Will Retirement Really Cost You Less?

Retirement can change your expenses without lowering them. I have been playing more golf lately, and Kristin reminds me that we pay for both the golf and a little extra help around the house while I am out enjoying it. That is what more free time can do. Commuting costs may disappear, but hobbies, travel, and family activities can take their place. Before assuming you can live on 80 percent of your working income, ask what will actually change. If you spend nearly everything you earn today, which expenses will you cut?

I also would not assume your tax bracket will automatically drop. Traditional IRA withdrawals are generally taxable, and required minimum distributions can create taxable income even when you do not need the money for your bills. I want your spending and tax plan to reflect your circumstances so you can make informed decisions about enjoying your savings. If you would like help looking at the full picture, you can reach our team throughLegacyRetirementGroup.com.

The information provided is for educational purposes only and should not be considered tax or legal advice; please consult with a qualified tax professional regarding your individual circumstances or visit IRS.gov for additional information.