Transitioning from receiving a consistent amount via a paycheck to funding your own cash flow in retirement can be a stressful time. Moneta is here to help relieve that burden. Let’s talk about how we approach funding your ongoing cash needs.
Paycheck Replacement
A seamless way to make this change is to create a systematic transfer from the portfolio to your checking account to cover your typical monthly living expenses. We refer to this as a “paycheck replacement.” Though instead of your employer or business writing the check, you are the one in charge of the amount.
Sufficient Cash Reserves
We also want to consider other cash needs that might occur in a given time period, generally 6 months ahead. This provides sufficient lead time to have the cash on hand before the expenses arise. Cash needs can include the “paycheck replacement” monthly transfers, plus payments for things such as taxes, insurance, travel, and home projects.
When looking to the portfolio to provide these funds, interest, dividends, as well as the growth of the investments are all sources.
We evaluate the portfolio’s asset allocation to determine the best space to harvest profits. These funds are then set aside as a cash reserve to cover the pre-determined cash needs. The process repeats itself each time we get together for a Financial Review update.
Reach Out for Advice
If you have more financial questions, don’t hesitate to ask your Family CFO. We do more so you can too.
© 2023 Moneta Group Investment Advisors, LLC. All rights reserved. These materials were prepared for informational purposes only based on materials deemed reliable, but the accuracy of which has not been verified. Examples contained herein are for illustrative purposes only based on generic assumptions. This is not an offer to sell or buy securities, nor does it represent any specific recommendation. You should consult with an appropriately credentialed professional before making any financial, investment, tax or legal decision. Past performance is not indicative of future returns. These materials do not take into consideration your personal circumstances, financial or otherwise.
