This is the Biggest Way People Waste Money in Retirement

[@SeekAliveness]

I have SO much respect for James for making this video. His financial advice is sound and now I admire his philosophy too! ❤

[@RootFP]

Thank you!

[@BeanWho]

Our parents passed two weeks apart when they were 85. They lived through the depression and became the ‘millionaires next door’ without ever reading the book. It’s admirable how they wasted nothing and made things last however my brothers and I were sad they never used it to travel or spend a little more on themselves. They were great people and enjoyed helping grandchildren here and there. It did not feel that great to receive my inheritance which may be hard for some to believe. A few months before dad passed he told us he wished he’d taken us on more family vacations.

[@RootFP]

Thank you for sharing. Very powerful

[@larryjones9773]

Memo to self: 'If I don't 'waste' my 7 figure portfolio, then my beneficiaries surely will 'waste' it.' I'm going shopping for a fancy recliner, later today.

[@janetkenny4861]

Trying to embrace this philosophy! Month 11 of my retirement and leaving for my Maui vacation next week. Upgraded my seat to Premier, for 11 hours of flying so I can be comfortable. Found the perfect condo on beach and walkable to many restaurants, gardens and activities. Another thing is when I am considering purchases is to buy the best quality I can afford, more likely to last. My next purchase is going to be a really nice mattress, if not now, when? Great session, thanks!

[@RootFP]

Love to see it!

[@joanoconnor8552]

Thank you for this. I never thought of it this way. It's like you're at an arcade with a bagful of tokens. Once you leave the arcade the tokens are worthless and you will be leaving the arcade eventually. Time to play all the games I want.

[@RootFP]

Great analogy! I’m going to start using it.

[@nalissa77]

In some ways this mindset is harder to overcome than working to earn more money. Especially when you're not born into it. I think many of us need a wake up call. I had a dear friend pass last week at the age of 62. Sudden and unexpected. He will never see his grandkids grow up, or live the life I think he had planned for his later years. Life is precious and short. If you can indulge and enjoy the fruits of saving for so long, do it. Do it now. It is a good message many need to hear. Thanks for the advice.

[@hojo70]

I've saved 7 digits and I know for a fact I that I am going to have a hard time changing from save to spend. I'm still in that "its never enough" mindset

[@mkmac9539]

Thanks, James. I appreciate the story of your grandma. Reminds me of my own grandma. She was an adult during the depression. She used a hand towel as her bath towel her whole life. We had bought her very nice bath towels in the 1970s/'80s that she only kept in the closet. She never used them. Its interesting how the mind works. I think once the fear of potential bankruptcy and failing your family is realized, it is tough to shed that. In the back of your mind, you know it can happen again. Retirement is about 6 months away for me. I remember the fear of 2008. It changed me forever. Now that Social Security seems more and more jeopardized and my plan does not work without it, that fear is very real for me. I really appreciate your videos.

[@RootFP]

Thank you for sharing

[@Gadgetlily]

You always share so much wisdom in your financial related advice. I am saving this video to rewatch because you are definitely speaking to my personal struggle. Thank you.

[@woodsparker7902]

This video ranks in the top 10 of all of your videos!

[@RootFP]

Thank you 🙏

[@harveyquinton6303]

This is the most meaningful / impacatful video (for me) you have posted in all the years I have been following😂 you James. I went into semi-retirement at the age of 72!!!! Still working 3 days a week because I like my job and keeps me busy. BUT I have been so fugal with my spending. Will open up the wallet to buy the few things I have been holding off on. These are not expensive items but seemed like a “waste of money”. Not any more. Thank you for being a shining light on money and life issues. One of your faithful followers,

[@rhodastephens-yoder5693]

This is exactly why I have planned or completed trips around Great Britain, three Mediterranean cruises, a Rhine River cruise, future cruises around Japan,the Nile River, and Africa photo safari. I retired last year and want us to experience so much. I am also setting up charity donations. And gifts to family.😊

[@sdmod1]

This is truly a mindset change that I had to choose deliberately in order to enjoy what I've accumulated with my family before my time on earth is finished.

