Say your retirement dream includes racing yachts, collecting antique dolls or starting a goat farm to make artisan cheese. Even if your only real passion is playing golf, your retirement plan should include a way to pay for it.
Harriet Veenker, a Certified Financial Planner in Aitkin, Minn., says it's especially easy for spending on hobbies and recreation to get out of hand during the early retirement years.
"Most new retirees tend to overspend in their first year or two because there is so much out there to do," Veenker says. "Some of the pension plans aren't helpful, because they'll let you take more out in the first five years -- because that's when you're really busy."
Veenker's neighbor, a teacher in the Elk River, Minn., teachers' pension program, elected to take bigger payouts at the onset of retirement. "It is a decision that she has regretted, since the income was cut back after five years," says Veenker.
Make sure you have a spending plan that will fit your lifestyle and allow your retirement income to last for the long haul.