After reading your post and the comments on “living within one’s means” I have a personal example to share. My wife and I booked an extravagant 15-day cruise from Hong Kong to Tokyo well over a year ago. We paid a 10 % deposit upon booking and the balance of the trip 6 months in advance. Both payments were by ACH transfer to save 2.7 % in credit card fees. The cost of the trip fit within our annual budget which includes interest and dividends but with no need to draw extra cash from our retirement portfolio. One could say I missed out on the opportunity costs of my investments by tying up the funds in advance but by your definition I am living within my means, the cost of the trip likely will have zero impact on our long-term financial needs and I will have no debt on the conclusion of the trip. I also will not have to worry about the maintenance costs and rapid depreciation of a Bentley.
Steve, having a ninety something parent and being in my early 60s I could not agree with you more. When my father does pass, I do expect a large windfall but as you stated I was able to experience the joy of success on my own. I do admit I never had to take out a student loan but I also remember having to stick to a strict budget and live within my means.
I am on year 9 of my HELOC, some years I have no balance. We most recently used it to purchase a new car and will have it paid off by the end of the year. When I set up the HELOC, interest payments were considered as mortgage interest and thus they are still tax deductible when you itemize. I will be sorry when the HELOC term ends in year 15. The interest rate is adjustable and set to prime plus 1.5 %.
Norm, you are spot on in your statement that those nearing or in retirement should consider such a scenario. I retired last fall at age 62 and have benefited greatly from 25 years of being fully invested in the market and maximizing my deferred compensation contributions. This included a recommendation from my financial advisor to roll a portion of one of my 401 K accounts into a deferred annuity. If such a "lost decade" event were to occur we would need to cut back on luxury expenses and turn on the annuity earlier than planned, but we would be in a good position once the market corrected. As Mark mentioned below, a lost decade would not unduly concern or affect me either. As much as I like the 4 % rule I feel more comfortable knowing I have enough in a money market fund to at least cover me for the next several years.
Dana and the HD Community: I have been following this website on and off for the last 5 years and recently retired in late summer 2025 at the age of 62 with a CalPERS pension and a brokerage account through the magic of deferred compensation and compounding provides us a comfortable retirement. My wife has reached her FRA and collects social security, and we recently signed her up for Medicare part B and D. During my career I spent approximately the same number of years contributing to Social Security and to CalPERS and was surprised when congress passed the Social Security Windfall Elimination Provision "WEP" in January 2025 allowing me to "double dip” from both retirement plans. I will delay my SS benefit to age 67 or beyond. I find the financial advice on HD helpful and interesting but much more enjoy contributors’ personal stories and how they have transitioned to retirement. Like you, I have enjoyed every minute of my retirement but have anxiety on how I will fill my days in a meaningful way going forward. Under your heading on “How I’m Spending My Time” I ramped up my fitness routine to only find out that I likely need the same surgery on my right knee that I had on my left knee in 2022 (torn meniscus). We have traveled a bit more and will be taking a 15-day cruise from Hong Kong to Tokyo this Spring. I have reconnected to our local church we drifted away from when our two sons left for college. I have made an effort to get involved in a local non-profit homeless services agency and will be contributing my time and profession expertise in assisting them with their mission.
Living in Southern California, this past fall’s World Series run for the Dodgers was magical. I wish your Giants better luck next year. I am looking forward to your future posts and hope to submit one or two of my own to Humble Dollar.
Your heading reminds me of the old Garrison Keillor line "all the children are above average" from his Lake Wobegon monologue. To have an average return for an investment portfolio over the last 20 years would be in some measures above average.
I just went through the same exercise with CalPERS given I retired in August of this year. My spouse is over 65 and Medicare eligible. She signed up for Part A on her 65 birthday and just signed up for Part B since my former employer no longer pays the full premium and CalPERS requires all Medicare eligible participants to be in Part B. I am not 65, so we have a combination plan. I am not sure if CalPERS still has open enrollment but you should look into PERS Gold Supplemental. It will save you on monthly premiums and I believe the coverage is equal with the Medicare component.
Carl, like DrLefty I am also class of 2025. I retired mid August at age 62. I have enjoyed reading Humble Dollar over the years and plan to post soon on lessons learned on my journey towards retirement.
Highly recommend the Viking Great Lakes trip, my wife and I said no way we would get into the submarine but once on board and seeing the support and preparation of the crew it was an easy decision to make and a very memorable experience. Just booked a Viking river cruise to go up the Mississippi from New Orleans to Memphis.
Comments
After reading your post and the comments on “living within one’s means” I have a personal example to share. My wife and I booked an extravagant 15-day cruise from Hong Kong to Tokyo well over a year ago. We paid a 10 % deposit upon booking and the balance of the trip 6 months in advance. Both payments were by ACH transfer to save 2.7 % in credit card fees. The cost of the trip fit within our annual budget which includes interest and dividends but with no need to draw extra cash from our retirement portfolio. One could say I missed out on the opportunity costs of my investments by tying up the funds in advance but by your definition I am living within my means, the cost of the trip likely will have zero impact on our long-term financial needs and I will have no debt on the conclusion of the trip. I also will not have to worry about the maintenance costs and rapid depreciation of a Bentley.
