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.