Retirement Answer Man

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

  1. It can help you feel safer about meeting your needs
  2. It provides a margin of safety during turbulent markets
  3. It positions you to make smarter financial decisions
  4. It gives you more flexibility to adjust as conditions change
  5. It helps you sleep at night

How It Works

  1. Checking Account—To pay your lifestyle expenses
  2. Cash Reserve Account—maintain 2 year’s expected living expenses, distributing a monthly “paycheck” to your checking account
  3. Extraordinary fund—Maintain cash reserves for extra expenses you will incur over the next 12 months
  4. Long-term Investment—Long-term investment assets that include bonds maturing in 3-5 years
  5. 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



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Direct download: PWIW_6.16.14.mp3
Category:general -- posted at: 9:03am CDT