Spending in Retirement
One of the toughest things about the act of retiring is switching from being a diligent saver to actually spending retirement dollars. It’s okay. Many retirees struggle with figuring out how to properly spend during retirement.
Remember, the hard work you put into saving and investing was for your retirement. The key is to maintain a plan and budget that will support your lifestyle and goals throughout your retirement. Your financial plan should lay out each element of income, including your:
- Social Security
- Financial Portfolio
And any other income you may have. Within the framework of a solid financial plan, it’s okay to spend from your savings and investments. This is by design.
At August Financial Consulting, we assist in creating the portfolio structure required to support your retirement income needs. Typically, this consists of dividend or bond income, potentially supplemented over time by a matured bond or taking profits from the equity portion of your portfolio.
Even in this historically low-interest rate environment, fixed income can provide a good, generally conservative asset for income or even as a source of funds to buy in the equity market given a pullback opportunity.