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Retirement Answer Man
Trailer
Bonus
Episode 17
Season 1
Managing Cash Flow During Retirement
This week we discuss:
- Why you should ask your advisor about their succession plan
- How to manage cash flow during retirement
Less Than 10% of Advisors Have a Succession Plan
This is a scary number considering that if your advisor is unable to serve you due to injury or death, the retirement plan you’ve put in place could be in jeopardy.
- Who will service you?
- Who will advise you?
- What communication will you receive?
- Who will manage your assets?
These are just some of the important questions that need to be asked by you to assure your retirement plan is not disrupted.
I discuss:
- the importance of asking your advisor about their written succession plan
- what items to look for
- the communication plan that should be in place
- how to protect your retirement plan in the event your advisor is suddenly unavailable.
This month, I’ll post a checklist in the Retirement Library of items you should look for in your advisors succession plan to assure some continuity of service.
Listener Question: Lynn asks, “How do I manage my cash flow during retirement?
How to manage cash flow during retirement is one of the questions I’m asked most. Not receiving a monthly paycheck during retirement can be unnerving. In retirement, it is important to have a system to create a paycheck to pay your monthly retirement expenses.
I outline the Cash Flow Reserve system we use to help clients cover their retirement expenses.
The Benefits of the System
- It can help you feel safer about meeting your needs
- It provides a margin of safety during turbulent markets
- It positions you to make smarter financial decisions
- It gives you more flexibility to adjust as conditions change
- It helps you sleep at night
How It Works
- Checking Account—To pay your lifestyle expenses
- Cash Reserve Account—maintain 2 year’s expected living expenses, distributing a monthly “paycheck” to your checking account
- Extraordinary fund—Maintain cash reserves for extra expenses you will incur over the next 12 months
- Long-term Investment—Long-term investment assets that include bonds maturing in 3-5 years
- Review and adjust every 6 months
This week I’ll post a detailed outline on how to build your Cash Flow Reserve system in the Retirement Answer Library.
Resources Discussed
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