(Update to original post from December 18, 2018)
When helping individuals and couples plan for retirement, one of the key things we discuss is their personal relationships. For example, some people envision planning a family gathering annually with their adult kids and grandchildren.
In order to estimate how much money they will spend in retirement, it’s important to understand how they anticipate spending their time with family and friends.
As you think about your retirement lifestyle, do you see yourself planning family gatherings? If yes, here are some questions to consider:
Where will you have these gatherings – locally or in another state or maybe even internationally?
How often will you have this gathering – annually or every few years?
Will you include pets or pay for boarding?
How much of these expenses will you pay – travel, housing, food, entertainment, etc.?
When you total these expenses, you’ll see why it’s important to include them when estimating your retirement spending.
Another expense relating to personal relationships is getaways with family and friends.
One of my clients spends a day at the spa monthly with her daughters.
Another client ventures with his guy friends to different golf communities.
As you plan your retirement, do you see yourself having these short getaways? If yes, here are some questions to consider:
Who will you spend the getaway with – siblings, adult children, grandchildren, or friends?
How often will you have these types of getaways?
Where will you travel and what will you do?
How much do you expect to spend?
Even if you don’t know the details, it’s wise to plan for these getaways if you envision them being a part of your retirement lifestyle.
Another expense relating to personal relationships is dining out with family and friends.
How often do you envision dining out with family and friends during your retirement?
Do you anticipate splitting the check or picking up the entire tab?
As you plan your retirement, think about how you will spend your time with family and friends.
This exercise will help you estimate how much money you’ll need in retirement to live the lifestyle you envision with your family and friends.
ABOUT THE AUTHOR:
Niv Persaud, CFP®, CDFA™, RICP®, CRPC®, is the Founder of Transition Planning & Guidance, LLC. Life is more than money. It’s about living the lifestyle you want and can afford. For that reason, Niv consults with clients on money, life, and work. Her approach capitalizes on techniques she learned throughout her career, including as a management consultant, executive recruiter, and financial advisor. Her services include developing spending plans, comprehensive financial plans, divorce financial reviews, and retirement plans. Niv actively gives back to her community through her volunteer efforts. She believes in living life to the fullest by cherishing friendships, enjoying the beauty of nature and laughing often — even at herself. Her favorite quote is by Erma Bombeck, “When I stand before God at the end of my life, I would hope that I would not have a single bit of talent left and could say ‘I used everything you gave me.’”