In retirement, you will begin spending down your assets and stop receiving a paycheck. This is one of the most difficult mind-shifts we go through in our lifetime. But it doesn’t have to be.
A good Financial Plan will include a monthly “paycheck” to be transferred from the right retirement account to your checking account so you can live the life you want. This paycheck isn’t really a true paycheck, of course, but it is a steady, regular stream of cash moving from your investment accounts to your spending accounts.
It will be adjusted over time but should not materially change due to the markets. This is because your plan should include having 5-years of net cash flow set aside, relieving your reliance on the markets to pay your bills in the near term.
By getting your plan in place long before retirement, you can have confidence of continued cash in-flow, while optimizing your investments to pay for expenses in future years.
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