Following Frank into Retirement – 1 Month to Go
A series of articles starting 5 months from retirement
By Frank
Berkeley Breathed, creator of the Bloom County comic strip, once described cartoonist techniques that portray emotions. Amongst their weaponry is “sweatles”, those drops of sweat projecting from around the head of the cartoon character. “Sweatles” perfectly describes my ongoing thoughts about money and retirement. So I’m going to try once again to convince myself by the end of this blog that I should not be worried about money as retirement looms.
To buy or not to buy, that is the question
Suzanne and I have struggled over the years to find a balance between frugality and rampant consumerism. While we feel that there is no need to replace fraying towels, or chipped and ugly dishes, that does not stop us from lusting after replacements. We can delude ourselves into thinking that we are making the environmentally correct decision by not replacing perfectly serviceable electronics/cars/appliances, but it is really more related to money (much like those hotel room notices that exhort you to save the environment by reusing your towel). Still, thinking twice (or even thrice) before making any purchase is an important concept for us as we head into fixed income retirement. Do we really need it? Will our life be significantly better if we have it? Can the old one be repaired?
Finding money
A colleague and I were discussing cars one evening and we discovered that we shared a common rationale for replacing our cars. We agreed that a car should be kept as long as it is reliable and the annual maintenance is less than the yearly payments on a replacement car. Now, everyone gets a thrill from getting a new car (even if they don’t admit it), but just think of the anticipation of waiting a few more years before trading in your car. Still not convinced? Then think of the money that you save, which can then be spent on other things.
Besides not purchasing a new car for our retirement, Suzanne and I have also dodged converting our house from oil to propane (I love gas stoves), finding a fridge to match our other appliances (I’m thinking spray paint), upgrading to a new TV to replace our ancient Zenith (nothing good on anyway), and replacing our old washer and dryer (damn things are too easy to fix). Amazingly enough, our life is not appreciably different from not having gotten all that stuff. Furthermore, we are heading into retirement with an extra $40,000 to spend as we need it.
The gilded cage
Unfortunately, like a snake in a garden, money has seduced us into spending because we can afford to spend while we both still have jobs. While we do carefully consider some of our larger purchases, we buy many items without a second thought. It is the loss of this “freedom to spend” that often causes me wakeful nights. I really like to be able to just go out and spend. Continuing to work allows us “freedom to spend” on entertainment, gifts, travel, and our household. In many cases, it also provides health and dental plans, paid vacations and other perks. However, unless you truly love your work, this comes at the price of less time to enjoy life and the increasing odds that your money will outlive you.
The chicken and the pig
Suzanne and I look upon retirement as a challenge to our resourcefulness– to make do with what we have, while enjoying our life together to the fullest. If the market tanks again we may have to delay some of our travel plans or the next home renovation. Disappointing, but not devastating. We have busted out of our gilded cage by realizing that money is not the source of our happiness. It can be managed.
Suzanne retires in four days and her job will disappear. I have 33 more work days (I am not counting) and my replacement has been hired. There’s an old joke about bacon and eggs: the chicken is involved, but the pig is committed. Oink, oink…