Finding Your “Comfort-level” Spending Zone

I often hear client stories that go something like this…

I got my first job when I was 12. I had a paper route and rode my bike in the wee hours of the morning to deliver the papers to the neighborhood. My parents were very frugal and insisted that I start saving some of my small wages. And so from that day forward, I have been a saver. I’ve had my ups and downs… good times and lean times, but I have always put something aside for a rainy day, for college for my kids, for retirement.

Now I am contemplating retirement…I don’t know how to take money out of my savings. First of all, it feels wrong. I’ve been watching my balance grow for decades; I don’t want to watch it go down because of my spending. And… how do I do this anyway? Do I just take dividends and live off of that? Do I make withdrawals from my investments when I need money? How do I know which investment to sell? I think this is harder than saving!

I understand. For those of us who are really good savers, the idea of using what we have accumulated seems foreign. I work through this with clients on several levels. We deal with the emotional side of withdrawals, we work through projections to ensure your personal comfort with your spending goals, and we work through the practical side of how to fund your monthly expense needs and how to make your withdrawal from investments feel like a regular paycheck.

This is just one of many issues that I tackle with clients all the time. I take a holistic approach to planning, integrating “dollars and cents with common sense and compassion.” Contact us today to see if Financial Elements can help you take the next step.