Collecting During Retirement & Budgeting
Catbert
Posts: 7,534 ✭✭✭✭✭
This thread is not about wills or what one must do for heirs, etc.
The thread is aimed at our forum members who are retired and are active in the hobby. My question for you is how do you budget for acquisitions and what, if you are comfortable sharing, how much or what other metric do you use to decide what to allocate for your hobby?
I'm 58 and have a few work years left. My son is a financial planner and my wife and I will engage him soon to build a financial plan. The question will come up as to what she and I will want to do in retirement. One of things I will want to continue is hobby participation. While my wife doesn't have much interest in coins, I want to plan on going to a few shows a year, attend the ANA summer seminar, and be able to buy some coins. I know the wife will not want me to spend anything significant, but I'm thinking 5K a year as a target (excluding travel expenses). My proposal to the wife will be that the coins will be an asset (not expecting appreciation) so it isn't a lost expense. I'm thinking we'll be living on 40K a year + social security (no mortgage) and our kids are fine so we will use our retirement funds for life enjoyment. I don't know if I'm being too aggressive on the coin budget.
My hobby satisfaction has been to selectively acquire attractive type, grading from AU to UNC, and to concentrate my funds into a few coins a year. However, during retirement, I could see myself doing some short sets or year only sets in lower grades due to budget constraints.
What budgeting advice do our retired forum members have for me?
"Got a flaming heart, can't get my fill"
Comments
I do not have a lot of salient points to contribute, but I must say . . . this thread is appropriate and will affect many here. I have had these thought as well . . . .
I am in your same position . . . a few work years left, but a desire to continue in the hobby after I retire. Finances may be roughly similar.
Drunner
Spending ten percentum of your net income (in retirement) on coins is not outrageous, but that needs to be your principal "vice". If you have other competing interests, you may have to refigure. You probably have to allow the wife a similar percentage for her "vice".
Go to out of town shows, turn them into mini vacations. Look at lots of coins, especially the exhibits. Attend all the free talks at shows on topics you are interested in. Take your wife along and take her out to a nice restaurant every night. Check out the "10 best things to do" in the host city. Easy to do in Florida in January, Baltimore in Spring and Fall, Long Beach anytime and in most ANA host cities wherever they are. Most of all have fun.
If there is any discretionary money left in your budget after the above buy something you really like. You don't always have to buy a coin to participate in the hobby.
it's crackers to slip a rozzer the dropsy in snide
@Catbert looks like you have a Big Cat do-able plan and most importantly enjoyable one
Time is always the essence no matter how old you are 
but stay on a balanced sheet and don't compromise your present for the future.
My motto is simple Live More with Less , enjoy borderless FUN & SAVE what I can
PS: don't overpay for coin????
I am retired, and your plan sounds reasionable. Enjoying your hobby is part of enjoying your retirement.
I have too many vices @BillDugan1959....to share with other/s
BUT you are right on not keeping all to yourself 
Best of luck to you Catbert. It will all work out o.k. for you. I mean no disrespect to you or others here in your same situation, but I think this thread is more relevant to the younger members here than to those of us at or near retirement age. The lesson here is that you don't wait until you're pushing 60 years old to begin "to build a financial plan"
for your retirement years. Something to think about for the younger members here. Young people,.....start your retirement planning NOW and stick to it. It's never too early but usually always too late.
Start your retirement financial planning this afternoon -- not "soon." You are already 20+ years late. Good luck with your planning!
The plan I am executing is selling off much of what I acquired over the years (and which doesn't mean a lot to me) in order to cover purchases in series I want to pursue.
At some point I expect to sell most everything. My hope is to put that off as long as possible. But if I mangle things and my family is left to deal with my collection after I am gone I will have left them with coins that are in high demand and very liquid, not a lot of esoteric stuff that will be hard to value and market.
Lance.
I do not really plan on retiring. My business inventory is my collection. If I do decide to retire, then I would stop buying but would certainly still sell.
Of course, those who are younger should at least save for retirement and begin planning. While I admit to not having a financial plan, that does not mean I have not saved for my retirement years. I don't think of myself as rich, but I believe I will be OK given what I have saved already. I would say that the vast majority of people my age have not been as fortunate or as prepared as I am with my retirement funding.
