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Retirement needs (again)

The Wall Street Journal will publish an article in their weekend edition which states pretty much the opposite of the Barron's article we discussed here a few weeks back (isn't Barron's owned by Dow Jones who also owns WSJ?)

The story, previewed on CNBC, interviewed retirees after the fact (i.e. already retired) whose spending averaged, post retirement;

significantly lower 8% somewhat lower 25% same 28% somewhat higher 27% significantly higher 12%

Looks like a bell centered on 'same', which the interview didn't quantify, but logic would say that's 75-80% post tax, SS, and saving for retirement. As with any set of data, it's easy to draw whatever conclusion you wish. The 'significantly higher' may be the 12% of the people who worked so many hours and made so much money they simply didn't enjoy them selves and now they realize they may as well spend it. It doesn't necessarily reflect that a random 1000 people now would need to plan this way.

JOE

Reply to
joetaxpayer
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Fwiw and imo, the majority don't track their expenses while working anyway, so on what is this 8%, 25%, ... based? Was sitting in theoffice and said ... look at that, I spent $4000 on gas last year (all gas purchases go on the credit card, so it's easy to reconcile at years end ... nice of them to track of my expenses for me) ... and asked ... how much did you guys spend? Answers varied from ... ???? to ????.

Reply to
bowgus

Am I right in saying then that you burn 25 gallons a week? So drive

750 miles/week?

Ouch. Unless you are a salesman.

Lots of empirical research to show what people do and don't recall. There is a phenomenon in grocery store retailing called 'Known Value Item': there is a basket of 30-100 items that the average shopper has very good recall on the price they paid last week, or the price they paid at A&P across the street (milk, gasoline etc.). The trick in supermarketing is to be competitive on those prices, and get the consumer to add to his shopping trolley with other, price insensitive goods. *men* are much better targets for this than women-- apparently they don't stick to their shopping lists as much.

======================================= MODERATOR'S COMMENT: Posters to this thread should relate comments to general financial planning.

Reply to
darkness39

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