How to Know When You Can Spend More In Retirement
This episode will detail how we help clients understand when they can SPEND MORE in retirement.
- Retirement is all about matching how much you would like to spend, with how many years you expect to live, with how large a portfolio you will need to support that spending.
- The permission to spend problem arises bc of the amount of uncertainty around this spiraling formula. And what ends up happening is without a good grasp of how to measure risk and likelihoods of success, we tend to default to being OVERLY CONSERVATIVE, thus the permission to spend problem.
- Why You Should Care About the problem
- The goal of saving all those years is to maximize your satisfaction later in life - to rely less on work and more on savings to support the activities you want in life.
- Shift retirement from fear to fun
- What contributes to the problem
- Psychology
- The fear of running out of money
- The “paralysis” that comes from having too many things to consider but no great way to prioritize them
- Terrible “one size fits all” information
- The 4% rule
- ROTH conversions for everyone!
- Social Security at age 70 is ALWAYS the best!
- ACA subsidies because it’s free money!
- Taxes are ALWAYS bad
- Psychology
- How to solve the permission to spend problem
- Proper financial planning and education
- The educational process of building a plan (with the right guidance) hypertrophy your “distribution” or “pay yourself” muscle
- The educational process of building the plan and reviewing scenarios will help you appropriately determine if and which of the “one size fits all” information ACTUALLY applies to you.
- The if-than, or contingency plans will help remove the decision making friction
- The plan itself will help you prioritize the never ending set of action items or optimizations that can be done.
- Documenting and reviewing the plan regularly with a set cadence that you commit to (not too frequently, not too infrequently) will help prevent you from making impulsive (fear based) decisions and help you make decisive (confidence based) decisions.
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Eric Amzalag, CFP®, RICP®
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Want help with your Retirement Plan?
Email me: Eric@thepeakfp.com
#retirement #howmuchtoretire #retirementplanning #rothira #rothconversion #investing #401k #socialsecurity
Creators and Guests
Host
Eric Amzalag
Hi - I'm Eric Amzalag CFP®, RICP®, founder of Peak Financial Planning.I work with individuals and couples nationwide to help you navigate the Retirement Risk Zone. We build models that help you optimize your retirement income, create spending flexibility in retirement, and help you understand your financial weaknesses.
