Money manager Jonathan D. Pond writes in Planning to Make
the Money Last (AARP The Magazine - January/February
2008 issue) how people can make their money last during retirement.
He advises to hold on to your stocks when you retire - don't get
too conservative and give up returns over the long run.
And watch your spending when you first retire because that new
kitchen you've always wanted and your cruse of a lifetime can eat
away at your savings. Here are two quotes: "Forking over $65,000
for a new kitchen trims your lifetime income by $325 a month"
and "Buying a $30,000 car at age 65 cuts your lifetime income
by $150 a month."
He spells out the advantages of delaying retirement to build up
Social Security benefits and other retirement savings. But he doesn't
mention that many people hate their jobs and can't wait to stop
working to retire at the earliest possible date. For this group,
giving up a few extra dollars for retirement is much more preferable
than continuing to slug it out with the boss.
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