THE MODEST-CUSHION-AND-RELAX STRATEGY

It s easy to envy those adopting this strategy. Frequently these retirees calculate how much money they think they will need for a comfortable cushion. They then invest or bank that sum and relax. Once they have their personal cushion, they cease to worry about money. From that point on they buy necessities, pay bills, and enjoy life, spending whatever their monthly retirement income may be. 

They tell themselves, I had a savings goal in mind and reached it. That is all the cushion I need.  

There are psychological advantages to this worry-free strategy. The critics, however, claim that today it is unrealistic to count on anything but a very large cushion. 

I Cushion earns additional money. Properly invested savings should grow. 

I I Spending discretionary money is more fun. With a cushion, it s easier to enjoy spending money foolishly. 

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