[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.amorusolaw.com\/blog\/dont-make-these-early-retirement-mistakes-new-york-ny-greenwich-ct\/#BlogPosting","mainEntityOfPage":"https:\/\/www.amorusolaw.com\/blog\/dont-make-these-early-retirement-mistakes-new-york-ny-greenwich-ct\/","headline":"Don\u2019t Make These Early Retirement Mistakes","name":"Don\u2019t Make These Early Retirement Mistakes","description":"\u201cYou probably anticipate living on a fixed income in retirement. However, you may not expect how much your spending will fluctuate. Many individuals tend to shell out more money at the outset of retirement, due to lifestyle adjustments or travel.\u201d Starting retirement with a bang can make a big dent in your nest egg no […]","datePublished":"2019-09-30","dateModified":"2024-03-21","author":{"@type":"Person","@id":"https:\/\/www.amorusolaw.com\/blog\/author\/amorusolaw\/#Person","name":"Amoruso & Amoruso, LLP","url":"https:\/\/www.amorusolaw.com\/blog\/author\/amorusolaw\/","identifier":5,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/12de032c04195e9c39a06a6d6eea182f7b4fa655c20e245f8094a244b5cdd0cb?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/12de032c04195e9c39a06a6d6eea182f7b4fa655c20e245f8094a244b5cdd0cb?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Amoruso & Amoruso, LLP","logo":{"@type":"ImageObject","@id":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/07\/amoruso-logo.svg","url":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/07\/amoruso-logo.svg","width":0,"height":0}},"image":{"@type":"ImageObject","@id":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/04\/6a01901dd0a082970b0240a48a42e7.jpg","url":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/04\/6a01901dd0a082970b0240a48a42e7.jpg","height":853,"width":1280},"url":"https:\/\/www.amorusolaw.com\/blog\/dont-make-these-early-retirement-mistakes-new-york-ny-greenwich-ct\/","about":["Elder Law","Estate Planning","Health Care Proxy","Inheritance","Medicaid Planning","Power of Attorney \/ POA","Retirement Planning","Will"],"wordCount":514,"keywords":["Elder Law","Estate Planning","Health Care Proxy","Inheritance","Medicaid Planning","Power of Attorney","Retirement Planning","Will"],"articleBody":"\u201cYou probably anticipate living on a fixed income in retirement. However, you may not expect how much your spending will fluctuate. Many individuals tend to shell out more money at the outset of retirement, due to lifestyle adjustments or travel.\u201dStarting retirement with a bang can make a big dent in your nest egg no matter how big it is. However, there are ways to protect yourself, says CNBC in the article “Here\u2019s what could take a big bite out of your retirement nest egg\u2014and how you can control it“. A study from J.P. Morgan Asset Management looked at five million Chase accounts and found that people tend to spend more in the beginning years of retirement.The transition into retirement is much bigger than even the experts expected. The surge in spending was greater than they had thought it would be. It\u2019s big enough that the traditional measure of how much is needed during retirement may need some adjusting.The early years of retirement are when big changes begin. People are adjusting to a new lifestyle that is very different. That\u2019s likely to be the time when they go on \u201cbucket list\u201d trips, renovate their homes, or relocate. However, this is not the time to let spending go unchecked.Once you move from an income-based budget to a fixed-income budget, inflation becomes more of a financial factor. If you neglect to factor it into your retirement spending, those middle to late years of retirement may become shaky.A better solution is to consider changing needs over time and inflation on a category-by-category basis, like food, housing, transportation and travel.Be mindful of how much equity risk you have in your portfolio when you reach retirement and as you move through your retirement years. You should also be aware of the tax consequences of the withdrawals that you do make.Spending will fluctuate throughout your lifetime. However, remember that medical costs could increase dramatically at any time, without warning. If you are still living in a single-family home, over time houses need expensive fixes if they are to retain their market value.One expense not to skimp on: having an estate plan in place. The cost of not having a will, power of attorney or health care proxy could take a big bite out of your retirement savings or take an even bigger bite out of your children\u2019s inheritance. A power of attorney and a health care proxy for you and your spouse will avoid your having to go to court for guardianship proceedings, if one or both of you become incapacitated.A last will and testament must be properly created with the help of an estate planning attorney, so that your assets are distributed as you want when you pass. Estate planning also helps with preparing to minimize taxes and may include Medicaid planning, if one or both spouses may need long term care.Reference: CNBC (Sep. 4, 2019) “Here\u2019s what could take a big bite out of your retirement nest egg\u2014and how you can control it“"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Blog","item":"https:\/\/www.amorusolaw.com\/blog\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Don\u2019t Make These Early Retirement Mistakes","item":"https:\/\/www.amorusolaw.com\/blog\/dont-make-these-early-retirement-mistakes-new-york-ny-greenwich-ct\/#breadcrumbitem"}]}]