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Spending Drops in Retirement, but Satisfaction Doesn't

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Manage episode 495609353 series 1232333
Content provided by Benjamin Brandt CFP®, RICP® and Benjamin Brandt CFP®. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Benjamin Brandt CFP®, RICP® and Benjamin Brandt CFP® or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.

New research from David Blanchett, head of retirement research at PGIM, challenges one of the biggest assumptions in retirement planning: that happiness in retirement depends on maintaining a constant—or even increasing—level of spending.

⬇️ Upon entering retirement, households experience a median consumption decline of about 20%.

This drop is often viewed as a red flag in traditional financial planning models.

However, Blanchett argues that this decline is not necessarily problematic, especially when you look at how financial well-being changes over time.

☎️ Then on our listener question, we hear from a 34-year-old investor who’s been all-in on stocks since taking Dave Ramsey’s advice early in their career. Now, they’re wondering how and when to start easing into a more balanced portfolio with bonds.

We’ll talk strategy, psychology, and sprinkle in some data on market highs that might surprise you.

Resource:

Article by John Manganaro from ThinkAdvisor: Spending Drops in Retirement, but Satisfaction Doesn't: Blanchett

Connect with Benjamin Brandt

Follow Retirement Starts Today in:Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart

Get the book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement

  continue reading

394 episodes

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iconShare
 
Manage episode 495609353 series 1232333
Content provided by Benjamin Brandt CFP®, RICP® and Benjamin Brandt CFP®. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Benjamin Brandt CFP®, RICP® and Benjamin Brandt CFP® or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.

New research from David Blanchett, head of retirement research at PGIM, challenges one of the biggest assumptions in retirement planning: that happiness in retirement depends on maintaining a constant—or even increasing—level of spending.

⬇️ Upon entering retirement, households experience a median consumption decline of about 20%.

This drop is often viewed as a red flag in traditional financial planning models.

However, Blanchett argues that this decline is not necessarily problematic, especially when you look at how financial well-being changes over time.

☎️ Then on our listener question, we hear from a 34-year-old investor who’s been all-in on stocks since taking Dave Ramsey’s advice early in their career. Now, they’re wondering how and when to start easing into a more balanced portfolio with bonds.

We’ll talk strategy, psychology, and sprinkle in some data on market highs that might surprise you.

Resource:

Article by John Manganaro from ThinkAdvisor: Spending Drops in Retirement, but Satisfaction Doesn't: Blanchett

Connect with Benjamin Brandt

Follow Retirement Starts Today in:Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart

Get the book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement

  continue reading

394 episodes

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