retirement

Frugal retirees: Go ahead, spend your money

Retirement » Frugal Retirees: Go Ahead, Spend Your Money

Consider your cash flow
Consider your cash flow © alexskopje/Shutterstock.com

Many of us grew up believing we should never touch our principal. And while that philosophy can serve us well during our working and saving-for-retirement years, it can also become so ingrained that it's hard to change. So as a first step, you might consider taking some of your dividends and interest in cash rather than reinvesting them -- that is, before they get added to your principal and become off-limits.

If you don't already have one, it's easy to set up a sweep account at a brokerage firm; it will automatically deposit your dividends and interest into a money market account, which you can draw on as needed.

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