How Much to Spend in Retirement P3

Should you spend more or less than the 4% 'safe rate?'

May 23, 2007

Many people work all their live saving for retirement. Once there, some thrive on the fruit of their labor while others become paralyzed by being on "fixed income."

Will_L first published this commentary in our Bob Brinker Free Discussion Forum here.

Figure how much is needed in pool number 1 to cover any necessary expenses that they together need that are not covered by any pension/ss monies. --Food, standard clothing, shelter insurance, medical care, charitable donations (not usually a top priority to cheap people) and other mundane items should be in this category. That category could include such items as transportation costs, vacation travel expenses that BOTH SPOUSES AGREE ON, not just the cheap spouse--etc. With the latter two people's financial situation in Alan's example; I would not include automobiles in this but simply replace them when they needed replacing or WANTED replacing and not according to the cheap spouse's vehicle actuarial table if the other spouse wanted a different vehicle.

Then divide the rest of the agreed upon take out into two piles ---one to each spouse in a separate checking accounts. That is "THEIR PERSONAL MONEY" to be spent any damn way they please.

If the guy wants to take his and time the market or get it all put into one dollar bills so he can play with it--that's fine. But there is absolutely NO PRESSURE On the non-cheap spouse to live up to her life's companion's cheap ways. If she wants to buy some of those "baubles we don't need"...she can do so. If she wants to give more to charity or children or friends in need she can do so. If she wants to shop more and not worry about a raised eyebrow from the cheap spouse or a smart-aleck comment, she is free to do so.

This life is not a dress rehearsal. If one is fortunate enough to make a small fortune by living within their means and saving prudently or simply were lucky--it is a real shame to have an almost pathological condition of greed and hoarding of one spouse to affect the enjoyment of the retirement of the other. Counting money is really not much of a hobby and if that is anyone's hobby, I can guarantee you that your spouse is almost certain not to share it...regardless what she/he says.

Kirk Lindstrom:

DISCLAIMER: Answers & words are general in nature, are not meant as specific investment advice, and do not necessarily represent the opinion of anyone but the writer. Individuals should consult with their own advisors for specific investment advice.

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