According to J.P. Morgan, the average retiree spends about fifty seven thousand dollars per year now

that's for someone who's single couples are about 75,000 per year that's not what most of our

clients spend here at route financial however i'm going to give you some insight on how retirees

spend and why the numbers i just told you aren't really what you should plan on

for your own retirement. And the main reason for that is because of what is called the retirement

smile. Many of you are familiar with this, but those who are not, you're going to want to hear this

because this will change your retirement. So pretend that you are my client and you come and you say,

Ari, I'd love to spend $6,000 a month.

I know you're a big soccer fan and you want me to buy Arsenal FC for you, but I just don't have the money. $6,000 a month, that's so I can live my dream retirement. I'd say, okay, I'm a little bummed because I thought you were going to buy me my favorite soccer team, but let's get on with it. I always try to keep light and, you know, somewhat funny.

Then we'll go on to have that conversation of how what they want to speak. but, you know, let's get on with it. I always try to keep light and, you know, somewhat funny.

Then we'll go on to have that conversation of how what they want to spend and kids college and new cars and how often and all that good stuff. And then most of the time, I'll say, okay, pretend I'm going to ask you to spend $6,000 a month every month for the rest of your life. is that how you feel your retirement will actually go?

Like, is that what you think it'll look like?

And they'll go, no problem. $6,000 a month every month for the rest of your life. Is that how you feel your retirement will

actually go? Like, is that what you think it'll look like? And they'll go, no, probably spend a little bit more at the beginning. Because if I retire at like, let's say, 55, I'm going to have more of my energy and my health. And then at maybe 65, maybe that's going to change a little bit from 65 to 75 or 80 maybe I'm going to do a few

different things maybe I'm traveling a little less but spending more on grand baby time or

whatever it is and then from 80 to 95 maybe that's more on medical expenses so I just want to make

sure I'm planning appropriately and I assume it'll just average out and that's what a lot of of clients will say. And I don't blame them. And when you're playing around with your own retirement software planning, what you'll often do is you'll pick a number, $6,000 a month after taxes, adjusted for inflation, $8,000 a month. There's a better way to do it. And that's what's called the retirement smile, which says when you do retire, you will have your energy and your health. And what happens is you're going to spend more and we want you to because that's when you have the ability to fully enjoy it. Then it's going to come down a little bit. If you're thinking about a smile, it's coming down. Now we're maybe at the bottom of the smile right in the center there. And that's maybe, let's just call it age 75, never perfect.

But age 75, now we're spending a little bit less.

Energy's not the same, but we still are, of course, enjoying retirement.

And now we're 90 years old, and it's coming back up again.

We're at the top of the smile because medical expenses are coming up.

Or you've realized you've

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