4.06.2015

I'm ready to retire...

Stumbling and Mumbling: Fear of freedom:
For example, it might be quite rational to spend a lot of money early in our retirement. Doing so can build up a stock of happy memories which we can look back upon in our dotage. Some types of spending are in fact like saving; the give us a source of happiness in future years. And it makes sense to spend whilst we still can. The marginal utility of consumption declines (pdf) as our health deteriorates; holidays are less fun if we can't walk far, and nice cars are useless if our eyesight has gone. It's possible to be too prudent, and to save too much.

'via Blog this'

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