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Cash Flow Lessons in Retirement

Let me start by saying this: You don’t want to learn any hard lessons in retirement about cash flow. I was witness to and experienced economic hardships like most everyone else did in 2008 and 2009. At the time, I owned a whole lot of non-income producing real estate (land) and the weight of that alone was less than pleasant. When entering into your retirement/financial independence years, remember this: cash flow matters.

I say that to emphasize the fact that illiquid assets on a balance sheet that are non-income producing matter very little when you NEED cash flow.

I personally knew more than one person that was worth tens of millions of dollars that had a difficult time even paying for food and gas during the last financial crisis. It sounds like I’m embellishing but sadly, I am not.

While crafting your retirement plan, make sure that you have adequate “basic needs” income that likely will not go away even in the most treacherous of financial storms. It will serve you well. I refer to this as Tier 1 income. It’s the income that HAS to be there.

The next chunk of income is more discretionary and can be increased or decreased at will to accommodate periods of decreased or increased spending. I refer to this as Tier 2 income.

I have an entire presentation that I give to prospective clients about identifying the proper sources for different types of income. It’s THAT important.

David Hedges, CWS® is the owner of Bookman Bright, Inc., a registered investment advisor. You can reach him at (704)-256-6016 and david@bookmanbright.com.

Major Transitions –

Selling Your Family Home

Significant changes, like moving, are always tricky, regardless of age. As we get older, we may feel “forced” into moving because we are dealing with more than one stressful situation, such as changes in health, the loss of a spouse, or the movements of adult children. Yes, change is difficult, and there is comfort in the familiar. But sometimes the familiar becomes problematic, and change is required to make life better.

Consider the bright side of making a change: Fewer Responsibilities

All the things you had to care for or hire done will no longer fall on your shoulders! A smaller living space means less maintenance, less cleaning, and less effort. Yay!

More Time to Call Your Own

Your to-do list will get significantly shorter the moment you move into your new location. Have you wanted to have more time to read? To watch movies? To travel? To make new friends or spend more time with the old ones? You’ve got it!

A Clean Slate

It’s not often you can “recreate” yourself in life. Do you want to ditch old hobbies and pick up something new? Do you want to dress differently or change your hair? A new location means a unique opportunity to define who you are now, instead of the person others expect you to be. Cut loose!

An Excellent Excuse to Jettison Stuff

You may have to part with some things you like, but you also get to walk away from all the things you don’t. No more guilty feelings about tossing a gift you never really liked. You can stop providing the family’s storage unit. You can keep what you adore and pitch with abandon because you “just won’t have room at the new place.” Sure, moving to a new home after so many years in this one is challenging. But, if you take charge and call the shots about how it gets done, this is more than a move—it’s an opportunity. Don’t shy away from deciding how the next chapter of your life will play out. It’s your story. Make it an enjoyable, personal, and colorful one!

Mary Boccardo is a Seniors Real Estate Specialist® who is with Keller Williams SouthPark. More information can be found at www.mavenlifehomes.com.

Let’s Count our Blessings… and our Stuff?

With the holidays here, many of you are having fun decorating, excited to spend quality time with family and friends (furry friends too!), planning your menus, and counting your “stuff”… Wait. What? For empty nesters and boomers who are still entertaining in the family home, and haven’t had a garage sale or donated to a local charity recently, this is a great time to take stock of your holiday “stuff”. Why? Because you are going to have to do it sometime, (unless you are planning on living forever). Otherwise, you’ll have to have family or friends do it for you or you may even have to PAY someone to do it, and really nobody wants to do that.

If, for example, you can’t decide which out of multiple sets of holiday formal tableware you want to use, then this is the time to consider scaling down to just a set or two that are special to you and your family.

Consider taking pictures of each set and inventory how many pieces you have of each pattern. Share that information with your loved ones who may find meaning in using it because of the fond memories attached to it. If you would rather sell your items, simply share the photos with a reputable consignment shop or auctioneer for consideration. Whatever you decide, there is no time like the present to count our blessings….and our stuff!

Cindy Greer, Owner and Senior Move Manager® O: 704-945-7108 | TransitionWithCare.net

True Wealth–

Power Aging Part II

Building on the theme of power aging from last month that exercise, mental stimulation, and healthy eating are the critical components to longevity, let’s enhance your way of thinking around 2022 New Year’s resolutions.

Action without thought behind it is never a strategic move. Doing nothing is not good either. So, how do you get past analysis paralysis or inaction?

Let’s assume one of your “Dream it” goals is a longer, healthier life. Moving on to the “Plan it” phase starts with knowing what your 2022 positive measurable desired outcomes will be to realize your longevity impact.

The challenge begins when you seek out expert opinions. For example, I was reading an article with a title “Top 5 Longevity Foods to Postpone Aging.” It was interesting and well written. The problem? All five foods started with the letter “B.” While clever, perhaps to help one remember, are there not other great foods that could help with aging, just did not have a “B” at the beginning?

I found the same challenge with exercise articles I reviewed. One focused on muscle density. Another focused on stretching and yoga and yet another on cardio. The last article had a different routine, which only needed 2-3 days a week. Each expert believes they have the right solution. They may, but does that mean the others are wrong?

Lastly, mental and emotional health, I believe, is very individual, meaning that the only expert is you in knowing what makes you happy and creates less stress in your life.

Since financial stress is usually found at the top of most lists, create your 2022 financial resolutions based on a couple of reality check points. First, no one knows how much time we have in life. Second, the stock market direction should not be what determines how you enjoy your life.

Your resolution action? What can you get excited about? Instead of waiting or speculating, reset your goals for 2022 within your core financial plan, adjust monthly income distribution needs, and give yourself permission to “Pursue it” NOW in what will help you create a life well lived.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. Securities and Advisory Services offered through LPL Financial, a Registered Investment Advisor, Member FINRA, SIPC

Jeffrey Karp, CLU®, ChFC®, CASL® founder of Karp Financial Strategies and is a registered representative of LPL Financial. More information and his blog, Permission GrantedSM can be found at www.karpfinancial.com.