Why Is It So Hard To Spend Money In Retirement?

Media / Blog

Why Is It So Hard To Spend Money In Retirement?

Prev

I will be getting my first 1099 . . . Now What?

August 04, 2014

The number one concern for most people approaching retirement age is that they will run out of money. It is such a great fear amongst individuals and families that many people actually deprive themselves of the number one objectives they had for retirement. Having fun!

When you are working 40, 50, or 60 hours a week and raising a family, you often dream about what you will do when work is optional. You daydream about taking the vacations to destinations you have never seen like Australia. You ponder the idea of spending three months sitting beachside and purchasing that cool convertible you always wanted your whole life. So, what’s stopping you? It isn’t the kids. It isn’t the work. It isn’t the weather. Why is it so hard for retirees to enjoy the money they saved for that very purpose of enjoying when work becomes optional?

Without proper planning (and even sometimes with proper planning), the fact is that most retirees simply become paralyzed by the fear of running out of money. Think about it. When you have been saving money and watching it grow for 30 or 40 years, the notion of spending money is a new skill that you’ll need to learn. And it isn’t easy at all training the spending muscle.

It’s really hard emotionally to see the account values of your brokerage accounts, IRA’s, or 401(k) go down which is why most retirees ask the question of how much interest they can earn off their accounts. The moment a retiree sees their account values go down, they will begin to shrink their spending which is the main reason having a financial plan is paramount to making a successful and happy transition financially into retirement.

Consider these few final tips and thoughts. After six months of spending money in retirement, did your checking/savings account go up or down? This is a good barometer of what’s actually happening with your money. Have you considering what you are planning to leave to your kids down the road? If the answer is whatever is left over, then you should really start spending today. It will be harder than you think to spend all of your money especially if you have a pension. Last, don’t deprive yourself. If you haven’t been able to enjoy a few of the finer things in life, now is your time to start spending some money in retirement.

Written by: Ted Jenkin
Request a FREE consultation: www.oxygenfinancial.net

Next

My ATM Receipt is My Check Register

Sign Up

Sign up for our exclusive Sunday Paper with a weekly market commentary, insightful personal finance blogs, and life changing education guides.

Email sign up

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice.

This site is published for residents of the United States only. Registered Representatives of Kestra IS and Investment Advisor Representatives of Kestra AS may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all products and services referenced on this site are available in every state and through every representative or advisor listed. For additional information, please contact Kestra IS Compliance Department at 737-443-7101.

PLEASE NOTE: The information being provided is strictly as a courtesy. When you link to any of the web sites provided here, you are leaving this web site. Kestra IS and Kestra AS makes no representation as to the completeness or accuracy of information provided at these web sites. Nor is Kestra IS and Kestra AS liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to.