Can you save too much money?

[marla]

I came across this article:

http://www.csmonitor.com/2005/0718/p14s01-wmgn.html

that says people might be saving too much money. It can't be the case for me, but do you think that the experts are telling us to save more than we need to?

Also, do people really spend less as they get older? With more medical expenses and maybe needing a nursing home, it doesn't seem to me that expenses would necessarily go down as you get older.

[baselle]

Re: Can you save too much money?

I saw that article. It wasn't clear to me whether the drop off in spending of 75-80yr olds was due to an actual change in lifestyle, taste, or the fear that they were running out money.

I don't think that you can ever save too much money, really. But people need to be encouraged to save for retirement, no matter their situation, no matter their income, and no matter how "little" time they have. Don't let the thought that you have to have a million before you can retire deter you from saving what you can.

[Tree0164]

Re: Can you save too much money?

No you can't save too much money. I wish I save more in my 20s when I didn't have the expenses that I have now. I am still saving towards retirement. In 30 years when I retirement-healthcare will be my biggest expense.

[PrincessPerky]

Re: Can you save too much money?

I figure if there is loot leftover, I have kids who could use it. (and if I didn't I would rather have spare than not enough)

[pennywise]

Re: Can you save too much money?

Think!! 1 million dollars earning 3% interest generates $30,000 in income. You need the income because if you used the million dollars you would run out of money in retirement. Thus you need the million for income, you spend the income and pass the million to your children so they can have a head start. I say: each generation works for the next, not the selfish mortgage salesman in the wall street journal who said " I scoff at people who pay down their mortgages month by month. That's a way of transferring money to your heirs (this is the goal, folks) as a borrower I'd rather make smaller payments (he does not say how much you will pay in interest though) and have the money myself". Fat chance. This guy makes $200,000/year to tell you this. He is commissioned. Ben Franklin said "otherwise you will grow able to pay your debts." They have to keep you in debt to make money, you are indentured (legally). SPENDING MONEY DOES NOT GIVE YOU POWER, HAVING MONEY GIVES YOU POWER, FREEDOM, AND CHOICES. My husband is now in law school and we are paying CASH. see, power, freedom, and choices. NO DEBT, eliminate it. Go to the library and read a book if you are bored, or write us.

[marglo]

Re: Can you save too much money?

My dh and I are already retired and I say you can't save too much, unless you are seriously depriving yourself and your children of the basics you need today. But you will need everything you can get together when you retire. In some ways our expenses have gone down but others have gone up. We get hit with taxes worse than ever!

[PRICEPLUS]

Re: Can you save too much money?

No. YOu can never save too much. Out of debt means out of danger, Get out of debt and save every spare penny you can. Choose freedom over servitude to debtors!

[akaivyleaf]

Re: Can you save too much money?

I don't think you can ever have too much. I plan on leaving the world flat broke, just like I came in it. But I want to enjoy every moment in between.. and like you said, Choose freedom over servitude to debtors. I like that.

[cercis]

Re: Can you save too much money?

I want to have enough saved that I can live off the interest generated and then pass some money on to my sons.

I do probate work and it's pretty amazing the differences between people. One woman (in her 90s and we're doing a prenup for her) is still buying 10 yr annuities. That's how I want to be. I got her bank statements (as part of preparing the prenup) and she has an income of $6k/month and only spends about $3k, so every month she has more money to invest. But she's starting to decline and her daughter called me to tell me that she was going to have to go into longterm care, so they were cashing in some investments. They'll get the info to me to update the prenup.

This woman is prepared to live to 110 and still have a little bit of money set aside. She can weather most major illnesses. That's what I want. I want to be able to get majorly sick and not have it take a major bite out of my retirement account.

[dealsaver]

Re: Can you save too much money?

Yes. Some people become obsessed with savings. They save money, rubber bands, everything and end up rich and living in a pit of excess. It's quite sad actually.

[elcheapo]

Re: Can you save too much money?

no I don't think so well at least not in my case. It cost a lot to retire in style especially if I live to be 90