Won’t even start on race boats . I however got a nice wife , smarter with money and kept her . We put aside enough to fund what our financial planner agreed would be ok in the retirement we envisioned .
Now I wonder what inflation will do to my long term plan , but someday Mom will go and throw a couple hundred grand into the kettle . Everyone in my circle are ok with money , I don’t gravitate to those folks that blow through everything and are alway a dollar short. I did not grow up with a silver spoon , so I appreciate things . We do two trips a yr , usually a spendy one , then lesser . This coming yr is Malta in February, NYC for the sailGP in June , then sailing to the thousand islands late Aug . Travel doesn’t have to be stupid money .


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crankcall said:
I’ve always been a spender , I like nice stuff . Partial to Ducati , and nice cars . Won’t even start on race boats . I however got a nice wife , smarter with money and kept her . We put aside enough to fund what our financial planner agreed would be ok in the retirement we envisioned .
Now I wonder what inflation will do to my long term plan , but someday Mom will go and throw a couple hundred grand into the kettle . Everyone in my circle are ok with money , I don’t gravitate to those folks that blow through everything and are alway a dollar short. I did not grow up with a silver spoon , so I appreciate things . We do two trips a yr , usually a spendy one , then lesser . This coming yr is Malta in February, NYC for the sailGP in June , then sailing to the thousand islands late Aug . Travel doesn’t have to be stupid money .


Sent from my iPhone using GTAMotorcycle.com
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*Flag on the play*

<Whistle>

Penalty to @crankcall #45.

$20 in the GTAM donor box for taking 3 vacations this year.
 
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