The Psychological Side of Spending Your Retirement Savings

Saving, investing and then spending are three primary issues for anyone planning to retire. Any number of tools are available to help with the process along with unlimited expert advice.

I recently stumbled on the following which I think is an excellent and refreshingly simple explanation for organizing expenses and assets to handle them.

NOTE: “maintain a cash reserve” which I strongly recommend along with the ability to replenish if necessary. In other words, some saving is always necessary.

Organize your expenses: Three typical categories include essential expenses (think food, housing and insurance), lifestyle expenses (vacations, hobbies) and unexpected expenses (healthcare costs, auto repairs).

Consider paying for your essential expenses with guaranteed income sources such as Social Security or annuities. Use growth or income investments to pay for lifestyle expenses, and maintain a cash reserve for any unexpected costs that might occur.

Source: The Psychological Side of Spending Your Retirement Savings

One comment

  1. Well said , Dick. We researched our desired coast of Florida, the east. We investigated purchasing, decided not necessary with all the maintenance, fees, etc,
    We then took in facts like family , social and medical.
    Our decision came down to finding a location we like “living” in and move in for two months. Our social/family situation wants us home for the Xmas holiday. So off we go the first wkend of January till last of February, early March. It costs a bit more per
    Month , but overall less so than owning a condo, with fees and repairs . And the taxes here in Broward
    County are not the lowest for sure. Premier medical is nearby, social events and we are
    Making and more friends .
    Oh and the “old” people don’t seem so old… one thing I’ve
    Noticed here in Florida is that everyone seems so happy. I think it’s all the vitamin D they get from the sun…. Lol.


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