There’s something special about the word Malibu. It evokes sunshine, open vistas, ocean breezes, and a lifestyle that feels both calm and elevated. When clients come to me asking how to achieve a “Malibu-level” retirement, they’re not necessarily asking for beachfront property on the Pacific Coast Highway. What they really want is a retirement that feels spacious, secure, and effortless — the kind where you wake up each day knowing you’ve built something stable, intentional, and deeply personal.
After nearly three decades in private wealth management, I’ve found that building this kind of retirement isn’t about luck. It’s about clarity, planning, discipline, and following a system that keeps stress out of the picture. Here’s how you can build your own Malibu-level retirement budget — tailored to your life, not someone else’s fantasy.
Understanding What “Malibu-Level” Really Means
Before you pull out calculators or spreadsheets, you need to define the life you’re aiming for.
Your Malibu Might Not Be the Real Malibu
For some people, it means:
- A home with natural light and low maintenance
- The freedom to visit family without checking bank balances
- Afternoon walks, volunteer work, or art classes
- A few great vacations each year
- Health security and zero debt anxiety
For others, Malibu means something more aspirational — a second home, luxury travel, or building generational wealth.
Both visions are valid. What matters is that your budget matches your personal Malibu.
Step 1: Start With Your Lifestyle Vision — Not the Numbers
When I sit down with families in Washington, D.C., Northern Virginia, or along the East Coast, I start with questions — not spreadsheets.
Ask Yourself:
- Where do I want to live in retirement?
- Do I want to downsize, relocate, or stay near family?
- How do I want to spend my days?
- What does “comfort” mean to me?
- What experiences do I want to afford every year?
Create a Personal Vision Statement
It can be as simple as:
“I want to retire at 65, live near the water, travel twice a year, enjoy family gatherings, and never worry about healthcare expenses.”
This clarity becomes the foundation for your budget.
Step 2: Map Out Your Real Retirement Expenses
A Malibu-level retirement starts with honest numbers.
A. Essentials (The Non-Negotiables)
- Housing
- Utilities
- Transportation
- Groceries & daily living
- Insurance
- Healthcare & prescriptions
B. Comfort Spending (The Quality-of-Life Boosters)
- Travel
- Dining out
- Hobbies
- Spa days, golf memberships, or fitness studios
- Gifts & celebrations
C. Long-Term & Unexpected Expenses
- Home repairs
- Car replacements
- Medical surprises
- Supporting adult children or aging parents
A stress-free retirement is one where nothing blindsides you.
Step 3: Calculate Your Annual Spending Target
This is your “Malibu Baseline.”
A helpful starting point is to calculate your annual retirement income need. Most retirees spend 70–90% of their pre-retirement income, depending on lifestyle.
If your pre-retirement income is, say, $150,000:
- 70% = $105,000
- 90% = $135,000
Your Malibu-level budget will likely fall somewhere in this range (or above, if you want a more expansive lifestyle).
Step 4: Use Retirement Multipliers the Smart Way
There’s a common rule of thumb:
Save 25 times your annual spending to retire with confidence.
But in my experience, this is oversimplified.
What Actually Works Better
- Calculate your lifestyle costs
- Layer in guaranteed income (Social Security, pensions, rentals)
- Stress-test your plan for market dips, inflation, and longevity
- Adjust your portfolio allocation to match your risk comfort
A Malibu-level retirement isn’t built on guesswork — it’s built on precision and stress-testing.
Step 5: Diversify Your Income Streams
One source of income? Stress.
Three to five income sources? Peace.
Strong Retirement Income Sources Include:
- Social Security
- IRA/401(k) withdrawals
- Dividends
- Rental income
- Side consulting
- Annuities (in specific cases)
- A properly structured investment portfolio
Think of your income like building pillars under a deck. The more pillars, the more stable the platform.
Step 6: Plan for Healthcare Like Your Future Depends on It
Because it does.
Key Healthcare Budget Elements
- Medicare premiums
- Supplemental insurance
- Prescription costs
- Dental, vision, and hearing
- Out-of-pocket emergencies
- Long-term care planning
I tell clients: “If you plan well for healthcare, you remove 60% of retirement anxiety.”
Step 7: Build an Emergency Buffer Specifically for Retirement
Even a Malibu sunset comes with tides.
I recommend retirees keep:
- 12 months of expenses in liquid cash
- Plus a 3-year bucket of conservative investments for stability
This prevents you from selling stocks during market downturns.
Step 8: Review Your Plan Annually — Your Malibu Will Shift Over Time
Your retirement isn’t static. Neither is your budget.
Every Year, Review:
- Spending changes
- Health changes
- Market performance
- Income sources
- Risk tolerance
- Tax strategy
- Goals and lifestyle desires
You have permission to evolve — so should your financial plan.
Real Example: A Local Couple Builds Their Malibu-Level Retirement
Let’s take a couple from Potomac, Maryland — lifelong professionals, empty nesters.
Their Malibu Vision:
- Downsize from a large colonial home
- Move into a condo with walkability
- Winter in Florida or Southern California
- Visit Europe every 2–3 years
- Maintain strong healthcare coverage
- Support their grandchildren’s education
Their Plan Included:
- Selling their home and reinvesting proceeds
- A balanced portfolio for income and growth
- Social Security optimization
- A travel budget built into the annual plan
- A dedicated healthcare bucket
- Annual reviews to adjust as needed
Today, they’re living exactly the retirement they imagined — not because they guessed, but because they planned.
Final Thoughts:
A Malibu-level retirement isn’t about extravagance — it’s about clarity, confidence, and peace.
The formula is simple:
- Define your vision
- Know your numbers
- Diversify your income
- Protect yourself from healthcare surprises
- Review and refine annually
- Plan with someone who understands your goals deeply
As a financial advisor who has walked this journey with countless families, I can tell you this: You don’t need a Malibu address to enjoy a Malibu lifestyle. You just need a plan built around your version of abundance.
