Podcast Summary: The Stacking Benjamins Show - "Live For Today? Lessons from Oversavers (SB1631)"

Introduction and Context

In the January 15, 2025 episode of The Stacking Benjamins Show, hosts Joe Saul-Sehy and OG delve into the nuances of financial planning, particularly addressing the fine line between diligent saving and overly restrictive saving that may hinder enjoying life in the present. The episode, titled "Live For Today? Lessons from Oversavers," explores the experiences of individuals who have prioritized saving to such an extent that they've compromised their current quality of life.

Main Topic: Lessons from Oversavers

The central theme of the episode revolves around the concept of "oversaving." Joe introduces the discussion by highlighting the stress associated with debt and the importance of financial strategies to manage it. While this sets the stage for a broader conversation about financial well-being, the primary focus shifts to individuals who have saved extensively for retirement but find themselves yearning for a more balanced life.

Case Study: Joshua Winston

A significant portion of the episode examines the story of Joshua Winston, an older American who epitomizes the oversaver archetype. As Joe narrates:

"[03:09] Joe Saul-Sehy: Oh, J.J. juja G. I ask you, Doug, which one's better? Maybe a few dollars today or me teaching you how to grow your dollars better so that dollars and dollars and dollars."

Joshua Winston is portrayed as someone who accumulated substantial wealth—retiring with approximately $3 million through successful veterinary clinics, prudent investments, and frugal living. However, shortly after retirement, Winston was diagnosed with cancer, prompting him to reflect regrettably on the long hours and missed personal opportunities during his career.

"[08:08] Joe Saul-Sehy: Joshua Winston, Noah writes, Age 70, did a pretty good job preparing for retirement. He ran two successful veterinary clinics, made smart investments and lived frugally. But a week after he retired, May he was diagnosed with cancer. Now, Winston said he regrets working such long hours during his career, often missing out on trips and date nights."

This case underscores the episode's central message: extreme saving can lead to significant emotional and relational costs, emphasizing the importance of balancing financial planning with present-day enjoyment.

Balancing Saving and Enjoying Life

The hosts expand on Winston's story to discuss how individuals can achieve a healthier balance between saving for the future and living fully in the present. OG contributes to the conversation by stressing the importance of not getting bogged down by minor financial concerns at the expense of larger life goals.

"[10:02] OG: Yeah, not yet anyway."

Joe echoes this sentiment, advocating for a strategic approach to financial planning that includes setting aside time and resources for personal fulfillment.

"[15:00] Joe Saul-Sehy: It is your ego. I mean, it's your ego and it's also your, your comfort level. Right. Feeling like your person of importance. I feel like they' a lot of internal stuff going on there, which is why I think tactically setting up at the beginning of the year, these are the big rock things. I'm going to do that."

The discussion emphasizes the psychological aspects of financial decisions, highlighting how the pursuit of wealth can sometimes overshadow other essential life aspects.

Retirement Planning Amid Inflation

A critical segment of the episode addresses retirement planning in the context of inflation. Listener Allison poses a question regarding the impact of inflation on retirement assumptions, prompting a detailed analysis from OG and Joe.

"[38:52] Allison: My question is, if we're planning our retirement based on an assumption of inflation how would I be able to comfortably retire with possibly experiencing 10 to 20% increases on basic necessities annually?"

OG responds by advocating for personalized financial modeling, suggesting that retirees should create multiple "what if" scenarios to stress-test their plans against varying inflation rates.

"[39:27] OG: ...it's about the activity of the thinking exercise of what do we do if? ... It's stress testing it."

Joe adds that understanding one's personal inflation rate is more beneficial than relying solely on government statistics like the Consumer Price Index (CPI).

"[43:19] Joe Saul-Sehy: ...track yourself. And it's going to be a much more reliable position."

The hosts recommend tracking personal expenses meticulously and considering investments that can outpace inflation, such as owning shares in companies that can adjust their prices in response to rising costs.

Listener Call: Allison's Question

Listener Allison from California contacts the show with a pertinent question about how to plan for retirement considering the limitations of the CPI in accounting for inflation on necessities.

"[38:52] Allison: if we're planning our retirement based on an assumption of inflation ..."

Joe and OG provide comprehensive answers, emphasizing the need for individualized financial strategies and the importance of not relying solely on broad economic indicators.

Practical Advice and Takeaways

Throughout the episode, Joe and OG offer actionable advice for listeners seeking to balance saving with living well:

1. Invest in Time-Saving Resources: Hiring assistants or delegating tasks can free up valuable time for personal pursuits, as illustrated by Joshua Winston's regret over not having an assistant.

2. Stress Test Your Financial Plans: Create multiple scenarios considering different inflation rates, investment growth rates, and possible changes in Social Security to ensure your retirement plan is robust.

3. Track Personal Inflation Rates: Instead of solely relying on the CPI, monitor your own spending categories to better understand how inflation affects your personal finances.

4. Ownership Over Consumption: Invest in companies rather than just being a consumer, allowing your investments to grow in tandem with inflation.

5. Set Big Life Goals: Schedule significant personal milestones and leisure activities to prevent future regrets about missed opportunities.

Notable Quotes

• Joe Saul-Sehy at [43:22]: "I really like the phrase stress testing, but we often call them what if scenarios. What if this happens? What if?"

• OG at [13:12]: "There is no right solution here, but here's what the secondary effects of this information does or is. And then with that, you can make that should we move across the country and be close to our kids decision."

• Joe Saul-Sehy at [39:27]: "I don't think that that's the point. And the reason I don't think so, Doug. And the reason I'll challenge your challenge. How about that? Is that the government? Well, the government number doesn't matter. What matters is what happened with you."

Conclusion

The episode of The Stacking Benjamins Show adeptly navigates the complex interplay between saving for the future and enjoying the present. Through real-life examples, listener interactions, and expert advice, Joe and OG provide listeners with valuable insights on achieving financial balance. The key takeaway is clear: while saving is essential, it should not come at the expense of living a fulfilling and enjoyable life today.

Additional Resources

Listeners are encouraged to visit StackingBenjamins.com for more resources, including calculators and detailed articles on retirement planning and inflation management. The hosts also recommend tracking personal expenses and considering professional financial advice to tailor strategies to individual needs.