Managing a Budget During Your Retirement
When you retire, a financial plan can help you balance your income and expenses. As longevity continues to rise among certain demographics, this task is more critical than ever. Here are steps you can take to maximize cash flow and manage finances during retirement.
Step 1: Planning
Create a clear picture of your financial situation and projected income and expenses. Start with a comprehensive overview of your
assets, debt, and cash-on-hand. Then assemble a budget that itemizes your income and expenses. Note any lifestyle changes and any anticipated income. After you develop your statement, look for areas where you can improve your income/expense balance. Consult a
financial professional for assistance, to make sure that you are accurate and thorough in your calculations.
Step 2: Monitoring
Creating a detailed budget is not a onetime proposition. Revisit your budget regularly and readjust if income and expenses change. This way you can best address any shortcomings and look to reduce expenses, to avoid cash flow issues.
Step 3: The Fine Print
As you monitor your finances, there are items that could impact your cash flow in profound ways:
1) Interest Rates: These fluctuate and could reduce or increase the income from your savings and investments.
2) Tax Rates: federal, state, and local tax rates change over time, as do tax regulations. Make sure that you understand the impacts locally
as well as if you plan to move to a different state.
3) Healthcare costs: These can be unpredictable and have a major impact on your cash flow and expenses.
4) Miscellaneous Life Events: You may also incur life events that impact your cash flow, either on a one-time basis or continuously.
By developing and monitoring a budget during retirement, you can better support your lifestyle expectations.
Cornerstone Wealth Management
486 NW 2nd Avenue
Canby, OR 97013
503-266-7431
Securities and advisory services offered through LPL
Financial, a registered investment advisor. Member
FINRA/SIPC.
The opinions voiced in this material are for general
information only and are not intended to provide
specific advice or recommendations for any individual.
Rebalancing a portfolio may cause investors to incur
tax liabilities and/or transaction costs and does not
assure a profit or protect against a loss.
