Your Retirement, Your Rules: How to Fund the Bucket List That Matters to You
Retirement is supposed to be the time to finally travel, pick up new hobbies, and spend more time with family. But too many retirees look back and wish they had actually done those things.
They saved responsibly, entered retirement cautiously, and then realized they were too worried about running out of money to actually enjoy what they had. They waited too long. Played it too safe. And now, some of their biggest dreams feel out of reach.
It doesn’t have to be that way.
With a financial plan that prioritizes your version of retirement, you can confidently spend on what matters, whether that’s travel, family, or new experiences, without fear of running out.
Let’s break down how to structure your retirement finances so your bucket list isn’t just a dream.
1. Define What a Meaningful Retirement Looks Like to You
Retirement isn’t a one-size-fits-all experience. Yet, social media and conventional advice often push a narrow vision with endless travel, luxury purchases, and moving to a beachside condo. While that might be perfect for some, it’s not the retirement blueprint. It’s just one option.
Your dream retirement should reflect what actually matters to you. Maybe that’s spending summers in Italy or staying close to grandkids. Maybe it’s starting a passion project, mentoring young professionals, or finally having time for the creative pursuits you never got to explore.
The key is to define your version of fulfillment, not someone else’s highlight reel. Ask yourself:
- What excites you most about having full control of your time?
- Who do you want to spend the most time with?
- What experiences or achievements would make you feel satisfied?
- What lifestyle feels right – adventurous, simple, purpose-driven, or all of the above?
For example, our clients, Yoshi and Ana had very different starting points when planning retirement. Yoshi had a secure financial foundation, while Ana had spent years caring for a loved one, limiting her ability to save. Yoshi was eager for them to retire together and travel, but Ana worried about financial dependence.
Through personalized financial planning, we helped them create a roadmap that ensured long-term stability while giving them the freedom to enjoy retirement on their terms. With a clear plan in place, Ana felt confident stepping away from work, and today, they’re traveling the world together, embracing the retirement they always dreamed of.
2. Shift from Saving to Strategic Spending
For years, you’ve been conditioned to save, invest, and grow your nest egg. However, once retirement begins, the financial mindset needs to shift (easier said than done). Now, the focus is on spending strategically while making sure your money supports the life you’ve planned without fear of running out too soon.
Many retirees struggle to transition from saving to spending. A recent study by the Employee Benefit Research Institute (EBRI) found that 38% of retirees still have a strict savings mindset, meaning they hesitate to spend their money even when they have enough. Only 11% identify as having an abundance mindset, where spending feels more comfortable, which suggests that most retirees remain cautious, sometimes to the point of restricting their own enjoyment.
Here’s how you can make sure your money serves you in retirement without unnecessary restrictions:
- Create a spending plan, not a budget – Traditional budgeting is all about limits, but in retirement, your plan should be about intention. Determine your essential expenses (housing, healthcare, insurance) and then carve out a dedicated amount for travel, hobbies, and experiences that bring fulfillment.
- Withdraw with a purpose – Instead of randomly pulling from savings when you need it, adopt a withdrawal strategy. One approach is to set up recurring deposits that mimic the paycheck schedule you were used to while working. This steady flow of income can make the transition to retirement spending feel more natural and reassuring. The 4% rule (spending 4% of your savings annually) is a common guideline, but it may need adjusting based on lifestyle, market conditions, and longevity expectations.
- Use buckets for different stages of retirement – Your spending needs in the early years of retirement will likely be higher (travel, hobbies, home improvements) than in later years. Having separate funds for early, mid, and late retirement phases can give you peace of mind about spending now while securing your future.
- Factor in inflation and market fluctuations – A $100 dinner today won’t cost the same in 20 years. Work with a financial planner to adjust withdrawals and investments to keep up with inflation and ensure your money lasts.
3. Fund Your Bucket List Without Jeopardizing Long-Term Security
Retirement is about living fully, not holding back. And with a financial plan in place, you can make sure your bucket list is more than just a wish list.
Here’s how to make it a reality without second-guessing every expense:
- Prioritize what matters most – Not every dream needs to happen right away. List out your top bucket list experiences, price them out, and focus on what will bring you the most fulfillment.
- Plan big expenses early – Many retirees spend more in their first decade while they’re healthiest. If major travel or adventures are part of your plans, factor them into the early years.
- Set up a bucket list fund – Keep money for travel, hobbies, or big experiences in a separate account so you can spend without tapping into essential savings.
- Withdraw with strategy, not impulse – Instead of pulling lump sums from your retirement accounts, work with a financial planner to structure withdrawals efficiently.
- Find creative ways to fund experiences – Downsizing, rental income, or part-time consulting can help cover bigger-ticket goals without putting pressure on your core savings.
4. Use Smart Tax Strategies to Keep More of Your Money
Without a plan, taxes can eat into your retirement savings faster than expected. The key is to control how and when you withdraw funds.
If most of your savings are in traditional 401(k)s or IRAs, large withdrawals can push you into a higher tax bracket. A smarter approach is to spread withdrawals, blending taxable and tax-free sources like Roth IRAs to manage tax liability. Converting portions of a traditional IRA to a Roth IRA in lower-income years can also reduce future tax bills, allowing for tax-free withdrawals later.
You need to also keep in mind that Required Minimum Distributions (RMDs) kick in at age 73, whether you need the money or not. If you don’t, using a Qualified Charitable Distribution (QCD) can satisfy RMDs while lowering taxable income.
5. Invest for Stability and Growth in Retirement
Retirement doesn’t mean pulling all your money out of the market and parking it in cash. In fact, doing so could mean losing purchasing power over time. A strong investment philosophy in retirement balances stability with growth, ensuring your money lasts as long as you do.
Instead of chasing high returns or taking on unnecessary risk, a well-structured portfolio focuses on diversification. A mix of income-generating assets like dividend stocks and bonds can potentially provide steady cash flow, while a portion remains in growth-oriented investments to outpace inflation.
The key is to avoid emotional investing. Reacting to short-term market swings can do more harm than good. A clear investment strategy, guided by long-term goals and a disciplined approach, provides financial confidence so you can enjoy retirement without second-guessing your portfolio.
6. Create a Legacy Plan That Supports Your Loved Ones & Causes You Care About
Have you thought about the legacy you want to leave behind? Maybe that means securing your family’s financial future, supporting a cause that’s shaped your life, or helping your grandkids graduate debt-free. Whatever it is, you need a plan to ensure your wishes are honored.
Without one, your loved ones could face unnecessary taxes, legal delays, or disputes over assets. A will is a good start, but a well thought out estate plan designed with the help of a financial adviser can really set your family up with a comprehensive multi-generational approach to your legacy planning.
If philanthropy is part of your vision, donor-advised funds or charitable trusts can help you give back in a meaningful way while also providing tax advantages.
Remember, legacy planning isn’t just for the ultra-wealthy – it’s for anyone who wants their hard-earned money to do more. With the right strategy, you can provide for your family, support causes you care about, and leave behind more than just memories.
Enjoy Your Retirement Without Financial Worries
Retirement should be about freedom – freedom to travel, to spend time with loved ones, and to finally enjoy the experiences you’ve worked so hard for. But too often, we see retirees hesitate to spend, unsure if their money will last, or second-guessing whether they can afford the life they envisioned.
At HAWA, we believe your retirement should be lived on your terms, without fear of running out of money or making the wrong financial moves. That’s why we help people create personalized financial plans that balance spending, investing, and security, so you can enjoy today while protecting your future.
If you want to retire with confidence and make your bucket list a reality, we’re here to help. Book a free consultation to discuss how we can help you create a plan for a stress-free retirement.