# Couple with no dependents & financially comfortable - save or live for today?



## jesster (27 Jul 2007)

In January this year my good friend died suddenly leaving behind her young family. I have to say I have been hit pretty hard by the whole thing and at the moment Im feeling a bit confused.

My query is this: I have been wondering what is the point of saving or investing my money now and why not just live for the moment.

My partner and I cant have children, weve accepted this and decided its just the two of us for the long haul (fingers crossed) no plans to foster or adopt in case you're wondering. So I feel like I dont need to accumulate large sums of money to leave the cats home! My immediate family can look after themselves.

We have a good rainy day fund and our mortgage is small. So is there any other reason to save/invest for me????  Has anyone experienced this sort of feeling? Previous to this event I was always quite keen to save/invest.


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## ClubMan (27 Jul 2007)

If your mortgage is small, you have no other major debts, you are generally financially comfortable, have your "emergency" fund, are not likely to be stuck for work/income if you become unemployed and you are happy with any arrangements that you are making for retirement then of course you should spend/live for today (within your means) rather than necessarily saving if you don't have any specific short, medium or long term goals for which you need the finances.


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## z103 (27 Jul 2007)

Live for today.

That doesn't necessarily mean spending loads. Getting priorities right is probably more important.


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## aishling (27 Jul 2007)

I agree unless you have a specific goal for your savings/investment like a car/holiday home etc., spend it on little pleasures in life everyday to increase your standard of living! Don't get me wrong I'm all for savings but you can't take it with you so enjoy!


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## Erasure (27 Jul 2007)

I agree, live for today, you don't know how long you will be here and there are so many people struggling nowadays that if you can enjoy life to the max with no worries then go for it.........and enjoy - lucky thing!


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## ClubMan (27 Jul 2007)

You can't take it with you but one partner pre-deceasing the other can leave it to the other! However life assurance might be an appropriate solution here. And if you are an unmarried couple then an understanding of the potential (e.g. inheritance) tax implications can help with financial planning.


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## PMU (27 Jul 2007)

This one is more for ‘The Great Financial Debates’, but Yes.  You should invest.   This really is a personal decision based on your own risk assessment and the time value of money.  But here are some reasons.  Either you or your partner could be involved in an accident or suffer a debilitating mental or physical disease that would require long term medical care. You don’t want to end up dependent on the Irish state for dignity in sickness or in old age, do you?   Who will look after one of you if the other is gone? Saving now also means you can enjoy benefits in the future when the comfort value is higher to you than it is now. But mainly, if you invest wisely you can give up work earlier, i.e. gain financial freedom. This really is the main reason for investing. You’re financially free of your job and of the state.  So, if you value freedom, you invest. And if there’s anything left over your relations will benefit.  
  (By the way, there’s no real trade off of this. Invest wisely and you can both live for today and have financial freedom in the future.)


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## jesster (27 Jul 2007)

I cant seem to think of anything that we might need apart for funds for retirement. The Clubman point of unemployment never really crossed my mind as I've been fortunate to have alway had a job. Not sure if I could save or invest just purely for that possibility. I appreciate the perspective though.

I would never get into debt to satisfy my lifestyle but I now think that we could be treating ourselves a bit more and maybe enjoying the financial side of our hard work. Thanks.


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## jesster (27 Jul 2007)

My post crossed with the previous. I will give your advice good thought over the weekend. It might put things in perspective for me.


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## Sherman (27 Jul 2007)

Would you have any interest in retiring early or are you happy to work until traditional retirement age?

If you lived reasonably well but maxed out your retirement savings you might be in a position to retire earlier and move abroad etc. As others have said though, depends on your goals.

Maybe try sitting down with your partner and having a brainstorming session as to what your dreams / goals / ambitions are?


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## runner (27 Jul 2007)

Mrs R and myself in same boat, but older. She took early retirement package and I work selectively. Main objective to minimise stress and enjoy life without excesses. Take lots of short breaks away. Just spend all current income as have sufficient funds for old age without adding to it, and no debts.

You dont have to spend a fortune to enjoy life and relax. Remember, that your age determines the level of rainy day funds you could need, so important to have investments that would provide a reasonable income to either or both of you in worst case scenario. In todays terms, you might need 1M  of  assets or funds outside of your  PPR to be covered!
R


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## ClubMan (27 Jul 2007)

runner said:


> Remember, that your age determines the level of rainy day funds you could need


And lifestyle!


> In todays terms, you might need 1M  of  assets or funds outside of your  PPR to be covered!


This is surely going to vary (possibly wildly) from person to person?


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## Deirdra (27 Jul 2007)

You sound like you know the value of money Jesster, so probably you are asking how much you should save and how much you should treat yourselves as 'life is so short'. I'd say it up to you to decide how much of your income / savings you will save or invest.

For sure, your health is wealth and you are in a lucky position to make yourselves and others happy.


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## jhegarty (27 Jul 2007)

Once you have decent life and health insurance then spend spend spend.....


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## Brendan Burgess (11 Aug 2007)

Jesster

It's a question of striking the right balance. Some people over save. They scrimp and save in case they will live to 120 and don't want to die poor. 

You certainly should not be doing that. But you should strive for financial independence which means early retirement or being able to cope with illness or unemployment. 

Your best means of long term saving is a pension fund and you should be taking maximum advantage of this. 

Brendan


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## so-crates (11 Aug 2007)

Have a read of this article, it might give you a perspective on independent living - I like the quote at the end - it seems as if he has worked out exactly what he wants his money for.


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## noilh (30 Aug 2007)

jesster said:


> In January this year my good friend died suddenly leaving behind her young family.



I wonder are the children of your friend welll-catered for and if you are you close to them.   Investing in the lives of the young is a wonderful spiritual investment oportunity.


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## ClubMan (30 Aug 2007)

noilheart said:


> a wonderful spiritual investment oportunity.


Eh?


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## jesster (30 Aug 2007)

> I wonder are the children of your friend welll-catered for and if you are you close to them.



Unfortunately my friend was my link to the children. Her partner has moved away near his parents so my contact with kids is fading away. 

As for our decision on the spend/save issue. We had a very indept talk over the weekend and it was funny how we never discussed our financial future/expectations eventhough we're together 11 years now. We have always had a seperate financial arrangement. I didnt realise my partner had a lot (im talking A LOT) of money just sitting in current account. So I have to say it was very enlightening. Also I was guilty of wasting money at times which OH pointed out. 

We have received a pack from investandsave.ie and are going to invest some money. But also planning more little breaks away as treats. Galway in August. Cork in September. So its a happy balance and I feel a bit better financially and personally. Thanks for all replies.


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## elcato (30 Aug 2007)

> Galway in August


Ya better hurry up down there ......


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