What if you had a magic app that told you how much of your net worth you never got to spend at the end of your retirement?
The trouble with planning for retirement is all the uncertainty, however, proper planning can help. In this episode, Cameron Hendricks joins me to discuss how you can learn to spend more in retirement.
Why so many people don’t spend as much as they should in retirement
Are you spending less than what you could be spending in retirement? Shockingly, most current retirees still have the same pre-retirement savings after 2 decades of retirement and ⅓ of them even grew their assets during this same period!
It’s hard to know how much is enough to spend because of the uncertainty that retirement brings. No one knows just how long their money will last.
What you should do instead of tightening your financial belt
When we are young and saving for retirement we can control our savings rate. Now that it’s time to spend down our savings, we feel that we have to firmly control our withdrawal rate.
Rather than trying to gain a tight grip on your spending, developing a solid spending plan can help you spend more and not have excess money left over at the end of retirement.
You spent your whole life saving. Now it’s time to spend your hard-earned money.
How best to develop your retirement spending plan
Decumulation can be a challenge when we have a natural inclination to save. Many people rely on the infamous 4% rule when coming up with a spending plan in retirement. However, using the 4% rule can actually leave you with too much money at the end.
How much more happiness can you get from your hard-earned savings? It’s time to develop a retirement spending plan so that you can enjoy your wealth. Work with a seasoned financial advisor so that you can understand the tradeoffs and achieve your retirement goals.
Outline of This Episode
[0:50] We need to talk about your retirement spending
[1:55] What if you had an app that told you how much of your net worth you never got to spend?
[10:25] Why it’s important to have a retirement withdrawal strategy
[18:55] Our takeaways
Resources & People Mentioned
Connect With Chad and Mike
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Chad Smith
Chad Smith is a Certified Financial Planner™. He is an active member of NAPFA, the Financial Planning Association, and FPA’s NexGen. He has been quoted and appeared on WSJ.com, Bloomberg.com, Businessweek.com, Msn.com, Financial Planning Magazine, Triangle Business Journal, and Investment News.
![avatar](https://www.financialsymmetry.com/wp-content/uploads/B0020308.jpg)
Cameron Hendricks
Cameron is a Partner and Certified Financial Planner™ with over 10 years’ experience in the financial services industry. With his Equity Compensation (ECA) designation, he specializes in helping employees and executives of technology and life sciences companies that have significant equity compensation. He is also a Certified Exit Planning Advisor (CEPA) for privately held companies on their path to and post exit.