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Home > Retirement Answer Man Show > #17 How to Manage Your Cash Flow During Retirement [Podcast]
Podcast: Retirement Answer Man Show
Episode:

#17 How to Manage Your Cash Flow During Retirement [Podcast]
Category: Business
Duration: 00:25:19
Publish Date: 2014-06-16 09:25:42
Description: How to manage cash flow during retirement is probably the question I am asked most often. When you retire and stop receiving a paycheck each month, how you manage drawing from your savings can have a big impact on your financial health. In this episode, I outline the method we use with our retiring clients. It is called the Cash Flow Reserve system. I also explain why it is important that you ask your Financial Advisor if they have a written succession plan. 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? Is your plan well organized? These are just some of the important questions that you need answered to ensure 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 Answer Library of items you should look for in your advisor's succession plan to assure you're protected. Listener Question:  Lynn asks, “How do I manage my cash flow without a paycheck during retirement? Not receiving a monthly paycheck during retirement can be unnerving. In retirement, it is important to have a system draw from savings and still feel secure about your financial future. I outline the Cash Flow Reserve system we use to help clients cover their retirement expenses.  It's simple and something you could do yourself. The Benefits to You: 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 and distribute 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 Retirement Answer Library Enjoy the Podcast? You can do me a big favor by subscribing in iTunes and leaving your honest review. This would help bring more listeners and questions so we can all work together to PLAN WELL and INVEST WISELY for retirement.
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