Your money should always work for you, but when you're retired, it needs to work even harder. Help safeguard your retirement by placing demands on your hard-earned cash.
A recent article published in MoneyWatch, “Seven demands retirees should place on their money,”lists these important money demands:
- Growth: Make sure you still have a growth component in your portfolio. You don't want to be faced with trying to live on an income that no longer covers your costs.
- Safety: Keep your money in a safe place in the care of a reputable custodian who is not part of the investment company. Two words of warning: Bernie Madoff.
- Tax Efficiency: Remember what Mom used to always say, “It's not about how much money you make, but how much money you keep.” She was right - after-tax cash flow is a must.
- A Healthy Long-Lasting Income: Ask your financial planner to conduct a cash-flow analysis to see how your money shakes out in five, ten, twenty and thirty years. Get help creating a plan that takes taxes, healthcare costs and inflation into consideration and one that increases the probability that you’ll receive an income for the rest of your life.
- Control: Have some control over the access to your investments. What if there's an emergency?
- Access: Set some money aside for an emergency fund or rainy day fund, in case you have an unforeseen expense.
- Effective Estate Planning: Make sure that your estate plan lets your loved ones inherit your estate in the least-taxed, most cost-efficient way.
Make your money work hard! Speak with a qualified estate planning attorney.
Reference: MoneyWatch (August 3, 2015) “Seven demands retirees should place on their money”
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