Retirement Income

If you are like most of us, you’re not rich, a trust fund baby, or independently wealthy. Therefore, you need to plan for your retirement by saving for it from the time you start working. Ensure all your money that is saved (preferably on a monthly basis) is invested in the available mutual funds and ETF’s of your 401K or IRA. Review the investments on a periodic basis to ensure the investment fits your retirement strategy. This can be accomplished by consulting with an investment adviser or financial planner. Make sure they are vetted and ask for credentials. Once You reach retirement age, feel comfortable retiring, and have saved enough money to afford to do so, you need to have your money invested in such a way that monthly income is generated for you and your spouse. This interest or dividend income is automatically deposited into your brokerage account when they are paid by each investment. This is usually on a monthly or quarterly basis.These days, when technology is readily available and at your fingertips, you can use your computer to access your brokerage and bank accounts, review investments, track both growth and income, and set up a monthly electronic transfer of money to your checking account to pay your monthly bills, afford vacations, indulge your grandchildren, and live on. Reviewing of your investments should be done with your advisor and tweaking based in your investment strategy. Make sure you invest for the long run and you don’t buy and sell investments based on short term swings of the market. This is a sure way to lose money – chasing ups and downs in the market.Most brokerage houses such Merrill Lynch, Fidelity, Schwab, Ameritrade, etc. can set up this automatic transfer in your brokerage, IRA, 401K accounts to whichever bank has your checking account. What you need is to fill & file forms at your local brokerage office or do it online. To do this, you need your checking account number and the routing number for your bank. This information you can get from a blank check. Once the forms are filled and signed and the transfer set up is done, you’re ready to go. You need to do this with all your retirement accounts such as your 401K, pension plans, Profit sharing plans, IRA’s, Roth IRA’s, 403B’s, Social Security, and any other pension plans that you have. Each account, no matter where they are saved or who holds them, can set up a direct deposit to your checking account each month or when you need it. This will ensure you have enough money in your checking account when you need it.You need to monitor your investments to make sure they are performing as you expected and if the investment strategy, industry, market changes, you need to make adjustments to your investments as appropriate. Consult with investment advisor or financial planner as needed to make sure you are doing all the right things for your investments and you and your family. Finally, as things change in your investments, you need to keep an eye on the cash flow and ensure enough cash is coming in to satisfy your monthly needs and that you have enough cash in a cash or savings account in your brokerage account to cover the monthly transfer of cash. If you have any questions, consult with your financial advisor or your brokerage house.