You Have Permission to Spend and Enjoy Life
- Robert Dunn, CFP®
- 24 hours ago
- 5 min read
Key Takeaways
Many disciplined savers struggle to spend their accumulated wealth even when they can comfortably afford it.
Finally allowing yourself to spend can be just as stressful as not having enough.
Never feel like you’re on your life journey alone. A comprehensive wealth manager can help you in three important areas to get the most out of life.
One of the most rewarding and fascinating parts of what we do here at Novi is giving our clients permission to spend the money they’ve worked so hard to accumulate. Many have been great savers their entire lives. They're conscientious, they've always worried about keeping a roof over their head and not running out of money in retirement. They’ve paid for children’s education without taking on loans. They’ve paid off their mortgages, socked away extra for healthcare, and kept an emergency account well-funded all while saving enough for retirement. That’s fantastic. On the flip side, they often don't give themselves permission to spend after showing such great discipline over the years.
Recently, a local couple we work with was agonizing about whether to buy a vacation home or not in coastal New England. They had plenty of money and were thinking about slowing down their professional lives. A friend tipped them off about a fantastic property coming on the market in a part of New England they always loved. But they were worried about the cost and not sure if they’d use the home enough.
After working with our team, we helped them realize that the vacation home would not only be large enough to have all the children and grandchildren together under one roof, but they could do so in a beautiful, relaxed setting that was away from everyone’s hectic day-to-day lives. We also helped them realize all the regrets they would feel if they had a chance to buy their dream vacation home and didn’t go through with it -- while they were still mentally and physically healthy enough to enjoy it.
Initially the couple was worried that if they spent 20% of their wealth on the vacation home they would run out of money. But over the course of several meetings, we helped them work through their concerns. We showed them how they had more than enough resources to afford the vacation home and all the great family memories it would surely provide. The couple felt it was especially important to move forward while they were still in good health and before the grandkids were far away for school or careers. As the old saying goes: “you can’t take it with you when you’re gone.”
Here's a fun music video from Kristian Bush that cleverly gets that point across: “Never Seen a Hearse with a Trailer Hitch.”
Don’t go it alone
When it comes to financial and retirement planning, I’m amazed at how many well-educated successful people think they can do it alone – or with someone who’s merely and investment advisor. What skill set do they have to run projections, understand the tax consequences, and make important decisions based on their values and goals without jeopardizing their financial well-being?
By contrast, think of the peace of mind a true comprehensive wealth manager can provide by going through all the pros and cons from each client’s unique perspective. Think of the value an objective professional can provide who’s done the analysis time and time again, who’s not emotionally tied to the result.
A true wealth manager does more than handle investments—they build a system in three important areas:
1. Guardrails for safe withdrawal. Here we look at your cash flow situation and withdrawal needs to see what’s possible. For instance, you may not have $1 million in cash available to buy a vacation home, but we can look at the net present value of your pension. Say you’re receiving $200,000 a year in a pension for the rest of your life and living comfortably on $150,000 a year. That means you have $50,000 a year (over $4,000 a month) available to go toward your mortgage payments on the vacation home. It’s not just about knowing what’s possible from a cash flow standpoint, but how to make major purchases that enhance your lifestyle in a tax-efficient manner. Many clients are uncomfortable taking on a mortgage later in life, but a manageable mortgage is often a better option than cashing out stocks or other appreciated assets and taking a huge tax hit on the gains. You may also be able to deduct interest on the vacation home mortgage payment if the home is not a rental property and your combined mortgage (primary and second homes) does not exceed $750,000 for married couples. NOTE: The amount is half if you are married but file separately.
2. Annual reviews to update “permission to enjoy.” These reviews are not about your portfolio performance over the past six months or year. They’re about looking at how much closer you are to achieving your goals. They’re about seeing if anything important has changed in your personal situation and if so, how to adjust the plan. We want to make sure you’re still feeling confident and secure when it comes to your financial well-being. If not, the reviews are a time to discuss any potential changes.
3. Coaching and behavioral support to reduce money anxiety. We have decades of experience guiding people toward their financial goals and making sure they can enjoy a fulfilling life without having to worry about ever running out of money. We can help you transfer wealth to the next generation on the terms you prefer. We can help you build a legacy based on what’s most important to you and your family.
We’re dedicated to educating clients about how their money can best be used to fulfill their life objectives. We recognize that no two client situations are the same. From tax laws to trade policies to political uncertainty at home, there are many issues today that can cause people to freeze with anxiety. That’s why it’s important to take a step back and realize there is always going to be uncertainty in our lives. There will always be unknowns.
For instance, if we have a no-growth economy over the next five years and the stock market stalls, how will that impact your well-being? If anything is going on in the world that’s freezing you, part of our job is to help you understand how that impacts your unique values and goals.
It’s not just about plugging in your age, income, and expenses into a calculator and spitting out your financial plan success rate. There's sophisticated scenario planning, using years of experience and powerful software, which would be hard for anyone to match on their own. It’s also about having a trusted ally by your side who can prevent you from making ill-timed emotional decisions that distract you from your plan.
Conclusion
If you or someone close to you feels uncertain about spending in retirement or making meaningful life decisions, you don’t have to navigate those concerns alone. A comprehensive wealth manager can help you understand what is truly possible, reduce financial anxiety, and align your choices with your long-term values and goals. With the right guidance, you can enjoy the wealth you’ve worked so hard to build—confidently and without regret. When you’re ready to gain clarity and peace of mind, we’re here to help.
ROBERT B. DUNN, CFP®, is the President and Managing Partner of Novi Wealth