PHONE: (717) 303-1999

Financial and Retirement Planning Blog

Retirement Planning & Holiday Spending

You’ve spent the better part of your working years planning for your comfortable retirement. As you celebrated your last official day of work, you already had a pretty good idea of the value of your financial investment portfolio and personal worth. And, you probably had a plan for how much money you would need every year to maintain the comforts of life that you were accustomed to. You either would have more than enough for a comfortable retirement or you would have to be careful with spending to maintain your lifestyle. Either way, a budget is always a good idea to make your money lasts as long as possible.

When budgeting, there’s very little difference in living expenses from month to month except for the holidays. You’ll want to make sure that you consider this extra expense when completing and following your budget. Whether you save a specific amount each month or have an emergency fund, you will want to ensure that the money you need is available to avoid adding any credit card debt to your future budget.

Here are some tips to help you have a great holiday without causing you any undue financial stress. 

Determine how much money you will need.

Take the time to write down everything you need to have a happy holiday season. While the gifts may big the largest part of your budget, many other things can add extra expenses. Make sure to account for decorating, travelling, food, liquor, as well as any added expenses of having any family and friends spending time with you for a few days. Once you know exactly how much money you will need, you can decide whether to break it down into your monthly budget or plan for it every holiday season.

Think about trimming your budget.

As you get older and wiser, you find ways to save money. Retirement is certainly the time to keep honing those skills. You can always find different ways to save money on holiday spending. One way is to watch for sales throughout the year for the things that you know you will need for the holidays and buy them early. If you already know you will spend the money, why not save a little? Even if you have enough money to comfortably retire on, you may want to leave a substantial estate to your friends and loved ones.

Don’t overspend.

Once you’ve decided what your budget is for the holidays, don’t be tempted to overspend. If you see a gift that you know would be perfect for someone, but it’s more than you budgeted, you could think about spending a little less on another gift to compensate for buying it. It’s not always about how much money you spend on a gift. It’s really about the inspiration behind what made you want to give the gift in the first place.

Planning for a successful holiday season while enjoying your retirement is a time of the year to look forward to. You get to see all of your friends and family and celebrate the joy of the season together. There’s no reason why the added expense of the holiday season should cause you any stress as long as you have a budget and keep your spending within that budget. 

Investment Advisory Services offered through Retirement Wealth Advisors (RWA), a Registered Investment Advisor. Pennsylvania Wealth Management and RWA are not affiliated. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision.

This information is designed to provide general information on the subjects covered, it is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Please note that Pennsylvania Wealth Management and its affiliates do not give legal or tax advice. You are encouraged to consult your tax advisor or attorney.

Annuity guarantees rely on the financial strength and claims-paying ability of the issuing insurer. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products. They do not refer, in any way, to securities or investment advisory products. Fixed insurance and annuity product guarantees are subject to the claims‐paying ability of the issuing company and are not offered by Retirement Wealth Advisors.

Million Dollar Round Table (“MDRT”) is a membership organization. Qualifying criteria for membership includes attaining specified levels of commissions earned, premiums paid or income earned on the sale of insurance and other financial products. MDRT membership requirements include the payment of annual dues, compliance with ethical standards, and maintaining good standing with an MDRT-approved professional association. The MDRT logo and/or trademarks are property of their respective owners and no endorsement of Jason Bergey or Pennsylvania Wealth Management is stated or implied. MDRT and Retirement Wealth Advisors, Inc. (RWA) are not affiliated.