Retirement spending - Going from extreme saving mindset to spending for a good life
I find some of the stuff posted in the "retirement" sub-reddit interesting. Here's one that caught my eye this morning:
"Going from extreme saving mindset to spending for a good life
I retired literally on the day before the US stock and bond markets began to tank in 2022. So, starting my retirement while watching the value of my portfolio go down and down and down while inflation went up and up and up was difficult. I had a budget and a plan and reassurances from an advisor, but I nevertheless spent $60K less than I'd planned to in those first two years because I was so worried about sequence of returns issues.
Now the markets are back up and inflation is back down and I'm taking baby steps to spending on things beyond keeping the lights on. I had a water softener installed. I bought the first really good audio system I've ever owned. I'm planning a trip in the fall. Between the austerity budgeting of the past two years and the recovery of my portfolio I'm still below the amount I've been greenlit to spend. Advisor says to spend money because I'm doing fine and will regret it in later decades when I'll have less mobility. I know he's right.
It's a good feeling to finally be doing these things but I can't shake the nagging feeling that I'm being extravagant, and I'll be sorry when the markets tank again, which of course they will because that's what markets do. No plan is bulletproof but what I've seen over two years is that I'm capable of living on a lot less than even my "needs" budget.
How do you all handle making this transition from working saver to retired spender so you can actually enjoy the fruits of you discipline and frugality?
I'm not interested in talking about percentages or amounts or LT care risks or leaving behind assets for others. I am comfortable with my plan, my investment strategy and my goals. This is about the How of doing a 180 from saving to spending."
The comments on this post are also interesting and can be read here: