What is your attitude towards saving for rainy days and pensions?

[dk168]

I am reaching an age when I can withdraw money from my pensions with X% being tax free.

In 2006 I took out a 30-year mortgage when I relocated from London to my current location, and do not have any plans to move again as I hate the processes involved to this day.

I do not intend to retire early as I like to work, especially when I get to learn new things. Thanks to my parents, I had a good education, well-qualified, and earn a decent salary.

I had always planned to take a portion of the money out of my pensions for an one-in-a-lifetime event at this point in my life.

Recent health issues has re-affirmed my decision that I should enjoy life as much as I could in the next few years when I am still in relative good health.

Hence I have decided to get a bespoke camper van as I could no longer put up my canvas tent on my own, so that I could go camping with the dog for as often and as long as we can for the next few years. He will be 13 in June this year and I am fully aware that I may not have that many more years with him.

The van will eat up a big chunk of my pensions, as I have opted for a very high spec base van to be converted.

To me, it is worth it.

However, to the majority of my friends, and my nearests and dearests who are very cautious with money, they think I am mad! My mum will definitely disapprove, therefore, I shan't tell her about it until she sees the van being featured in a wintry scene fronting my next year's Christmas card in 2021!

My response to them would be, a camper van is more practical and much bigger than a significant piece of jewellery of the same price!

How about you? What is your attitude towards saving for rainy days and pensions?

DK

 

[missy]

Love this topic for a thread. Thanks for starting what I think will become a lively debate.


I’m on the go so and posting from my phone atm so please forgive my post if it’s a bit choppy. In a nutshell I subscribe to living in the moment (because that is all we know we have) while being smart and saving for the future. But not at the expense of today.

My philosophy has changed over the decades. I was all about saving when I was young. I took out a 30 year mortgage in my twenties and paid it off within 3 years. Because to me mortgage is debt. However I also traveled lots and enjoyed life. So I guess I always tried enjoying today with an eye towards the future.

Almost 30years later my dh and I still have a small mortgage on our beach house which will be fully paid off before this year is over. We paid off our nyc home in 2008/9 IIRC. Why do I bring that up? Before my dh retires we will be mortgage free. That was important to us. We could have paid it off a long time ago but for various reasons my dh preferred doing it this way and because we are dealing with a relatively small sum I was okay with that.

As we get older we put our money into more conservative investments because we will need to liquidate it sooner rather than later and we don’t have the luxury of waiting for the stock market to recover if a bear market takes over. But I am spending on things we enjoy rather than saving as much as I did in the past. We are older and it makes sense to us. Still saving however since one doesn’t know how long one will live. Also made arrangements for long term care should that become necessary.

I fully support your camper dream and admire your goal. All we have for sure is the here and now. Sadly we have had close friends and acquaintances die in the past few years at young ages. It brings home that all we have is now. Enjoy your Camper @dk168 and please share your adventures with us along the way. ❤


And wishing you good health and happiness for a long time. And Your sweet dog too.

 

[Tekate]

I'm in the @missy camp. We paid off our mortgage in 2004, so we have been mortgage free for years, we used the mortgage money and my husband's yearly bonuses to pay the boy's college so we never and they never took a loan out, they both went to state colleges in Texas which are very inexpensive.

I do not understand how you can take out all your money, because I don't think we can do that in the USA, but I stand with a happy life, and your love for your pupchild and your life is most important. You will still be working and creating more savings and income.. My sister died at 65, unexpected, shocking, painful and I KNOW she didn't expect it so all the money she had accrued went to her husband (whom I love dearly).. but she never went to Europe, never went to the Caribbean, never went to Canada, never went to Cali, she wanted to but was always paying college or saving.. I support one's right to do what makes them happy, BE HAPPY, love life, love your pup.

 

[elizabethess]

I'm not knowledgeable about how pensions work where you are vs. where I am (in US). I assume it is retirement funds. Do you also have a separate savings account? Just asking so I can understand

My ideal is: retirement funds are not to be touched and any big ticket desire (jewelry, home, buying a camper van) would be saved for in a separate savings.

My husband follows those rules, too, although we have different philosophies for savings. To him, savings should forever increase, and if one taps into them you then need to save more to "pay it back" to catch back up to where you were. To me, savings could be used for whatever desire as long as they remain high enough to be a proper safety net for those rainy days. If it floats at a certain level instead of increasing, so be it. We solve this discrepancy by having yours/mine/ours savings

But, of course, none of us are living cookie-cutter lives. An associate of mine and his wife, after receiving a terminal (but slow-moving) diagnosis for one of them, decided to squeeze every beautiful experience they could possibly have into their remaining time together, and are tapping into whatever funds they can to do so, enjoying the here and now.

