About this episode
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 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.