[@helenwood3199]

Thanks, James. This is the message I need pounded into my psyche! I cognitively understand the notion, but acting reverse of a lifetime of values will take effort. Another point to support the, "If not now, then WHEN?" concept is the FACT that due to the cumulative effect of inflation, the money we scrimped and saved for retirement is worth less and less each passing year. Therefore, get the most enjoyment from it sooner, rather than later. Tell Sara to buy quality furniture, the last she will ever need, when the prices are lower than they will be in the future.

[@FIREhiker]

Good video. No distractions. Good sound (not out walking, no wind or kids screaming in the background etc). To the point and well paced. Thank you!

[@Cindy-ee5ou]

The thing that makes my mom the happiest is to watch her bank account grow (with diminishing purchasing power that she refuses to see). The ability and willingness to save are the top two “virtues” that she treasures and derives pleasure from.

[@M22Research]

A too rare thing - Financial Advisors who advise their clients to spend *more* money in retirement. Particularly rare amongst Assets Under Management (AUM) advisers who personally directly benefit from larger client portfolios.

[@0007tad]

Great Video "" Message "" James, you are wise beyond your years , Being a retiree myself , im learning to stop ( buy ) smell the roses , I have the means ,Im getting over that Psychological stage to enjoy the fruits of my labor..

[@RootFP]

Thank you!

[@JohnSimpson-r5d]

James, this is one of your best videos. Bravo for presenting this aspect of retirement.

[@dforrest4503]

This is a great video for me. I’m semi-retired, and I enjoy my current part-time work. However, I have enough money to do a lot more than I do, and I need to get over my mindset of forced scarcity. It definitely doesn’t feel good getting ripped off, but I need to adjust what value I put on experiences. I think I need to rewatch this video regularly.

[@Paul-GrnHil]

The fact that the couple can live off social security without need for more and the fact they have a 7 figure portfolio tells all. They likely never spent much before they retired and are unlikely to change now.

[@ScotTheGr8]

Wow. That was a pretty powerful segment. Thanks for the thoughtfulness that went into it.

[@eastwestpicayune8200]

Great video. Enjoy all your contents. This podcast hit home. I was always a saver. I always get upset when I visit my son and notice such extravagant life style. Even yet I think wasteful living. When I came back home, I said to myself, I am going to get a mani pedi every month and hire someone to cut my lawn. No sense of breaking my back cutting my own yard. I did exactly that. I do spend most money in traveling which I enjoy a lot. Now, on to moving to a nicer neighborhood. Thank you James.

[@martinhanson4342]

Your comment hit home with me. I scrimped and saved based on what I learned from my parents. I never looked at the balances while in the accumulation phase, set auto savings and let it run. Now retired with likely more than i need, I have real trouble spending. I ordered "die with Zero for a balancing of my view(s). My first step, last week i went out and bought a new Mustang convertible--my first two cars were rag tops! Now just need to get through winter to better enjoy it!

[@dbest4755]

A GREAT MESSAGE !!!!! WE NEED MORE !!!

[@janethunt4037]

To enter this mindset, we put a big travel budget into our spending model. I consider it a challenge to spend that amount by the end of the year. We’re getting close.

[@RootFP]

Love it!

[@Cindy-ee5ou]

My giant spreadsheet tells me how much I can spend this year without compromising my future. Then exchange that budget for maximum utility for me - works very well so far.

[@Jo-qb1xe]

Good way to think of the value of money. Hope I get to the point where no spending money is a waste soon 😊

[@kezwall4506]

Totally relevant to me and very helpful as well. My husband always says we will spend the 7 figures and leave the kids the house. You are so correct do not think of money as a scarce resource and it is useless unless exchanged. Thanks

[@ps4402]

You hit the nail on the head. I retired a few months ago. I've always lived frugally (my parents were depression kids) and been fine with it. My husband and I spent the last 10 years maximizing retirement contributions, and now we have to switch and start spending. It truly is difficult. I know we have enough saved, and our living expenses are low. Travelling still feels like a splurge.

