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But he said the markets are fickle, and lengthy downs and lower-than-expected returns can wreck a retirement strategy.
Particularly in the early years of retirement, when poor market performance can pack a punch.
And fixed costs such as property taxes, insurance and medical care often increase faster than anticipated.
Withoutregular annual check-ups, retirees may miss red flags such as increasing debt or unsustainable withdrawal rates.
One of my clients thought Medicare would cover everything spoiler: it doesnt, said Lokenauth.
He said she ended up spending $800+ per month on supplemental insurance, prescriptions and out-of-pocket costs.
Its wild how many folks underestimate medical expenses by $100K or more over retirement.
Pricey Travel Expenses
Travels another big ticket item that trips people up.
I get it everyone dreams of that perfect retirement filled with exotic trips.
Those small trips add up fast.
One couple he worked with blew through their entire annual travel budget by June.
High Housing Costs
People assume their mortgage will be paid off, so housing expenses will drop.
Their AC unit died in July there went $8,000 they hadnt budgeted for.
Failing to Account for Inflation
The inflation thing is brutal, said Lokenauth.
I see way too many people create budgets using todays prices without considering how costs rise over time.
Helping Family Members Also Takes A Toll
Heres another one nobody thinks about: helping family members.
Plus, Social Security can be taxed depending on your other income.
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