You might find this hard to believe, but most people who retire with $1M or more at retirement end up passing away with 2-3x that amount. You’d think it would be easy to spend money in retirement when you have plenty of it, but that’s not the case.
It’s very common for people who have worked hard, saved well and made sacrifices in their earning years to break the habits of being frugal in retirement. The bucket list trips and big purchases can only go on for so long and eventually, many retirees end up playing the “What if?” game.
In this episode, we discuss the biggest regrets retirees have in retirement and the psychology between the fear of outliving your money and why so many struggle with spending their hard earned money when they have enough to do the things they dreamed about in their working years.
KEY TAKEAWAYS
- The Biggest Retirement Regret
- Why Retirees Are Cautious About Spending Money
- Compound Interest is the 8th Wonder of the World
- The Go-Go, Slow-Go and No-Go Years of Retirement
- Retirement Planning vs Retirement Living
SELECTED LINKS FROM THE EPISODE
INSPIRING QUOTE
- “The mistake a lot of people make is confusing retirement planning with retirement living.” – Mike Panico
- “People don’t like spending what is finite. You’re not working anymore. You’re not saving anymore. So, dipping into that cookie jar can feel a little bit wrong or weird, but you have to have some confidence in order to do it because, again, tomorrow isn’t a promise. It itself is a what-if.” – Mike Panico
- “Find the balance between being prepared for tomorrow but maximizing what you’re doing for today.” – Mike Panico
- “You work for so long, you have that steady paycheck that’s coming through every week so you know where the money’s coming from. But when you retire, you might be a little bit more apprehensive about spending that money.” – Jessica Panico
- “I think the big monster that kind of sits on everybody’s shoulder in the back of your head is, “What if?” – Jessica Panico
- “Hindsight’s 20/20 if towards the end you’re going to know how much money you could have spent.” – Jessica Panico
DISCLOSURE
Arcadia Wealth Management, LLC (Arcadia) is an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). The information presented in this video is for educational and informational purposes only and is intended for a broad, general audience. It is not intended as, and should not be construed as, an offer, solicitation, or recommendation to buy or sell any securities or to adopt any investment strategy. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. Any references to investment strategies, philosophies, or client experiences are illustrative and may not be representative of all clients or outcomes.
Arcadia Financial has a reasonable basis to believe that this content does not include any false or materially misleading statements and presents information in a fair and balanced manner. No portion of this communication should be construed as tax, legal, or accounting advice. Please consult your own tax or legal professional for guidance specific to your situation.
Investment advisory services are provided through Arcadia Wealth Management, LLC, an SEC-registered investment adviser. Insurance products and services are offered through Arcadia Financial Group, LLC, by appropriately licensed agents. Bookkeeping and tax preparation services are provided by Arcadia Tax, LLC. These affiliated entities operate independently but are under common ownership.
