When to Spend During Retirement [PODCAST]
I talked with Chris Wayne from Laraway Financial today on WJON's Money Monday program. He talked about when to spend money when someone is newly retired and why it makes sense to hold onto some money in case you need it later. Chris says many retirees plan to go on trips or to make a major purchase once they become newly retired but he guards against spending too much too soon. Listen to the conversation below.
Chris says pacing yourself in retirement is the best policy saying that many retirees spend less as time goes on but could be faced with a medical issue that they weren't planning on. Having a "rainy day" fund that retirees can draw from can really help. Chris says retirees should segment their portfolio by retirement phase. Phases can include early retirement that includes travel and maybe a large purchase, this can be followed by downsizing to a smaller home and spending less by design.
People are living longer and longer these days meaning that retirees could actually spend as much time as a retired person as a working person. Because of this investing in retirement plans while working and diversifying can be beneficial.
To learn more about financial options for retirees or to help formulate a plan contact Laraway Financial at larawayfinancial.org.