[@jocelyncole5263]

Wow! Thank you so much James! I know this episode is different and did not include numbers however this the MOST insightful episode thus far. This is truly brilliant and will be sharing this to for my relatives and friends to know. Thank you!

[@gsmollin2]

We spend our lives saving for retirement. That becomes an ingrained habit. When we retire, it is pretty scary to take money out of the accounts.

[@LivingTheLifeRetired]

I use this every time I buy a new tool for my garage. If I don’t buy what I want my ungrateful relatives will buy what they want after I’m dead.

[@ScottinValbom]

Thank you for the reminder that money is just another medium of storage to be exchanged for desired content. I never dreamed that in retirement, I would face the issue that even with sufficient savings, I find it challenging to spend. In a way, I guess I'm saying that I don't believe I am worth spending on. I could see a therapist (and spend funds for that) or just get on with it and enjoy what I have saved. When past success has been measured in terms of watching the savings continue to increase, it's somewhat ironic that now, even with spending, the savings continue to increase. How about that?!

[@RootFP]

Thank you for sharing

[@Kimmer]

There's s difference between being wasteful and choosing to spend money on luxurious items that may bring you some joy. We should never be wasteful, but I agree that spending money on things that aren't required is okay if you have the money and it brings you joy. I think your grandma is still right James!

[@cordellblaine]

This is a fantastic point, makes complete sense but I don't think I've thought of moneys value in this way specifically - I generally default to trying to save more so this is helpful to balance our finances

[@7thlady]

Great video! One of my favorites, and this is all so true.

[@txgrandma3]

Very well stated. It's a point to ponder & I never considered this before. Our adult children are very successful because they learned from us. They are always telling us to spend our money because they know how hard we worked for it. Thanks for sharing!

[@dvmdoc]

Life is short - and the good part is even shorter. Buy the furniture, take the vacation, have the experiences. Challenging myself to become an equally effective spender as I've been a saver.

[@RootFP]

🙌🙌

[@dlg5485]

You have to have a plan for your retirement. Not just a financial plan, but a life plan as well. Your life plan should be your guide, so you don't become a slave to growing your money.

[@RootFP]

Yes

[@clarkeborgeson8131]

We furnished a condo several years ago purchasing used furnishings from estates. I am rather squeaky with my money. So you might consider looking for the value furnishings available used.

[@richardnugent7035]

There is an important corollary to the wisdom of not waiting until retirement to use one’s money to make your life more comfortable. It is: Do not put off bucket-list travel. Especially if it is “expedition/adventure type”, such as a trip to Antarctica, an African safari, a rafting trip through the Grand Canyon, etc. One’s physical condition in your 60s or 70s may prohibit such adventures or even restrict more mundane travel. Do it while you can still enjoy it.

[@ryanstice7014]

Very impactful video, I needed to hear this today!

[@Hemond1]

Re: the client hesitant to buy furniture. They should hit the antique shops, thrift shops, and flea markets. Not only do you frequently find high quality unique pieces, you will pay almost nothing for them. The hunt for items itself is a lot of fun and when you score , well, those endorphins will get released. Lets face it, the stuff sold today is made of cardboard, stapled together, and will fall apart in 3 years. Buying quality is another feature those clients will like. My most recent find was a 100 year old Hitchcock bench in perfect condition at GoodWill. for $40.

[@w_w_whitey]

Well done. Learning how to transition from saver to spender is an important part of my retirement planning. Time to catch my tuna! Not retired yet, but I'm taking some baby steps by being a little more generous and on our upcoming trip, planning a few outings we wouldn't have done in the past. Thanks.

[@RootFP]

Excellent!

[@nataliefino1926]

Fantastic perspective and explanation of it.

[@vickaiser]

Man. Great video.

[@daviddeavours4909]

Thank you. This is exactly what I needed to hear.

[@dukebarnes64]

Thanks James!! Good points.

