Drawdown Psychology and Capital Burn

Triumph13

DancingBadger wrote: »

http://www.mrmoneymustache.com

Not to be confused with Motorcaravan & Motorhome Monthly!

AnotherJoe

DancingBadger wrote: »

http://www.mrmoneymustache.com

Ah right. Spent some time looking at that a few months back. Interesting but not for most people, IIRC it involves becoming a full time multi-property landlord, spending a lot of time doing extensive pretty much professional-level "DIY" (sometimes paid even if as barter), and cycling through snow drifts to save $2 in gas).

Triumph13

AnotherJoe wrote: »

Ah right. Spent some time looking at that a few months back. Interesting but not for most people, IIRC it involves becoming a full time multi-property landlord, spending a lot of time doing extensive pretty much professional-level "DIY" (sometimes paid even if as barter), and cycling through snow drifts to save $2 in gas).

A little harsh, though I can see why you might have thought that. The rentals were leftovers from his abortive building venture and are all gone now and he's basically just investments. The semi-professional carpentry business is just what he does for fun,despite not needing the money. I can't see myself doing either of those, but I am fully bought in to the cycling part, even in the snow.


The fundamental philosophy of the cycling is that we all use money (eg using a car) to take all the challenge and effort out of life, and we then spend more money on gyms and exercise classes to replace the exercise we should have been getting from hard work in the first place. For me, changing over to cycling has made a huge difference to both my physical fitness and my mental wellbeing. The not unsubstantial impact on my wallet is just an added bonus.
I'd be the first to admit that MMM takes things much more to extremes than I would want to, but when you're preaching in the wilderness you sometimes have to shout.

AnotherJoe

Triumph13 wrote: »

A little harsh, though I can see why you might have thought that. The rentals were leftovers from his abortive building venture and are all gone now and he's basically just investments.

Well, maybe I'll check that blog out again but my recollection was that being a landlord was very much a fundamental part of his philosophy but maybe i misread or am 'misremembering' that.

missile

bigadaj wrote: »

You seem to have a particular and specific problem with the OPs proposal which says more about you than him.

What is the difference between retirement and living by independent means, apart from terminology.

So long as you have a rarsonable income stream then the decision to work or not, and the extent to do so, is personal choice.

In terms of financial assistance for children then that will vary, there's an absolute duty to fund until 16, it is now rare to not extend this to 18 and many will do so to 21 or older. At any age parents may well contribute for various reasons so teh age at which support may stop, and the extent to which it will continue, can all be modelled as alrt of the scenario.

I'm in my late forties and have older cousins who are still effectively being supported by my aunts and uncles so there is logically a time at which this should or ultimately have to stop.

I hope you are correct and my comments do reflect my commitment to my family.

If you had children, you might understand my desire to provide for my kids. You might understand how expensive it can be to provide for their further education. You might understand family responsibilities are a personal choice and for many of us do not end when they reach 21.

As others have said; my concern is OPs spending will increase substantially as his kids progress though further education. At age 11 & 13 it is difficult to predict what their future may hold.

Triumph13

missile wrote: »

I hope you are correct and my comments do reflect my commitment to my family.

If you had children, you might understand my desire to provide for my kids. You might understand how expensive it can be to provide for their further education. You might understand family responsibilities are a personal choice and for many of us do not end when they reach 21.

As others have said; my concern is OPs spending will increase substantially as his kids progress though further education. At age 11 & 13 it is difficult to predict what their future may hold.

I have a very strong desire to provide for my kids too. You appear to be saying that NO MATTER HOW MUCH MONEY YOU HAVE you must keep working until your kids are financially independent, just in case.
My budget has huge provision for them, from supporting them through college, to reimbursing student loan repayments, to providing house deposits, to preserving capital so that we leave them at least half a million each when we die. My basic budget doesn't say 'The kids will be off my hands in year x so my spending can drop then'. It says average 45% permanent increase on our current spending as a family of 4.
I take it if you win the Euromillions you are going to keep working until you are 80, just in case the kids need something extra?

bigadaj

missile wrote: »

I hope you are correct and my comments do reflect my commitment to my family.

If you had children, you might understand my desire to provide for my kids. You might understand how expensive it can be to provide for their further education. You might understand family responsibilities are a personal choice and for many of us do not end when they reach 21.

As others have said; my concern is OPs spending will increase substantially as his kids progress though further education. At age 11 & 13 it is difficult to predict what their future may hold.

I think you need to re read your post objectively, you seem to be a very self righteous person.

maximumgardener

Op
- you seem to be well sorted.
If you both stop work at 54 ish then you can always do some other type of work say at 60 if the mood takes you.....3 decades is plenty time in retirement
...stay invested and draw down from isa's first...defers tax on pensions as you spend less as you age ....so we are told!!!

missile

Triumph13 wrote: »

I have a very strong desire to provide for my kids too. You appear to be saying that NO MATTER HOW MUCH MONEY YOU HAVE you must keep working until your kids are financially independent, just in case.
My budget has huge provision for them, from supporting them through college, to reimbursing student loan repayments, to providing house deposits, to preserving capital so that we leave them at least half a million each when we die. My basic budget doesn't say 'The kids will be off my hands in year x so my spending can drop then'. It says average 45% permanent increase on our current spending as a family of 4.
I take it if you win the Euromillions you are going to keep working until you are 80, just in case the kids need something extra?

You have misinterpreted my comment.

Prior to this, you had not mentioned making ANY provision for children's further education. I was merely suggesting that you should include this in your financial planning.

atush

Yes. I brought up that point earlier when I asked how to fund Uni and the OP said they could get loans.

Now he says he has provision, but it wasnt in the first detail. And having just finished putting 3 thru, I knew that i spent money from investments that was for retirement, and spent income that was supposed to go into pension. So it delayed things a bit retirment wise for us (as did one going on to Law school).

And obv my original planning for Uni didnt include paying over 9K PA in tuition, plus housing costs when up higher than I had projected (mainly due to the higher cost of living at 2 of their 3 unis). AS the figures were much lower esp re tuition fees when I was planning.

So whatever the OP has put aside, I suggest he doubles it, just to make sure.