Even if you receive a decent pension and/or have adequate savings in retirement accounts, you still may worry that you’re spending too much in retirement. This is as true here in México as it would be back up north. It’s not uncommon for people who transition from diligent saving to spending to have these feelings of uncertainty. Luckily, there are ways to mitigate them.
First, shift the focus from what you’re spending to the activities that could make your retirement more satisfying. Spending isn’t the end goal; it’s a means of helping you better enjoy this new phase of your life. Do you want to travel? Learn a new skill? Relocate?
Ease into the mindset that retirement can be a time to savor new experiences and have fun. It won’t happen immediately, but gradually you’ll feel more comfortable spending on things that improve your life.
Second, figure out how long your retirement savings might last at different spending rates. This will give you a sense of just how much wiggle room you actually have and eliminate any fears that you could run out of money prematurely.
There are retirement income calculators available online in which you enter the amount of your savings, then experiment with different rates of withdrawals to find the spending level where you may be endangering your nest egg.
Even better, discuss your situation with your advisor; he or she knows your situation and can recommend changes that can help ease your mind. By going through this process annually, you should be able to settle on a level of retirement spending you’re comfortable with.
Yann Kostic is an Investment Advisor (RIA) and Money Manager with Atlantis Wealth Management. Yann specializes in retirees (or soon to be), self-reliant women and expats in Mexico. Atlantis is working with an international custodian that allows multiple international currencies in a single account. Yann splits his time between the Lake Chapala area, Manzanillo and Central Florida. Comments, questions or to request his newsletter, “News you can use” contact him at firstname.lastname@example.org, in the US at (321) 574-1521 or in Mexico, (376) 106-1613
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