This is the third in a three-part series of articles designed to help you better understand how to create a paycheck in retirement. To answer that question, we’re addressing the following three topics:
You’ve heard the saying “cash is king” but we disagree. When it comes to planning for a successful retirement, cash flow is king. As you transition from the accumulation phase to the distribution phase, you face a different kind of challenge. The question is no longer, “how much do you need to save?” but instead it’s “how are going to get paid once you stop working?” For a retired couple who age 65, there is a now a good chance that at least one of spouses will live to age 95. Along with this change in life expectancy, the traditional notion of retirement has given way to a whole new retirement story. Our team at Brown & Company specializes in helping clients pursue a successful retirement. We do this by first looking at each client’s asset allocation comprehensively as well as the income that will be produced from it. And then we recommend changes that are designed to increase the amount of cash flow being derived in order to close the gap for their required spending. The next step is to strategically evaluate their different sources of income in retirement; each of these buckets is subject to their own tax treatment. In retirement, if you plan correctly, you have much more control over which buckets to turn on or off. To do this we utilize a tool called our Retirement Tax FilterTM. The goal is to max out the lower marginal brackets each year without creeping into the higher brackets. This whole strategy is designed to create a sustainable stream of income that will last for several decades and keep up with inflation. To learn more about how Brown and Company can help you create a personalized plan for cash flow and a more secure retirement, call or email us today. Securities offered through LPL Financial, Member FINRA/SIPC. Financial planning offered through Brown and Co., Inc, a Registered Investment Advisor and separate entity. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
- It’s not about returns; it’s about your account balance
- It’s not how much you earn; it’s how much you keep
- It’s not about cash; it’s about cash flow