What do people do when a serious downturn happens 5 years or so before retirement?

[Anonymous]

Our retirement goals include the ability to travel a lot, eat at nice restaurants, spoil grandchildren, leave a legacy, etc. If things go south, those things would be the first to be cut out of the budget. Life would look different, but it would still be comfortable.

If you are five years out and concerned, do everything you can now to be better prepared. Pay off debt, make any repairs, save more, get healthy, work an extra year or two, etc.

[Anonymous]

Anonymous wrote:Our retirement goals include the ability to travel a lot, eat at nice restaurants, spoil grandchildren, leave a legacy, etc. If things go south, those things would be the first to be cut out of the budget. Life would look different, but it would still be comfortable.

If you are five years out and concerned, do everything you can now to be better prepared. Pay off debt, make any repairs, save more, get healthy, work an extra year or two, etc.

I don't understand the eat at nice restaurant thing to be honest. As you age taste bud change, diet become more restrictive etc.

I have noticed people have so many things they want to start doing when they finally retire, but I don't think they take into account the physical decline and other challenges that come with old age.

[Anonymous]

In my opinion there is a going to be at least one major downturn before 2030. The last time we had a major downturn was 22 years ago in 2008.

2030 is 4 years away...just saying

Unfortunately many of us have become so confident in the market to the point of defiance because we are clinging to the 70% or so VOO return over the past 5 years

[Anonymous]

nothing - just keep saving and buying. It will recover

[Anonymous]

Anonymous wrote:In my opinion there is a going to be at least one major downturn before 2030. The last time we had a major downturn was 22 years ago in 2008.

2030 is 4 years away...just saying

Unfortunately many of us have become so confident in the market to the point of defiance because we are clinging to the 70% or so VOO return over the past 5 years

According to chatgpt

Total 5-Year Return: ~100.86% (Cumulative)

Wow.

[Anonymous]

Anonymous wrote:nothing - just keep saving and buying. It will recover

But if it's severe don't you think it can be severe enough to the point of affecting your retirement plans if you are middle class with retirement balance say under $2 million.

And by the way have you seen what's happening with Medicare?

Many of us here may have to start planning on spending more for healthcare

[Anonymous]

Anonymous wrote:

Anonymous wrote:Our retirement goals include the ability to travel a lot, eat at nice restaurants, spoil grandchildren, leave a legacy, etc. If things go south, those things would be the first to be cut out of the budget. Life would look different, but it would still be comfortable.

If you are five years out and concerned, do everything you can now to be better prepared. Pay off debt, make any repairs, save more, get healthy, work an extra year or two, etc.

I don't understand the eat at nice restaurant thing to be honest. As you age taste bud change, diet become more restrictive etc.

I have noticed people have so many things they want to start doing when they finally retire, but I don't think they take into account the physical decline and other challenges that come with old age.

Yup, that's right 65yos shouldn't dare to dream at a nice restaurant because they probably can't get out of bed.


WTAF!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Our retirement goals include the ability to travel a lot, eat at nice restaurants, spoil grandchildren, leave a legacy, etc. If things go south, those things would be the first to be cut out of the budget. Life would look different, but it would still be comfortable.

If you are five years out and concerned, do everything you can now to be better prepared. Pay off debt, make any repairs, save more, get healthy, work an extra year or two, etc.

I don't understand the eat at nice restaurant thing to be honest. As you age taste bud change, diet become more restrictive etc.

I have noticed people have so many things they want to start doing when they finally retire, but I don't think they take into account the physical decline and other challenges that come with old age.

Yup, that's right 65yos shouldn't dare to dream at a nice restaurant because they probably can't get out of bed.


WTAF!

We're mid-50's, almost ready to retire, and we have upgraded our restaurants lately. Our standard restaurants from 10 years ago are all crowded, loud, and the food isn't as good as it used to be for the price. So we've started spending more and going to steakhouses and more expensive places that tend to be quieter and easier to get into. Not ready for applesauce quite yet.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Our retirement goals include the ability to travel a lot, eat at nice restaurants, spoil grandchildren, leave a legacy, etc. If things go south, those things would be the first to be cut out of the budget. Life would look different, but it would still be comfortable.

If you are five years out and concerned, do everything you can now to be better prepared. Pay off debt, make any repairs, save more, get healthy, work an extra year or two, etc.

