NEW YORK (MainStreet) — Few people know how to properly save for retirement. Even fewer know how to spend the money once they have it. Indeed, saving money for retirement is almost pointless if you don’t have a plan to spend it wisely. So how do you make sure that you get the most out of your retirement nest egg? Most importantly, how do you make sure that it lasts you for your entire retirement? We spoke to some financial planning experts to get the low down.
Meet With an Advisor
“People are living longer,” says John Calabrese, a financial advisor with the MetLife Premier Client Group. “One of the major concerns with that is their spending and saving habits.”
To that end, you need to discuss your goals and objectives with a financial advisor.
One thing complicating matters is the number of assets retirees might hold. This is due to the fact that people have far more jobs, or even careers, than they did in past generations.“Consolidating assets can make life a lot easier,” says Calabrese.
Finally, one thing you’re going to want to look into before you meet with an advisor isn’t going to be pleasant, but it’s necessary: how long do you plan to live. “Look at your family tree and the health of your family,” he says. More on this later.
The Bucket System
Holly Kylen, a Voya Retirement Coach, has a tried-and-true system for managing assets after retirement. She calls it the bucket system and this is how it works: