I didn't predict anything. What I planned for was the spending level in retirement that our cash flow would support, then adjust our spending to meet that. Simple!
I retired from practicing neurology nearly 8 years ago. I was often asked "Do you miss working?" And my honest reply is "I miss the patients and staff, but not the paperwork". I agree with the Harvard study you referenced. And when I said "people", I do not mean only my favorite coworkers or patients; I mean all of them, or nearly all. The interactions and connections with a variety of people can be challenging but also rewarding. So I could not agree more with the authors that cultivating and preserving relationships and friendships is vital, for all of us, but especially for those who may end up feeling cut off or excluded once retired. Planning is a valuable skill. Learning how to modify or replace a plan when life happens is even better. Thanks for a great post, Edmund.
The answer to your question depends on how much of their current income they are spending now. Another approach is to seek to provide enough annual after-tax cash flow, once retired, to continue spending as before. It is not difficult to calculate the sum of social security benefits, pension benefits if any, and investment distributions, which, after subtracting all taxes will provide the necessary cash. The withdrawal method you prefer will indicate the size of your nest egg needed. I agree with you that people in the lower income strata would benefit considerably from enhanced social security benefits.
I like the concept "Pay yourself first". When I started practicing I set my savings rate and this determined what I could spend. This plan was simple, easy to stick with and effective. Some years later I tracked my expenses for a while and noticed that while my overall spending was under control, the amount spent proportionately on certain areas was not what I would have preferred. So I implemented a spending plan, or budget which improved the efficiency of my spending. Like any tool, a budget can be used wisely or otherwise.
Buffett said the game is not won by those who are the smartest, but rather those with the necessary emotional discipline. Those who lack it, or who are not interested in finance are probably better off working with a good advisor.
But DIYers are a diverse group, and those of us who are emotionally suited and who have learned the basics will do fine. A caveat however, is that among some married couples, one manages finances and the other is not involved. Should the first one pass, the survivor might prefer to hire an advisor.
Thanks for explaining this so clearly. I infrequently buy or sell, and am fine focussing on funds and ETFs, doing so during normal hours, and am virtually never in a hurry.
I agree, we all must take responsibility for our financial lives. We realized that whatever we didn't spend during our working years is what we would live off in retirement, supplemented by Social Security. So we chose a suitable lifestyle that would still be affordable, once retired. That is to say, "live below our means". To paraphrase Buffett, its not a game which requires a high IQ, but rather emotional discipline.
Comments
Your last sentence says it all. Good to see you are still writing.
Post: Navigating a Turbulent Career
Link to comment from April 18, 2026
I didn't predict anything. What I planned for was the spending level in retirement that our cash flow would support, then adjust our spending to meet that. Simple!
Post: Do retirees really struggle financially? Why and what to do?
Link to comment from April 18, 2026
I retired from practicing neurology nearly 8 years ago. I was often asked "Do you miss working?" And my honest reply is "I miss the patients and staff, but not the paperwork". I agree with the Harvard study you referenced. And when I said "people", I do not mean only my favorite coworkers or patients; I mean all of them, or nearly all. The interactions and connections with a variety of people can be challenging but also rewarding. So I could not agree more with the authors that cultivating and preserving relationships and friendships is vital, for all of us, but especially for those who may end up feeling cut off or excluded once retired. Planning is a valuable skill. Learning how to modify or replace a plan when life happens is even better. Thanks for a great post, Edmund.
Post: A Bit More Humble
Link to comment from April 18, 2026
Your explanation should help us folks understand why we should "stay the course" as Bogle advised.
Post: Staying Rational
Link to comment from April 18, 2026
The answer to your question depends on how much of their current income they are spending now. Another approach is to seek to provide enough annual after-tax cash flow, once retired, to continue spending as before. It is not difficult to calculate the sum of social security benefits, pension benefits if any, and investment distributions, which, after subtracting all taxes will provide the necessary cash. The withdrawal method you prefer will indicate the size of your nest egg needed. I agree with you that people in the lower income strata would benefit considerably from enhanced social security benefits.
Post: Do retirees really struggle financially? Why and what to do?
Link to comment from April 17, 2026
I like the concept "Pay yourself first". When I started practicing I set my savings rate and this determined what I could spend. This plan was simple, easy to stick with and effective. Some years later I tracked my expenses for a while and noticed that while my overall spending was under control, the amount spent proportionately on certain areas was not what I would have preferred. So I implemented a spending plan, or budget which improved the efficiency of my spending. Like any tool, a budget can be used wisely or otherwise.
Post: Nothing Like a War To Bring Folks around to Personal Financial Planning
Link to comment from April 16, 2026
Buffett said the game is not won by those who are the smartest, but rather those with the necessary emotional discipline. Those who lack it, or who are not interested in finance are probably better off working with a good advisor. But DIYers are a diverse group, and those of us who are emotionally suited and who have learned the basics will do fine. A caveat however, is that among some married couples, one manages finances and the other is not involved. Should the first one pass, the survivor might prefer to hire an advisor.
Post: One Good Call?
Link to comment from April 14, 2026
Good question Andy. I have no idea.
Post: Investment Versus Speculation
Link to comment from April 13, 2026
Thanks for explaining this so clearly. I infrequently buy or sell, and am fine focussing on funds and ETFs, doing so during normal hours, and am virtually never in a hurry.
Post: Stock Tokens
Link to comment from April 11, 2026
I agree, we all must take responsibility for our financial lives. We realized that whatever we didn't spend during our working years is what we would live off in retirement, supplemented by Social Security. So we chose a suitable lifestyle that would still be affordable, once retired. That is to say, "live below our means". To paraphrase Buffett, its not a game which requires a high IQ, but rather emotional discipline.
Post: “We did everything right.” Maybe not. Retirement income should not be an unpleasant surprise.
Link to comment from April 11, 2026