The Two Types of People Who Fail at Retirement, Ep #99

There are two types of people that fail miserably at retirement. One person is the type that loved their job because it gave them a sense of purpose. The other type is the spender—they struggle to stick to a budget and want an extravagant retirement. What should these two people do to have a successful retirement? Learn more in this episode of the Retirement Made Easy Podcast.  You will want to hear this episode if you are interested in... [0:21] Check out RetirementMadeEasyPodcast.com for FREE Resources [4:37] A HUGE congratulations to George and Mary on their retirement! [6:15] Type #1: Those who struggle with a lack of purpose [9:36] Type #2: Those who spend more than they should [13:07] Your paycheck HAS to be replaced with other income Type #1: Those who struggle with a lack of purpose Do you get up and head to work and feel a sense of purpose every single day? Is your career meaningful? When this type of person retires and they no longer have that purpose, they don't know what to do with their time. They might relax for about a week of retirement. Then they get bored. They miss their coworkers, interaction, and sense of purpose.  How do you combat this? You can volunteer at organizations a few days a week. Or you can help babysit your grandkids. There are plenty of purposeful things you can do to fill your time that doesn't include working full-time. But if you're this type, before you retire, think about how you want to spend your time so you're not left twiddling your thumbs.  You can also download and fill out my "Blueprint To a Dream Retirement" to help you navigate how you'll spend your retirement.  Type #2: Those who spend more than they should I don't see this often—but I see it enough. I've parted ways with two clients during my career because they were overspending and jeopardizing the success of their retirement. When you retire, you have to live at or below your means. You're on a fixed income. Your pension, social security, and retirement nest egg make up the cash flow that you have to spend. If you stay within those parameters, you'll be fine. Those that fail have a habit of spending above and beyond their monthly budget. If you spend more than you had planned, you can't just call social security and ask for more.  So what do you do? How do you avoid overspending in retirement? You need to set a realistic budget. Secondly, you need to think about what you want from your retirement in advance. Do you want a boat? Do you want to vacation in the Bahamas? Whatever you want, share it with your financial planner ahead of time so it can become part of your retirement plan.  Your paycheck HAS to be replaced with other income The money for your monthly expenses can come from IRA withdrawals, a brokerage account, social security, and pensions. When you were working, you likely got paid every two weeks. People can struggle to budget when they're getting only one check a month from social security. So we try to distribute money from an IRA on the 16th if the social security check comes in on the 1st, so you get paid twice a month like you're used to.  My final tip? A retirement plan is key to helping you determine what you'll do—and how much you'll spend—for the rest of your life. Work with an experienced financial planner to help you build the retirement plan that will fund your dreams. Connect With Gregg Gonzalez Email at: [email protected]  Podcast: https://RetirementMadeEasyPodcast.com Website: https://StLouisFinancialAdvisor.com Follow Gregg on LinkedIn Follow Gregg on Facebook Follow Gregg on YouTube Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts