Can You Save Too Much for Retirement?
Most retirement planning focuses on one risk: running out of money. But there's another risk we don't talk about nearly enough: running out of time to enjoy it. After 30 or 40 years of living below your means, saving becomes a habit, and I've seen how hard it can be to flip the switch from saving to spending. The very habits that helped you build wealth can make it difficult to enjoy.
Money and time are different resources. At 60, you may have the health and energy to travel, hike, and go on adventures. At 80, you might have more money but fewer opportunities to enjoy those same experiences. My former business partner Jim once told me he wished he'd traveled more when he was younger. Some experiences have an expiration date.
That's why a financial plan should answer more than "Will I run out of money?" It should also answer, "How much can I reasonably spend or give away today?" Running the numbers on your spending, investments, taxes, and a possible market downturn sometimes shows more room than people expect, though every situation is different. And enjoying your wealth doesn't have to mean spending it on yourself. If giving is part of your plan, explore our free Charitable Giving Strategy Finder.
