Time to read: 2 minutes
Everyone is talking about expenses. In 2022, we have seen inflation rise, and with inflation rising, expenses are rising. When you hear that term expense, most people think bills. There’s a lot that goes into that phrase.
Expenses could be classified as:
- A mortgage
- A car payment
- Groceries
- A Loan
It could be taking on financing for an expense
See how we use that phrase in the term? Or for something that came up that you didn’t see coming.
When you’re in retirement most people think of themselves as on a fixed income and expenses become very-very important. You are looking at how to spend money that’s coming in monthly and fixed. When you’re getting ready to retire or you’re in retirement right and you look at those different costs that are coming up, we must look at how much of your portfolio you’re going to need to dedicate just to cover those costs.
Then, we have to determine does it make sense to pay them off quicker, does it make sense to just continue to have that expense? Remember there’s two different types of an expense. There’s good debt and bad debt. We are here to help you educate yourself on what is a good debt or expense to hold, and what is a bad debt or expense to hold not only before retirement. During retirement, good debt is a huge key to having you being able to be successful or have the retirement that you’re seeking for the rest of your life.
If you are looking for more information on which debt you should hold during retirement to help you manage cash flow in retirement, please click here!
If you would prefer to listen, please click the YouTube Video below to listen to Tyler Braun, Financial Advisor, talk about expenses in retirement.