"Got a flaming heart, can't get my fill"
I never saved for retirement. I poured all my money back into one business and then into a second business. Time will tell.
Spot on @tommy44
"Inspiration exists, but it has to find you working" Pablo Picasso
Without going into specific numbers and only using examples for easy calculations, here is what I plan to do. Right now I spend a specific percentage of my income on coins. I plan to spend the same percentage when I retire. For example; if I'm making $50,000 and year now and spending $5,000 or 10% per year then should my income reduce in retirement to $40,000 then I will allow myself $4,000 or the same 10%. Should my income increase to $60,000 then I would allow myself $6,000/year.
Right or wrong, for better or for worse, this is my plan.
Good luck with yours. Donato
Donato's Complete US Type Set ---- Donato's Dansco 7070 Modified Type Set ---- Donato's Basic U.S. Coin Design Set
Successful transactions: Shrub68 (Jim), MWallace (Mike)
Stack gold or do savings or 401k hard over the next few years. Numismatic values can tank. Work a bit harder on the final lap and invest/save in whatever, and get your big boy toys in your better years. Idk. It's what I'd do.
Personally I think your screwed. I am close to 60 and I can not budget my money for this hobby. I over spend so much I need help! How big is your current collection if its big then maybe you can spend your time organizing your coins like I am on a new electronic spread sheet. Or maybe you already have but Good luck.
My collection is very small and deliberately so, since I'm picky and disciplined with purchases.
Thanks for all the responses thus far. I've saved plenty and will save some more over the next 7 years. I'm fine with my nest egg, even if I were forced to retire today. So, in many ways, I have already informally "planned" for retirement.
If there are any others who have budgeting advice during the retirement years, please share your thoughts.
"Got a flaming heart, can't get my fill"
It's good that Catbert has attained a level of personal comfort with his retirement funds, even without a long-range plan. Sadly, most are not so fortunate, especially middle-class wage earners and those with more limited resources.
The approach mentioned above, "For example; if I'm making $50,000 and year now and spending $5,000 or 10% per year then should my income reduce in retirement to $40,000 then I will allow myself $4,000 or the same 10%. Should my income increase to $60,000 then I would allow myself $6,000/year," is flawed because it is not built on expenditures for necessities and basic lifestyle decisions. Funds available for a hobby or other discretionary expenditures can only come from those in excess of these basic requirements.
Retirement financial planning can be both simpler and more complex than most commonly assume.
Catbert its good your in a great financial position. I actually live in Alaska so I don't get the luxury of going to coin shows like most normal people in America. All I get up here is a bounty of Salmon, Halibut and the rest. So I have to rely on trustworthy people some are here and some are online for me. They will be able to give you lots of great advice here but of course you know this. Good luck on your venture I really mean that. At least your not screwed like me!
Ahhhh....but smoked Salmon does slab well !
Maybe stack some bullion to use just in case. You don't want to be in a position where you have to sell part of your "core collection" quickly. Bullion is much more liquid than rare coins.
I think most will be okay as long as they pick nice coins at the right price and put back for a later date to sell if in a pinch. I've been doing it for some time now. Even a small $5 gold piece will work over time.
This is what I do I find a nice set keep my retirement coin or two out of that set and sell off the rest get all of my $$$ back or most of it so those retirement coins cost me $0 or close to $0 and I have all my $$$ back to start all over again. I think your on the right track just the coin part you don't need to buy big $$$ coins at big shows to make big $$$ when selling you just need to pick the right ones to make a nice profit when you are ready to sell.
Why don't you start now just put back a $5 gold piece every week then sell them as you need the $$$ to buy a nice coin, After a bit you will not need to pull from your retirement to play with coins.
But that is just me dumb Type2 saving well having fun with coins.
Hoard the keys.
I think people at all ages should be preparing for retirement. The closer I get more I think about it, and prepare for it.
Getting a financial planner sounds like a smart move.
I'm 56 so I have about 5 or 10 years before I retire. I've been collecting coins since I was a kid, so I have a decent collection, but I don't include the value of my collection in my retirement funds.
