Drawdown Psychology and Capital Burn

Triumph13

Thrugelmir wrote: »

Life's too short to spend time pondering. Having money is all very well. But it won't buy you time. Make the most of everyday while you can.

The other side of the coin is that you really don't want to be in a position where you are counting every penny in retirement and constantly worrying about it. I realise that will seem absolutely laughable in the light of the financial details that have been dragged out of me, but you have to face up to your own nature and if you are the kind of person who is terrified of ending up wishing you had just kept going for a bit longer, then, for peace of mind, you probably do need to build a bigger cushion than a happy-go-lucky optimist would.
Empirically, of course, it does seem that almost everyone finds they spend less in retirement than they expected. The challenge is in the difference between knowing that intellectually, and feeling it in your guts.
My secret weapon is that I have already declared myself semi retired, I just happen to still be working full time. Knowing that I could walk tomorrow has taken all the pressure off. I no longer care about getting face time in the office. I work from home 90% of the time and make sure I do something I enjoy every day.
Everyone needs to find their own balancing act, but, as Thrugelmir notes, the clock is ticking.

AnotherJoe

Triumph13 wrote: »

The other side of the coin is that you really don't want to be in a position where you are counting every penny in retirement and constantly worrying about it. I realise that will seem absolutely laughable in the light of the financial details that have been dragged out of me, but you have to face up to your own nature and if you are the kind of person who is terrified of ending up wishing you had just kept going for a bit longer, then, for peace of mind, you probably do need to build a bigger cushion than a happy-go-lucky optimist would.
Empirically, of course, it does seem that almost everyone finds they spend less in retirement than they expected. The challenge is in the difference between knowing that intellectually, and feeling it in your guts.
My secret weapon is that I have already declared myself semi retired, I just happen to still be working full time. Knowing that I could walk tomorrow has taken all the pressure off. I no longer care about getting face time in the office. I work from home 90% of the time and make sure I do something I enjoy every day.
Everyone needs to find their own balancing act, but, as Thrugelmir notes, the clock is ticking.

Wow, you've copied my lifestyle......... or vice-versa.

I reckon i have 6 months then I'm off (Unless i get lucky and am canned in the much rumoured New Year lay offs)

ex-pat_scot

AnotherJoe wrote: »

Wow, you've copied my lifestyle......... or vice-versa.

I reckon i have 6 months then I'm off (Unless i get lucky and am canned in the much rumoured New Year lay offs)

This is absolutely the FI in the FIRE.


(FI Financial Independence)
(RE Retire Early).


There's little as powerful as being able to walk, and having the financial means to do so, if you so wish.
You do not have to do so; indeed many choose to soldier on for reasons varying from boredom, sense of purpose, cameraderie, earning money to give to charity, building a bigger nest egg, or providing for one's dependents.


There are no "right" answers to any of the Stay/Go areas noted above.
You might want to see a long term piece of work through to completion, even if you hit your Number some point mid-project.
You might have a Plan A Number, and a Plan B Number (etc etc). For example, you might choose to do another year as a tradeoff for a house move or extension to get your retirement kick started in style. Your choice.
You might want to give some time to charity. Frankly, you'd make a huge difference by working for a year (or even a few months) and gift-aiding the whole lot, compared to the obvious donation of your time to fund-raise, volunteer at a shop or whatever.

atush

The other side of the coin is that you really don't want to be in a position where you are counting every penny in retirement and constantly worrying about it.

Totes agree. AS we dont know what uni costs (and other unexpected life expenses might be) when you retire before your children are 18.
I dont know about you, but if I get cancer and want a drug Nice has decided I cant have- I am paying for it.

Not going to wait about for it like the late lamented AA gill- who paid in the end but it was too late.

I also dont know (given the experience I had between when my first and last turned 11) that you can predict what will happen in Uni costs. they went up 3 fold twice in a few short years for me.

Triumph13

atush wrote: »

Totes agree. AS we dont know what uni costs (and other unexpected life expenses might be) when you retire before your children are 18.
I dont know about you, but if I get cancer and want a drug Nice has decided I cant have- I am paying for it.

Not going to wait about for it like the late lamented AA gill- who paid in the end but it was too late.

I also dont know (given the experience I had between when my first and last turned 11) that you can predict what will happen in Uni costs. they went up 3 fold twice in a few short years for me.

Will you please either change the broken record or turn it off?

And as it happens I already do have cancer and have had to think VERY carefully about all the issues involved with drug funding, including being involved in putting together submissions to NICE on whether or not they should fund the drugs I'll need if my current ones stop working.

gadgetmind

Triumph13 wrote: »

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 handed back company car (big V8 BMW) and the parking space and have cycled to/from work in whatever the weather for 17+ years. Best thing I ever did.

justme111

atush wrote: »

I dont know about you, but if I get cancer and want a drug Nice has decided I cant have- I am paying for it.

Not going to wait about for it like the late lamented AA gill- who paid in the end but it was too late.

I also dont know (given the experience I had between when my first and last turned 11) that you can predict what will happen in Uni costs. they went up 3 fold twice in a few short years for me.

Dear atush
We indeed can predict very little. Besides when one is in a position of needing medicines that Nice does not approve of there may be some other options that are so costly as not to be affordable one year more work or not. Human life span is finite . By your logic one would be advised to work till one drops just in case.

atush

Not really, no. But if I have cancer, i'm not going to live til 90 s could use more retirement funds to pay for it.

If I got it now, and survived treatment- I might want to work a further year to build up funds spent on treatment. Or not, just have to sell my house maybe.

I certainly AM NOT advocating working forever.

justme111

But you saying "a further year". Further to what ? Why precisely a year ? Who says one (op in this case) is going to be ever short of precisely one year worth of work ? How having cancer translates in your mind in need to work for another year ?
Originally op asked about psychology of drowdown phase when one has enough by calculations and with a good margin, he did not ask "do I have enough funds".
My questions above are rhetorical , they can not be answered coherently without acknowledging that you made throw away statements that do not apply to neither topic u op. Hence I am not expecting a reply to them and not going to address you any further in this topic.
PS. One may live to 90s if one has cancer - just another throw away remark of yours which is not truth

mgdavid

justme111 wrote: »

But you saying "a further year". Further to what ? Why precisely a year ? Who says one (op in this case) is going to be ever short of precisely one year worth of work ? How having cancer translates in your mind in need to work for another year ?
Originally op asked about psychology of drowdown phase when one has enough by calculations and with a good margin, he did not ask "do I have enough funds".
My questions above are rhetorical , they can not be answered coherently without acknowledging that you made throw away statements that do not apply to neither topic u op. Hence I am not expecting a reply to them and not going to address you any further in this topic.
PS. One may live to 90s if one has cancer - just another throw away remark of yours which is not truth

It's a shame the pedantic, picky and pompous cannot find it within themselves to be a little less so at this time of year......