Spending in Retirement

Knowing when you’ve reached “enough” is key to spending guilt-free, but it requires intentional planning to gain the confidence you deserve.

What's your ideal withdrawal rate in retirement? Many experts agree with the four percent rule, while some say higher or lower. On a recent episode of The Ramsey Show, however, Dave Ramsey advocated for an eight percent withdrawal rate in a 100 percent stock portfolio.

Where does your hesitancy to spend come from? Is it driven by need or by emotions of your past that are still holding you back from a bigger future?

Your retirement should be a purposeful and fulfilling phase of life, not one to be feared. By taking on an intentional approach to your retirement strategy, you’re more likely to build a Job Optional life and to gain the financial confidence you deserve.

You won’t create a meaningful life by sacrificing happiness, experiences and relationships for the sake of one more dollar. The key to fulfillment is to find the sweet spot between extremes; somewhere in the middle of financial security and living in the present.

How does spending money make you feel? For some, it’s painful. For others, it brings excitement. Regardless, the complex nature of spending is what makes money emotional and often challenging to discuss.

If you continually experience the fear of running out of money (FORO), it can create a significant impact on your lifestyle during retirement.

Figuring out how much money you need for retirement can feel daunting. Here, past podcast guest David Blanchett explores a study conducted by The Alliance for Lifetime Income, which reveals changing attitudes and behaviors toward retirement security.

If you’re like many successful investors or the “millionaire next door”, you’re hardwired to save instead of spend. Reframing your mindset won’t be automatic, but learning to embrace spending your money on what matters most to you is priceless.

Despite his privileged background, renowned Roman philosopher, Marcus Tullius Cicero, was known for embracing a simple lifestyle. His work inspired numerous thinkers throughout history because according to Cicero, frugality leads to riches.

What is your definition of a “luxury good”? If you have the mindset of the “Millionaire Next Door”, it may not involve material things, but instead include unconventional financial luxuries you don’t see.

he manner in which you spend throughout retirement isn’t static, nor is it always consistent with inflation. As past podcast guest, David Blanchett, has found, it’s much more complex than that.