Affluent Retirees Face an Unusual Dilemma: Under-Spending Their Savings
It's a challenge many might envy, but some well-heeled retirees are grappling with an unexpected issue — not spending enough of their accumulated wealth. Financial advisers often encounter retirees who have been frugal all their lives, leading to a situation where their savings outlast their spending habits.
Lavish Trips and Home Improvements
Exemplifying this are retirees embarking on extravagant excursions and costly home upgrades. A notable example includes spending on an elaborate 14-day Kenyan safari in 2020. Additionally, an ambitious plan was set to explore all five of Utah's national parks in 2022, with a picturesque Italian getaway slated for 2023. To round out their adventures, they have an Alaskan cruise booked for September. Reflecting on home life, these retirees are channeling about $30,000 into various home renovation projects.
The Investment Puzzle
Investment decisions play a significant role in such luxurious retirement lifestyles. While traditional investments like stocks and bonds are commonly part of a retiree's portfolio, modern investment products like exchange-traded funds (ETFs) can also provide the necessary growth and income.
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