Even without such an abrupt situation, lives vary Bottom line: It's your money! You get to choose what to do with it.

 

[missy]

I'm in the @missy camp. We paid off our mortgage in 2004, so we have been mortgage free for years, we used the mortgage money and my husband's yearly bonuses to pay the boy's college so we never and they never took a loan out, they both went to state colleges in Texas which are very inexpensive.

I do not understand how you can take out all your money, because I don't think we can do that in the USA, but I stand with a happy life, and your love for your pupchild and your life is most important. You will still be working and creating more savings and income.. My sister died at 65, unexpected, shocking, painful and I KNOW she didn't expect it so all the money she had accrued went to her husband (whom I love dearly).. but she never went to Europe, never went to the Caribbean, never went to Canada, never went to Cali, she wanted to but was always paying college or saving.. I support one's right to do what makes them happy, BE HAPPY, love life, love your pup.

@Tekate i am so sorry for the unexpected loss of your dear sweet sister

You just reminded me about my grandma and putting things off. My grandfather and grandmother all their lives saved money and were very frugal with themselves. Though generous with others. But basically cheap with spending on themselves with one exception. They loved to travel. China, Europe, and more. But my grandmother so wanted to go to Australia and my grandparents never got around to it. And she died unexpectedly of an asthma attack/heart attack at too young an age. We never got to even say goodbye. . But I digress. My grandma so wanted to travel more but because my grandpa kept putting it off with work etc she never got to realize that dream. So sad.

So yes while I see both sides there has to be a balance. Living in the moment but with an eye towards one’s (hopefully) future.

 

[missy]

Just to add one more thing. We don’t have pensions so all our savings for future retirement are self accomplished. And we always have had a “rainy day” fund to keep us financially healthy for 2 years at least. Thank goodness too because during the last recession it looked like we were going to need that cushion. And for a while we did. Anyway just wanted to add our thoughts re rainy day savings.


We have always lived well below our means. That is and always has been our philosophy re finances. Though relaxing that just a bit. Still living below our means but to a less extreme degree. A lot of that is me because I am way more conservative financially speaking than my dh.

 

[Austina]

I am married to an accountant, so I think you know what I’m going to say

My DH has always taken a very conservative approach to the way we live. Obviously when we first got married (41 years ago), we took out a mortgage we could easily afford, rather than stretching ourselves financially. That has always been our philosophy when buying houses, no point in having a lovely big house if in the event we had a disaster, we couldn‘t continue to live there. We worked our way up the property ladder, and with our last move, we downsized as our DS was living in another country. We’ve been mortgage free for about 20 years I think.

Whilst we’ve never scrimped on things, we’ve always lived well within our means. My DH wanted to retire as early as he could, and continue to enjoy the same lifestyle. Through hard work, he did this, and we’re enjoying retirement. When DS was born, we made the decision that I would stay home, as DH’s job involved very long hours and lots of travelling.

I think the way you plan your finances definitely changes when you have children, and we wanted our DS to have as many opportunities as we could give him.

Because of good financial planning, we’re able to do whatever we want now, have helped DS financially and look forward to continuing to enjoy life.

 

[Daisys and Diamonds]

Ive never had a well paying job, it was hard just living some years
when my mum died we had enough for a deposite on a house - but the morgage repayments would have killed us in wellington
its a 30 year morgage but with low interest rates we have knocked a few years off it
The repayments including insurence but not property taxes are at least half our old Wellington rent and are manageable
Gary is retired now and ive been not working for a year piggy backing on his gov pension, it has shown me how important saving for retirement is
because in his line of work superannuation was never available

he did have a few years of a government saving scheme that was introduced relatively recently so it was not a lot of money but it paid off debt, brought a car and a new PC and laptop and the latest galazy phone for him
Once im back at work and contributing to my retirement again i want to knock a few more years off the morgage
But with 19 years in age between us we need to have a bit more fun without going crazy and go out to brunch again and do a few fun things

 

[Madam Bijoux]

It’s an excellent idea. I wish I had saved more, but jewelry got in the way.

