This Article is About
retirement
social security and medicare
pile of money
debt ceiling
austerity
financial crisis
whole life
medicare
million dollars
social security
assets
banks
3 Reasons I Want Cashflow In Retirement
Join 1000's of Authors at StreetArticles Today!

3 Reasons I Want Cashflow In Retirement

The way things are going in the US right now, I'm planning on not being able to get much use out of social security and medicare, so I've got some serious planning to do for retirement. Saving is part of the plan, but what's much more important to me is cashflow.

Cashflow means that you'll have a reliable source of cash coming in every month that you can count on. When considering the time when I can finally 'call it quits' and enjoy being old, for me, monthly income is a much better option than just saving and saving my whole life, then withdrawing slowly from that big pile of money.

I want cashflow in retirement, not a pile of money.

There are a couple of reasons for this, and you might agree with me.

1. I don't want the responsibility

Having your life savings in a bank is safe, but do you really want to decide what to do with all that money? Let's say that you have a million dollars in the bank and you're 55 years old. How much can you spend each year? Well, it'll depend on how long you live.

Then you'll have to budget just in case you live longer than expected. But you don't want to be too tight, after all, you should enjoy the time you've spend all these years saving for. Monthly income from a variety of sources means you don't have to worry about your savings - keep it for an emergency or extras, and use the money from your cash-flowing assets to get on with your daily life.

2. I don't trust the banks or the government

I haven't been an 'adult' for that long - just barely ten years now, but all I can remember from recent years is financial crisis. The housing bubble, austerity in Europe, the debt ceiling, the fiscal cliff, sequestration, and who knows what's coming next.

As I said in the beginning of this article, even though I'm paying into social security and medicare, I don't really plan to get much of it back. If it does somehow end up back in my pocket, great, but I can't count on it, and therefore can't include it in my plan.

Without social security, and with the possibility of high inflation in the coming years due to The Fed's current monetary policies (yeah, I'm a bit of a 'boom doom and gloom' type guy), cashflow is going to be the way to go.

3. Multiple sources of income

Saving is fine, but it's only one option. If you save, it's just there, and you take it out when you need it. If something were to happen to it, it's gone. By dividing your money into different cashflowing assets, you're diversifying your savings to prepare for the worst.

Sure, save some money. But also put some in real estate, stocks & bonds, and though not many people choose this asset class, I like to put some into my own business. While owning a business may not seem like an option for everyone, it's fairly easy to start an online business and create the system now that will be able to provide you with money in years to come.

By having monthly income from these three asset classes - real estate, stocks, and a business, if something goes wrong with one, I'll have the support of the other two.

Those are my reasons, and that's my plan. What's your retirement plan?


Street Talk

Great article. I attended a pension planning session once and, guess what, it was targeted for young adults and they discussed many of the things you have. We all need to plan early.

Reply
  about 8 years ago

Yes, the earlier you start, the better. Even starting late is better than never starting at all! Planning early, and planning for cashflow is a great way to protect the money you earn now, in spite of changing circumstances in the future.

Reply
  about 8 years ago
You May Also Like
Planning for Retirement Your 40
Your married have a few great kids and a decent home and you still have your health, great. It is not too early to start planning for retirement your 40 and your not going to get any younger. What Comes Next Are your kids going to college or university? Kids…
By: Tim Bashista in  Reference and Education  >  Online Education   Aug 28, 2012  
6
  Likes: 3

Income Needed For Retirement
Do you have some income needed for retirement? Whether you are gearing up to retire or have already retired, this guide will show you how you can enjoy retirement, but create yourself an income that could end up even higher than when you were working! Just read the article, take…
By: Dom Wells in  Internet and Businesses Online  >  Internet Marketing   Mar 11, 2014  
4
  Likes: 7

Planning Your Retirement Needs
What this article is not…a financial guide to planning your retirement. If that’s what you need, you need to either do a search online or go to your local bank and have a chat with your favorite bank agent. I just performed a quick search and most banks and finance…
By: Rick Jantz in  Home and Family  >  Baby Boomer   Mar 17, 2013  
2
  Likes: 3

