Managing money in the so-called decumulation stage requires the same careful planning used to create a nest egg.andreswd/iStockPhoto / Getty Images
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As a financial planner, Warren MacKenzie applauds the efforts of his clients to save money for retirement. But he sees many struggling to spend the funds they so carefully put away once they’re retired.
Mr. MacKenzie tells the story of one Ontario-based retiree in his late 60s, with a net worth of $8-million, who has the cashier at McDonald’s ring through his breakfast order in separate transactions. That way, he can avoid paying the provincial sales tax, which doesn’t apply to restaurant meals under $4 – a saving of 56 cents on a total food bill of $7.
“It’s a force of habit, and his instinct is to be frugal; why throw away 56 cents?” says Mr….
