tag:blogger.com,1999:blog-5465015914589377788.post1654870305477422624..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: Telling Us What We Want to Hear about Our Retirement Magic NumbersMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-5465015914589377788.post-4733014436412749992014-02-18T13:41:17.720-05:002014-02-18T13:41:17.720-05:00@Bet Crooks: You make a good point about trying to...@Bet Crooks: You make a good point about trying to apply one generation's retirement spending to another generation. My wife and I both have several relatives in their late 70s and 80s whose frugality would be matched by few baby boomers.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-17017687311985795612014-02-18T12:57:19.342-05:002014-02-18T12:57:19.342-05:00Another warning should be "Past retirees beha...Another warning should be "Past retirees behaviour is no guarantee of future retirees inclinations." <br /><br />Many of my relatives grew up during the Depression. I'd be very surprised if their attitude towards spending is the same as the attitude of someone who retired in the past 5 years or is still working. Among other things, I've noticed these relatives are very concerned about helping their children by leaving them money--even though no money was left to them. <br /><br />Some of these older retirees are also very spending-averse. I have relatives in their 80s, for example, who hate winter but never go south during the winter despite the fact they have assets and are still saving money every year (spending less than their income) because that would be wasteful. They do travel, but only when they can drive and when hotels etc are lower priced. They also still dig out the shrubs in their foundation plantings themselves (last year), rake their own leaves and shovel their own snow. They could afford not to but their attitude is "use it or lose it."<br /><br />I think retirement planning has to be intensely tailored to the person retiring. Admittedly that makes it very difficult!BetCrookshttp://financialcrooks.comnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-37114496299420925272014-02-18T08:25:42.716-05:002014-02-18T08:25:42.716-05:00@Mark: If the spending reduction was found to happ...@Mark: If the spending reduction was found to happen beginning in one's 80s this would make sense to me, but it begins in people's early 60s when they are still healthy and able to travel and do other expensive things. Further, Blanchett's own paper provides convincing evidence that spending decreases because people simply don't have enough money. <br /><br />I suspect that taking my sons and grandchildren to Aruba would be where the real money gets spent.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-6005705689545685642014-02-18T07:26:03.247-05:002014-02-18T07:26:03.247-05:00Michael, interesting critique. Notwithstanding Bla...Michael, interesting critique. Notwithstanding Blanchett's paper, most of what I read and some common sense speaks to spending less as you age not because you have to, but because your ability to live the lifestyle you did when u were younger diminishes. However, as you note, I guess you can use the reduced spending for your granddaughter or your poker game. The Blunt Bean Counterhttp://www.thebluntbeancounter.comnoreply@blogger.com