Episode 100: Can We Afford to Do This AND Still Have Enough For Retirement?

Today’s Prep:

How do you know when you have enough saved for retirement? How do you know when there’s enough left over to do something else like travel or take on a home renovation? We’ll answer your mailbag questions on today’s episode.

(Click the featured times below to jump forward in the episode)

Equipping Points:

On today’s podcast, we look at three questions from the mailbag, all related to having enough money in retirement. Find out what David advises these listeners as they navigate different financial decisions.

When you get to retirement, it’s typical to want to enjoy your newfound time and freedom. Shelby is wondering if the first few years of retirement are the most expensive ones to travel and enjoy. David breaks down what his clients often do when it comes to travel and leisure, but how you need to plan for things like inflation or nursing home care. Do you have a plan for long-term care costs if needed?

Remember that your plan is a road map. You may have to make detours and changes along the way if something unexpected happens. But make sure you follow the guidance and direction of a plan to achieve your retirement goals.

Tristan recently went through a divorce, about 10 or 15 years before retirement age. Is there enough time to still retire? David asks, when you plan to retire? Are you able to increase your savings rate? Is there a chance that you’ll remarry at some point? Regardless, you’ll want to get a detailed plan that considers income and expenses to determine how long your money will last.

Finally, Dylan is in an argument about whether or not they can afford to redo their kitchen. How much can they put towards the new kitchen and how much do they have to put toward retirement? When will they have enough? To determine what “enough” means, look at what you want for your future and build in for what you might need later on.

Financial advisors are there to help you set a plan to reach your goals. Sometimes that can even look like asking “permission” from the advisor to see if they can do something and still be okay for retirement. Together you can play “what if?” and see if it aligns with your short-term and long-term goals.

Listen to the entire episode or click the timestamps below to skip to a particular mailbag question.

[1:04] – Today’s advice was recorded before the election.

[1:47] – Mailbag: Will I spend more money at the beginning of retirement and then less after that?

[6:10] How are you allocated?

[7:34] – Mailbag: After a divorce in my 50s, will I still have enough for retirement?

[11:41] – Mailbag: Can we afford a kitchen redo?

[15:58] – How often do clients ask David for “permission” to do something?

Today’s Takeaway:

A lot of what you need for retirement depends on how much you’re going to spend in retirement. To increase your prospects of a more successful retirement: increase your savings rate now, reduce spending now, or do both at the same time.

– David Dickens

Additional Resources:

PODCAST: Stuff You Should Know In The Financial World

PODCAST: What Your 401(k) Rollovers Options Are 

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The host: David Dickens

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