If you’ve been planning to retire in the next few years, odds are that you’ve spent a lot of time reviewing your investments, including the account balance, the specific investments you own, the asset allocation you have, and even reading about proper distribution strategies. While all of that is important, you’re actually missing the most important thing to know before you retire: Your Retirement Expenses! Simply put, nothing else matters until you figure out how much you want to…
Category: Retirement Expenses
5 Expenses That Could Go Down In Retirement
So far in our series on retirement expenses, we’ve discussed the retirement smile, which researchers discovered after analyzing thousands of retired families and tracking their expenses. We learned that on average, the typical retired family has three different stages of spending in retirement, and we also learned that retirement expenses typically go down, when adjusted for inflation, on an overall basis. Our most recent blog was on the top 5 expenses in retirement, and even some expenses that may go…
5 Biggest Expenses In Retirement
One of the most common misconceptions about retirement people have is that they’ll be spending as much in retirement as they were before. As I detailed previously, retirement spending goes down on an inflation-adjusted basis by 1% per year. That said, how do retirees spend their money? In today’s post, we are going to discuss the 5 biggest retiree expenses. TRAVEL Travel expenses may quickly add up in retirement, especially in the early years (aka the go-go years). You’ll suddenly…
How Much Will I Spend In Retirement?
Many people approach retirement planning as if they’ll spend the same amount every year for the rest of their lives. This assumption simplifies the planning process, but it is not practical. Our spending habits change from time to time, partly due to our circumstances in life. And of course, our desires in life will change because of a number of factors as well. If you can look back on your own life, it’s not hard to imagine times when you’ve…