Post: What does ”means” mean?
Link to comment from February 12, 2026
Steve, having a ninety something parent and being in my early 60s I could not agree with you more. When my father does pass, I do expect a large windfall but as you stated I was able to experience the joy of success on my own. I do admit I never had to take out a student loan but I also remember having to stick to a strict budget and live within my means.
Post: Helping Adult Children
Link to comment from February 9, 2026
I am on year 9 of my HELOC, some years I have no balance. We most recently used it to purchase a new car and will have it paid off by the end of the year. When I set up the HELOC, interest payments were considered as mortgage interest and thus they are still tax deductible when you itemize. I will be sorry when the HELOC term ends in year 15. The interest rate is adjustable and set to prime plus 1.5 %.
Post: Advice I give to anyone who’ll listen!
Link to comment from January 24, 2026
Norm, you are spot on in your statement that those nearing or in retirement should consider such a scenario. I retired last fall at age 62 and have benefited greatly from 25 years of being fully invested in the market and maximizing my deferred compensation contributions. This included a recommendation from my financial advisor to roll a portion of one of my 401 K accounts into a deferred annuity. If such a "lost decade" event were to occur we would need to cut back on luxury expenses and turn on the annuity earlier than planned, but we would be in a good position once the market corrected. As Mark mentioned below, a lost decade would not unduly concern or affect me either. As much as I like the 4 % rule I feel more comfortable knowing I have enough in a money market fund to at least cover me for the next several years.
Post: Considering a Lost Decade When Retirement Planning
Link to comment from January 15, 2026
Dana and the HD Community: I have been following this website on and off for the last 5 years and recently retired in late summer 2025 at the age of 62 with a CalPERS pension and a brokerage account through the magic of deferred compensation and compounding provides us a comfortable retirement. My wife has reached her FRA and collects social security, and we recently signed her up for Medicare part B and D. During my career I spent approximately the same number of years contributing to Social Security and to CalPERS and was surprised when congress passed the Social Security Windfall Elimination Provision "WEP" in January 2025 allowing me to "double dip” from both retirement plans. I will delay my SS benefit to age 67 or beyond. I find the financial advice on HD helpful and interesting but much more enjoy contributors’ personal stories and how they have transitioned to retirement. Like you, I have enjoyed every minute of my retirement but have anxiety on how I will fill my days in a meaningful way going forward. Under your heading on “How I’m Spending My Time” I ramped up my fitness routine to only find out that I likely need the same surgery on my right knee that I had on my left knee in 2022 (torn meniscus). We have traveled a bit more and will be taking a 15-day cruise from Hong Kong to Tokyo this Spring. I have reconnected to our local church we drifted away from when our two sons left for college. I have made an effort to get involved in a local non-profit homeless services agency and will be contributing my time and profession expertise in assisting them with their mission. Living in Southern California, this past fall’s World Series run for the Dodgers was magical. I wish your Giants better luck next year. I am looking forward to your future posts and hope to submit one or two of my own to Humble Dollar.
Post: Six Months In! (from Dana/DrLefty)
Link to comment from January 3, 2026
Your heading reminds me of the old Garrison Keillor line "all the children are above average" from his Lake Wobegon monologue. To have an average return for an investment portfolio over the last 20 years would be in some measures above average.
Post: Average vs. Humble Average
Link to comment from December 29, 2025
Dan, I am guessing the new integrated amp for $7,000 would be from McIntosh.
Post: The Point of Diminishing Returns
Link to comment from November 2, 2025
I just went through the same exercise with CalPERS given I retired in August of this year. My spouse is over 65 and Medicare eligible. She signed up for Part A on her 65 birthday and just signed up for Part B since my former employer no longer pays the full premium and CalPERS requires all Medicare eligible participants to be in Part B. I am not 65, so we have a combination plan. I am not sure if CalPERS still has open enrollment but you should look into PERS Gold Supplemental. It will save you on monthly premiums and I believe the coverage is equal with the Medicare component.
Post: Don’t make the wrong Medicare decision
Link to comment from October 25, 2025
Carl, like DrLefty I am also class of 2025. I retired mid August at age 62. I have enjoyed reading Humble Dollar over the years and plan to post soon on lessons learned on my journey towards retirement.
Post: Introduction
Link to comment from October 25, 2025
Highly recommend the Viking Great Lakes trip, my wife and I said no way we would get into the submarine but once on board and seeing the support and preparation of the crew it was an easy decision to make and a very memorable experience. Just booked a Viking river cruise to go up the Mississippi from New Orleans to Memphis.
Post: Taking on Water
Link to comment from March 22, 2025