On the other hand, small company stocks have a higher rate of return, but also higher risk. Some expenses in retirement may drop. Other expenses either stay the same or increase. Your basic living expenses, transportation, food, phone, utilities and household maintenance typically stay the same. In the early retirement years, some expenses may go up.
People are usually healthy and active.
They spend money doing the things they finally have time to do. In the middle years, some expenses may drop as people become less active and tend to stay closer to home. In the later years, income needs often rise because of health care costs. A mix of investments will give you the best return on your investment. Stocks , bonds and cash investments are the most basic investments to diversify among.