How Much Can You Spend?
You saved it. Now how much can you enjoy?
What This Means
How much can you spend once you stop working?
The answer isn’t based on one withdrawal rate or retirement rule of thumb.
It depends on your savings, income, expenses, taxes, investment strategy, and most importantly — what you actually want your money to do for you.
For some people, the goal is leaving behind as much money as possible. For others, it’s traveling more, helping their kids, or simply enjoying more of the money they spent decades building.
That’s why we believe financial planning should start with your goals and then work backward into the numbers.
In this example, taking more from the portfolio could mean paying more in taxes, higher Medicare premiums, and potentially leaving less money behind.
But those weren’t the things this client wanted to optimize for.
She wanted to enjoy more of her money now and help her kids while she was here to see it.
The goal isn’t always to spend the least amount possible.
It’s figuring out how much you can comfortably spend after you stop working — and having a plan that gives you the confidence to do it.
Common Questions
What is a safe withdrawal rate in retirement?
There’s no one withdrawal rate that works for everyone. How much you can comfortably take depends on your age, how much you have saved, your other income, how much you spend, how your money is invested, and what you actually want to do with it. And that number can absolutely change over time.
How often should I review my income plan?
At least once a year, and anytime something significant changes in your life, income, investments, or goals.
Can I spend more when I first stop working?
Yes. Your spending doesn’t have to stay the same throughout retirement. You may want to spend more in the early years when you’re traveling, helping your kids, or simply enjoying more of your money. The important part is making sure your plan can support it.
How do I know if I have enough money to stop working?
Work in reverse. Start with how much you want to spend, subtract your fixed income sources like Social Security or a pension, and the difference is what your portfolio needs to provide. Then run that withdrawal through a financial plan and stress test it to see if the numbers hold up.
Remember This:
The goal isn’t to spend the least. It’s to make sure your money does what you want it to do.
Keep Learning:
Work Optional Number: Learn how your spending, income sources, and investments come together to determine when work can become optional
Sequence Of Returns Risk: Understand why the timing of market returns matters more once you begin taking withdrawals.
Retirement Income Strategy: See how to turn the assets you’ve built into the income you need once you stop working.