Our kitchen remodeling project is behind schedule, but they finish up today, so everything should be good to go for Thanksgiving. We have missed cooking so much and can’t wait to crank it up again.
Of course, we’re going to have a nicer kitchen, but being miserable for close to five weeks motivated us to get serious about having fun. We are out of practice.
Dale and I don’t have a big urge to travel, especially long trips by air, and COVID did nothing to change our minds. Still, we’re feeling confident we can scoot around California with moderate risk. There are so many beautiful places to see here, and we’ve done a whole lot of nothing for two years.
As it is with kitchens and travel, everything costs money. I’ll start collecting Social Security in December, and that should help fund some adventures. Additionally, we’re starting to talk about monthly withdrawals from what used to be my 401K but is now an IRA.
Although I was good at building a solid 401K, I’m less skilled when I think about draining it. I have found it difficult to make the mental switch from saving to spending. However, I may be ready. Not too many people in my family die of old age, so I’d like to enjoy what’s there.
We talked with Bob, our financial planner, and he encouraged us to get started … operating under the theory you can’t take it with you. Bob suggested we go with 4-5 percent. Ideally, your returns match or outpace withdrawals, so you don’t touch your principal. But with this market, who knows?
As a childless couple, we do want to spend our principal … just not all at once. I like the idea of “die broke.” However, I would like to avoid being alive and broke. But if that’s how it goes down, hell, yes, I would take it.
My car is 11 years old and in good shape, but I see a new one on the horizon. So, it will be good to start socking away cash for that purchase. I’m hoping my car goes another couple of years so I can see how the electric market shakes out. I’d like to go electric or plug-in hybrid. Any recommendations?
The biggest hurdle is getting over a bad case of COVID caution. Breakthrough infections notwithstanding, we’re both fully vaccinated and boosted and will most likely be just fine. We can’t live in fear forever.
I have the same spending vs. saving mindset issues. Our financial planner is always telling me I can spend more but I feel guilty when I ask for more money!! And it’s mine! I’m still a few months away from social security, probably next August, and I’m hoping that will ease my mind a bit. But I also wonder when we should regularly withdraw from our qualified accounts. I know it’s a matter of tax planning, but it seems like it will only get worse if we wait too long. Go spend some money!!!
Well, at least I’m not the only one! This is probably crazy talk, but I was thinking regular withdrawals from the tax-deferred account will help with taxes — but if we find that we aren’t spending it, we can always put it back in our regular investment account. Somehow, that makes me feel better.
Our master bath reno took 9 weeks. Workers would come in every morning at 7:30 while we were having breakfast. That got old on about Day 5. Also, power hammer on concrete to create surface for doorless shower can loosen fillings after an hour or two. We give thanks this week that we had a guest bath to use all that time and that the master bath looks great now that it’s done.
It is done. Thanksgiving Eve. At least it wasn’t nine weeks!! We did have our share of power hammer on concrete. Lordy.
Yes, that sweet spot between taking out money yet leaving enough so you don’t have to go on Medicaid. Then there’s RMDs, but that’s a ways off. We withdraw about 1%. We could do more, but that’s enough right now.
I love my Leaf. It’s used and not for long distances, but it’s a wonderful town car, and I can plug it in for free when I’m at the library or Whole Foods. Definitely would get a new EV that has a longer charge.
Looking forward to seeing kitchen photos and what you’re making for dinner. I found a recipe for small batch ciabatta rolls that I’m making right now. Can’t wait to bake them and smell that wonderful bread aroma.
I’m hoping if I wait on the car, the newer ones will have a longer charge.
We still had painters here doing touch-up, but I made bread!!
I can recommend the Toyota Prius (I am currently on #3 of this model). Plug-in electric but also has a gas engine…best of both worlds. I have not had a problem with any Toyota products ever, and have been buying Toyotas for almost 2 decades.
Deb
I like the looks of the Toyota RAV 4 plug-in hybrid. I like the Prius, too, but the RAV 4 has a longer charge.
We have a Leaf and a hybrid Toyota Corolla but both of us prefer to drive the Leaf when possible. The only issue with the Leaf is that we live on the Big Island where it’s sometimes tricky to charge up due to the lack of chargers in the more rural parts of the island. Most notably, I can’t make a round trip between my home on the West side to Hilo on the East side without charging, which is a bit of an inconvenience if I’m in a hurry. Otherwise, though, I just charge up at home once a week and that’s plenty.
What you’ve described is my concern about an EV. I like the plug-in option, but is that going away when the EV market heats up? My 11-year-old car is a Ford Fusion Hybrid. I love it, but I don’t believe they are making them anymore. I especially loved the CD player, another thing that’s going away. And it has a real trunk not a hatchback. I like that for my golf clubs, but I could get used to parking them somewhere in the garage.
Yup, it’s a fine line between dying broke and being alive and broke. The advice from your financial advisor sounds solid to me.
Happy Thanksgiving!
Happy Thanksgiving to you, too!
I think a lot of us have the same issue with spending money in retirement. The reason my husband and I got here is the we were very good at saving. Now that we can spend, it’s not as easy as we thought it would be (although we have also found that we don’t want a lot of things either). 4-5 percent sounds kind of high I guess it all depends on your situation.
I’m on my third EV. My first, an early Leaf, was great until someone T-boned me in an intersection. Then, I bought a Hyundai Kona, which I loved. Unfortunately, they had battery problems so Hyundai bought it back. Now I have a Tesla. I find that, with a home charger, I have plenty of range (about 250 miles per charge). I will never go back to a gas-powered car. They are bringing new ones out all the time so you will have a lot to choose from.
What a great endorsement for electric cars! The Tesla range sounds perfect.
The percentage might be a little high, but we’ll see. We can always modify. Such are the rewards of being good little savers.
I am the king of hating to spend money, except for buying airline tickets for adult children to visit, then the wallet is open.
On the car front, do the cost benefit analysis on the extra expense to go from hybrid to plug in hybrid. When I bought my Prius in 2018 it didn’t pencil out, at 50-60mpg fuel costs really don’t matter. I only drive 5,000-7,000 miles a year and that includes trips. My wife’s 2013 Honda CRZ two door coupe hybrid only has 30,000 miles and that includes a few long trips. We have to remember to drive it to keep the battery healthy
Good points to consider — thanks for sharing.
I like your open wallet economic theory! I’ll bet your children do, too. But as someone who also hates to spend money, that’s as good a reason as any. We hate to travel by air, but we do want to visit some friends and family. I wonder if flying first class would make a difference. Depending on the cost difference, that seems like a good use of money.
Both Himself & I were the losers in relationships which ended badly (for us) in both emotional and financial terms. It helps that we’re on a similar basis and so it’s come naturally to balance the enjoying of life with doing the work that goes into not being still alive and poor. If I’m entirely honest, Himself is better at it than I, being of a more self-disciplined nature, so I’ll freely admit I’ve benefitted from living with him rather than a spendthrift 🙂
We’ve been cautiously selecting opportunities to get out more, then this weekend’s news from South Africa 🙁