How Much Do I Need to Save for Retirement
I know that I have been wondering how much do I need to save for retirement. So I started looking around to see how bad my retirement situation really is. I won’t go into my details but the bottom line is that I’m way behind in my planning for retirement.…
By: C. Hughes in  Investing  >  Retirement Planning   May 31, 2013  
15
  Likes: 7

Working Backwards From Retirement
Retirement is typically something that’s coming, that we’re working towards. But what if I told you that you should actually be working backwards from your retirement? What do I mean? 50 – 65 Age Group We actually begin to think we’re going to make it to retirement, although, many in…
By: Rick Jantz in  Home and Family  >  Retirement   Jun 04, 2013  
4
  Likes: 5

Planning for Retirement - is it Just Financial?
If you do a keyword search on retirement you will see that by far the biggest return is for the financial side of retirement and there is no doubt that this is very important. Especially in these days of austerity, pension funds stopping taking more entrants, the prospect of having…
By: Keith Rickman in  Home and Family  >  Retirement   Apr 09, 2012  
0
  Likes: 0

Why Stay Busy During Retirement?
Do you want to stay busy during retirement? Imagine the scene. You have just retired. You were a very busy executive, manager, shop floor worker, whatever, but as a result you were always on the go. You never had time for those "things" that you always wanted to do. If…
By: Keith Rickman in  Home and Family  >  Retirement   Apr 27, 2012  
0
  Likes: 0

Jobs After Retirement
It’s a question most of us will ask when we are at or near retirement, What are we going to do after we retire? There are several answers but the two we talk about most are relax and enjoy our retirement or get a job to supplement our income. Relax…
By: John Stewart in  Internet and Businesses Online  >  Internet Marketing   Apr 03, 2012  
11
  Likes: 3

My VA Experiences Post - Retirement
There seems to be a growing concern in the USA that our veterans are not get quality care for the VA. I cannot speak for all of these veterans. I can only offer my experiences and opinions of the care I have personally received. I have been retired for almost…
By: Rodney L Stanley in  Travel and Leisure  >  Outdoors   May 29, 2012  
5
  Likes: 2

Retirement And Old Age Homes – Will You Live In One?
Old age homes, where you go to die? The adage that one retires to a home for the aged to see out the last days of one's life, has taken on a whole new meaning for me. You see, due to circumstances beyond our control we've been forced to place…
By: Rob Ainslie in  Home and Family  >  Retirement   Mar 05, 2012  
4
  Likes: 2

Time Planning In Retirement
Putting a structure to your retirement days and weeks? I spent most of my long corporate life in a very structured environment and when you retire a lot of this structure goes away. Suddenly you find all the meetings, the days schedules, the trips, the acheivements are no longer there…
By: Keith Rickman in  Home and Family  >  Retirement   Apr 14, 2012  
0
  Likes: 0

Retirement Unknowns
I wonder how many of us give much thought to what our life will be like after we retire. I didn’t give it a lot of thought. I just assumed one day I would be working and the next not. I hadn’t really thought about the adjustments that might be…
By: John Stewart in  News and Society  >  Pure Opinion   Mar 04, 2012  
0
  Likes: 1

Work After Retirement
Retirement. A time to look forward to for some. A time to worry about for others. The others know they will have to work after retirement in order to maintain their current lifestyle. I for one have never looked forward to retirement. For one thing it meant I would be…
By: John Stewart in  Internet and Businesses Online  >  Affiliate Revenue   Apr 04, 2012  
13
  Likes: 3

Four Reasons Why People Don't Save for Retirement
The need to save Today, people know more than ever that they need to save for retirement. For the first time, probably ever, we have the situation where people who retire do have to then take up employment of some sort to be able to live, yes live. For sure…
By: Keith Rickman in  Home and Family  >  Retirement   Apr 25, 2012  
1
  Likes: 0

Jobs In Retirement
As I sit facing thinking of my retirement and of having a grim outlook when it comes to any kind of retirement I have to think outside the box..Having lived day by day with really no regard for the future until the future roared its ugly head so to speak,…
By: Shawn Lee  in  Internet and Businesses Online  >  Internet Marketing   Mar 12, 2013  
58
  Likes: 19

Article Views: 1455    Report this Article