RETIREMENT DECISIONS THAT ARE HARDER THAN THEY LOOK
HOW MUCH SHOULD YOU PLAN
TO SPEND IN RETIREMENT?

WATCH ON YOUTUBE

Sandy Hornor | CEPS
Managing Director, Wealth Management & Executive Manager

Tessa Hall
Media and Communications
Specialist

About This Episode

Will you really spend less after you retire? While some expenses may disappear, retirement can introduce new costs and more opportunities to spend on travel, hobbies, and other experiences.

In Episode 2 of Retirement Decisions That Are Harder Than They Look, Tessa Hall speaks with Sandy Hornor, CEPS, Managing Director, Wealth Management & Executive Manager at BWFA, about creating a realistic retirement budget. They discuss why spending may remain similar to pre-retirement levels or even increase, particularly during the early years of retirement.

Sandy also explains how expenses can change throughout retirement and why healthcare, taxes, home modifications, and lifestyle choices should be considered when determining how much income your retirement plan may need to provide.

Discover how BWFA can help you plan for your financial future by visiting our Financial Planning page.

Do people spend less in retirement?

Not necessarily. Sandy explains that many retirees spend roughly as much as they did while working, and some spend more, particularly during the active early years of retirement. Travel, hobbies, and having more free time can all create additional opportunities to spend.

What expenses may decrease when you retire?

Some major expenses may decrease or disappear by retirement. Depending on the retiree’s circumstances, these can include college tuition, mortgage payments, and certain work-related expenses. However, lower spending in one category does not necessarily mean total retirement spending will decline.

What expenses can increase during retirement?

Travel, healthcare, taxes, and home modifications can increase retirement expenses. Sandy discusses costs such as healthcare premiums, taxes associated with required minimum distributions, and renovations that may make a home more suitable for aging in place.

How should you budget for retirement expenses?

A retirement budget should start with realistic spending assumptions rather than automatically assuming expenses will decrease. Sandy recommends considering how spending needs compare with income available from Social Security, pensions, investments, rental property, and other retirement income sources.

Does spending stay the same throughout retirement?

No. Retirement spending can change as your lifestyle and needs evolve. Sandy describes retirement in three general stages: “go-go,” “slow-go,” and “no-go.” Early retirement may involve more spending on travel and activities, while later years may involve less discretionary spending but potentially greater healthcare needs.

More from the Retirement Decisions That Are Harder Than They Look Series

Episode 1:
How Do You Know When You Have Enough to Retire?

Episode 2:
How Much Should You Plan to Spend in Retirement?

Episode 3:
How Should You Withdraw Money in Retirement?

Episode 4:
Should You Pay Off Your Mortgage Before Retirement?

Episode 5:
Can You Afford to Give Money to Your Kids in Retirement?

RETIREMENT DECISIONS THAT ARE HARDER THAN THEY LOOK
WHAT IS THE SMARTEST WAY TO
CREATE RETIREMENT INCOME?

WATCH ON YOUTUBE

Sandy Hornor | CEPS
Managing Director, Wealth Management & Executive Manager

Tessa Hall
Media and Communications
Specialist

About This Episode

What is the smartest way to create retirement income? After decades of saving, retirement requires a major shift from accumulating money to using those savings to create a reliable income stream.

In Episode 3 of Retirement Decisions That Are Harder Than They Look, Tessa Hall speaks with Sandy Hornor, Managing Director, Wealth Management & Executive Manager at BWFA, about turning retirement savings into income. They discuss how Social Security, pensions, and investment accounts may work together to fund retirement spending. Sandy also explains why the order of withdrawals can matter and how having different types of accounts may provide greater flexibility when managing taxes throughout retirement.

Discover how BWFA can help you plan for your financial future by visiting our Financial Planning page.

Where does retirement income come from?

Retirement income may come from several sources, including Social Security, pensions, IRAs, 401(k)s, 403(b)s, and other investment accounts. The mix will depend on how you prepared for retirement and when each income source becomes available. The goal is to coordinate those resources so that your accumulated savings can begin to support your ongoing spending needs.

Why can creating retirement income feel difficult?

For decades, most people have been conditioned to save and grow their retirement accounts. Retirement reverses that process. Instead of continuing to accumulate money, retirees must begin converting their savings into an income stream. Sandy explains that this mental shift can be difficult even for people who have accumulated substantial retirement assets.

How do you determine how much you can spend in retirement?

A retirement financial plan can help establish a sustainable annual spending target based on your assets, income sources, goals, and expected expenses. That amount may also need to be adjusted over time for inflation and changes in your circumstances. Rather than treating retirement spending as an arbitrary number, the goal is to connect withdrawals to the broader financial plan.

Why does the order of retirement withdrawals matter?

Different accounts can have different tax consequences. Traditional retirement accounts generally hold tax-deferred balances, while qualified Roth withdrawals may be tax-free, and taxable brokerage accounts may generate capital gains. Choosing which account to draw from can therefore affect the taxes associated with generating retirement income.

Why can having different types of accounts help in retirement?

Holding assets across traditional retirement accounts, Roth accounts, and taxable investment accounts may provide greater flexibility when generating retirement income. Instead of relying entirely on withdrawals that receive the same tax treatment, retirees may have options for choosing where their spending money comes from. That flexibility can become part of managing taxes alongside retirement income needs.

More from the Retirement Decisions That Are Harder Than They Look Series

Episode 1:
How Do You Know When You Have Enough to Retire?

Episode 2:
How Much Should You Plan to Spend in Retirement?

Episode 3:
How Should You Withdraw Money in Retirement?

Episode 4:
Should You Pay Off Your Mortgage Before Retirement?

Episode 5:
Can You Afford to Give Money to Your Kids in Retirement?

RETIREMENT DECISIONS THAT ARE HARDER THAN THEY LOOK
HOW DO YOU KNOW WHEN
YOU HAVE ENOUGH TO RETIRE?

WATCH ON YOUTUBE

Sandy Hornor | CEPS
Managing Director, Wealth Management & Executive Manager

Tessa Hall
Media and Communications
Specialist

About This Episode

How do you know when you truly have enough to retire? An account balance is important, but retirement readiness involves more than reaching a specific number.

In this episode of Healthy, Wealthy & Wise, Tessa Hall speaks with Sandy Hornor, Managing Director, Wealth Management & Executive Manager, about the financial and personal decisions that can help determine when you are ready to retire. They discuss why there is no universal retirement number, what Sandy looks for when someone is considering retirement, and why purpose and intentionality matter when preparing for life after work.

They also explore how experienced retirement planning can help people prepare for decisions they may not anticipate before entering retirement.

Discover how BWFA can help you plan for your financial future by visiting our Financial Planning page.

How do you know when you have enough money to retire?

There is no single amount that determines whether everyone has enough to retire. Sandy explains that retirement readiness can be measured differently for each individual, based on factors such as account balance, desired annual income, age, or personal milestones. The financial plan ultimately needs to determine whether your available resources can support the retirement you are planning.

Is reaching your retirement number enough to know you are ready?

Not necessarily. The financial numbers matter because you need to be able to afford retirement, but Sandy emphasizes that a fulfilling retirement also involves purpose, intentionality, and preparation for how you will use your time. The transition can be significant after decades in which work provided structure and professional identity.

What should you think about before deciding to retire?

Consider both when you want to retire and what you want your retirement to look like. Sandy looks for intentional planning, such as having a timeframe in mind and thinking about travel, volunteering, or other ways you want to spend your time. Simply reaching a traditional retirement age does not necessarily mean someone has developed a retirement plan.

Can you have a large portfolio and still not be ready to retire?

Yes. A large portfolio can address the financial side of retirement without answering how someone will navigate the transition itself. Sandy explains that retirement planning can eventually involve decisions extending beyond investments and taxes, including housing, support needs, and other circumstances that arise as people age.

How can a financial advisor help you decide when to retire?

A financial advisor can help evaluate whether your resources support your retirement plans and prepare you for decisions you may not have encountered before. Sandy compares retirement to traveling an unfamiliar road: someone with experience can help identify potential challenges before you encounter them yourself.

