Why Retirees Need to Adjust Their Mental Accounting

Even investors with plenty of assets for retirement still need to adjust to the reality of no longer getting a paycheck, says Michael Kitces.
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[@219garry]

Hmmm, I've actually found that not wanting to have a lot of cash in the bank has served me well. Any time I get too much cash it goes into stock or real estate. I hate holding cash. Positive cash flow is what I go after.

[@robbiekane1321]

This is great content! Thank you! Keep it up!

[@53pittmanjt]

Interesting comments. Objectively I think I'm in good shape but I do fret when the old checking acct gets low. It's silly but I still obsess over a bucket I can refill any time I want.

[@53pittmanjt]

Unlikely but not impossible. Am retiring in ~3 months so it wouldn't make any difference to me anyway.

[@nachannachle2706]

FANTASTIC overview! :)

[@PJBHolden]

NOOO annuities!

[@dipsomaniac124]

I think your best option is to buy dividend paying stocks. The dividend aristocrats. Live on dividends and social security in retirement and practice a more minimalist lifestyle. How much shit do we need? I have been dumping as much crap that I own this year. I’ve thrown out half of what I accumulate and I can say I don’t miss any of it. I read the average American has over 3500 things in their home or possession.

[@Pieter2360]

I recommend to listen to Ben Felix’ “irrelevance of dividends” before overweighing dividend paying equities.

[@krihanek117]

Because the return on annuities suck.

[@Pieter2360]

Well..., it could still be better than the return on bonds and may even be less unattractive as it seems on a risk-adjusted basis vs equities.

[@rudged123]

Two words. Partial annuity.

[@Hawking1969]

So glad Keith left Wernham Hogg.