How much should you plan on spending each year in retirement? Does the amount that you’re going to spend change over time? Does it go up? Does it go down?
Plan on three spending phases in retirement and an appropriate amount of spending for each. How I describe them comes from Tom Hegna in his video below:
Using Tom’s description, we want to plan for having more money during the GO GO years. Will most likely want to spend more on entertainment, vacations, going out to eat, etc.
Spending will taper off during the SLOW GO and NO GO years.
So make sure that your retirement plan builds in an additional amount of income during your predefined GO GO years!
If you have any questions please feel free to contact me.