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Many times in the past I’ve proclaimed that our guaranteed sources of income fully fund our retired lifestyle. An exception was in 2023 when we had a new home built, but that was more like moving money from the IRA bucket into the real-estate bucket.
We have been taking a 3% distribution from the IRAs, mostly from my account due to the Required Minimum Distribution (RMD), and end up transferring excess funds into non-qualified savings and brokerage accounts.
At ages 73 and 70, I know it’s okay to spend that money, but like many other HumbleDollar readers, I struggle to shift into spend down mode.
Last week, I dusted off the old Excel Spreadsheet and did a look back at our spending versus income so far this year. I was surprised to see that so far this year we have actually spent about a third of the 3% distribution.
My first thought was to do a deeper and more detailed dive into where the money went. We use credit cards for as many things as possible in order to collect cash back, and aside from the general category breakdown from the issuer, I have little clue of how specific purchases add up. Are we falling prey to lifestyle creep?
My next thought was to not worry about it, we’re having a good time. Even if we spend the entire 3% we’ll probably die with more money than we have now.
I’m not going to go crazy buying junk I don’t need, and I’m still using digital coupons at the grocery store, but I seem to be getting more comfortable dipping into the nest egg.
Does anyone think that I should head over to the Ford dealer and pick up that new Mustang I’ve been looking at? You know, while I can still get in and out of it.
Thirty years ago, during my midlife crisis, I wanted to check out the new Corvette. I was saved from buying it as it took me 20 minutes to get out of it. I’ve had two spine surgeries since then.
No new cars for me. I finally have one that fits me.
One thing that has saved me a great deal of money over the decades is my total disinterest in hot cars. I was cured by the new Cougar XR-7 I bought in 1985, in which I had to replace the turbo five times in five years. And being the West Coast warehouse for skin cancer, I have no interest in convertibles. Today I view the automobile strictly as an appliance for getting from one place to another, and while I consider my pulse robust, there isn’t a car in the world that can quicken it.
Besides, I drive too fast as it is.
Well the burning question is how much the distribution is? For sure our big expense items are travel, remodeling the house and certain stores my wife likes.
Tom, I don’t want to reveal the size of the distribution. Probably two main components of the excess spending were a trip to Florida and some dental work, with the former being much more fun. Still,I consider both to be money well spent.
Ok Jonathan will disagree, but I’m going to argue cars like a convertible or a Corvette are an experience, not a product purchase. I’ve gotta say the folks in the Corvette club, who show up every year at Laguna Seca in CA, are a really fun bunch.
…but I’m going to argue cars like a convertible or a Corvette are an experience, not a product purchase.
David, like Mark’s comment below, you hit on another of my quandaries. I agree that things like cars and boats can be experiences. I could also classify my desire for the car to be a mid-life crisis, but at age 73, that’s likely a bit too optimistic.
ROFL ….I hope it is mid-life, Dan!
Mark makes a good point.
Could always rent one for a month to see if that fun feeling is worth the vanishing cash.
I waited till age 70 to buy my dream car until i could pay cash. Your time has come. Just do it and then take a nice road trip in it. We took off across the country soon after picking it up.
Is owning a a convertible also on your bucket list? It was on mine, for many years, until I finally bought a new 2011 Mustang GT Premium Convertible w/ the 5.0L Coyote engine, a few days before X-mas. In clearcoat Black w/ the Black leather interior/ white accent stitching & accents, & black top.
That was a SWEET ride, and I made a number of mods to satisfy my inner teenager: Borla cat-back mufflers for an even throatier V8 growl, a Steeda cold air intake, a custom digital fuel injection/ timing “tune”, to eke out a few more HP & improve mileage, a and custom wheels. Then a few weeks before I traded it in a few years later, even a new differential ratio for even faster off the line starts, thereby sacrificing a few mpg & top end speed slightly.
My infatuation stage lasted “only” about 4 years, but I was a youngster of only 51 at the time and still fickle. 14 years later I still get a pang of regret that I sold it every time I see one, and have semi-seriously considered getting “one more”, before the V8 Mustang GT is discontinued (like the Camaro SS), to keep just for fun & memories. (This time, a 6 speed manual!)
Test drive one before you dismiss this fantasy. And please test drive a GT convertible, w/ the legendary Coyote 5.0L V8. If you still have a pulse, this car is sure to quicken it!!
Definitely go for the 6-speed GT350, if/when Ford brings it back. I’ve had mine for 7 years and it is a blast to drive! Mine is stock, though.
Holy molly, Matt, that was a 13 second car before your mods. That’s the Mustang I would have wanted as a kid!
It’s interesting that the new 4 banger Mustang goes 0-60 in 5 seconds. That’s faster than the Shelbys of my youth. I don’t know if an old fart like me needs to go faster.
We bought our first convertible at age 58. We’d always wanted one. It’s now seven years old and we still love it. Living in California, there are a lot of opportunities during the year to zip around with the top down.
Some family members sneered that my husband was having a “late midlife crisis,” but we don’t care.
YOLO (You Only Live Once), so go for it, as long as you can keep that newbie in the garage. My college roommate was from Ohio and had a Mustang, but he called it a Rustang. Rust is one thing I don’t miss.
Dan, is the hedonic treadmill even relevant at your age? Go for it, Dude. Imagine all the fun you’ll have. Date night with your better half will never be the same. 🙂
I say go for it Dan. I learned to drive a stick on a 76 Mustang II. A high school buddy restored a 68 Mustang convertible, I loved driving that. I just looked and saw a 68 cherry red convertible with 9,800 miles for sale for $45K.
Yes, but I think you should test drive it and a bunch of other contenders (because test driving is part of the fun) first
Before you buy the Mustang, maybe rent one and see if you can live with the infotainment system.
We rented a Mustang convertible for a week in Sedona last year, and while I loved driving it, I was ready to take a hammer to the dashboard after a few days of using the godawful screen menus.
Yes, go for it Dan! We’ve certainly shifted into the “spend and enjoy life now” gear. We’re comfortable with the realization that we worked hard our whole life to be in this position of enjoying retirement. We are helping our kids paying for some big ticket items like summer camps for our grandkids while maintaining our 2nd home at the shore and beach club membership where the family gathers almost every weekend of summer. Spending on these memories we’re creating is the best use of our money that we can think of…and we can afford it!
I once owned a coupe—a damned awkward thing to get out of with any style!
It seems to me that whether you should buy one is overridden by the great feeling that you are in the wonderful position to do so. Just be sure to increase the gas spending line on that dusty spreadsheet😁
It seems to me that whether you should buy one is overridden by the great feeling that you are in the wonderful position to do so.
I resemble that remark.
I highly recommend the Mustang. I just rolled over 49K miles in my 2018 GT350 and have loved every mile. Added benefit: the clutch will keep you exercising your left leg!
Shifting gears, new Mustang, lighter wallet – stuffs of the old Western freedom 🙂