OK...Question for Retirees !

[Stoplight]

All,

So I'm retired for 2 years...following the market with my small TSP balance, and my "buy-and-hold" stocks and mutual funds...diversified portfolio, with some short-term trading, "mad money"...

I've done well...knock on wood !!! So here's the question :

Do you NOT spend your retirement money, because you think you'll run out of money before you or the Wife dies ???

That's my "issue" !!! I have a problem with spending it ! :nuts: It's a mental issue...OTOH, I chose 100% FERS survivor benefit, so she'll be okay...maybe...but I still have this mental block about dumping sums of money...

Any comments from the rest of you Retirees ???


Stoplight...

 

[nasa1974]

Maybe I shouldn't post this since I have failed retirement after two years (they called me).

Still playing in the TSP arena and it is frustrating.

But, the wife and I are taking some of the monthly retirement check and setting it aside for a cruise/tour of Australia and New Zealand.

 

[clester]

All,

So I'm retired for 2 years...following the market with my small TSP balance, and my "buy-and-hold" stocks and mutual funds...diversified portfolio, with some short-term trading, "mad money"...

I've done well...knock on wood !!! So here's the question :

Do you NOT spend your retirement money, because you think you'll run out of money before you or the Wife dies ???

That's my "issue" !!! I have a problem with spending it ! :nuts: It's a mental issue...OTOH, I chose 100% FERS survivor benefit, so she'll be okay...maybe...but I still have this mental block about dumping sums of money...

Any comments from the rest of you Retirees ???


Stoplight...

This is a problem for a lot of folks. We have trained ourselves to save for many many years and it takes a big mental shift to start spending it. Luckily we have a pension so if we spend it all we'll still have income. You should start spending it imp. You can't take it with you. You could do a life expectancy withdrawal method. Life is short. Enjoy it!

 

[Birchtree]

I've managed to build a perpetual income stream - only reinvesting for the moment. But the time will come when that income stream will float my boat. I also have several $M in unrealized capital gains and they will also help me float, just have to watch the taxes. The wife has her own dowry and some money will be left for our heir and family. I'm probably going to roll my tugboat (TSP) into a roll over IRA and turn that also into an income stream with individual stocks - planning on doing the same for the wife. You have to take opportunity of the step up in basis strategy for tax purposes. That's it in a nut shell - try to keep you AGI below $250K a year.

 

[gegor1957]

I retired early at 55 and took a life expectancy withdrawal so I don't pay the 10% withdrawal penalty. It works out to about 3.5% per year so as long as I can stay above that in my TSP my balance goes up. I roll that money directly into my trading account with some to add to my portfolio and some, 10-15 percent, for higher risk trades. This allows me the comfort of having the funds if needed while giving me some leeway to be active in the market when the two ITFs just aren't enough.

 

[GUCHI]

I retired about 5 months ago and moved to Wilmington,nc. That was my plan to get closer to the beach (Wrightsville). I had 35 yrs with the Feds so I have a pension that the wife and I live off of. I also have a tsp account but currently have not drawn from it. I'm maxed in equities which has been good to me. I told the wife(Jane) that we would lay back for at least a year and let the dust settle before we travel. Jane works part time just bcuz and I do nothin heehee. I feel fortunate to retire at 55 yrs old and want to enjoy life while I'm healthy and able. We have talked about travel,moving abroad, and even getting closer than 10 miles from the beach. I think over all we have done fairly well raising 2 Young men on their own in D.C. So why not live. I tell Jane I did not accurate all this for the boys to enjoy, we need to enjoy. I can let the money go easier than her so I have to convince her that she deserves it as much as me. Getting a little long, but willing to talk more later. One last thing. I guess when you work for 35 yrs building your kingdom it's hard to let go of some of the chips. But don't worry I will.

 

[WorkFE]

ah, I envy you all, wish I had these problems.

 

[pmaloney]

I think I retired a little too early since I don't want to collect Social Security for another year and a half. However Someone recently commented to a Real Money contributor who said she was advising a couple how to invest extra money because they were living comfortably on their pensions. The response was to advise to spend some money because being the richest person in the nursing home was not much of a goal.

 

[ravensfan]

I would rather be old and broke, reminiscing about all the fun I had spending down my TSP than to be old and loaded, regretting the things I missed out on.

BTW, I was CSRS and never got matching funds from da gubment...My TSP was never intended to be anything but fun money in retirement.

 

[Kaufmanrider]

I retired early at 55 and took a life expectancy withdrawal so I don't pay the 10% withdrawal penalty. It works out to about 3.5% per year so as long as I can stay above that in my TSP my balance goes up. I roll that money directly into my trading account with some to add to my portfolio and some, 10-15 percent, for higher risk trades. This allows me the comfort of having the funds if needed while giving me some leeway to be active in the market when the two ITFs just aren't enough.

I retired in January. I rolled my TSP into an IRA and into a 60/40 stock/bond in the Paul Merriman Ultimate Buy and Hold Strategy for broad diversification. I take 72T distributions and the money is transferred monthly into my brokerage account where I re-invest it. I will only transfer when I need a little extra money for trips, home renovation, a big ticket purchase, etc. I only need to earn an average of about 2% to maintain my balance in the IRA after the distributions.

My wife should be OK as she will have 50% of my pension, what's left in my TSP, my life insurance policy and eventually my Social Security which is far more than hers.

I say spend it. You earned it, now enjoy it.

 

[Hallatauer]

I agree.. spend some of it.. not frivolously but enjoy it. Build up enough to do take the family on a cruise or the grandkids to Disney. The memories will be worth more than the money you could leave them. It's a hard shift in thinking but once you start life is more fun.

 

[Stoplight]

Geez...a lot of discussion on this topic occurred in my Member thread, so I kinda forgot about THIS thread I started !!!

Thanks to all for your comments and input...Happy Thanksgiving to all !


Stoplight...

 

[Hawgjo]

The wife and I retired in March of 11 as DAF Civs and I just started getting my AR retirement as well...so, we haven't touched our TSP to date tho. Had a couple questions I've asked SL and others on this post that were graciously answered and of course raised more questions lol. It all depends on where you want to go. We have our bucket list which we've already started on. It's a fine position to be in for sure as everyone can attest to. All the best!