They Were "Overspending" and It Worked Out Perfectly

Linda and Michael came to us with a plan that looked reckless on paper.

They wanted to travel. A lot. Big family trips where they'd foot the bill for everyone. European adventures. A bucket-list safari. All in the first five years of retirement.

The problem? Every dollar they had was sitting in pre-tax retirement accounts. And to fund these dreams, they'd need to pull about 10% from their portfolio that first year.

Way above any reasonable guideline.

Linda and Michael were in their early 60s with around $1.8 million saved. All of it in traditional IRAs and 401(k)s.

They wanted to spend roughly $180,000 in year one. That's a withdrawal rate that would make any financial textbook cringe.

And because every dollar came from pre-tax accounts, their tax bill climbed right alongside their spending.

Here's what most planning advice misses. Retirement isn't a spreadsheet. It's a life.

Think of it like a cross-country move. The first few days, you're driving long stretches, burning through gas, eating at restaurants, staying at hotels. Your daily costs are high. But eventually, you reach your destination. You settle in. The pace slows. The spending drops.

Linda and Michael weren't planning to travel like this forever. They knew they'd get tired. They were already starting to feel it.

We didn't ignore the math. We expanded the timeline.

Michael had deferred compensation payments starting the following year. Both were eligible for Social Security. And Linda had a pension kicking in at 65.

Within three years, their income picture would look completely different. And their energy for travel? Already winding down naturally.

So yes, year one looked aggressive. But by year four, their withdrawal rate dropped to something entirely sustainable. The extra income arrived. The spending slowed. The plan came into balance.

Last summer, they took their kids and grandkids to Italy. Everyone. Two weeks. Linda told me it was the single best trip of her life.

They didn't spend those two weeks worrying about whether they could afford it. They already knew the answer.

That's what this kind of planning does. It doesn't just crunch numbers. It gives you permission to live.

Retirement spending almost never follows a straight line. Most people spend more early on, then naturally slow down. And income can increase over time as Social Security, pensions, or other sources kick in.

If your plan only looks at year one, it might scare you into playing too small.

The better question isn't "can I afford this forever?" It's "what does my whole retirement look like?"

One more thing – I read every single reply to these emails.

I use your responses to guide my content, so it might become next week’s deep dive.

Happy retiring,

Josh Rendler, CFP®

_{For privacy, names and minor details were changed. Education only, not advice. Consult your professional(s).}