Melissa A. Seamon, CFP®
Senior Financial Advisor
This E-newsletter discusses the anxiety some retirees feel that they might overspend in retirement and the threat of a recession isn't helping! This newsletter offers some sage advice.
You dreamt of a comfortable and happy retirement. The kids are grown, and your career is finished; you worked hard and saved hard. It's your time now - to travel, acquire the vacation home, or buy that dream car. This is what retirement is meant for, correct?
But maybe those purchases and vacations weren’t in the original budget and now inflation and unreal gas prices are causing you some anxiety each time you gas up the car and the boat. You can’t help but read the headlines and hear the talking heads on TV say … gulp, recession. What will that do to your nest egg?
Here are three things you can do if you want to reduce your spending in retirement:
1. Look at Your Short-Term Spending
First, take a deep breath and read some good news:Research from BlackRock and the Employee Benefit Research Institute showed that retirees across all wealth levels still had 80% of their pre-retirement savings after 17-18 years of retirement. That is especially true for high-net worth individuals, who have assets that are in excess of more than $1 million. So, while you may not be in danger of running out of money completely, just take a step back and look at your spending. Maybe don’t cancel those Viking River Cruises you had planned but consider postponing in the short-term.
You can also consider a lower drawdown rate from your investments while the stock market is down. This can help your funds recover quicker once the market inevitably goes back up.
2. Set Long-Term Priorities
Meanwhile, review your overall retirement priorities. What are your top five goals?
Many retirees like to consider things, such as:
● Keep up your lifestyle
● Helping your kids and grandkids now
● Leaving an inheritance for future generations
● Charity and gifting
How did you order your priorities as you approached retirement? What about when you first retired? How about right now?
It’s OK if those priorities have changed. Our whole world has gotten quite the shake up in the past two years and, even before that, life has a way of making us rethink in a split second what really matters. Perhaps your health or the health of your spouse has changed.
Once you have reviewed your priorities, then you can reallocate your funds accordingly. This would be a more long-term strategy.
3. Lean on Expert Advice
If you’re worried about preserving the longevity of your wealth, making sure you have your funds allocated appropriately, and making the right short-term moves, a financial advisor can provide objective, expert advice.
Their keen knowledge of the market and insight into your personal financial situation and goals can help guide you to do everything that you want to do in retirement.
Want that kind of peace of mind for your retirement? Schedule a meeting with us today. For more information about the comprehensive planning services we provide, we encourage you to visit our website and see if we could be a good match. We best serve clients looking for exceptional client service, who value a long-term partnership, and have a minimum of $500,000 in investable assets.
Important Disclosure Information
To better understand the nature and scope of the advisory services and business practices of Gardey Financial Advisors Inc., please review our SEC Form ADV Part 2A and ADV Part 3 (Form CRS) available via the SEC's website, www.adviserinfo.sec.gov. (Click on the link, select “Investment Advisor Firm,” and type in the firm name. Results will provide you both Part 1, 2 and 3 of the Gardey Financial Advisors Form ADV.) Statistics from third-party sources are deemed to be accurate but have not been confirmed by Gardey Financial Advisors.
This communication is for informational purposes only and does not purport to be a complete statement of all material facts related to any company, industry, or security mentioned. The information provided, while not guaranteed as to accuracy or completeness, has been obtained from sources believed to be reliable. Moreover, you should not assume that any discussion or information contained in this commentary serves as the receipt of, or is a substitute for, personalized investment advice from Gardey Financial Advisors. The opinions expressed reflect our judgment now and are subject to change without notice and may or may not be updated. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, expressed or implied, is made regarding future performance. Readers who are not market professionals or institutional clients of Gardey Financial Advisors should seek the advice of their financial advisor, tax or legal advisor before making any investment decisions based on this communication. Gardey Financial Advisors does not render legal, accounting or tax advice. Gardey Financial Advisors works closely with our client’s other professional advisors. The solutions discussed may not be suitable for you, even if your situation is like the example presented. Investors must make their own decisions based on their specific investment objectives and financial circumstances. It should not be assumed that the recommendations made in this situation will result in the mentioned outcome. The commentary does not represent any specific clients, investments, or strategies. HYPERLINK DISCLOSURE
By selecting the links identified in this publication, you may be redirected to third-party websites, over which Gardey Financial Advisors has no control. Gardey Financial Advisors makes no warranties as to the content or accessibility of the third-party website and assumes no liability for errors or reporting inaccuracies. Gardey Financial Advisors neither approves nor endorses the statements made by the third-party on their website. Third-party website content is subject to change without notice and may or may not be updated. It is the responsibility of the viewer/reader to ensure third-party sites accessed are virus-free and Gardey Financial Advisors accepts no responsibility for any loss or damage arising in any way from the hyperlink or third-party website.