Preparing for Retirement Part II

Key Takeaways

  • This is Part II of a three-part series on retirement.
  • You’ll need a spending strategy in retirement.
  • This will help you determine whether you’re ready to turn off that “income spigot.”

In Part II of our retirement series, we’ll look at having a spending strategy. You may think this means having a budget, but it’s not the same thing. It’s truly a strategy for how your spending will change in retirement.

Up until this point, you’ve been living life and spending as you see fit. You may enjoy the things you’re doing now and you may also want to change some things in retirement. Your spending strategy needs to follow these changes.

Supposedly, once a person retires, their living expenses decrease by about 20 percent. While this may be true, we’ve found that the money tends to get reallocated elsewhere. That 20 percent that you needed for living expenses may now go towards things like more frequent travel or other things that you simply didn’t do prior to retirement.

This worksheet will help you determine a spending strategy. At the top, you’ll see there are columns for Current Income and Future Income. Beneath these are corresponding sections for Current Expenses and Future Expenses.

As you complete the worksheet, you may find it eye opening to see that taxes are a lot lower and you’re not making contributions to 401(k) plans thereby reducing your overall expenses. There may be several other things that change pretty dramatically, too. Perhaps you’ll have a second home to factor in – how will that affect things? Or you may decide to permanently move to another part of the country, which may have an impact on your expenses.

Clearly, there are a lot of moving pieces. This is why it’s important to be very clear about your spending strategy before you stop actively working and turn off that income spigot. You’re going to need to know what your assets, Social Security, pension, or other sources of income from investments will be covering. So take the time to put your spending strategy together and take this step seriously. Until next time, enjoy.


If you’d like more in-depth information on this topic, we have a course on how to prepare for retirement. Please contact us at, and we’ll get you set up with this video series course.



Gary Klaben serves as a Financial Advisor, and visionary for Coyle Financial Counsel. He has over 30 years of experience and is the author of Changing the Conversation, Wealth of Everything and co-author of The Business BattlefieldWhether advising his clients, mentoring his team, or coaching entrepreneurs, he is always simplifying complexity and motivating others to take the next action that’s right for them.

Learn more about The Coyle Process, approach designed to get your arms around the big picture, so you can make informed financial decisions. Ask Gary about The Coyle Process and schedule a complimentary consultation and start living the Good Life Managed Well™.
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All information is from sources deemed reliable, but no warranty is made to its accuracy or completeness.   This material is being provided for informational or educational purposes only, and does not take into account the investment objectives or financial situation of any client or prospective client.  The information is not intended as investment advice, and is not a recommendation to buy, sell, or invest in any particular investment or market segment.  Those seeking information regarding their particular investment needs should contact a financial professional.  Coyle, our employees, or our clients, may or may not be invested in any individual securities or market segments discussed in this material.  The opinions expressed were current as of the date of posting but are subject to change without notice due to market, political, or economic conditions. All investments involve risk, including loss of principal.  Past performance is not a guarantee of future results.

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