 

[whitewave]

We max it all out. We are strong believers in rainy days

 

[MRBXXXFVVS1]

I think it's all about balance. Life is short, time and health are our most valuable assets, so we should prioritize what's important to us. Having said that, I also strongly believe in saving and investing. It's a bit like the Maslow's hierarchy of needs:

1) Bills and basic living expenses
2) 401K match
3) Pay off any credit card debt
4) 6 months living expenses
5) A bit of discretionary spending
6) 401K max
7) IRA max
Pay off all debt except mortgage (car and student loans)
9) 529 max (if you have kids)
10) A bit more discretionary spending
11) Brokerage account for saving and investing
12) Diamonds

*I am not a financial professional, this is just how I prioritize. Often the interest rate on mortgages is low enough (and tax deductible) that you're better off investing in the stock market than paying off your mortgage, however paying off mortgage is gaurunteed savings.

In regards to your camper, you could look at buying a used camper that has already been outfitted, like the Mercedes Sprinter or something similar. Then you can enjoy it and resell it, and hopefully not lose too much in depreciation!

 

[dk168]

I guess those who know me well know I do not have a good history with money, hence they worry about me spending close to a third of my pensions (as in retirement funds/savings) on a camper van, when I still have other financial commitments. I got into financial difficulties more than once in the past.

The reason I have my pensions to this day is because I have not been able to tap into the pots until I reach a certain age by law, and I started putting money in one of my pensions in my mid 20s!

Apart from the camper van, I also have other projects (including some blings) and issues to deal with financially. Together they will eat up a third of my pensions.

Since I do not have any dependents, and my mum is making sure my brother has a roof over his head that he can call his own and all that, I do really need to save to provide for anyone except myself.

And I can't take what I don't spend into the next life, so I may as well live for the present while I still have all my marbles and physical strength etc...

I intend to leave the remaining pension funds invested for rainy days. However, it is reassuring to me to know I can withdraw from the pots in the event of any emergencies.

DK

 

[dk168]

@MRBXXXFVVS1 buying used anything is not something I would consider, my personal preferences and all that.

I am not the first owner of my house, the cat and the dog, and the pieces of jewellery that my mum gave me were new when she bought them (I was there with her). Otherwise I know the provenance of everything else in my possession as I bought/acquire them myself from new.

Not wise, however, it is what it is.

DK

 

[jeaniefish]

My husband is a much better saver than I am. I see pretty, shiny things and all common sense and my resolve to save more just fly right out the window!

dk168:
I believe in making more memories whenever and wherever possible, instead of regretting the things I wish I had done. My one question for you would be : How good is your healthcare coverage? IDK where you live. If you are in the UK, you have a different healthcare system that may cover you in the event of a serious illness. Here in the U.S., one major illness can result in a serious drain on your savings. I hate to be a “wet blanket” but you mentioned being in “relatively good health” , so it might be something to consider ,if you haven‘t done so already.

 

[arkieb1]

One of my sons former classmates (and good friends) mother died from breast cancer at 38 she had 5 children, 17, 13, 8, 4 and 2 when she died. The two and the 4 year old will probably have no memories of what a wonderful, generous vibrant woman she was. She was one of my friends and I think about her and the children every day.

I say buy the camper van if you can afford it, you never know what is around the corner..... don't do it if you are going to struggle but if it is a comfortable decision then I think it is the right one for you.

 

[nala]

I realize that you are not asking for advice about your purchase but if I were in your situation, I would opt to rent a camper rather than buy.
I believe in balance and as such, I would not draw from my pension or retirement for fun stuff. Different budgets for different needs or wants in life. I don’t put away an excessive amount of money to the detriment of my fun or vice versa. Keeping two accounts helps me enjoy fun without the insecurity of feeling that I don’t have a secure future. So as long as your withdrawal doesn’t jeopardize your future, that’s ideal. But. If you are making compromises about your future at any point, I would rethink it. That’s just my approach. I realize we are very lucky on this board to have choices. I know some people who do not dispose of choices and must decide between the 2 but my advice would be the same. Balance as you go.
I want to add that I know some people who go overboard in either of these extremes and I feel sorry for them. One whines that he can never enjoy the good things in life and the other whines that she will never be able to retire. The kicker is that both of these people make the same amount of money as I do! Lol.

 

[Elizabeth35]

I guess those who know me well know I do not have a good history with money, hence they worry about me spending close to a third of my pensions (as in retirement funds/savings) on a camper van, when I still have other financial commitments. I got into financial difficulties more than once in the past.

This is what I would ask you to spend more time reflecting upon.

If you have a financial advisor, run any major decisions by him/her.

Sounds like this is a dream item for you and I get that. BUT--from a numbers perspective, how many nights per year will you use the camper? What are the insurance and maintenance costs? How much per night is it costing you?
What will it be worth when you are no longer able to use it?

