My sense is that your parents adhered to one of the first tenants of building wealth and peace of mind: Pay yourself first. Most of us think of the strategy as only a means to accumulate personal wealth. Paying yourself first in the accumulation years also provides great peace of mind for people like your parents who appreciate financial and emotional security on a level most of us find difficult to understand. Now is also the time to use the strategy—just in reverse. Encourage Mom and Dad to increase their withdrawals to a conservative 4 percent. Moreover, consider directly depositing the 4 percent into their main checking/bill paying account. Many times when money is separated from the investment portfolio, folks are more willing to actually spend it.

Continue to share that you—their children—will be just fine regardless of the wealth that they ultimately pass. Lastly, don’t expect a quick fix. Our experience suggests that there is a couple-year period to become comfortable with any new spending plan.
Timothy W. Wyman, Center for Financial Planning, Southfield, Mich.