Summary: How to manage cash flow during retirement is probably the question I am asked most often.<br> 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.<br> In this episode, I outline the method we use with our retiring clients. It is called the Cash Flow Reserve system.<br> I also explain why it is important that you ask your Financial Advisor if they have a written succession plan.<br> Less Than 10% of Advisors Have a Succession Plan<br> 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.<br> <br> * Who will service you?<br> * Who will advise you?<br> * What communication will you receive?<br> * Who will manage your assets?<br> * Is your plan well organized?<br> <br> These are just some of the important questions that you need answered to ensure your retirement plan is not disrupted.<br> I discuss:<br> <br> * the importance of asking your advisor about their written succession plan<br> * what items to look for<br> * the communication plan that should be in place<br> * how to protect your retirement plan in the event your advisor is suddenly unavailable.<br> <br> This month, I’ll post a checklist in the <a href="http://www.rogerwhitney.com/worksheets/">Retirement Answer Library</a> of items you should look for in your advisor’s succession plan to assure you’re protected.<br> Listener Question: Lynn asks, “How do I manage my cash flow without a paycheck during retirement?<br> 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.<br> 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.<br> The Benefits to You:<br> <br> * It can help you feel safer about meeting your needs<br> * It provides a margin of safety during turbulent markets<br> * It positions you to make smarter financial decisions<br> * It gives you more flexibility to adjust as conditions change<br> * It helps you sleep at night<br> <br> How It Works:<br> <br> * Checking Account—To pay your lifestyle expenses<br> * Cash Reserve Account—Maintain 2 year’s expected living expenses and distribute a monthly “paycheck” to your checking account<br> * Extraordinary fund—Maintain cash reserves for extra expenses you will incur over the next 12 months<br> * Long-Term Investment—Long-term investment assets that include bonds maturing in 3-5 years<br> * Review and adjust every 6 months<br> <br> This week I’ll post a detailed outline on how to build your Cash Flow Reserve system in the <a href="http://www.rogerwhitney.com/worksheets/">Retirement Answer Library</a><br> Resources Discussed<br> <a href="http://www.rogerwhitney.com/worksheets/">Retirement Answer Library</a><br> Enjoy the Podcast?<br> You can do me a big favor by <a href="https://itunes.apple.com/us/podcast/plan-well-invest-wisely/id834314596">subscribing in iTunes</a> and leaving your honest review.<br> This would help bring more listeners and questions so we can all work together to PLAN WELL and INVEST WISELY for retirement.<br> <br> <br> <br> <br>
