Reply to When does contributing to your portfolio start to feel pointless?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I’m not going to read all the responses and someone may have already told you, but it’s all about the balance between your savings target and lifestyle creep. If you start spending 100k more a year now on yourself and expect to keep the same lifestyle in retirement then you’ve moved the goalposts and the 5M target probably needs to increase [/quote]

Excellent point and I don't think it was already made. The more you get used to spending now, the more you need to save to maintain your same lifestyle once you are no longer working. [/quote]

Eh, we spend a ton now figuring these are the years when we need it the most. Income is about $1.5M and we save about $150k/year for retirement. We'd need to save more to have the same income in retirement as we do now, but it's more important to us to live large now while our kids are growing up. So lots of travel together, lots of hired help to make sure house is clean, yard is beautiful, family is fed, kid activities, club membership. I envision a quieter life in the future. Kids grow up and people grow old and less adventurous. Of course, I'll still want a high income, and I'll have it - just likely not as high as today.[/quote]

Oh sure. Some expenses will drop off as the kids get out of the house/out of college. Same if you pay off a mortgage. Not including those in your retirement spending estimates is normal. But if you are adding a level of coddling in your lifestyle today hiring extra help/etc that you won’t be able to afford in retirement, it’s a personal physiological test whether your “I’m spending now because these years are important and I’ll live leaner later” logic will survive the transition. I believe there are some it works for and some it doesn’t. Good luck. The point is that you have some control over how abrupt your financial change between working and retirement will be (and remember if you ask anyone older who’s done it that they may have had things softened by a 20 year bull market). There’s also a transition your kids will face between their lifestyle in your home and what they will be able to afford on their own in a few years. [/quote]

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