[@stevegorkowski3246]

I am working past the spending. I repaired everything in the house to save money and saved the money to retire early. Having someone fix something for me was strange and had to move away from them and not hover over them working. I watch my investments grow and I have to start spending more. I spent $1000 for my personal gift for Christmas. It was strange to do it for some reason but I am glad I did it. Now for my birthday I need to do it again. It takes practice but in time it will become normal.

[@rangamurali7667]

Our dear time of life is getting shorter and shorter with lesser opportunities to exchange in value as our assets grow big to be a waste with little time for such opportunities

[@RootFP]

Well said

[@raymondmatava9285]

Great lesson.

[@Danisandiego]

A very meaningful episode. Thanks and duly noted.

[@susanalexander4683]

This is a wonderful episode. I know people who are loaded but seem to be afraid to spend their money.

[@annejocson8097]

You are so matured in your thinking. Thanks for the insight. I appreciate your episode today

[@SquatsAndThoughts]

Great video! Good take.

[@RootFP]

Thanks!

[@MarkBaker-r3s]

Exceptional episode. Thank you, James,

[@slwleyland]

You and Dave Zoller at Streamline Financial bring great, thought provoking matters to light! Even though I haven’t heard you speak specifically about eternal matters, your well thought out comments, suggestions, and demeanor make me think you are aware of eternal matters. God bless you, your family , and your business.

[@FunStuffBuddy]

Thanks James!

[@Northeasy_Iowa_Outdoors]

The problem is when you're in your 60's and have ~20 years of unchecked inflation and unknown market performance as wild cards, its really difficult to spend your nest egg. There are many homeless people as a result of the last few years of inflation. I see gents in their 80's working at Home Depot; I don't want to be that guy.

[@jimv77]

A lot of ederly folks in my town seem to enjoy the casinos during retirement. There is actually a Casino shuttle bus service that picks them up daily at 9am at a Target Store and brings them back at 6pm. They also get a free buffet voucher. You'd be shocked how many folks take up this offer on any random day.

[@davila0893]

Very insightful video. Thank you.

[@vickieelijah3616]

Thank you so much for sharing these thoughts! Greatly appreciated!

[@TopNotch50]

I don't have Munger's billions, but my son and I caught a 450# shark in the Gulf of Mexico and I will say it is quite a memorable experience! 🦈 ( We also caught tuna, but they were more like 25 #.)

[@RootFP]

Epic!

[@TomcatSTL]

Bravo, James. Great, meaningful content!

[@joonlee3402]

James , thanks for touching upon this important and crucial topic. While intellectually understanding of this concept, putting into practice can be a whole different challenge. Having specific examples from real people goes a long way to relate. I hope Sarah ended up splurging with the furnitures. Could have given them joys whiles they could appreciate. Money is just a tools in the end. Knowing how to use this tool is the key. PS. Book ‘die with zero’ covers some of these concepts.

[@samyoung2260]

I m with u James. If I made the assets in my lifetime, I want to b able to enjoy before my demise. Otherwise, the heirs and beneficiaries will reap the benefits without having to do all the hard work and loss of experiences I did to acquire the wealth in my portfolio. Leave some of the assets for your loved ones but don't deprive yourself of the joy that u could experience by spending the built up assets before your life has ended. B a part of the enjoyment of your built up assets!😊

[@miatafunrun3078]

What a great video, I had not though of it this way.

[@RootFP]

Glad you enjoyed it!

[@johnkelley1426]

Thanks. Needed to hear that. Now I'll go after my 200 pound tuna with a smile on my face and song in my heart.

[@RootFP]

Go get it!

[@Ncemj2000]

Great video. I think most of us in a good position financially got here because we didn’t waste money on things that really didn’t have any value in our lives. That will not change and will be hard to change as we start thinking of how we manage our money moving forward. If I didn’t see any value in buying a fancy car even when I knew I could afford it, I still wouldn’t find any value on it now that I’m retired. Net, it’s our value system that will dictate everything. For me and my wife, we know we’d like to pay it forward - and we hope to support underprivileged youth to college so that they can pay it forward to their families and communities. That will be the real value of our $$$.

