S4E6 – Going from a Saver to a Spender in Retirement
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Episode Summary
Retirement isn’t just a financial transition—it’s a psychological one too. After years of saving and accumulating wealth, shifting to spending in retirement can feel unnatural or even scary. In this episode, Dave and Nick discuss how retirees can successfully make this transition by aligning their spending with their values, understanding their financial resources, and maintaining flexibility in their plans.
Key Takeaways
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Align Your Values with Your Money
- Many people spend years saving but give little thought to how they will actually spend in retirement.
- A helpful exercise is to identify what matters most—family, travel, philanthropy, or hobbies—and plan spending around those priorities.
- Resource Mentioned: Life Planning for You by George Kinder
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Understand Where Your Money Goes
- Instead of focusing on replacing your paycheck, identify what spending truly brings you fulfillment.
- Reviewing your budget can help determine which expenses are essential and which are flexible.
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Know Your Retirement Resources
- Consider Social Security timing, investment income, and other sources of cash flow.
- Balance guaranteed income with withdrawals from your portfolio to maintain financial stability.
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Have an Investment Philosophy and Stick With It
- Retirement investing should be intentional, focusing on long-term sustainability.
- Market downturns feel different when you’re no longer earning a paycheck, so having a solid plan in place helps prevent panic.
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Be Flexible
- Life changes, and so should your financial plan.
- Revisiting your goals annually ensures that your retirement plan aligns with your evolving needs and desires.
Final Thoughts
Making the shift from saving to spending requires intentionality and a mindset shift. By planning ahead and understanding your financial picture, you can enjoy a fulfilling and stress-free retirement.
Resources & Contact
📖 Book Recommendation: Life Planning for You by George Kinder
📧 Have questions? Email us at info@srbadvisors.com
🌐 Visit us at srbadvisors.com
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