[Stacey]

I think I am finally having my “come to Frank Vasquez” moment with images of my solid gold coffin dancing in my head.

Eleven years into my retirement, I still only know how to accumulate, with 85% of my portfolio in growth stocks and the rest in cash.

I think it’s time that I confront my ignorance and try to face reality.

What are your thoughts on transitioning from accumulation to preservation and how to “spend down” strategically.

Any books or websites that you love?

[Frank]

You should be dancin’! Yeah!
But good on you for recognizing where you are. To tell the truth, most super savers and your favorite finance gurus do not come to this realization until its too late to do anything besides charitable trust activity.

And the real obstacles are typically ones of old fears or identity – they have convinced themselves that spending money is weak/immoral and beneath them and/or are “presenting” to an audience.

So, you may need to forge some new identities or stories about yourself.

You might have a listen to Episode 389 of RPR regarding the question from John where I mention a lot of books and resources for identifying what you really want to do.

And ChooseFI Episode 508 where I talk about “finding your stories”, which I think it the real key and the inherent problem with the predominant “Hero’s Journey” story.

I’d definitely get the two most recent Arthur Brook’s books and check out two new arrivals, Daniel Crosby’s “The Soul of Wealth” and Jordan Grumet’s “Purpose Code.”

Both of those essentially invert Bronnie Ware’s “Five Regrets of the Dying” to come up with a playbook for going forward.

You want to couple that with avoiding the Four Idols of Thomas Aquinas, which Brooks does a good job tackling.

Which as far as “what to spend more money on to maximize satisfaction” boils down to Crosby’s recommends, which are on

(1) Relationships;

(2) Experiences (not just things like travel, but hobbies, creative projects and experiential frivolities);

(3) Work Avoidance (buying back your time by paying other people to do chores and planning for you); and

(4) Red Hot Chili Pepper FI — “Give it away, give it away, give it away now!” (that’s charity, both formal and informal, including helping relatives, advances on inheritances, etc.) [These relate to small P purpose in the Purpose Code]

And the Four Idols to Avoid are recognize when you have enough of

(1) Money; (2) Fame; (3) Power; and (4) temporal Pleasures (that could become addictions). “Enough” is the answer to all four as they all represent misguided endless Hero’s Journeys [so-called “Big P” purposes] and have the cardinal attribute of being detrimental to relationships that are nott focusing on the same Idol.

The truth is that the super saver crowd and your favorite gurus are often pursuing the first two Idols until they drop.

On the really Big Picture front, recognize that none of this is new and goes back to the Western/Greek concept of Eudaimonia and the Asian concept of Ikagai.

But honestly, Narrative Psychology holds the keys to achieving and connecting purpose and meaning.

[Damaso]

This is acutally a great problem to have. Spending down has to really be intentional. I have been retired for 3.5 years now.

My wife and I have travelled around the world at a minimum of 7 months out of each year.

My brokerage account has more money now did it did 3 years ago because of how well the markets have done and how well Airbnb and rental have done.

[Linn]

Not to be too morbid but a few weeks before she suddenly died, my mom (81) was fretting that she would run out of money.

She had nothing to worry about. We all have an expiration date.

Just don’t know where we are on the calendar.

[Amy]

Yes! Join us on the Dark Side [insert Darth Vader laugh]!
You ARE smart enough to understand the RPR podcast.

But starting at episode 392 is like starting to learn math by taking AP Calculus.

Frank does mention a list of foundation episodes in his intro, but instead I suggest starting at the beginning.

That way you grow as the podcast grows.

[Sebastien]

If you’re already listening to Frank I think the roadblock is within your own mind rather than a lack of knowledge.

[Joe]

I’m with you man, can’t get anything actionable from Frank’s info even though I’m certain he is brilliant.

[Eva]

I think there’s more and more us having this realization. I don’t know the answers but Frank’s website paired with Efficient Frontier have been helpful.

It just seems much nuanced/complicated to make a decision that what we’re told to do during accumulation and I wish there was a „vtsax and chill” version during chapter 3 of FIRE.

[Eric]

I am stuck also. 7 years into my mostly retired phase and I haven’t figured out how to live off my Ira.

I considered going to work again so I don’t have to dig into my accounts any more.

[David]

Ramit Sethi’s content helped me to start spending more. Since I retired in 2023 I have done experiments on “how can spending more bring me more value”.

They have been fun to conduct and it helps me dial in where to spend more.

[Ella]

Years ago, for work I lived in a wealthy community north of Houston, TX. To grow my business I started collaborating and volunteering with big no-profits and charities (like St Jude, Habitat for Humanity, etc).

I was surrounded by multimillionaires and learn a ton from them on how to enjoy the phase of life you are in.

They were outrageously generous but in a subtle and humble way. For example, the lady that would clean the tables with me once made a $30k donation during a live action for an organization that helps women in Africa to become entrepreneurs.

This was “normal” for her just as clearing the tables and greet the visitors.

I loved observing their behaviors. They lived very well (in abundance) and gave back abundantly.

I personally don’t see a problem with continuing accumulation as long as you are also living fully and giving back so to leave a legacy that will outlive you.

[Aaron]

Why are you still in growth stocks? Doing so means that you’re asking for high volatility and the reward is higher returns that you don’t even need.

One option would be to slowly backing away from that asset allocation and towards a preservation model portfolio.

As for spending, are you intentionally not spending on things that you want to have or do out of fear?

Or are you living the life that you want but have over saved so much that you can’t spend it all meaningfully?

If the former, try bumping up your withdrawals slowly and start planning for those bigger purchases.

If the latter, then is there really a problem? If you don’t need it consider helping out family, friends or charity.

This year at 44 I realized I’m on track to be able to retire by 50 and started giving more to family in friends that are in their 20’s.

$1,000 to them is much more impactful than another $1,000 added to my investments.

[Jason]

Do you NEED to spend down? I think as long as you have the bucket with 3 to 5 years worth of spend in something low risk… I’d be inclined to ‘let it ride’.

As you know.. health stuff can sneak up fast, and it can outspend your rate pretty quick.

I’d toy with the wills and who I’d like to bless… ASSUMING that you live a long, healthy life that doesn’t need expensive care late in life.

That’s a ‘given’ for no one.

[Nicholas]

Gotta start thinking like the government…..spend first and ask questions later.

It’s budgeting in reverse. Have 12-18months of your portfolio in cash (high yield savings/ short term TBills- money market)as your safety net. Then spend 10% of your portfolio.

Have a significant income stream like rental, pension, SS that’s pays off your every day bills?

Pay for someone coffee every time you go… pay for someone cart of groceries, help that family member in need, set up scholarships etc…. Be your own charity

[Lion]

I have a spending problem and have true trouble figuring it out. I have no issue spending willfully for travel to concerts with nice hotels and dinners, but my husband just spent $400 for a few trees to provide privacy in the yard and I freaked out.

I’m over it now and I apologized. I don’t freak out with market fluctuations where tens of thousands of dollars disappear in a day.

this money stuff is tough.

[Paul]

Why spend down? If you’re living life how you wish, who cares if some is left over when you die? Donate it

Having too much at the end of your life is far preferable to having too little

[Rick]

Yes, the asset class mix will matter but nothing matters if you don’t start spending 4-5-6% annually.

I honestly think the latter is harder to solve than the former.

[Lee]

The answer depends on how old you are now and how healthy you are now and what secure income streams you have now.

[Author]

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