Sudden Money for Individuals and Families http://suddenmoney.com/individuals-and-families Understanding and Resolving Transitions Fri, 13 Apr 2012 21:59:54 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 Over-spending in Retirement: The Decision-Free Zone http://suddenmoney.com/individuals-and-families/retirement-decision-free-zone/ http://suddenmoney.com/individuals-and-families/retirement-decision-free-zone/#comments Mon, 02 Jan 2012 06:13:30 +0000 admin http://96.30.0.96/~suddenmo/individuals-and-families/?p=1 A retired couple that will run out of money enters the decision-free zone

Fun and comfort during retirement is an illusion if you are likely to run out of money.

A couple in their 60′s had amassed some wealth, and they retired. However, their annual spending was far too high. They were going to run out of money. What should they do?

Obviously, they needed to spend less. But this was a problem! They KNEW they needed to change their behavior, but didn’t. Psychologists call this the “wanting-doing” gap. This couple entered the decision-free zone.

Click to read this excellent article about the psychology of changing financial behavior by Marty Marty and Cicily Maton from RIABiz.com.

Reprinted with permission.

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