From Saving to Spending: Embracing Retirement with Confidence

As people get ready to retire, one of the biggest challenges is figuring out how to generate a stream of income from the assets they have accumulated over decades—often over their entire lifetime. Sometimes we become so conditioned to save that the muscle to spend is never really developed.

There is also the very real fear of running out of money, a fear that is often amplified by the media, financial news, and podcasts. While that concern is understandable—especially given the potential cost of long-term care—it is also a fear that is sometimes amplified in the marketing of certain financial products. One of these products is the annuity, which promises lifetime income but may limit access to assets and can carry significant fees. While these products can provide peace of mind, unless an inflation adjustment or market-linked feature is included, the income often does not keep pace with inflation.

In my experience, many people who have consistently saved, funded their 401(k)s, live within their means, and receive Social Security do not need to have an overwhelming fear of running out of money. Thoughtful planning, a realistic understanding of future expenses, and prudent investing often provide the confidence and flexibility needed to enjoy retirement.

These fears are often greatest during periods of market volatility, when headlines focus on uncertainty. As retirement approaches, thoughtful planning and intention can ensure that the retirement you have envisioned can become a reality.