Cash Flow Management is necessary to make sure that you don’t run out of money in retirement. Do you have a plan to distribute a consistent and sustainable income, or do you just have a static accumulation plan? We use professional software to construct a complimentary year-by-year cash flow projection and help you make adjustments to get your best result. Use this indispensable tool to make intelligent critical decisions:
When to retire
When to take social security worker or spousal benefits
When to take IRA distributions and whether to convert to a Roth
Whether or not to downsize your home or lifestyle
What Investments you need to make to support an adequate safe withdrawal rate
How to estimate and guard against inflation
Target a legacy amount to your family or charity
When to "turn on" an annuity or an annuity ladder if you have an annuity
Whether to take a "single life" pension or annuity or a "joint life" option
How and when to fund long term care vehicles
Do you know what the Safe Withdrawal Rate (SWR) is for your portfolio? Do you think it is 4-5% like your broker has probably told you? That worked in the 1990s when US Treasuries were between 6-7%, but can not work with today's low interest rates and high price/earnings ratio stocks. Very important: if you are withdrawing from an IRA/401(k) or a brokerage account with gains, you will be receiving the after tax proceeds. So, if you are in the 20% tax bracket, to net 4% you must distribute 5%.
So if you have a typical retail mix of low yield bonds and/or overvalued equities that are highly correlated to the market, your net SWR may be well under 3% and totally incompatible with your distribution needs. Don't get caught by another 2008!
Find out how to easily and efficiently fix this problem with a customized solution to cure a cash flow deficit. Some may prefer the simplicity and safety of an annuity with a 5-6% payout guaranteed for life used in combination with low market risk Institutional Tactical funds, but your needs and preferences will always govern. Check out this pro forma calculation & input your retirement situation:
For a complete understanding of annuities, see my blog under "The Fixed Indexed Anuity (FIA) discussion" and go to "Annuities" tab under interviews and listen to several discussions.
Most important, get a professional analysis: don’t be blindsided by inflation, poor investment results, sub-par social security decisions, out of control healthcare costs or the loss of a single-life pension.
Click on for a Retirement Budget Worksheet (bring to first meeting):
Call me and find out if your plan is on track or needs help.
Cash Flow Management
FOR A FREE CONSULTATION
Ringgold & Associates
1415 Panther Ln #308
Naples, FL 34109