If your pensions are enough to cover any future health care and nursing home costs comfortably after making this purchase then you have to decide if it is worth it to you. How will you feel about your purchase 5 years down the road?

 

[dk168]

I am in UK, and we are lucky to have access to free healthcare.
I have recently been confirmed as a Type 2 Diabetic that I knew was on the card, and am on medications to control it.
I have to make some dietary and lifestyle changes, apart from that, I am fine.
Decline in physical strength is just part of the natural process of getting old. However I am mobile.
This may sound morbid, however, I decided a long time ago that in the event of a significant illness that would severely limit my movement and ability to enjoy life, especially when it comes to food and drink, then I would not have treatment, and to spend my remaining days visiting my nearests and dearests, and to do as many things on my bucket list.
In the event of being confirmed as having less than a year to live, I can take out all the money in my pensions to do as I please!
Please do not get me started on the subject of health economics, as my personal believes do not gel well with my profession.
As for seeing a financial adviser, I have done that, hence I am not touching one of my pensions as it is a gold dust.
With a camper van with all the mod cons, I can take the van anywhere and work from it as my jobs are mostly office-based. I plan to take the van out as much as the cat would let me!
With a tent, it would take me a day to put it up and at least a day to recover. Packing up is at least 3h.
I had camped in the snow in the past, and my last and current tents are designed to be storm resistant. However I no long have room to dry my current tent if it is wet.
Hence I need to switch to a camper van as it is less weather dependent and quick to get up and go etc...
I did not camp at all last year and really missed it. Whenever there was a dry and bright day with low winds, I would say to myself it would be great to go camping.
Therefore I can't wait to get back out there again.
I intend to keep the van for at least 5 years and use it as often as I can.
Who knows if I would continue to go camping after the dog has gone?! Have to wait and see when I come to cross that bridge. I shan't say never never to another dog.

DK

 

[dk168]

One of the projects for this year when funds become available is to renovate the garden which is currently a jungle.
When I asked my neighbours for recommendation of suitable vendor for the work, they suggested for them to do it instead, at mates rate.
Further discussions led to agreeing the need to do the groundwork so that the outbuilding will have utilities and drainage etc...
I immediately thought about getting the biggest outbuilding to kit it out as a professional kitchen, and started planning its layout and spec'ed the equipment to purchase.
As the cost of kitting it out as a professional kitchen started to creep higher and higher, the penny dropped, in that it dawned on me I could not be in two places at the same time. I cannot cook while out and about with the van!
Besides, catering does not pay and is hard work - it took me a couple of days to recover after my last pop up kitchen event earlier this month, and it was not a complicated menu!
So the idea of a professional kitchen has been scrapped, and I shall revert to Plan A - to get a smaller and simpler outbuilding so that I could use it as an office or additional storage area, and to have extra shelving and storage space in the dinner area that I seldom use for storage of equipment and ingredients for catering purposes.
I was chuffed with myself as I am being sensible for once!
I have great plans for the van, such as driving all the way up to the Arctic Circle in Norway via Denmark to see the Northern Lights (this is on my bucket list); to tour the Loire Valley; drive through the Alps during the day (another sob story why this is important); camp in the Netherlands and Germany as well as France, etc. etc... Exciting times ahead!

DK

 

[hera Anderson]

My attitude is that I have a mortgage and I have a healthy savings account and my husband is getting out of the military into a lifetime pension fund. I plan for the things I need in 20 years and then, I splurge when I want. So, life is good.
With that said, I'm very disappointed that pensions and unions have been phased out that will largely affect following generations. It's really easy as a Gen Xer (like myself) and baby boomers to say to work hard and save like they did but the economic climate is very different today than it was 20-40 years ago. Now, with housing costs, student loan costs and healthcare costs, it's almost prohibitive for the newer generations to get a leg up.

 

[MarionC]

DK, your plan has me envious! Go for that bucket list!!!

 

[missy]

I have great plans for the van, such as driving all the way up to the Arctic Circle in Norway via Denmark to see the Northern Lights (this is on my bucket list); to tour the Loire Valley; drive through the Alps during the day (another sob story why this is important); camp in the Netherlands and Germany as well as France, etc. etc... Exciting times ahead!

DK, your plan has me envious! Go for that bucket list!!!

Yes! Me too! Go and enjoy @dk168 and maybe one day you can stop by and visit both @Jimmianne and me in that traveling van of yours. ❤

 

[dk168]

Thanks both!