[@Growing-Our-Retirement]

Great wisdom here! Gotta make plans and become your future self!

[@RootFP]

That's right!

[@danekendall2298]

Maybe ten or fifteen years ago, Dad and I were in one of his vehicles back home, when he said something about a bumper sticker he liked that said “Spending my children’s Inheritance.” He then verbally backpedaled a bit apologizing; I remember my response was to the effect that it’s his and my Mother’s money. Don’t worry about me; he did what he could (but, he also loved running his Vermont horse stables). ❤️ My parents made their retirement nest egg when they sold their country inn. They kept the stables they developed during their 21-year tenure with the inn, but the stables with boarding, lessons, trail riding, carriage and sleigh rides; let’s say it’s not an easy money maker.

[@JohnSimpson-r5d]

Charlie Munger’s comment reminded me of the quote from the movie “Citizen Kane”: “Rosebud”.

[@deidrebriggs]

Very good message!

[@RootFP]

Thank you

[@networkteacher1]

I see your point, and enjoy the perspective. And sure, on some level, spending is the point of saving. The big concern is thinking we know what we don't know. I am ready to retire. Similar to your example couple, I have similar investments and didn't start SS till age 69. But, shortly after going down that path, it was discovered that Medicare A/B was not going to cover a 'medically necessary', (indeed life saving) expense which in just 6 months, ballooned into a $30,000 bill. And since Medicare did not cover it, neither did the supplement. Worse, it is a chronic condition and will be about $50,000/year minimum. The alternative is death. Well, that bill is roughly equal to our SS benefits. Or if we used the 4% rule, the medical bill alone, represents a third of our investment egg. I went back to work. And, that leaves investments to cover ALL other living expenses, including the roof and window replacements, repairs on vehicles that are over a decade old, and 'who knows what' of dozens of other unexpected expenses, all connected to inflation and taxes. And, we both know there is no tax deduction for inflation. And, what if someone sues me from a car accident, creating attorney fees or settlement costs? Am I being pessimistic? Maybe, but, truth is, we are old enough to have already experienced these things. To be clear, I do feel fortunate to have what I have and not to worry excessively. At the same time, experience tells me not to expect 'luck' to change. The past couple of years have been good to everyone, investment wise. Yet, the market has gotten ahead of itself. It always self corrects. So nope to the beach house, or even the trip to Europe. If its a good year, we might replace the couch.

[@V.stones]

Agreed, I've always delegated my excesses to an advisor, since suffering major portfolio loss early 2020, amid covid outbreak. I'm now semi-retired and only work 7.5 hours a week, with barely 25% short of my $1m retirement goal after subsequent investments to date.

[@RJ2878]

Another great video from James. Most financial advisors will never encourage clients to spend & enjoy life, because they will have less assets under management. I hear many say you will need big bucks for long term care, when all you can do is wait to die. Hopefully the sale of your home could suffice if needed. Enjoy God’s gift of life!

[@pedrowhite911]

Spot on! James, I love this higher level mindset type of retirement video! So, what did “Sarah” end up deciding after your conversation with her? I find myself transitioning more easily to semi-retirement specifically due to the difficulty with switching from a saving mindset to a spending mindset. Great video!

[@marathoncamera]

Excellent advice!

[@kdebruine]

James....you're so smart. Thank you!! :-)

[@danoberste8146]

Buying stuff is the PERFECT hedge against inflation.

[@banderson8444]

Some friend's have a saying - "If we dont fly first class, our heirs will."

[@dennislau2227]

The mindset that allows them to save that kind of money is the exact same mindset that would prevent them from spending any of it.

[@RootFP]

Yes

[@rangelet]

Excellent advice! I know this goes through my mind!

[@terrysmith-zt8ls]

Be the person you want to be. If you want brand new things, house, cars expense trips go for it. Figure out how much money you need to retire on, then save it. You don't need to send all of it. Leave the rest to your kids. I started late in life, don't need brand new things, and that's OK. I'm saving the best I can, and I will be all right. You need to eat, fuel for winter, taxes, house, and car repairs, etc. I'm not going to worry about what I could of had.