I don't understand the eat at nice restaurant thing to be honest. As you age taste bud change, diet become more restrictive etc.

I have noticed people have so many things they want to start doing when they finally retire, but I don't think they take into account the physical decline and other challenges that come with old age.

Yup, that's right 65yos shouldn't dare to dream at a nice restaurant because they probably can't get out of bed.


WTAF!

We're mid-50's, almost ready to retire, and we have upgraded our restaurants lately. Our standard restaurants from 10 years ago are all crowded, loud, and the food isn't as good as it used to be for the price. So we've started spending more and going to steakhouses and more expensive places that tend to be quieter and easier to get into. Not ready for applesauce quite yet.

You should be cutting down on red meat. You are no longer going and invincible.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Our retirement goals include the ability to travel a lot, eat at nice restaurants, spoil grandchildren, leave a legacy, etc. If things go south, those things would be the first to be cut out of the budget. Life would look different, but it would still be comfortable.

If you are five years out and concerned, do everything you can now to be better prepared. Pay off debt, make any repairs, save more, get healthy, work an extra year or two, etc.

I don't understand the eat at nice restaurant thing to be honest. As you age taste bud change, diet become more restrictive etc.

I have noticed people have so many things they want to start doing when they finally retire, but I don't think they take into account the physical decline and other challenges that come with old age.

Yup, that's right 65yos shouldn't dare to dream at a nice restaurant because they probably can't get out of bed.


WTAF!

We're mid-50's, almost ready to retire, and we have upgraded our restaurants lately. Our standard restaurants from 10 years ago are all crowded, loud, and the food isn't as good as it used to be for the price. So we've started spending more and going to steakhouses and more expensive places that tend to be quieter and easier to get into. Not ready for applesauce quite yet.

You should be cutting down on red meat. You are no longer going and invincible.

You people are insane! First it’s ageism, then it’s the food police.
—mostly vegan

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Our retirement goals include the ability to travel a lot, eat at nice restaurants, spoil grandchildren, leave a legacy, etc. If things go south, those things would be the first to be cut out of the budget. Life would look different, but it would still be comfortable.

If you are five years out and concerned, do everything you can now to be better prepared. Pay off debt, make any repairs, save more, get healthy, work an extra year or two, etc.

I don't understand the eat at nice restaurant thing to be honest. As you age taste bud change, diet become more restrictive etc.

I have noticed people have so many things they want to start doing when they finally retire, but I don't think they take into account the physical decline and other challenges that come with old age.

Yup, that's right 65yos shouldn't dare to dream at a nice restaurant because they probably can't get out of bed.

WTAF!

I believe PP was suggesting that the poster start eating at nice restaurants now vs. waiting for retirement. I am not sure the other PP was suggesting they are waiting until retirement age to eat at nice restaurants, but it was perhaps poorly written.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Our retirement goals include the ability to travel a lot, eat at nice restaurants, spoil grandchildren, leave a legacy, etc. If things go south, those things would be the first to be cut out of the budget. Life would look different, but it would still be comfortable.

If you are five years out and concerned, do everything you can now to be better prepared. Pay off debt, make any repairs, save more, get healthy, work an extra year or two, etc.

I don't understand the eat at nice restaurant thing to be honest. As you age taste bud change, diet become more restrictive etc.

I have noticed people have so many things they want to start doing when they finally retire, but I don't think they take into account the physical decline and other challenges that come with old age.

Yup, that's right 65yos shouldn't dare to dream at a nice restaurant because they probably can't get out of bed.


WTAF!

We're mid-50's, almost ready to retire, and we have upgraded our restaurants lately. Our standard restaurants from 10 years ago are all crowded, loud, and the food isn't as good as it used to be for the price. So we've started spending more and going to steakhouses and more expensive places that tend to be quieter and easier to get into. Not ready for applesauce quite yet.

So true.
I am going out a lot less for health reasons also, as I feel better when I am eating at home, don't get upsold amounts of food I don't need, and can control my ingredients quality. I do agree that it's worth it for a higher end place if you have to go out and also expose your body to the ingredients you cannot control. I don't bother with mid places anymore just for the sake of going out.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Our retirement goals include the ability to travel a lot, eat at nice restaurants, spoil grandchildren, leave a legacy, etc. If things go south, those things would be the first to be cut out of the budget. Life would look different, but it would still be comfortable.

