Transitioning From Investing to Spending

Retirement is approaching. Or, you may already be retired. Before now, you have been using the Plan to put investing before spending. Now it’s time to enter a new phase of managing your money. For that, you may need to learn new habits for spending and investing in retirement. Keep in mind, investing involves market risk, including the possible loss of principal.

Develop a plan

Managing your money may become easier when you have a plan to work from. A Retirement Specialist can help you work through the options as you develop a strategy to move from investing to spending.

• Set goals – Consider how you want to live in retirement. List your needs. List pastimes, hobbies and interests. List which expenses might go up, and which might go down, over time. List where your income will come from. And consider how long you need your money to last.
• Create a budget – Use your goals to build a budget that may help you balance spending against your income and savings.
• Start slowly – Spending too quickly could put you at risk of running out of money, so start spending slowly until your spending plan becomes clearer.
• Stick around – If you can afford to delay taking withdrawals from your Plan account, your money can stay invested, which may allow the account to grow and possibly reduce the risk of outliving your money.
• Know the Plan’s payout options – Understanding how you could benefit from each distribution option, and when you may be required to take money from your account, could help you decide how you want to manage your income in retirement.

And remember, the only thing constant in life is change, so allow your spending plan to be flexible enough to change as your life changes.

Get the help you need

Talk with one of our Account Executives for one-on-one coaching while you transition from investing to spending in retirement.