Don't Line Your Coffin With Dollar Bills

Few people expect this retirement problem...

When most of us think about retirement, our No. 1 concern is having enough money for the rest of our lives.

But a new study from the Employee Benefit Research Institute found that many folks overcorrected.

According to the study, about a third of retirees are sitting on just as much retirement savings in their mid-80s as they had when they retired... or more.

It's not because they're rich. The same pattern was true across low-, middle-, and high-asset households.

Financial experts say you can safely withdraw around 4% of your retirement savings each year without running out.

But retirees aren't even getting close to that 4%. A 2025 study found that most retired, 65-year-old couples only withdraw about 2.1% of their savings in a year. For retired singles of the same age, that drops to 1.9%.

Recent research from Morningstar found:

Retirees often rely on simple, hands-off spending strategies, such as using mandated withdrawal rules (like required minimum distributions), basing withdrawals on current expenses, or drawing only dividends and interest.

That means many folks are just using their Social Security and distributions they're required to take from retirement accounts to fund their retirement.

Their caution is understandable. Retirement is full of unknowns...

What if you develop a serious health problem that eats away at your money? What if the stock market has a few down years? Or what if costs jump, like they have today?

You don't want to be caught without the funds to cover dire situations.

It's even harder to go from a saving mindset to a spending one.

You spend decades diligently saving until it's finally time to start enjoying all your hard work. For many of us, that's not an easy switch to flip.

Allianz's 2026 Annual Retirement Study found that many Americans fear running out of money more than dying.

So how do you learn to start spending your nest egg?

If you're not already, one way is to start pulling from your investments through dividends. This could be a way to significantly increase your spending power.

Let's say your portfolio is full of some of my favorite stocks – "Dividend Aristocrats." These companies have consistently raised dividends for at least 25 years and pay an average dividend rate of about 2.5% right now. If you have a $1,000,000 portfolio, using those dividends throughout the year could represent an extra $25,000 in income... plenty to take a couple nice vacations.

Even if you have a portfolio that more closely resembles the list of companies in the S&P 500 Index, that's still potentially giving you about $16,000 a year to use for whatever you enjoy.

What you're spending over each year of your retirement doesn't need to be based off a rigid rule. Instead, it should be more dynamic. If the markets have had a good few years, that might be a time to take a little extra out. If you've had a year where you've had to use more than you predicted for emergencies like home repairs or healthcare, that might be a time to trim your discretionary spending.

Take some time each year to reevaluate your plan. Consider what you'll use for your basic needs, how much your assets have grown, and whether you have any big-ticket items planned in the upcoming year.

You've worked hard your whole life. Don't waste your golden years pinching pennies.

Of course, if you want to have the problem of underspending in retirement, you first need to grow your nest egg.

And longtime readers know that investing is the No. 1 way for most of us to do that.

You just need investments that will grow your wealth. Some investments will destroy it.

With SpaceX's massive IPO this morning, many folks rushed to buy shares in a hugely expensive, money-losing company. Worse, there's a good chance you're going to be an investor without buying shares yourself, as we wrote on Wednesday.

More than we've seen in decades, it looks like the markets are stacked against regular investors.

Two of my colleagues – Whitney Tilson and Gabe Marshank – agree. They're questioning whether today's largest private companies are entering the public markets primarily to fuel future growth or for the benefit of early investors and insiders.

They warn that changing market rules may be adding risk to investments that many people have long viewed as diversified and relatively hands-off. In their view, the next major market disruption may not come from a recession or financial crisis, but from structural changes quietly reshaping where trillions of investment dollars are forced to go.

Next Tuesday, they'll to show you how to prepare – including the one money move to make before the SpaceX "forced investment" (as one major American union calls it) takes effect.

Click here to reserve your spot today.

Now, let's get to this week's Q&A... And as always, keep sending your comments, questions, and topic suggestions to feedback@healthandwealthbulletin.com. My team and I read every e-mail.

The Right Mouthwash for Good Oral Health

Q: Do you have a preferred mouthwash, Doc? I've heard that some of them aren't actually good for your teeth and wanted your take. Thanks for all your health advice. – G.R.

A: Thanks for your question, G.R. The trouble with mouthwash isn't your teeth but your overall oral health.

You've likely heard of "good bacteria" in your gut, helping with your digestion and overall health. Your mouth has "good bacteria," too.

But mouthwash marketing suggests the goal is to swish until we've destroyed everything in our mouths.

Listerine and other popular mouthwash brands have active ingredients that can include alcohol, hydrogen peroxide, and cetylpyridinium chloride ("CPC"). I'm not going to argue with their claim of killing germs... Unfortunately, they're also pretty good at killing off some of the more helpful members of your oral microbiome.

A 2020 study of 540 adults aged between 40 and 65 found a higher incidence of hypertension among participants who swished mouthwash twice a day rather than less often (even after accounting for other major hypertension factors like physical activity and smoking).

And in a June 2024 study that looked specifically at Listerine Cool Mint users, researchers discovered a population boom of oral bacteria that have been implicated in gum disease, as well as esophageal and colorectal cancers.

Prescription-grade mouthwash is even worse... Its active ingredient, chlorhexidine gluconate, is often prescribed to treat gingivitis or as aftercare for oral surgery. It's great at killing the bacteria behind your infected, red, swollen gums.

But studies have found it eviscerates your mouth's population of nitrate-reducing bacteria... and can even interfere with your gums' process of healing from a deep cleaning. If your dentist or oral surgeon prescribes mouthwash with chlorhexidine gluconate, ask about limiting usage or alternative options.

So do what I do... Keep your mouth clean by brushing your teeth. I use a mixture of baking soda and salt in place of typical toothpaste (about equal parts of each).

What We're Reading...

• Did you miss it? How the SpaceX IPO Will Affect Your 401(k).

• Something different: Why women's brains may face a steeper path to cognitive decline.

Here's to our health, wealth, and a great retirement,

Dr. David Eifrig and the Health & Wealth Bulletin Research Team
June 12, 2026