The older I get the more I enjoy the aspects of studying, learning, and talking about coins. I spend less and buy fewer coins than I used to, but I am having fun. I enjoy the history that goes along with our hobby, so I am just as happy buying an interesting and inexpensive token as I am an expensive rare coin.
I like Catbert's plan of setting an annual budget for coins in retirement and staying engaged with the hobby. I hope to be able to do the same.
Catbert thanks for posting this thread.
I don't keep track. Wife and I planned for a "devil may care" retirement and stashed enough cash to do so with almost no chance of running out.
However..... "certain" developments in the coin market have reduced my spending ...from....about $3000- $9000 a month to nearly zip.
The "new development" would just start arguments so I'll leave it to chance to guess what it is.
@RogerB This makes sense for me because my percentage number is ALL discretionary income. That is income above and beyond what I need for lifestyle decisions or life changes that may happen. I can say if my coins along with my thousands of PSA graded Nolan Ryan cards were worth zero when I get up tomorrow it would not matter as this is my have fun and enjoy life money, so this works well for me. If the percentage you are setting aside is going to disrupt your lifestyle or should a huge emergency arise create a problem, then you need a different strategy.
For me this money I set aside for coins and cards is like money other people set aside for vacation that is in essence lost when you get home or money you may spend on lottery tickets that never win.
Donato
Donato's Complete US Type Set ---- Donato's Dansco 7070 Modified Type Set ---- Donato's Basic U.S. Coin Design Set
Successful transactions: Shrub68 (Jim), MWallace (Mike)
I retired at 58. If it is summer and I need more coin money ,I tell my wife to go mow a few more yards. If it is winter I tell her to go shovel a few more sidewalks.
Well I've collected enough I sell something's to buy something else. Zero net gain in all my hobbies be it firearms, coins, pocket watches, or antiques. I typically switch from hobby to hobby throughout the year. Guess I'm lucky I've been stupid over 50 years
Donato - That's good. It also remind us that each situation is different and the kinds of generalizations that are often made are not necessarily the best for individuals.
Generalizations about people have historically been bad things.
For starters, you’ll have more time for your hobby and less money to spend, so you may want to collect something that’s harder to find and less expensive. You may also want to collect something that can never be completed, so the project will last as long as you do, and so you don’t find yourself having to start a new collection when you’re 95.
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
I planned for retirement all my working life and I am now in "spend mode". I buy what I want "when I can find it". I spend a lot more on coins now that I'm in retirement. To me, it's a hobby and "maybe" an investment.
I have been retired for ten years.... I enjoy my various hobbies about the same as before, except now I have more time to devote to the details. It helps to have a couple of hobbies that keep one active....That way, utilization of the hobby resources is doubly beneficial (Going shooting with my firearms for example - provides exercise, skill improvement, social interactions). I spend so much time on my hobbies, I wonder how I found time to work. Cheers, RickO
I made a conscious decision to profit from my hobbies which means all I do now is work
Too many moving parts in anyone's unique situation - BUT - You will be able to answer your question when you are able to get your wife's buy-in. Not because you must have your wife's approval (although that is a big point) but because you've taken the time to make your case and should be comfortable with it.
Lots of good advice and it sounds like you are overall in pretty good shape.
The only possible flaw I see is this:
**I'm thinking we'll be living on 40K a year + social security (no mortgage) **
That seems a tad low to me, especially concerning recent and probably continued increases in healthcare. I know retired folks just a few years older than me that have gone from paying ~$450/month for health insurance, to >$2k/month over the past couple years....and that doesn't include spending on deductibles, serious events, etc. Needless to say, that has crimped some of their other plans. And things like house insurance, property taxes, etc keep going up too.
Also don't forget that if you are withdrawing funds from non-Roth 401k type accounts, you will be paying taxes on this, i.e., you may have to withdraw ~$50k to have $40k to spend.
Sorry to be negative Nellie, but I wrestle with this about every day, as I'd like to retire, but my wife says not until we know what health care expenses are going to be. We are in similar shape (no mortgage, kids out of college and employed, etc), live modestly, and I'm thinking we will need every bit of $70k+ per year in retirement.