It’s very important that you figure out your retirement cash flow before you retire. If you don’t, you could end up spending more than you can afford, and that can take years to recover from.
When figuring out your cash flow needs, start with your income. Write down all the income you’re going to receive, including pensions and Social Security.
Next, take a look at your expenses. Make sure you write down everything—your day-to-day expenses, extended vacations, health care costs, et cetera.
If there’s a gap between your income and expenses, you’ll need to make up for it using your investment portfolio.
If you get overwhelmed, try talking to a financial planner. They’ll take a look at your entire financial situation and give you recommendations that can really help you get a handle on your cash flow.
Jon Meyer, CFP®, is Chief Operating Officer and Investment Manager for BGM Wealth Partners. Outside of work, he is busy raising his four children and training for his next marathon.
The opinion of the author is subject to change without notice and must be considered in conjunction with relevant regulation, as well as subsequent changes in the marketplace. Any information from outside resources has been deemed to be reliable but has not necessarily been verified. Each individual has unique circumstances to which this information may or may not be relevant. Under no circumstances will this information constitute an offer to buy or sell and it does not indicate strategy suitability for any particular investor.