Do the taylors need to track their expenses

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Tim and Jill Taylor are retiring this year! Tim has worked for a utility company since his co-op job in college and has participated in all of the company's retirement savings plans. Jill has worked since their kids were in high school. Although they never consulted a financial planner, they have been careful to keep their insurance policies updated, to keep debt to a minimum, and to save regularly. As a result, the Taylors have a very large retirement portfolio-and now, without the restrictions of their companies' plans, lots of other investment options. Jill would like to live "the good life" for a while but also is concerned about "outliving" their money. Tim says, "I earned it, I'll spend it." Now, Tim and Jill think that consulting a professional might be a good idea to keep them on track through retirement. They haven't made too many plans, but they know they want to help pay for college costs for their grandchildren.

• How might a budget ensure that they will have the necessary amount to help their grandchildren?

• Do the Taylors need to track their expenses more or less closely once they retire?

• Are their big expenses likely to remain the five reported by the average household?

• Since both their income and their expenses will change, how would you suggest that they not "go overboard in living the good life" but at the same time know that they can afford some retirement luxuries?

Reference no: EM131197106

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