Within my financial planning firm, I have a platinum group of clients who saved their entire working life for the future. Their drive to save and be financial secure superseded any and all impulse buys, and drift from their budgets .
As they enter their first several years of retirement their greatest challenge facing them is spending their hard saved monies. Without that steady paycheck coming in the fear of “where is my income going to come from?” takes hold. As a result every penny spent is agonized over, and the enjoy and freedom of retirement is replaced with worry and fear of outliving your money.
As a certified financial planner, there isn’t a difference between trying to get spenders to save and savers to spend, it’s just different sides of the same coin. Savers have only the long term view in their sights and well spenders tend not to see past their current purchase. Patience is key when working with savers, they tend not to believe the first several projections of retirement income and expenses, and that’s okay. It’s better to show them how they’re going to spend down their savings, through their “three buckets”. Social Security retirement benefits, Retirement Savings (401 (k), IRA, Roth IRA, etc) and personal savings are the three buckets. Having a plan to spend is just as important as a plan to save and through this planning comes peace of mind.
Regardless of income or net worth being a saver always places a client in the platinum group. To further discuss financial planning and Wolcott Financial Solutions, Inc., click here.