Guys, it is a statistical fact. The spending patterns of the elderly were compared with their cash accumulations during the last 10 years of life.
They stop spending, and cash accumulates.
Where this caused quite a stir, was that almost all retail retirement planning was based on compounding returns until the end of life. (Excellent sales pitch, Stick with us and you'll be a multi-millionair!) Leaving healthy, middle aged people slavishly working, but cash poor, during their final years of vitality, and awash in cash (to fight over,or remit to the state for reimbursement)at end of life. Look at the mail of the elderly. 5-1 come-ons for charity.
It was assbackwards.
Newer strategies were devised to wring more cash out of life from 55-75, and accomplish greater enjoyment while you are able.
So, the focus evolves to cash flow from asset accumulation.
Within all this is what I have always called, "The leopard cannot change his spots." or, "You are who you are". Whatever means you have lived with through your adult life leaves a mark. A conditioned pattern of spending. One that you statistically will not change in retirement. You won't become the life of the party. (Sigh)
The example above is, "I don't want a new truck." The desire is truly not there. The leopard cannot change his spots.
Has little to do with money. Everything to do with conditioning.
The question we all struggle with is, When to dispossess ourselves? And by extension, how to do it.
I can assure everyone reading this, that your mental abilities degrade considerably after you have received notice of your impending demise. It is better to have a plan (relatively easily managed) in place before you get such lousy news.
In the interest of levity, my oncologist presented to me perhaps the most comical diagnoses I have ever been a party to hear.
I sat in the chair, (I wish I could say ram-rod straight, but alas, I am a sloucher,) and as he entered the room, I used my normal greeting. "Hey Doc, How's it going?" It's a common greeting in the mid-west.
Without slowing down a bit, he looks me straight in the eye, and he says, "Me?, I'm doing fine. You?, well, not so hot."
I actually appreciated the candor.
These unending rainy days make me quite maudlin.
If anyone takes any advice from me, it should only be that 1. We don't have forever, and 2. Life can turn on a dime.
Use your resources to live with that belief. Everyday, until you can't. Do good, don't hoard.
