Many retirees look forward to traveling, spending more time with their grandkids, or taking up new hobbies they never had time for during their c💮ar🐲eers. But these activities won’t necessarily be free of charge. Golf, traveling, starting something new, or crafting can be expensive. 

The key to a fulfilling retirement is balancing fun with smart financial planning to make your savings last as long as you need them to. And with today’s workers expecting to live until 88, retiring before 70 means you could have over 20 years of free time to fill—and pay for.

A Balance Between Your Dreams and Their Cost

The top three retirement aspirations for today’s workers are traveling (65%), spending time with friends and family (57%), and pursuing hobbies (49%). Whether your goal is to explore the south of France, get your hands dirty in the backyard building a garden, or something else, your finances need to play a par🐟t in planning 🍸for all of your dreams. 

Remember that transitioning from earning a consistent income to relying on retirement funds can come with a major shift in lifestyle. According to , founder and certified financial planner with Falcon Wealth Planning in Los Angeles, people tend to spend the most money in the first 6 to 18 mo🅘nths of retirement while they adjust to their new lifestyl🍸e.

To help you incorporate your dreams into your post-work life, start planning by listing activities you’re passionate about and categorizing them by cost and accessibility. Ask yourseꦐlf:

• Does this require travel? 
• Will I need training or special equipment? 
• Can I start with free online resources, like YouTube, or will this require a financial investment?

Researching each hobby's financial and time commitments will help you incorporate them into your new lifestyle and overall retirement budget.

Setting Financial Goals for Retirement Hobbies

Financial planning is 澳洲幸运5开奖号码历史查询:just as important during retirement as it was when you were preparing for retirement. Here are a few strategies to make sure you’re 澳洲幸运5开奖号码历史查询:financially prepared to engage in new adventures of your choosing.

Strategy #1: Budget for Hobbies

First, create a budget that will reflect your new financꦏial situation and include the cost of your hobbies. Start by tracking current and projected retirement expenses to determine your total savings, annual cost of living, and what is left over for discret🍒ionary spending. If you’ve paid off your mortgage and minimized most other debts by the time you retire, you may have more flexibility in your budget to spend on travel and hobbies. 

Shahin advises retirees to look at what they are spending pre-retirement and “plan on spending, conservatively, 10% to 20% more in retirement.” In retirement, every day offers you the freedom of a weekend. This free time opens up new 澳洲幸运5开奖号码历史查询:opportunities to travel, try new hobbies, and explore fun weekend activities, all of which invol🐼ve spending more money. 

Typically, Shahin sees anywhere from 10% to 30% of a retiree’s budget allocated for fun and hobbies, depending on whether or not their mortgage has been paid off. He suggests doubling your pre-retirement 澳洲幸运5开奖号码历史查询:travel budget so you never have to say no to a spontaneous adventure.

Strategy #2: Prioritize Your Spending

As with any budget, your retirement budget should 澳洲幸运5开奖号码历史查询:prioritize necessary expenses, such as housing, food, healthcare, utility bills, and debt payꦑment🥂s.

Next, determine how much money you have left over once your financial obligations and needs have been met. This amount will help you figure out which activities you are able to start right away and which will require savings or long-term planning. This way, you will be able to enjoy your dream hobbies without jeopardizing your financial security.

Investment Strategies to Support Hobbies

Strategy #3: Diversify Your Investments

During your working years, you may have invested money in an employer-sponsored 401(k) account or an IRA—Roth or traditional—or used other investment avenues. Investing shouldn’t stop once🐠 you retire, but it should look different through diversification.

As you prepare for retirement, get a full understanding of your 澳洲幸运5开奖号码历史查询:investment portfolio and consider where you can diversify your investments to create a stable and consistent income throughout retirement. When it comes to diversifying your assets, Shahin says, “keep it simple. Invest in liquid, growth, and income investments—essentially, stocks and bonds.” Unexpected expenses can come up during retirement, so 澳洲幸运5🔯开奖号码历史查询:maintaining investments with liquidity ensures not just continued growth but also access whenever you need it.

Strategy #4: Manage Risk

Assess your 澳洲幸运5开奖号码历史查询:risk tolerance when considering how you want to diversify investments during retirement. If your investments leading up to retirement have been in low-risk, long-term accounts, consid𓄧er exploring short-term, slightly higher-yield investment options, like stocks, to increase your discretionary income. While investing in stocks comes with risk, it’s a great way to make sure your money is keeping up with inflation and is available to you should you need it. 

Make sure that your investment strategy aligns with your 澳洲幸运5开奖号码历史查询:withdrawal timeline and finan𓄧cial nee﷽ds in retirement. The goal is to generate income through investments to support your lifestyle, including your hobbies while keeping your principal investment secure.

Creating a Retirement Bucket List

Strategy #5: Define Your Bucket List

Now comes the fun part—creat𒐪ing your retirement bucket list. Picture your ideal retired life. Are you reading a book a day? Volunteering in your community? Taking up birdwatching?

The most popular hobbies for retirees are cooking and baking, reading, gardening, traveling, outdoor activities, and DIY crafts. Taking up new hobbies is not only fun, but research shows that learning new 澳洲幸运5开奖号码历史查询:creative skills in retirement can enhance your cognitive function and improve memory.

Strategy #6: Align Fi💃nancial Plans With Bucket ♍List Goals

Review your budget and see how much money is left over for 澳洲幸运5开奖号码历史查询:discretionary spending. This will determine which hobbies fit within your financial plan. Aligning your bucket list with your budget will help ensure you don’t ov♑erspend and jeopardize your money, lasting as long as you nee💞d it to. 

Some bucket list items may require significant planning and funding. By aligning your list with your financial plan, you’ll know which experiences you can enjoy now, and which may require additional savings. Prioritize items based on their personal importance to you, cost, and time commitment. Consider setting up a bucket list fund that is separate from your other living expenses in retirement.

Adjusting Financial Plans Over Time

Strategy #7: Monitor and Adjust Your Budget

Your 澳洲幸运5开奖号码历史查询:budget is a living document that should stay flexiꦛble, evolving to fit your lifestyle changes. 𝄹

It’s important to regularly review and update your budget as your income and expenses change. You can do this on your own or with the help of a financial advisor. If you are married or have a partner, 澳洲幸运5开奖号码历史查询:make this plan together, taking into ꧒account your joint sav💟ings and the bucket list you both have created.

According to the Consumer Financial Protection Bureau (CFPB), nearly half of retirees (49%) cannot maintain their pre-retirement spending after five years, while 24% have to add savings from retirement accounts or other sources to sustain their lifestyle. Staying proactive and involved in your finances can help you navigate any changes that come your way in retirement.

Strategy #8: Be Ready to Adapt to Life Changes

Life is unpredictable. It’s important to be prepared for both the expected and unexpected changes that life brings, whether they relate൲ to your health, housing, or family needs. 

Maintain a flexible budget and update your financial plan as life events occur. Creating an 澳洲幸运5开奖号码历史查询:emergency fund can help you avoid sacrificing any of your discretionary spending to cover the costs of an unplanned life event. Consider working with a financial advisor to keep your financial plan updated as your life changes through retirement.

The Bottom Line

Retirement is an exciting time to dive deep๊er into your passions and interests, but financial planning is the key to m𒁃aking it possible and lasting. 

By setting a budget, aligning your bucket list with your finances, and regularly reviewing your financial plan, you can enjoy the retirement you’ve always dreamed of. It’s never too early to start planning for a fun, fulfilling, and financially secure post-nine-to-five life.