As someone who's spent decades serving and protecting families, I know firsthand that retirement isn't just about numbers—it's about making every moment and every dollar count. Lately, the spend-it-all approach to retirement has gained some attention. The idea is simple: enjoy your savings while you can, with the goal of creating meaningful experiences and giving back to loved ones. It’s understandable—many retirees actually spend less than the traditional ~4% withdrawal rule, and some even hold onto all their assets well into their later years.
But without a written financial plan, it’s all too easy to lose sight of the bigger picture. In fact, a recent survey found that about half of Americans don’t have a formal plan in place. This strategy requires careful budgeting and saving, not just impulse. Spending or gifting large amounts early can also come with tax consequences—larger withdrawals might trigger unexpected taxes, and heirs could miss out on a valuable step-up in basis.
That’s where thoughtful planning makes a difference. For example, some advisors suggest purchasing permanent life insurance earlier in life. This can give retirees the freedom to spend a bit more, knowing they can still leave a tax-free benefit to their loved ones and access policy value if needed. My mission as a financial coach is to ensure families have the education and tools to make these important decisions and to help them create a legacy they can be proud of.
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