This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Pity the Retirement Hoarder

Bovard isn't surprised by the psychology at play among those who resist post-retirement spending.

"You spent 40 to 45 years accumulating this pot of money, and you did it by saving and saving and scrimping," he says.

In response, he tries to work with clients, especially during the early years of retirement, to "bump that expense level up a bit" and factor in the cost of various trips and activities they have expressed an interest in but haven't had the time to do until retirement.

"Sometimes part of our job is not just to be your financial adviser, but also a counselor," Bovard says. "It's all about striking a balance. If there are a couple of things you want to get done, lets figure out how to do them and still feel comfortable whether the markets are up or down or back and forth. While you still have the health and energy and desire, let's make these things you want to do happen."

"If you can't actually do that and relax, why retire? Maybe you are just tired of work, and that's fine, but if the idea is to retire because there are things you want to do and enjoy, then you are going to have to learn to relax a little bit," he adds. "It is a very different thought process for people when they've spent years pumping money in and now they turn around and have to take money out. Psychologically it is a huge transformation and if they are a workaholic, this can be a very difficult transition."

The balancing act between preserving financial security and enjoying your money differs from person to person, Bovard says. It is hardest for those he describes as "worrywarts."

"You have to deal with that personality differently, and they may never be comfortable," he says. "You say that they can afford to do something and they reply, 'Oh, I'd better not.' As soon as you go through the first downturn together -- and if you look at them long enough you are going to go through at least one or two or maybe three -- they are like, 'See, I knew it, I've got to pull back, I knew I shouldn't have gone on that trip.' What I have to say to them is that we've got the money set aside and life is going to move on whether the markets are up or down."

Bovard says having a solid financial plan in place helps investors learn to enjoy life in retirement. It also keeps them from taking on excessive risk in the name of returns.

"It's important to have the ability to stick to that plan through the good the bad and the ugly," he says. "It is not just when things are bad that people go off the reservation. When things are great, people believe they are much less risk averse. 'Oh look, everybody is making tons of money and I'm not making as much.' Well, remember that we have a balanced portfolio because when things are down you get really upset. We'll still get to the same place, we are just going to do it with less bumps."

--Written by Joe Mont in Boston.

>To contact the writer of this article, click here: Joe Mont.

>To follow the writer on Twitter, go to

4 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs