Needs, Wants, and Wishes: A Smarter Approach to Retirement Planning

I hope everyone is enjoying Spring. We go from treacherous to beautiful in a day! Yes, the market has volatility, but that’s a daily thing when you look closer. Let’s look forward to the days when you’re staring retirement straight in the face. I hope this might give you some thoughts to focus.

Retirement planning isn’t just about numbers on a spreadsheet—it’s about creating a future where you feel financially secure, enjoy your lifestyle, and leave a meaningful legacy. A simple yet effective framework for building a strong financial plan is the Needs, Wants, and Wishes approach.

By organizing your financial priorities into these three categories, you can make smarter decisions, reduce stress, and ensure your money works for you in every phase of retirement. Let’s break it down.

Step 1: Cover Your Needs First

Needs are the essential expenses you must cover to maintain a comfortable and stable life. These include:

• Housing – Mortgage, rent, property taxes, maintenance
• Healthcare – Insurance, prescriptions, medical costs
• Basic Living Expenses – Groceries, utilities, transportation
• Debt Payments – Loans, credit card bills, obligations

Since these are non-negotiable costs, it’s important to ensure they’re covered by guaranteed income sources, such as:

• Social Security
• Pension Income
• Annuities (for those looking to create a personal pension-like stream)

By securing a predictable income for your needs, you create peace of mind, knowing that no matter what happens in the markets or economy, your basic expenses will always be covered.

Step 2: Fund Your Wants for a Fulfilling Lifestyle

Once your essentials are taken care of, you can focus on the Wants—the things that make retirement enjoyable. This includes:

• Travel and Vacations
• Dining Out and Entertainment
• Hobbies and Leisure Activities
• Gifting to Family and Friends

Funding your Wants often comes from savings, investments, or discretionary income. This is where financial flexibility matters. Unlike Needs, which require guaranteed income, your Wants can be adjusted based on how well your investments perform or if priorities shift.

A smart retirement plan ensures that your lifestyle is sustainable, allowing you to enjoy life without the fear of running out of money too soon.

Step 3: Plan for Your Wishes and Legacy

Wishes represent your long-term goals and legacy planning. These might include:

• Charitable Giving
• Leaving an Inheritance
• Funding College for Grandchildren
• Major Purchases (Second Home, Dream Car, etc.)

Unlike Needs and Wants, Wishes are usually funded from remaining assets—investments, real estate, or life insurance proceeds. Planning ahead for your Wishes helps ensure that your hard-earned wealth is used in a meaningful way, whether that’s supporting family, causes you care about, or fulfilling a lifelong dream.

Balancing All Three: The Key to a Confident Retirement

A well-structured retirement plan balances these three categories so that:

• Your Needs are secured with reliable income.
• Your Wants are funded strategically without overspending.
• Your Wishes are planned for, giving you financial confidence.

What’s the best way to structure your retirement income to support this balance? That depends on your personal situation, but it often includes a mix of guaranteed income (like pensions and annuities), investment growth, and smart tax planning.

If you want help building a plan that prioritizes your Needs, Wants, and Wishes, let’s talk. Contact me at briancarden.com or call 615-506-0300 to start the conversation.

All my best!

Brian

**Examples are intended for illustrative purposes only and may be not indicative of your situation. Individual results may vary.