CREATING A SAVING PLANS & FUTURE SOURCES OF CASH FLOW

^{By Louis Green, CFA®, CFP®, CRPS®}

Create a Savings Plan

Whether you are just starting your retirement journey or newly retired, create a savings plan to pay yourself first. If you are just starting your retirement journey, use part of those savings to create an investment portfolio. Even the smallest portfolio can grow significantly over time with consistent contributions. Getting started now will allow you to reap the benefits of compounded interest over time.

Future Sources of Cash Flow 

Consider your future sources of cash flow. Will you receive a pension? When will you start to take retirement account distributions? Project the future value of your assets using a conservative growth rate. Do not overestimate how large your portfolio will grow based off recent returns, and make sure to use average numbers. You will need these numbers to estimate future sources of cash flow.

Social Security

Include social security as a current or future source of income. If you are not currently taking social security, consider the tradeoffs between taking social security when you are first eligible versus maximizing your benefits at the age of seventy. You could increase your social security payments by an estimated 32% if you delay taking benefits until 70 versus taking benefits at your full retirement age.^1,2 Consider your financial and health situation carefully before deciding when to start taking benefits.

Set up a social security account at https://secure.login.gov/ to get started. By setting up an account, you can verify your earnings record, see estimated benefits, and apply for social security.

Monthly Benefit Based on Claiming Age ²

Let’s Talk

Find out how Prestiq Wealth can help you create a comprehensive financial plan based on their book, 5 Steps To Retirement Planning.

LET'S TALK

All advisory services are offered through Savvy Advisors, Inc. (“Savvy Advisors”), an investment advisor registered with the Securities and Exchange Commission (“SEC”).

^{1 https://www.ssa.gov/benefits/retirement/planner/1943-delay.html}

^{2 https://www.newyorklife.com/articles/make-the-most-of-social-security-benefits}