I have been thinking about retirement lately, mostly because I am 56 years old, and usually, at this age, the topic of retirement comes up often in conversations.
Doing a quick back-of-the-envelope calculation, I discovered that I can increase my spending by 50%, never work a day for the rest of my life, and still not run out of money. This is under the assumption that the market grows at a rate of at least 6% and that inflation comes back down to about 2%.
But I am not planning to stop working, so my capital will continue to accumulate and grow. In addition, I do qualify for a few government retirement plans, such as the Quebec Pension Plan. So, I will be earning more money than I will be able to spend. This is a nice problem to have.
However, I have been a saver all my life. I have optimized my life and personality around the idea of frugality. Now I will have to adjust and start spending more on myself, my family, and friends.
As for my job, I work as a photographer. Every year I become a better photographer. Every year my clientele grows, and every year, I enjoy my job even more. If I am lucky, I will be taking photos until the day I die.
For the moment, I will make one adjustment. I will force myself to spend more money on myself and see how it goes.
I am not stressed about leaving anything for my family because I am the poorest person in my family. Everyone else is doing much better than me.
I am sure that there are many in the same situation. What are you planning to do if you won’t be able to spend your money before you die?