Matt explores the psychology behind a conversation he has often with clients, which revolves around the fear of spending in retirement. Even when the math is done, the spreadsheets are double checked, the modeling shows high confidence in your financial stability... many clients hit retirement and have trouble shifting into a "spending" rather than a "saving" mindset. After decades of saving and delaying gratification, it can be a difficult transition!

Matt's experience is that these fears are rooted not in math or confidence, but in the unknown. Naming the fears is a good starting point for understaning them. For some it's the fear of longevity, outliving their money, for others it's the fear of being a burden on others. These fears are not math questions but value questions, as Matt points out. Thinking through these fears, naming them, and understanding exactly how your financial plan helps you address these can bring clarity to your situation instead of a stormy black cloud of unknown.

Overspending in retirement has obvious costs. Underspending in retirement has hidden costs too, albeit more subtle. Travel not taken, experiences deferred until health makes them difficult or impossible, time spent optimizing for safety rather than living life -- these are real costs that need to be considered. Somewhere between the costs of overspending and underspending there are tradeoffs, and those tradeoffs are where clarity is gained and life is lived!

Follow Matt Murphy

Web: https://www.benetaswealth.com

Newsletter: http://eepurl.com/jb7SNc

LinkedIn: https://www.linkedin.com/in/mattmurphycfp

Advisory services offered through Commonwealth Financial Network®, a Registered Investment Adviser.

This material is intended for informational/educational purposes only and should not be construed as investment advice, a solicitation, or a recommendation to buy or sell any security or investment product. Please contact your financial professional for more information specific to your situation.

Investments are subject to risk, including the loss of principal. Some investments are not suitable for all investors, and there is no guarantee that any investing goal will be met. Past performance is no guarantee of future results.

All indices are unmanaged and investors cannot invest directly into an index.

Investments in target-date funds are subject to the risks of their underlying holdings. The year in the fund name refers to the approximate year (the target date) when an investor in the fund would retire and leave the workforce. The fund will gradually shift its emphasis from more aggressive investments to more conservative investments based on its respective target date. The performance of an investment in a target-date fund is not guaranteed at any time, including on or after the target date. Diversification does not assure a profit or protect against loss in declining markets, and diversification cannot guarantee that any objective or goal will be achieved.

Exchange-traded funds (ETFs) are subject to market volatility, including the risks of their underlying investments. They are not individually redeemable from the fund and are bought and sold at the current market price, which may be above or below their net asset value.

Your Permission Slip to Spend In Retirement