Retirement Planning
Retirement Budgeting for the First 10 Years
The first decade of retirement is usually the most expensive and volatile. A strong budget structure keeps spending aligned with portfolio realities and changing priorities.
Use spending tiers
- Tier 1: non-negotiable core expenses.
- Tier 2: lifestyle priorities that can flex.
- Tier 3: discretionary spending tied to market conditions.
Avoid common budget misses
- Underestimating healthcare and insurance increases.
- Ignoring home repair and vehicle replacement cycles.
- Assuming travel spending stays constant forever.
Practical move: A flexible budget is usually more sustainable than a rigid target that ignores real-life changes.
Build your 10-year plan
- Map annual spending by category for years 1 to 10.
- Define which categories can be reduced during weak markets.
- Review budget assumptions every year with actual spending data.