Anyway, we have decent income from our investments and a good safety margin (50%) some of which is spent on discretionary spending leaving 20% of our monthly income to either rebuild reserves, invest or spend.
A question I've been asking myself recently is how to split that 20% and in effect how much of that should we be investing for the future to help keep up with inflation, etc.
I'm 52 years old and my wife is 60 so we hopefully have many more years ahead of us, but I also want to enjoy life now whilst we are still able or wanting to travel, etc.
We have no children/dependents that we wish to leave a legacy to; I don't mind leaving some to charity when we die but my main focus is ensuring that we have enough for our needs going forwards, including potential end of life care, etc.
I also wish to offset those future needs with ensuring we don't end up dying too "rich"; and enjoy ourselves more now by spending more of the income we have as it would be terrible to save too much and do without some of the adventures we could have, then die before you can spend it.
So, I guess my questions are:
When taking into account that the portfolio will do most of the heavy lifting in terms of future growth as any monthly contributions would be tiny when compared to the size of the portfolio, especially now that we are primarily spenders and not savers.
- How much of your income/safey margin (%) do you continue to invest, and why?
When do you stop saving, if at all?
Darka