Spending Vs. Saving
As you might imagine, many of our clients are great savers. They know how to budget. They know how to "pay themselves first." They have their priorities in the right order. However…
Life is funny. Sometimes, what you do best can actually trip you up. Take our savers. Once you retire, you will become a spender. That’s right – most of you will probably stop saving. There will be no 401K, or IRA available to you. That $25,000 you put away every year? You’re going to have to (tense up now) spend It. From your savings. From your investments. From whatever income distribution plan we’ve put together. And every month, or quarter, or year-end, instead of seeing your account balances grow, at some point you’re going to see them shrink. Not at an alarming rate. Not at a bad rate. But at some point, inflation will raise its ugly head and you’ll be drawing down your principle. And that’s ok.
It’s a hard shift to make for some folks. It’s counter-intuitive to many who have done the right thing for so long it’s deep in their DNA. But I want you to know that you’re not alone. You’ve put a plan in place. You know what you can afford to spend. You’ve accounted for emergencies and healthcare and inflation. The numbers work. And if you’ve not put a plan in place, what’s stopping you? Time waits for no one. Today is the day. Give us a call.
By Julie Bradsher