7-Day Weekend: How Retirees Can Build A Great Lifestyle

For many, retirement is an exciting milestone. You’ve worked hard to prepare for this moment, and now’s the time to reap the rewards. But have you ever considered how you’ll spend your newfound free time? 

Many people focus on the preparation it takes to get to retirement without putting in the time to consider what they want to accomplish once there. If you don’t plan on picking up a new job anytime soon, retirement is essentially a seven-day weekend—and that’s a lot of time to fill.

Here’s how we recommend recent retirees build a life they love in retirement.

Yes, You Can Spend Your Money

In fact, we encourage it! You spent decades saving diligently and sacrificing short-term indulgences to build your nest egg. Now that you’ve done it, it’s time to (strategically) spend it.

But changing your mindset from saving to spending isn’t as easy as flipping a switch. It’s emotional to start drawing from your hard-earned savings. Watching the number go down when you’re so used to seeing it grow can be emotional. Many retirees fear spending and wonder if they’re spending too much.

With proper planning and strategizing, however, you can push past the fear of running out of money in retirement. Being over-conservative with your spending actually deprives you of the things you’ve spent years looking forward to.

Like a fad diet, being too strict with your spending tends to backfire. If you don’t find balance, you run the risk of abandoning the plan altogether. It’s a much more effective approach to create a realistic spending plan that keeps you focused and informed while allowing you to enjoy yourself within reason.

Let the Numbers Support Your Spending

It’s not that it’s impossible to overspend in retirement, but if you’re worried about overspending, start by determining how much you’re able to spend in the first place. Having a number in front of you is a way to ease your anxieties and create a guideline for your spending habits in retirement.

Our team at Legacy Wealth Advisors uses financial planning software that provides clients with real-time projections. Together, we’ll look over possible scenarios to help you analyze how much you can safely spend year after year.

From there, we build a withdrawal strategy that’s tailored to your projected spending. Within that withdrawal strategy, we keep your future tax obligations in mind—especially since taxes can threaten your retirement wealth. Throughout the year, we use tax-focused strategies to protect and preserve your wealth.

How to Spend Where It Counts

Not all spending is created equal. In retirement, focus on making intentional spending decisions that align with your goals. That starts, of course, with deciding what those goals are.

Ask yourself, “What type of lifestyle do I envision for retirement?”

Are you itching to travel the world, or do you want to spend winters in a warmer climate? Are you happy living in your same community, or do you want to move closer to kids and grandkids?

Feeling fulfilled in retirement means using your money to fund the things that matter most to you. Spending without a plan or purpose can take away from that feeling of fulfillment.

Understanding your goals gives you a foundation for spending your money intentionally.

Remaining Motivated When Everyday Feels Like Saturday

During your working years, you probably thought, “I wish everyday could feel like Saturday.” The week’s stress seems to go away, your time is your own, and thoughts of work are far, far away.

But the reality of a seven-day weekend looks a bit different. Without the obligation of a 40+ hour work week, it’s up to you to create a new routine that brings you joy and fulfillment.

Find things that fill your time and build out your schedule—classes at the local community center, exercise groups, learning courses, volunteer opportunities, etc. Once you have a regular routine, spend your free time with loved ones. Making it a point to socialize with your family, friends, and community members can be an effective way to keep loneliness and isolation at bay.

Building Your Retirement Lifestyle With Legacy Wealth Advisors

When finding your new purpose in retirement, it’s helpful to nail down your spending and savings strategy first.

Here at Legacy Wealth Advisors, we work closely with those nearing or entering retirement to build a tailored withdrawal strategy and identify their biggest lifestyle goals for retirement. If this is something you’re looking to address, don’t hesitate to reach out to our team today.

^{Advisory services are offered through Legacy Wealth Advisors, LLC dba Legacy Wealth Advisors, an Investment Advisor in the State of Michigan. The information contained herein should in no way be construed or interpreted as a solicitation to sell or offer to sell advisory services to any residents of any State other than the State of Michigan or where otherwise legally permitted.}

^{All content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Nor is it intended to be a projection of current or future performance or indication or future results. Moreover, this material has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed. Legacy Wealth Advisors does not offer tax planning or legal services but may provide references to tax services or legal providers. Legacy Wealth Advisors may also work with your attorney or independent tax or legal counsel. Please consult a qualified professional for assistance with these matters.}