The idea of a 'spend-it-all' approach in retirement is gaining attention, especially as some retirees find themselves spending less than expected and missing out on meaningful experiences or opportunities to give. While these moments can enrich later life, planning remains essential. It's striking that nearly half of Americans still don't have a written financial plan—a key tool for mapping out retirement goals and ensuring your resources can support both living well and leaving a legacy. Many retirees already withdraw less than the traditional 4% guideline, with some households retaining almost all their original retirement assets over time. However, spending or gifting earlier in retirement can affect tax efficiency—larger withdrawals may lead to higher taxes, and heirs could miss out on a valuable step-up in basis. One strategy to consider: securing permanent life insurance early. This can provide loved ones with a tax-free benefit, and the policy’s value may be accessed if needed. As we guide clients through these decisions, our goal is always to help you protect and preserve your wealth, so you can enjoy retirement on your own terms while securing peace of mind for future generations.
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