Time to read: 2 minutes
We are going to talk to you about cash flow. Financial planning and cash flow go hand in hand. Cash flow is important in all assets of your life. You hear that term, and most people think money. Cash flow is a way to formulate or generate money and there’s thousands of different ways to look at that. It simply means that you have income coming in monthly, that can cover your expenses.
You used to hear the phrase cash is king right, but if you have cash in the bank right now, what is it generating you an interest? Probably little to nothing with interest rates being so low. In retirement cash flow is king.
If you’re in a position that you know your monthly income coming in can cover all the expenses you have and allow you to live the lifestyle that you want, you’re very much so insulated. It removes the fear and the anxiety from market volatility. It also puts you in a position that says, “You know what, I can do those things that I want to do because even if I spent every dollar that came in this month, next month it fills right back up!” It gives you the power to have the freedom that you’re seeking in retirement.
Ultimately there’s a ton of planning that needs to go into how you take cash flow, why you take cash flow, and where it’s going to come from. Inflation is a key factor that we’re looking at right now. Having buckets that are going to be able to fill up and generate more cash flow in retirement is the key to success for you to go against inflation and ultimately give you that power you’re looking for.
If you are looking for more information on how to invest during retirement to help you manage cash flow in retirement, please click here!
If you would prefer to listen, please click the YouTube Video below to listen to Tyler Braun, Financial Advisor, talk about cash flow in retirement.