I had looked into taking the van across the pond, however, it is VERY expensive and not that easy to arrange, and the dog won't be able to come with me!

Hey ho!

DK

 

[missy]

Thanks both!

I had looked into taking the van across the pond, however, it is VERY expensive and not that easy to arrange, and the dog won't be able to come with me!

Hey ho!

DK

Why can't the dog come? Aww we definitely want to see your sweet pup. My friend and her DH moved to England for a few years back in the nineties and she had to stay with her cat in Paris for a few months before the cat was allowed entry into England.

 

[sarahb]

We max it all out. We are strong believers in rainy days

That's us in a nut shell. As a result, we entered our no debt phase early on in life, & as a result, have been able to put together a healthy portfolio. Plus the stock market has helped greatly over the years. As we preach to young son: save early & save often!!

Edited as I forgot to answer the question ....As for the camper...I may have to err on the side of conservative spending...could you rent one for the time being rather than spend the sum it would take to own it? IE, rent it for those weekends you'd like to go? Surely I'd think that would be less expensive--& allow you your dream of camping. I'd hate to see you take your $$ out of your balance & loose the appreciation in your account. Just thinking out loud, maybe renting a camper could be a compromise?

 

[dk168]

Why can't the dog come? Aww we definitely want to see your sweet pup. My friend and her DH moved to England for a few years back in the nineties and she had to stay with her cat in Paris for a few months before the cat was allowed entry into England.

He would need to be quarantined for ? 6 months, unless an international pet passport scheme exists, and I cannot image that would happen anytime soon!

Besides, by the time I have sufficient fund for the trip (a big IF whether it is possible to take the van across the pond), he may be too old and not well enough to travel (he will be 13 in June 2020). Hey ho.

DK

 

[smitcompton]

Hi,

Let me first say that I support your purchase of a van to go camping. When I was overseas the Europeans loved camping. Everyone was going to Spain. But, there are campers and there are campers. You have indicated that in the past you have had some financial woes that I am assuming were caused by overspending. I am also noticing that your well equipped kitchen dream was also overly expensive. So, I would consider answering the next questions honestly to yourself.

If your finances become stretched, can you live in your camper and sell your house(property)?The very first thing I would consider is how can I make sure I HAVE A ROOF OVER MY HEAD. Can I reduce the cost of my camper to,insure that I have my home paid for.

Are you also building something on your property? If you are. please stop and figure out your priorities. A slimmed down camper may be your compromise action. This may allow you to keep your home and your camper. Why are you planning on selling it in 5 yrs. You love camping. My advise, stop looking at the "best" portable kitchens and campers. You don't have to go lowend, but some middleground will allow you to have your dream of a camper. Chose one expense, not many. Perhaps, this pension money is burning a hole in your pocket, as we say over the pond. Don't become so caught up in the fact that you now have money available to you. Slow it down.

I see the appeal of a camper. I hope you do it.

Annette

 

[dk168]

@smitcompton I have stepped back and discounted the idea of having the largest outbuilding that I can fit in my garden, to kit it out as a commercial kitchen, as I realised I cannot be in two places at once.

Therefore, I am going to tidy up the garden only (it is currently a jungle), and to lay the foundation with drainage, water and electricity supply, so that I can put a shed on it at a later date if so desired. It is more cost effective to do the groundwork when the garden is dug up in order to clear the jungle and to lay down anti-weed membrane and then top with gravel.

In the meantime, I can still use the garden for BBQing and sitting outside when the weather is nicer.

There is sufficient fund to ensure my house is secure - that much is certain. The van will go before the house without hesitation.

Yes it is burning a hole, however, I worked hard all my adult life putting money towards my pensions. I would like to enjoy life while I still can in the next few years, consciously aware that I am not getting any younger or healthier.

Thanks for your concerns and advice.

DK

 

[winnietucker]

You’re more daring than I but it sounds like a lot of fun. Will you be doing the conversion yourself? I’d love to see process photos.

 

[Snowdrop13]

My husband has the same plan- he wants us to get a camper van and travel around the UK and Europe when we retire. Unfortunately, I am not really the camping type so he may be doing this on his own! Anyway, he thinks he’ll be able to buy a second hand van then resell it when he’s done adventuring, hoping not to lose too much money on the whole thing.

As far as savings and pensions are concerned, I’ve always been tremendously careful. We’ve tried hard to live well within our means and have prioritised paying off the mortgage and building up some savings. We‘re not into fancy cars or designer gear, I think our main big spends have been on holidays with our children which have given us many happy times and loads of memories.