Dave Kennon: That is What the Money is FOR

Money Legacy Giving - Dave Kennon

Dave Kennon, Kennon Financial

Last week I asked you to share some examples with me as to how you are using your extra spending money in retirement.

Remember, my suggestion is that you spend the money that the money is making.  Hopefully, by now you would agree that spending the earnings on your assets is a reasonable and responsible strategy.

The Retirement Revolution is starting to head out of the station.  Are you ready?  As we speak, more and more retirees are jumping on the train.

There is just so much needless worry and stress about retirement finances happening out there.  Not to mention that many Baby Boomers never get to enjoy the money they saved their entire life specifically for retirement.

Some people wonder how I can get so consistently jazzed up discussing spending in retirement.  Keep reading…you might understand better.

Here is some feedback I received from loyal readers last week in regards to spending:

“We held (and funded) a family reunion in Hilton Head, SC with our children and grandchildren, even our son from Thailand!”

Incredible, isn’t it?  The children and grandchildren will forever have that memory.  Their son got to reconnect with the family.  This is what money is FOR.

That’s one family reunion initiated.  As the book begins to gain momentum and readers- can we get ten family reunions to happen.  One hundred?  One thousand?  

Can we help foster family relationships all across the country between grandparents, parents, children, and grandchildren?  Yes.  I believe we can.

Another response:

“I gifted a newly graduated MBA (my son) $14,000 to relocate and get a head start.  My husband had almost an entire household full of furniture from when we downsized to Florida.  I hired a mover to ship the leftover furniture from Virginia to my son’s new home in Indiana.”

Wow.  That’s awesome.  This person was able to help her son when he needed help the most.  I can just imagine the joy she felt giving the money, and I can only imagine the relief it gave her son.

Can we help foster this kind of generosity across the country?  Yes, we can!  This is what money is FOR.  Can we get more than one person to take action like this?  Ten people?  A hundred people?  A thousand people?

Another response:

“I invested in a personal trainer to regain my stamina after a bad bout of bronchitis.”

Could The Retirement Revolution actually save a life?  Personal trainers, concierge doctors, healthier food, and nutritionists all extend lifespans and quality of life.

Could The Retirement Revolution improve the health of the country’s retired population?  One person?  Ten people?  One hundred?  One thousand?

These are just a few examples of the feedback I received.  How could you not become passionate about this work?

New Data:

There is more and more data coming out supporting my point (many retirees are not spending enough money).  Recently a new study was released by the Employee Benefit Research Institute.

They examined retirees with low, moderate, and substantial savings.  Their conclusion?  Retirees are not spending nearly as much as they could be.

Amount of Assets at RetirementAverage Savings at RetirementAverage Savings 20 Years After RetiringPercentage Decrease
Low$31,700$24,000-24%
Moderate$334,000$243,000-27%
Substantial$857,450$763,800-11%

Important Points:

1. This study tracked people during the past 20 years which was, in reference to the stock market, terrible. One of the worst 20 year time periods in the history of the markets. (the S&P 500 still averaged around 7% per year. Not too shabby for a “terrible” 20 year period).

2. These numbers do not include anything besides investable assets. It does not include equity in your home. And, inconceivably, the study did not include money held in 401ks. I feel the study is underestimating leftover wealth.

3. The data reconfirms the fact that only 12% of Americans reach the end of their life living only on Social Security with no other assets or savings. 

I certainly am not suggesting that those of you in the “low” asset category should start spending more.  But those of you in the “moderate” and “substantial” categories might have more room to spend and enjoy the fruits of their labor.

 

Be Blessed,

 

Dave Kennon, Kennon Financial 

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