Memory Investing: Why Your Retirement Plan Should Include Experiences, Not Just Savings

This article was originally published on Forbes.com on November 20, 2025.


Written by:
Chad Waddoups
Vice President of Wealth Management

Many people are conditioned to save for retirement—maxing out 401(k) contributions, attending investment seminars and consulting financial advisors. But after a lifetime of disciplined saving, many retirees find themselves asking, "How do I transition from building wealth to actually using it for the experiences I’ve been deferring for decades?" and "How do I shift from a scarcity mindset to an abundance mentality?"

This challenge has given rise to the idea of memory investing—an approach that reframes retirement planning around meaningful experiences and improved relationships rather than just asset accumulation. As a financial advisor, I've come to recognize the ultimate goal of retirement isn't necessarily dying rich—it's learning to live fully while you can.

While it is important to remain disciplined, once you reach your target number for financial security, it's time to use that savings to enjoy your retirement. As retirement approaches, the once-abstract idea of "someday" becomes more real, and the fear of running out of money begins to compete with the fear of running out of time.

If this is the case for you, it can be useful to recognize how the value of shared experiences and deepened relationships can exceed the security of unspent wealth.

Are you financially prepared to invest in memories?
To know if you're ready to invest in once-in-a-lifetime experiences, first determine what a comfortable retirement looks like for you. Calculate your required monthly income, estimate how long those funds need to last and clarify how you want to spend your time during retirement. The foundation of memory investing lies in completing these critical calculations before making any permanent spending decisions.

Once you've established your baseline retirement needs and confirmed you have sufficient resources to cover them, you can allocate your surplus funds toward experiences guilt-free.

Do you need to be fully retired to begin memory investing?
The memory investing mindset is something that can be put into practice in stages. You don't need to wait for retirement—many people begin while they are still working. For example, instead of contributing 15% to your retirement account, contribute 10% and use the other 5% to save for a special family trip. Just be sure to make careful calculations to stay on track for your retirement goals.

Last year, I made the decision to take my family on an Alaskan cruise. My initial consideration was purely financial. I started calculating the opportunity cost—what that sizable amount could grow to over 20 years if I invested it instead. Since not all my family members were in a position to afford the trip, I would need to divert funds that would otherwise have gone toward retirement savings to make the experience possible for everyone.

The unique nature of the cruise created the kind of quality time and shared adventure that investment returns can never replicate. While I acknowledged the financial trade-off, I made sure this trip wouldn't derail my overall retirement plan, and my family and I gained lasting memories we will carry forever.

What is the best way to get started with memory investing?
You don't have to begin memory investing by taking all of your grandchildren on a vacation to the Bahamas. Start by doing something small and relatively inexpensive to get a sense of how much value those memories hold for you.

A few options could be to set aside some of your monthly budget to take family members to dinner or to bring a grandchild to the movies. In doing so, you may start to realize the important impact you have on your family's lives and choose to invest more in meaningful experiences in the future.

How do you determine how much to spend?
Memory investing still requires the same disciplined approach you used during your accumulation years, just with a different goal. Major experiences, such as multigenerational family trips or significant gatherings, often require advance planning and dedicated saving over a few years. The key is treating these experiences as budget line items, not impulsive splurges.

I recommend revisiting your memory investing budget every five years to reassess your financial capacity and your physical ability to enjoy certain experiences. Because your health, family circumstances and priorities will evolve, periodic adjustments should be made to align your spending with your capabilities.

What are the tax implications of withdrawing wealth for memory investing?
Strategic account selection is important when creating a memory investing strategy. Most retirees have accumulated wealth across multiple buckets—some tax-deferred, like traditional IRAs and 401(k)s, and others pre-tax, like Roth accounts. One option is to use your predictable, steady living expenses to systematically draw from taxed accounts, since these withdrawals can be planned and their tax implications easily calculated.

Are you ready for a meaningful retirement?
As you consider memory investing, ask yourself this question about your relationship with money: How do my investments provide security and opportunities to live a meaningful life?

While many memorable experiences do require financial resources, money is a tool to help us live the life we envision. It helps shape what our lives become and the legacy we leave through shared experiences.

Memory investing isn't about spending recklessly or abandoning financial responsibility—it's about recognizing that the richest retirement isn't measured only by the size of your portfolio, but also by the depth of your relationships and memories you created along the way.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Consult your advisor prior to investing. The examples provided are hypothetical situations based on real-life examples.