I think most investment advisers are actually in the “anti” retirement business as they scare us out of it by insisting that the you need as much income in retirement as you did before! They actually seem to be discouraging us from thinking about actually retiring! But then again they make their living taking a “small” percentage of your money in the process of fixing your mistakes and getting you ready for your retirement years! I guess that needing as much money after retirement as before might be true to some who have maxed out a bunch of credit cards, failed to pay off their mortgage, or didn’t put saving aside before their leaving the work force. But I can say that after six years of semi-retirement and four of full retirement I have not spent nearly as much as I did before I retired.
- our homestead was paid off
- I no longer need two reliable vehicles. I now drive a twenty year old truck.
- buying clothes and other such things is almost a non-existent thing for me except for socks and such
- although gasoline has increase pretty dramatically during that time I use much less of it now.
- I have always paid off my credit cards on the due date
So I find myself living on about one-third less than I did before. and that even includes a substantial amount of traveling. One thing that has increased dramatically is health insurance. My retirement insurance keeps increasing the co-pays and out-of-pockets.
I know the advisers all say you need a well-rounded portfolio in your retirement years. To them that usually means letting them constantly shift you from one stock or fund to another, for a fee of course! I know a good friend who thought he had a “well-rounded” retirement fund in 1988 and ended up losing a big chunk of it in a drastically falling market that year. Then when he got most of the losses back he proceeded to lose them again in the markets of 2000! Given that the markets haven’t done much in the last ten years I suspect that he is still waiting for retirements. I don’t think we should count on making the big bucks in stock profits to finance our retirement years. I believe it needs to be done the old-fashioned way by saving it. That doesn’t mean that I am not in the market, I am but not to the degree that the investors would advise me to be. I guess I am a fairly conservative guy but it has paid off for me over the last twenty years. I’m not saying that all retirement advisers are of no value. You just have to watch them almost as carefully as you do your assets they are controlling.
And the journey goes on…