Author Topic: Why You Should Be Spending More Money in 2018  (Read 4464 times)

FindingFI

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Why You Should Be Spending More Money in 2018
« on: December 19, 2017, 08:01:34 AM »
https://www.bloomberg.com/news/articles/2017-12-19/why-your-new-year-s-resolution-should-be-to-spend-more-money

Financial advisers say that retirees should spend more money because they still have a large portion of their wealth several years into retirement.  So spend money simply because they have it?  What?!  Apparently these financial advisers know nothing of the 4% rule.

BPA

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Re: Why You Should Be Spending More Money in 2018
« Reply #1 on: December 19, 2017, 08:27:06 AM »
What a strange article.  While there can be tax advantages to withdrawing taxable funds along the way, to suggest that people need to spend it because "[p]eople have never been taught how to spend money" seems ridiculous.

I guess that's what happens when spendypants people don't understand that there are actually some of us who don't believe on spending on useless shit that we don't need.



ixtap

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Re: Why You Should Be Spending More Money in 2018
« Reply #2 on: December 19, 2017, 08:30:22 AM »
"spend down all your savings"

Umm, only if you can promise me I spend the last cent the day I die a non poverty induced death!

Khaetra

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Re: Why You Should Be Spending More Money in 2018
« Reply #3 on: December 19, 2017, 08:39:16 AM »
That has to be one of the worst pieces of advice I've heard.  I should spend money because I have money and buy useless crap just because...money?  Good grief!

Gimesalot

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Re: Why You Should Be Spending More Money in 2018
« Reply #4 on: December 19, 2017, 09:26:44 AM »
This article makes sense if take in the context that consumer spending accounts for 70 percent of economic growth.  Having millions of dollars tied up in investments accounts means it's not driving growth. 

Also, most of the people they interviewed in the article stand to gain if retiree spending goes up.

jinga nation

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Re: Why You Should Be Spending More Money in 2018
« Reply #5 on: December 19, 2017, 09:58:46 AM »
Great for the masses. Please spend more so that the value of my investments goes up. Winning using OPM.

I'll be spending the same as last year by investing into early retirement. Unfortunately contribution limits didn't increase. I wonder why?

aceyou

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Re: Why You Should Be Spending More Money in 2018
« Reply #6 on: December 19, 2017, 12:05:59 PM »
Great for the masses. Please spend more so that the value of my investments goes up. Winning using OPM.

I'll be spending the same as last year by investing into early retirement. Unfortunately contribution limits didn't increase. I wonder why?

Wait, I thought they went up to $18,500 for IRA's, did I miss something there?  Roth stayed at $5,500 I believe. 

FindingFI

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Re: Why You Should Be Spending More Money in 2018
« Reply #7 on: December 20, 2017, 05:36:01 AM »
The limit for 401k and similar went up to $18,500, but IRAs (both traditional and Roth) stayed at $5,500.

Chesleygirl

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Re: Why You Should Be Spending More Money in 2018
« Reply #8 on: December 20, 2017, 07:53:18 AM »
What does he recommend they spend their money on?

ManlyFather

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Re: Why You Should Be Spending More Money in 2018
« Reply #9 on: December 20, 2017, 08:04:10 AM »
What does he recommend they spend their money on?

Financial adviser services, of course!

bluebelle

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Re: Why You Should Be Spending More Money in 2018
« Reply #10 on: January 05, 2018, 10:06:09 AM »
I must have interpreted the article differently than the rest of you.  I read it from a more moderate point of view.  My expectation in retirement is that I will be drawing down my capital.  It was about folks retiring at 65 with more money than they need.  It didn't tell folks to spend on worthless crap, it didn't give any advice on what to spend the money on.....what it said was, if the budget allowed it, and you had a solid plan, live a little.....it would have been nice if they'd mentioned more altruistic uses, but it didn't.


The Guru

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Re: Why You Should Be Spending More Money in 2018
« Reply #11 on: January 05, 2018, 11:05:07 AM »
in what Bizzarro world is it true that most people are hard-wired to save and need encouragement to spend???

I loved the first chart (Fig. 1) though: apparently most retirees in the Lowest Wealth category started with nothing and still have most of it.

jinga nation

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Re: Why You Should Be Spending More Money in 2018
« Reply #12 on: January 05, 2018, 01:08:12 PM »
in what Bizzarro world is it true that most people are hard-wired to save and need encouragement to spend???

Planet Mustache. Only the hardcore ones though who accept facepunches. No softies.

BookLoverL

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Re: Why You Should Be Spending More Money in 2018
« Reply #13 on: January 06, 2018, 12:15:25 PM »
Have these advisers never heard of leaving some of it for inheritance, or maybe donating it?