[@DrBilly90210]

Short answer for Sarah: "You must confront your fear, grasshopper."

[@Hemond1]

By keeping a large bank account, and saying you are wasting the stored value of the money, you are missing a major point of retirees like me. It is extremely calming to know your senior years are secure. The 7 figure acct. insures you will not be living in 2nd rate senior apartments or pushing shopping carts at age 70, or standing on the side of the road with a cardboard sign saying "God Bless, Anything Helps".

[@lonestrtgr55]

This is my biggest problem. Spending it.

[@denniskirschbaum9109]

Two things I find curious with this story. One Sarah has a multi-million dollar portfolio yet can cover all her needs with just Social Security. Not impossible but remarkable. Two, she is spending what is likely hundreds of thousands of dollars expanding her home but struggling with a decision to buy furniture. Interesting that a single retired person needs more space (I see this all the time and am bewildered by it) but then doesn't want to spend money for a sofa. People used to downsize after the kids moved out. Now they expand or buy a bigger house. Not sure what the meaning of that is. Not judging just noticing.

[@JohnSimpson-r5d]

A good lesson. A good book: Die Ethel Zero by Bill Perkins.

[@kahvac]

Great video I watched it to the end !

[@RootFP]

Thank you!

[@hogroamer260]

Imagine you are on a desserted island 3 big tanks of water and one small pipe that provides just enough for your daily needs. That water is your money. The tanks are extra, but when they're gone, they're gone. Some people will be happier to hoard that water. I think most people understand what they're doing. The rest can give a CFP 1% of their water each year.

[@AnneLowenthal-l5f]

Great!

[@ericgold3840]

Food for thought. Thanks, James I can see in myself the prototypical person who cannot easily spend money, and I certainly agree that money is only a pile of paper until it is traded for something of value. That said, I'm not going to change my frugal and cheap lifestyle any time soon for a couple of reasons: 1. There isn't much stuff I value. I don't want a bigger house, a more expensive car, or to go on a cruise. I don't want original art in my home, and I don't want to hang diamonds on my wife. I like reading, and I like Math.I like walking. I enjoy meeting interesting people. I appreciate that these things are +/- no cost, but that is a distant consideration. Primary is that these are things I want to do. Frugality born of a desire to save and build a pile of money is common and I share that experience. I perhaps differ in that I rarely found frugality to be much of a sacrifice because 'stuff' has never been much of an attraction. What about experiences, you say ? For the most part I dislike being a tourist, so I pay attention to my surroundings where I am. 2. As someone who fully embraces the notion of not wasting, I would like to point out that money not spent on me but for someone or something else is far from wasted. To borrow an Economics term, if I spend money on myself for a trivial enjoyment that cannot then be spent where it makes a big difference, I have paid a dear opportunity cost. Which brings me to what amounts to a criticism of the show: I cannot help but frame it as more 'me, me, me.' I recommend a wider perspective. By all means reject the life of a miser, but I suggest getting the most out of money, and that is unlikely to be more stuff.

[@MrGrumpy1]

My mother told me that when she was a child during the Depression, fruit cocktail was a luxury dessert.

[@sid35gb]

Don’t be the richest person in the graveyard.

[@probablynot1368]

If you are eating at home, you only put enough food on your plate that you are willing, or able, to eat.

[@markbernhardt6281]

I think retirees should pay themselves quarterly and that money should go into the BANK and not even be added into their net worth. It's money to SPEND. If you want to save for something look at your bank account see if the money is there. It's the mindset of a 20 year old who cashes their paycheck and puts it in their wallet. I think, at least for myself, that will be enough to permit myself to spend money in early retirement.

[@silversurferhi]

Why extend your home if you don't use it-that's waste

[@pensacola321]

So many influences don't seem to understand that many people don't want to spend their money. It gives them little joy. They may be giving good advice in general, and folks may be missing certain life opportunities. People need to figure out at their own pace what they want to do with their money. They can't be forced.