How to Build a Retirement Spending Plan That Supports Your Lifestyle

By Derek D. Villars, CLU®, CASL®, ChFC®

A strong retirement spending plan balances how much you’ve saved with how you put it to work.

To make your nest egg last, you need a retirement spending plan that fits your lifestyle, not the other way around. That means being clear about what you want your retirement to look like and creating a strategy that enables your plan.

This guide looks at how to match your day-to-day lifestyle with the money you’ve set aside.

Define Your Desired Retirement Lifestyle

There is no one-size-fits-all retirement. Some people prefer simplicity—more time with family, home-cooked meals, maybe some hobbies that don’t cost much. If that’s your vision, you can afford to lean primarily on Social Security, a pension, and modest withdrawals from retirement accounts.

Other people may envision retirement as a time filled with travel, dinners out, golf memberships, or even keeping a second home. That sort of lifestyle often requires greater income, perhaps from investments, rental properties, or larger portfolio withdrawals. The more clearly you know what you want, the easier it is to set concrete goals and to make financial choices that get you where you want to go.

Understand Your Income Source

Each income source has its own timing rules, trade-offs, and decisions. The more you know about them now, the easier it is to create a budget that really works.

The following are potential income streams:

• Social Security
• 401(k)s and IRAs
• Pensions and annuities
• Rental income
• Part-time work

Laying out all your income sources side by side can help you get a better sense of how your money might come in and where you might need to make adjustments before you retire.

Plan for Healthcare and Long-Term Care

If there’s one category of retirement spending that can derail everything else, it’s healthcare. Costs can be daunting, and they’re often anything but predictable.

Planning ahead is key, not just for regular doctor visits and prescriptions, but also for what happens if you need ongoing care later in life.

Consider, for instance, that Medicare begins at 65 but does not cover everything. You need to prepare for premiums, copays, and gaps in coverage, and keep in mind dental, vision, and long-term care. Another thing you might need to budget for is Parts B, D, and supplements, as these costs increase faster than other expenses.

Long-term care expenses can be high, often north of $100K/year for a nursing home or thousands a month for home care. You might have options such as long-term care insurance or hybrid policies that combine life and care coverage, or you might simply earmark part of your savings for this purpose.

When you factor in both the expected and the unknowns, you safeguard your nest egg and get a better retirement spending plan.

Consider Taxes and Withdrawal Strategies

A smart withdrawal strategy can allow you to reduce your tax bill, stretch your money, and build a solid retirement spending plan. You may consider taking from taxable accounts first, followed by traditional 401(k)s/IRAs, and leave Roth IRAs as the last option, allowing tax-advantaged funds to grow longer. But you can change that order depending on your income, tax bracket, and account mix.

It is often recommended to mix withdrawals. For instance, you can pull smaller amounts from multiple sources to stay in lower brackets—like mixing IRA withdrawals with tax-free Roth or brokerage income. This approach can help you save thousands.

Being strategic with taxes can help make your money work smarter for the long haul and provide you with a comfortable retirement.

Build a Smarter Retirement Spending Plan With a Financial Advisor

Your retirement spending plan should reflect your values, support your lifestyle, and give you confidence about the future. At Boulevard Wealth Management, we can help you stay in control of your finances. We take the time to understand what is most important to you and create a plan to preserve your independence today and shield your legacy tomorrow. 

To schedule a meeting, call (877) 664-2583 or email derek@blvdwealth.com.

About Derek

Derek Villars, CLU®, CASL®, ChFC® is the Director of Risk Management at Boulevard Wealth Management, a Bloomington-based financial services firm dedicated to addressing client goals through a team-based, fiduciary approach. With over 22 years of experience in the financial industry, Derek specializes in advanced insurance and financial strategies designed to help clients grow, preserve, and distribute their wealth effectively. His proficiency includes estate planning, business owner benefits, business succession strategies, tax-advantaged retirement planning, and comprehensive insurance performance audits. Derek is known for his focus on security, risk mitigation, and delivering after-tax, risk-adjusted returns, helping clients experience financial peace and confidence.

A graduate of St. Cloud State University, Derek has earned the Chartered Life Underwriter®, Chartered Financial Consultant®, and Chartered Advisor for Senior Living® professional designations. He works closely with pre-retirees, business owners, and individuals with complex financial needs, providing personalized guidance and solutions. Outside of his professional life, Derek is an avid car enthusiast who enjoys smoking meats, charity road rallies, racing, auto restoration, and trips with family and friends. To learn more about Derek, connect with him on LinkedIn.