Episode 85: How Do I Achieve A Balanced Life in Retirement?
Have your question answered on the Money Wisdom Question Series!
How Do I Achieve a Balanced Life in Retirement?
Here at Johnson Brunetti, we work primarily with people that are retired or people that are leading up to retirement. So, it’s suffice to say we know a lot of people that have retired. Some of those folks have had great, fruitful, rewarding experiences and lives in retirement, and some of those folks maybe not so much. So, how do we make sure that we achieve a balanced life in retirement?
Spending Habits
Number one is spending habits. Make sure that you are confident that you can spend in the way that achieves your lifestyle. You don’t want to enter retirement and spend so much in the first two or three years that you regroup and say, “Well, gee, wow I need to now change things, or I can’t spend that same way.”
The goal is to make sure to be able to live that lifestyle for a 20, 25, 30-year period of time and also be able to give yourself raises throughout retirement to keep up with inflation.
Lifestyle
Number two is lifestyle. We want a balance in our lifestyle. The folks that I meet with and speak with, I ask, “Hey, how’s retirement going for you?” The folks that are having a great time in retirement are people that have hobbies, outlets, and things that they want to do. They spend time with family, they travel, and maybe there are other things that they’re getting involved with that they didn’t have enough time to really delve into when they were working. Whether it’s starting a business, picking up an instrument, volunteering, or doing things to take up that free time that are fulfilling to them.
The folks that I speak with that are not having such a great time in retirement are people that don’t have those outlets.
A Balanced Portfolio
Finally, we want balance when it comes to our portfolio. We don’t want to be so overexposed to a ton of risk. You want to make sure that your ultimate goal is achieving a reasonable rate of return. Yes, grow what you have reasonably, but at the same time, minimize risk and minimize downside.
Many people start out saving for retirement when they’re younger or middle-aged, and they set a certain allocation and they keep plowing money into it. And that’s great, that’s what we want to see. However, then you find yourself later on, and you are retired and it’s a good time to revisit that. You don’t want to be 65 to 70 years old, retired and living off of your assets and allocating them or investing them in the same way that you did when you were 40 or 35 years old, when you were more comfortable with risk.
Information presented in our podcasts is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.
Johnson Brunetti is a marketing name for the businesses of JB Capital and JN Financial.
Investment Advisory Services offered through JB Capital, LLC. Insurance Products offered through JN Financial, LLC.
The guarantees provided by any type of insurance contract are based on the claims-paying ability of the insurance company.
Related Resources
-
How Do I Get Out of Debt Fast?
Most people with debt want to get out of it quickly and efficiently. To do that, you first need a clear understanding of your financial situation. Second, you need a clear, actionable plan. In … -
Why Do I Need to Account for Inflation in Retirement?
Today’s question is: What is inflation and why is it important to account for in my retirement plan? Inflation is the rising cost of goods over time. Meaning, it will cost you more money next year… -
How Does a Tax Return Work?
As tax season concludes, it’s a good time to refresh your tax knowledge. In this week’s Money Wisdom Question Series, Ian Fergusson, RICP® discusses how filing your taxes works and why it’s essen… -
What Is a Fiduciary?
When it comes to managing your money, trust is everything. That’s why today’s question is one of the most common and important ones we receive: What is a fiduciary? In this week’s Money Wisdom … -
Podcast Episode 403: How to Approach Finances in a Second Marriage Later in Life
Getting engaged later in life is an exciting time, but it requires different financial planning conversations. With blended families, different retirement timelines, and evolving goals, couples in… -
Podcast Episode 404: Financial Goals You Shouldn’t Overlook
When it comes to preparing for retirement, most people focus on the obvious goals of saving enough and building an emergency fund. But in this episode of Money Wisdom, Jake Doser, CFP®, CPWA® and … -
Understanding Retirement Planning
Planning for retirement isn’t just about saving – it’s about making smart financial decisions at every stage of life. A better understanding of the financial industry can help you avoid costly mis… -
Most Asked Social Security Questions
It’s no question that Social Security plays a crucial role in retirement planning, helping to provide a stable income stream for millions of recipients. In this week’s Better Money Boston with … -
Can I Get ‘Out’ of a Fixed-Rate Vehicle?
When you lock into a fixed-rate vehicle like a CD, fixed annuity, or fixed-indexed annuity, you’re committed to a specific interest rate for a set period. But what happens when after a few years, … -
Podcast Episode 402: How Often Should You Meet with Your Financial Advisor?
A good relationship between a client and their financial advisor relies on clear communication and regular check-ins to ensure everything is on track. In this episode of the Money Wisdom podcast, …
