You’ve worked hard, saved diligently, and built a multimillion-dollar portfolio. But now that you’re retired, why does spending your money feel so difficult? Many wealthy retirees hesitate to enjoy their wealth, fearing market downturns, unexpected expenses, or simply outliving their assets. Instead of living in financial confidence, they live cautiously—sometimes too cautiously.

Resources:

• • FREE RETIREMENT READINESS REPORT 
  • Retire with $6M: Here’s what life actually looks like

Why Many Millionaires Struggle in Retirement—And How to Fix It

Reaching retirement with a multi-million-dollar portfolio is a major financial achievement. You’ve worked hard, saved diligently, and built wealth that should allow for a comfortable and fulfilling retirement. Yet, many retirees with substantial assets still find themselves living far below their means—hesitant to spend, invest, or enjoy their golden years. The problem? A mindset that hasn’t adapted to the shift from saving to spending.

The Real Threat: Inertia

One of the biggest financial risks for wealthy retirees isn’t market crashes or inflation—it’s inertia. After decades of diligently saving and investing, it can be difficult to switch gears and start withdrawing money. The fear of running out of funds, unpredictable market conditions, and a lack of clear spending strategy often lead to unnecessary frugality.

But the cost of doing nothing is real. While your money sits largely untouched, life continues to move forward. Travel opportunities, family experiences, and charitable giving are all missed. Financial security is important, but true wealth is about using your money to enhance your life and create meaningful experiences.

Overcoming the Fear of Spending

Many retirees struggle with the mental transition from accumulation to decumulation. The habits that made you wealthy—saving, investing, avoiding unnecessary expenses—can become a hindrance if they prevent you from enjoying your wealth. Here are three key strategies to overcome the fear of spending:

1. Create a Sustainable Withdrawal Plan

A well-planned withdrawal strategy can provide financial confidence. Consider using the 4% rule as a baseline—this suggests withdrawing 4% of your portfolio annually, which historically provides sustainable income without depleting assets too quickly. But a personalized approach, considering market conditions and your specific financial situation, is even better.

2. Segment Your Retirement Assets

One way to ease spending anxiety is to allocate your assets into different buckets:

• Short-term (1-5 years): Cash and liquid investments to cover immediate expenses.
• Mid-term (5-15 years): Bonds and income-generating investments for stability.
• Long-term (15+ years): Stocks and growth assets to sustain your wealth over time.

This structure allows for spending in the present while ensuring future security.

3. Reframe Your Mindset Around Money

Instead of seeing withdrawals as “losing” money, consider them as exchanging assets for experiences and security. Wealth isn’t just about numbers on a balance sheet—it’s a tool to improve quality of life. Planning for major life goals, family vacations, and philanthropy can help retirees feel more comfortable using their money meaningfully.

Avoiding the “Too Late” Trap

Many wealthy retirees postpone enjoying their wealth, thinking they will spend more “later.” But as health issues arise or personal circumstances change, the opportunity to enjoy certain experiences can diminish. The key is to balance responsible financial planning with intentional enjoyment—ensuring you make the most of both your money and your time.

The Bottom Line

Building wealth is just one part of the equation—learning how to spend it wisely is just as important. Retirement should be about financial freedom, security, and fulfillment, not just cautious preservation of assets. By developing a structured withdrawal plan, adopting a segmented investment strategy, and shifting your money mindset, you can confidently enjoy the wealth you’ve worked so hard to build.

Smart financial planning means not just securing your future, but maximizing your present. Don’t let fear or inertia hold you back from making the most of your golden years.

 

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This does not constitute an investment recommendation. Investing involves risk. Past performance is no guarantee of future results. Consult your financial advisor for what is appropriate for you. Disclosures: https://onedegreeadvisors.com/solutions/#disclosures