Heading into retirement with a little nest egg is great, but don’t think that’s the end of financial planning. Unfortunately, if you don’t allocate your savings for your specific needs, it can and probably will dwindle quickly.
The phone rings; the man on the receiver tells you that you’ve won a trip. Do you believe him? Hopefully you don’t. Charities after charities call to request donations, who do you give to? Your son is in need of money to pay debts; can you afford to pay his debts? You like having your weekly house cleaner and yard-maintenance company take care of these chores; can you still afford these expenses?
The point is you are still living, and will go on living for a few years yet. You’ll have household and living expenses such as car and house or tenant insurance, and food expenses and heating bills for these years. If you’re a traveller, it’s another expense to keep in mind. Of course you can fund your new travel expeditions, give money to charities, and even to your son (be careful here though, this can be a whole new can of worms), but paying for these expenses should still be treated as part of your financial accounts.
Coming from a bookkeeping background, we really want you to make wise financial decisions in your retirement, to keep balancing your household budget so you don’t just give away or misplace moneys. Make sure you still work with your financial planner to grow your savings even more. We’d even be happy to help you balance your household budget, if it’s in your budget to get a bookkeeper’s help. Making sure that you’re not spending your savings impulsively, carelessly, or by losing it to scammers, is the key to living happily for the rest of your retirement.