More from the Retirement Decisions That Are Harder Than They Look Series

Episode 1:
How Do You Know When You Have Enough to Retire?

Episode 2:
How Much Should You Plan to Spend in Retirement?

Episode 3:
How Should You Withdraw Money in Retirement?

Episode 4:
Should You Pay Off Your Mortgage Before Retirement?

Episode 5:
Can You Afford to Give Money to Your Kids in Retirement?

WATCH ON YOUTUBE

TYLER KLUGE
CFP®, ChFEB℠, CPWA®, CDFA®, CEPS
Senior Financial
Planner

TESSA HALL

Media and Communications
Specialist

About This Episode

Earning more money can create more opportunities to save and invest, but it can also make it easier to spend more of your income.

In this episode of Healthy, Wealthy & Wise, Tessa Hall speaks with BWFA Senior Financial Planner Tyler Kluge about how lifestyle creep can affect long-term financial goals. They discuss why visible signs of success do not necessarily reflect wealth, how promotions and higher incomes can establish new spending habits, and why financial decisions should be considered within the context of your broader goals.

Tyler also explains how recognizing tradeoffs, evaluating recurring expenses, and becoming more intentional about purchases can help keep lifestyle choices from quietly competing with long-term savings.

Learn how BWFA can help you build a financial plan that keeps you on track without constant attention. Explore our Financial Planning services or schedule a complimentary consultation to discuss your goals.

What is lifestyle creep?

Lifestyle creep occurs when spending gradually increases as income rises, making a higher standard of living feel normal over time. Tyler explains that someone receiving a major promotion may be saving more dollars than ever before, yet increasing spending so dramatically that the additional income does not translate into a proportional increase in wealth.

Does earning more money automatically help you build more wealth?

No. A higher income creates greater financial capacity, but the outcome depends on how that income is used. Tyler notes that savings percentages should be considered within the context of income, spending, existing assets, time until retirement, and other individual circumstances rather than relying solely on a generic rule of thumb.

How can lifestyle choices affect your financial goals?

Lifestyle choices create tradeoffs because financial resources are finite. Spending more on a home, cars, private school, travel, or other priorities is not inherently wrong, but those decisions can leave less available for goals such as retirement. Tyler recommends evaluating what matters most and determining whether current spending supports those priorities.

When can a luxury purchase become part of your normal spending?

Some purchases can establish a new baseline for future spending. Tyler uses upgrading a vehicle as an example: once someone becomes accustomed to a more expensive vehicle, a less expensive option may seem less appealing. Recurring subscriptions can create a similar effect by turning individually small expenses into ongoing commitments that add up over time.

How can you make more intentional spending decisions?

Start by asking why you want the purchase and whether it provides meaningful value for you or your family. Tyler suggests distinguishing between genuine needs and wants, while Tessa discusses creating a waiting period before buying something. Taking time before purchasing can help determine whether something supports your priorities or is simply an impulse.

WATCH ON YOUTUBE

TYLER KLUGE
CFP®, ChFEB℠, CPWA®, CDFA®, CEPS
Senior Financial
Planner

TESSA HALL

Media and Communications
Specialist

About This Episode

Building wealth does not always require making more financial decisions. In fact, constantly checking your investments, reacting to market movements, or deciding what to do with extra cash can create more opportunities for emotional mistakes.

In this episode of Healthy, Wealthy & Wise, Tessa Hall speaks with BWFA Senior Financial Planner Tyler Kluge about the financial habits that can make staying on track easier. They discuss what to automate, how often to review your investments, where to keep emergency savings, and why a well-designed financial strategy should not require constant adjustments.

Tyler also explains how regular planning conversations can help account for changing goals without abandoning a long-term investment strategy.

Learn how BWFA can help you build a financial plan that keeps you on track without constant attention. Explore our Financial Planning services or schedule a complimentary consultation to discuss your goals.

How can automating your savings help you build wealth?

Automating savings can help make consistent progress toward financial goals without requiring a new decision every month. Tyler recommends first establishing appropriate cash reserves and then considering automatic contributions to retirement plans, IRAs, brokerage accounts, or other investment accounts based on your goals. Automation can also reduce the chance that money intended for long-term savings is unintentionally spent.