If you are five years out and concerned, do everything you can now to be better prepared. Pay off debt, make any repairs, save more, get healthy, work an extra year or two, etc.

I don't understand the eat at nice restaurant thing to be honest. As you age taste bud change, diet become more restrictive etc.

I have noticed people have so many things they want to start doing when they finally retire, but I don't think they take into account the physical decline and other challenges that come with old age.

Yup, that's right 65yos shouldn't dare to dream at a nice restaurant because they probably can't get out of bed.

WTAF!

I believe PP was suggesting that the poster start eating at nice restaurants now vs. waiting for retirement. I am not sure the other PP was suggesting they are waiting until retirement age to eat at nice restaurants, but it was perhaps poorly written.

YOu shouldn't wait for anything you can afford now until retirement. It's silly, because you never know how your health will be many years later. There are no guarantees in life. Enjoy what you can now as long as it's not getting you in debt or wasting a huge chunk of your retirement. Older people naturally have a lot less need physically and mentally for $$$$ things. Of course you can come up with all sorts of luxuries including plastic surgery, exotic anti-aging treatments, fine dining, 5 star travel, designer clothes, etc. But your body is still not the same and neither are your hormones (desire to always look sexy/attractive), your gut, your level of energy. This lifestyle of jet setting, eating out, and keeping up with uncomfortable fashions is more exhausting in old age.

Take one more modest trip somewhere you really want to go today, vs. saving this money hoping to take this trip in more luxurious setting after 65. Try that fine dining restaurant this year and go 1-2x a year vs. waiting to afford to go their frequently. That's my take on it having seen many family members age differently, and some die before the retirement age.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Our retirement goals include the ability to travel a lot, eat at nice restaurants, spoil grandchildren, leave a legacy, etc. If things go south, those things would be the first to be cut out of the budget. Life would look different, but it would still be comfortable.

If you are five years out and concerned, do everything you can now to be better prepared. Pay off debt, make any repairs, save more, get healthy, work an extra year or two, etc.

I don't understand the eat at nice restaurant thing to be honest. As you age taste bud change, diet become more restrictive etc.

I have noticed people have so many things they want to start doing when they finally retire, but I don't think they take into account the physical decline and other challenges that come with old age.

Yup, that's right 65yos shouldn't dare to dream at a nice restaurant because they probably can't get out of bed.

WTAF!

I believe PP was suggesting that the poster start eating at nice restaurants now vs. waiting for retirement. I am not sure the other PP was suggesting they are waiting until retirement age to eat at nice restaurants, but it was perhaps poorly written.

YOu shouldn't wait for anything you can afford now until retirement. It's silly, because you never know how your health will be many years later. There are no guarantees in life. Enjoy what you can now as long as it's not getting you in debt or wasting a huge chunk of your retirement. Older people naturally have a lot less need physically and mentally for $$$$ things. Of course you can come up with all sorts of luxuries including plastic surgery, exotic anti-aging treatments, fine dining, 5 star travel, designer clothes, etc. But your body is still not the same and neither are your hormones (desire to always look sexy/attractive), your gut, your level of energy. This lifestyle of jet setting, eating out, and keeping up with uncomfortable fashions is more exhausting in old age.

Take one more modest trip somewhere you really want to go today, vs. saving this money hoping to take this trip in more luxurious setting after 65. Try that fine dining restaurant this year and go 1-2x a year vs. waiting to afford to go their frequently. That's my take on it having seen many family members age differently, and some die before the retirement age.

This 100%. You can save for retirement and enjoy fine things at the same time. It's all about planning. To each their own? But do you really need to spend $25k to go to the Maldives and stay at the give seasons. Hey who am I to judge. All am saying is most things that people are waiting until retirement to enjoy they can do it today.

I am very athletic and healthy. I am glad I traveled a lot in my 30s and 40s because at 59 even though I still feel great and energetic I will be lying to say that the trip I took to Nepal 13 years ago would be as easy if I had to do it today. No way.

Enjoy today. Tomorrow is not guaranteed. And stop obsessing over "generational wealth". Your kids will be fine lol.

[Anonymous]

We went through 2008, rode it out, recovered and more.
But we moved to a capital preservation with modest growth phase just before covid. Sure we could have had more net worth but with unhealthy angst.