As we age and approach retirement, it's essential to consider how you can turn your assets into a sustainable cash flow that will provide for you in the future. Surprisingly, 60% of retirees do not have a retirement plan, which can leave them unprepared and struggling to make ends meet during their later years. However, it's never too late to start planning your financial future.



This month is financial literacy month, which provides the perfect opportunity to educate and empower yourself about your financial options. If you haven't already, consider consulting with a fee-for-service financial planner who can provide personalized guidance on your financial journey.



A fee-for-service financial planner is a financial advisor who charges a flat fee for their services rather than relying on commissions from selling financial products. This financial planning model ensures that the advice you receive is unbiased and the advisor is not incentivized to push certain products or services. It also means that you only pay for the services you receive rather than being charged a percentage of your under-management assets.



When choosing a financial planner, it's essential to consider working with someone with a designation that requires them to have a fiduciary duty towards their clients. This means the planner must put their client's best interests ahead of their own and act in good faith and with full disclosure. Examples of designations that require a fiduciary duty include Certified Financial Planners (CFP), Chartered Financial Analysts (CFA), and Registered Investment Advisors (RIA).



Having a sound financial plan in place can significantly impact your retirement success. A comprehensive financial plan can help you fully fund your retirement and avoid losing money later. A financial planner can help you identify your retirement goals, create a plan to achieve them and develop a withdrawal strategy that balances your desire for income with your need to preserve capital.



In addition to working with a financial planner, there are several other ways that retirees can turn their assets into cash flow. One option is to consider downsizing your home or relocating to a more affordable area. This can free up equity in your home, which can be invested to generate cash flow.



 Other options include deferring Social Security benefits to receive a higher monthly benefit in the future or converting some of your assets into an annuity for guaranteed income.



Regardless of how you generate cash flow in retirement, ensuring your financial plan is tailored to meet your unique goals and objectives is essential. Educating yourself about your options and consulting with a fee-for-service financial planner can help you create the right retirement plan.

 



Another way to increase your cash flow is by using a reverse mortgage. A reverse mortgage allows you to tap into your home's equity without selling it and use the proceeds for retirement income. This type of loan can be used to pay off existing debt or cover living expenses so that you can remain in your home while supplementing during retirement.



Finally, consider creating a diversified investment portfolio, which can generate income through dividends and interest payments. A financial planner can help you create a portfolio suited to your needs and risk tolerance.



In conclusion, turning your assets into cash flow is crucial for a successful retirement. Financial literacy month is the perfect time to consult with a fee-for-service financial planner and explore your options for generating sustainable income. Remember, it's never too late to start planning for your financial future, and working with a financial planner can help you achieve your retirement goals.