Do You Need A Budget In Retirement?

Sep 11

You saved diligently, invested carefully, and now you have a sizeable nest egg that can most likely replace 80% of your pre-retirement income. Why should you go through the tiresome process of creating a budget?

No matter how carefully you plan, many things are out of your control that can impact the income your plan can provide:

• Market volatility
• Extended market downturns
• Increased taxes
• High inflation

And on the spending side, you may not have as much control as you think. Retirement expenses can be extremely variable. As you move through each retirement phase, your spending profile may change.

It’s important to adjust spending as needed to ensure that you are not outspending your income, whether because your income has declined or your expenses have increased. But without a clear understanding of what you spend, that can be difficult to do.

Creating a budget allows you to identify and track expenses today and in the future. It can... ...