Looking ahead

[dmc]

I’m planning on rebalancing soon and actually dropping my asset allocation to 55/45 stocks to fixed income. Previously I’ve been 60% or higher stocks. But with the market doing great and I’m pretty sure the new tax laws are going to let me keep more of my own money, I’m thinking it may be time to reduce my exposure.

Ive been retired now for a little over 10 years and I also turned 60 this year. So I’m getting older and my net worth has grown quite a bit since I quit working, so evidently I am still living below my means.

So I’m thinking I’ve probably only got 10-15 years left where I’m still physically able to do some of the things that I do now. I don’t see a lot of active pilots flying high performance, complex aircraft at 75, even John Glen gave it up at 80. Also while there are many older golfers at the country club, I can see a point where it would not interest me to just beat it around. Also I don’t see myself traveling as much if it gets where I’d have to use one of those motorized carts that seem popular now.

so I guess where I’m getting at is the next few years I’m going to be a little more conservative with my investments, but much more liberal with my spending.

[frugal-one]

Same here. Have already dropped asset allocation to 55/45 and was 60% or higher also previously. Am also spending more than previously (at least trying to do so). It helps that we no longer have encumbrances such as a dog or aged MIL in area. i have to admit it is hard to spend after being frugal for so long. There are still some things I cannot bring myself to spend large $ for. The only thing I am not sure of is that the new tax laws are going to let me keep more of my money since I am not one of the top 1%????

[Rogar]

Maybe I've been into a simple lifestyle so long it's become habit, but if I made conscious decision to up my spending I'd have to think for a while of what to buy that would bring more value to my life. It seems like at some point there are diminishing returns to spending. I suppose it all depends on what we get pleasure from.

My investments are more conservative. A friend put it as he no longer needed a home run or double, but was fine with just getting one first. My version of that is keeping up with inflation. We've seen the dot com bubble, the financial crisis, and probably a couple of other market set backs. I don't have a decade or more drawing down my savings in a down market wondering how soon it's will recover. That has some risk of impacting my lifestyle.

Within some rational limits, there might not be a right or wrong. A simple lifestyle and conservative investments got me to an early retirement and that's what has worked for me. My take looking ahead anyway.

[dmc]

The tax tables I saw would help many more than just the top 1%. I should pay a couple % less. The stock market effects me much more than tax policy. So hopefully the drop in the corporate rate will help there.

[dmc]

Maybe I've been into a simple lifestyle so long it's become habit, but if I made conscious decision to up my spending I'd have to think for a while of what to buy that would bring more value to my life. It seems like at some point there are diminishing returns to spending. I suppose it all depends on what we get pleasure from.

My investments are more conservative. A friend put it as he no longer needed a home run or double, but was fine with just getting one first. My version of that is keeping up with inflation. We've seen the dot com bubble, the financial crisis, and probably a couple of other market set backs. I don't have a decade or more drawing down my savings in a down market wondering how soon it's will recover. That has some risk of impacting my lifestyle.

Within some rational limits, there might not be a right or wrong. A simple lifestyle and conservative investments got me to an early retirement and that's what has worked for me. My take looking ahead anyway.

Nothing wrong with this, My investments are much more conservative now than in the past. I can actually live quite well if I just lived on my fixed income portion.

But looking ahead I also don’t see a need to leave my kids with a large inheritance. I’ve joined a new country club that has a golf coarse I like better, my wife likes the old club, so I’m a member of both. I just bought the wife a nice new car, I’ll probably buy myself one soon, it’s just nice sometimes to get new things. What good is money if you don’t use some of it?

[bae]

I’m 54, and am tempted in the coming year to move to a nearly-all-cash position, from a 100%-invested position.

Not because I fear market swings and whatnot, but simply to reduce fuss, bother, paperwork. I don’t see my current lifestyle getting significantly more expensive (less so, as daughter is finishing college this summer), and I think I can just put all our loot under the mattress and not run out before I’m 99.

It would be great to just not have to think about finances at all.

[sweetana3]

We moved most of our investments to a carefully chosen group of index funds. I think our allocation is around 60/40 stocks/cash. Not much work needed.

We are having a lot of fun playing Santa thru the year giving funds to various carefully chosen organizations for specific needs. I like to do this more than spending money on myself.

[Rogar]

My neighbor travels a little and plays golf a couple of times a week in decent weather, although he uses a golf cart. He's 90 and his expenses are probably fairly minimal, but it's not like the fun or spending has to end at 75.

[catherine]

I’m 54, and am tempted in the coming year to move to a nearly-all-cash position, from a 100%-invested position.

Not because I fear market swings and whatnot, but simply to reduce fuss, bother, paperwork. I don’t see my current lifestyle getting significantly more expensive (less so, as daughter is finishing college this summer), and I think I can just put all our loot under the mattress and not run out before I’m 99.

It would be great to just not have to think about finances at all.

Interesting perspective, and I agree with you in many ways. I'm wondering if your thinking is all due to a "no fuss" financial life, or if there is anything philosophic about it? After all, you could just plop the money in an ultra conservative place in the market and forget about it.

I definitely need to be strategic in my finances at this point, so all cash is definitely not an option, but if I knew my money was going to outlive me, I'd consider all cash also. Kind of an "opt out of the system" approach.

[dmc]

My neighbor travels a little and plays golf a couple of times a week in decent weather, although he uses a golf cart. He's 90 and his expenses are probably fairly minimal, but it's not like the fun or spending has to end at 75.

While I hope it doesn’t stop, I’m sure there will be a point where the spending decreases somewhat. I’m also looking at my family history and even if the body holds up we tend to lose our minds.