How often should you check your investments?

How often you check your investments should depend partly on how you respond to market movements, but Tyler suggests that most investors do not need to check them daily. Constantly monitoring markets can create stress and tempt investors to react to short-term changes. He suggests that monthly may be sufficient for many people, while broader financial planning reviews can occur every six months or at least annually.

Does reviewing your portfolio mean you need to make changes?

No. A portfolio review does not automatically mean your investment strategy needs to change. Tyler explains that major shifts are relatively infrequent, while regular check-ins provide an opportunity to discuss changes in income and expenses, upcoming purchases, retirement withdrawals, or other financial goals. Those changes can then be evaluated within the existing long-term strategy.

How much money should you keep in your checking account?

The appropriate amount depends on your spending and financial situation. Still, Tyler suggests roughly one to one-and-a-half months of expenses as a general guideline for a checking account used to pay bills. Additional emergency savings may be better suited to an account that earns a competitive rate, such as a high-yield savings or money market account, while remaining accessible when needed.

Why can paying less attention sometimes make you a better investor?

Paying less attention can reduce opportunities to make emotional decisions based on short-term market movements. Tyler points to periods of rapid market declines followed by sharp rebounds as a reminder that reacting to a single difficult day can interfere with a long-term strategy. The goal is not to ignore your finances, but to combine intentional reviews with a strategy designed to withstand normal market fluctuations.

WATCH ON YOUTUBE

TESSA HALL
Media and Communications
Specialist

NICOLE LIVINGSTON
Partner at
McKenna Russo

About This Episode

Beginning October 1, 2026, Maryland homeowners will have a new estate-planning option for transferring real estate after death: the transfer-on-death deed.

In this episode of Healthy, Wealthy & Wise, Tessa Hall speaks with estate planning attorney Nicole Livingston about how Maryland’s new transfer-on-death deed works, how it may help homeowners avoid probate, and some of the complications homeowners should understand before using one. Nicole discusses multiple beneficiaries, conflicts between a deed and a will, Medicaid liens, and how transfer-on-death deeds compare with life estate deeds and revocable trusts.

The new option may appear straightforward, but decisions involving real estate and estate planning can have consequences that extend well beyond completing a form.

Explore how BWFA can help you plan for your financial future by visiting our Financial Planning page.

What is a transfer-on-death deed in Maryland?

A transfer-on-death deed allows a Maryland homeowner to designate a beneficiary who will receive the property after the homeowner’s death without the property passing through probate. The new Maryland law takes effect on October 1, 2026. Nicole explains that estate planning attorneys have previously used tools such as life estate deeds and revocable trusts to accomplish similar probate-avoidance goals.

What happens if you name multiple beneficiaries?

Naming multiple beneficiaries may create complications for ownership and estate planning. Nicole explains that under the new Maryland statute, beneficiaries named without additional ownership language default to joint ownership with rights of survivorship. That distinction can affect what happens if one beneficiary dies before the homeowner and may produce a different result than the homeowner intended.

Does the deed override a will in Maryland?

Yes. According to Nicole, the deed controls the transfer of the property even when a will provides different instructions. For example, a will might divide an estate equally between two children while the deed names only one child as beneficiary of the home. In that situation, Nicole explains that the beneficiary named on the deed receives the property.

How could this new option affect Medicaid planning?

The new deed can interact with Medicaid and estate recovery rules, so homeowners should consider those consequences before using one. Nicole explains that the arrangement does not prevent Maryland from enforcing an applicable Medicaid estate recovery lien against the property. The appropriate strategy may depend on the homeowner’s circumstances, marital status, and long-term care planning.

Should you prepare the deed without an attorney?

Although Maryland’s new law is intended to make the process accessible to people without an attorney, mistakes can have significant consequences. Nicole identifies incorrectly describing the property and misunderstanding the effects of naming multiple beneficiaries as two potential problems. Because a home is often a substantial asset, she recommends seeking legal assistance before preparing the deed.