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Feb 07

Controlling the Cash: Smartly Planning and Managing Retirement Income

 

CFP Board Ambassador Offers Advice for

Generating and Living on Investment Income in Retirement

 

Washington, D.C., February 7, 2014 – While the average American would relish the prospect of complete control over their cash flow, most retirees living off their savings would say such responsibility is more overwhelming and nerve-racking than empowering.  

And as millions of baby boomers begin retiring without the pensions of yesterday, it is important that all Americans make plans for generating and managing sufficient income in retirement so that they don’t outlive their savings.  

Certified Financial Planner Board of Standards (“CFP Board”) Ambassador Paul Jarvis, CFP® tackles this challenge as part of the latest installment of CFP Board’s “Let’s Talk Planning” blog and its “Financial Planning is for Everyone” series, with the first in a four-part series on retirement income planning.  

“Change is a constant in everyone’s financial life, whether it is the economy or unforeseen personal events, adapting to that change is a necessity.  Ongoing evaluations and course corrections to your financial plan are paramount to getting you where you want to be.”  

There are tough questions retirees and pre-retirees alike should be asking themselves, and Paul Jarvis can provide helpful advice on the three key areas of retirement income planning: spending plans; investment allocation and security selection within the retirement portfolio; and making tax-smart withdrawals from portfolio accounts.  

  • Spending Plans:  It’s not just what you save – but the amount you spend, and the types of those expenses – that will determine whether you will have enough to live on in retirement. 

 

  • Investment Allocation and Portfolio Planning: Just because you need income in retirement does not mean it’s time to load up on fixed income or high-yield securities.  A sizeable allocation to growth assets is as important as ever.

 

  • Tax-Smart Withdrawals: Now that you can withdraw from both pre-tax and after-tax accounts without early distribution penalties, where should you go first to draw the money you need for retirement? 

  Generating retirement income requires ongoing decision-making over the life of the retiree, there is no silver bullet solution or product that will be good for the duration. Maintaining an on-going relationship with a CFP® professional who can provide advice on needed adjustments over the course of retired life is as close to a ‘one stop, sleep soundly’ solution as it gets.

 

ABOUT LET’S TALK PLANNING “Let’s Talk Planning” is a blog by CFP Board Consumer Advocate Eleanor Blayney, CFP®, with posts each week with practical financial planning tips for consumers, as well as insights into the latest developments at CFP Board.  In addition to offering counsel on timely and evergreen financial planning topics, once a month Blayney will remind readers that “financial planning is for everyone,” with tips for consumers of all ages and life stages.  

 

ABOUT CFP BOARD The mission of Certified Financial Planner Board of Standards, Inc. is to benefit the public by granting the CFP® certification and upholding it as the recognized standard of excellence for competent and ethical personal financial planning. The Board of Directors, in furthering CFP Board’s mission, acts on behalf of the public, CFP® professionals and other stakeholders. CFP Board owns the certification marks CFP®, Certified Financial Planner™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.  CFP Board currently authorizes more than 69,000 individuals to use these marks in the U.S.  

CONTACT: Dan Drummond, Director of Public Relations P: 202-379-2252 M: 202-550-4372 E: ddrummond@cfpboard.org Twitter: @cfpboardmedia  

 

The information in this article is not intended to be tax and/or legal advice and should not be treated as such. You should consult with your tax advisor and/or attorney to discuss your personal situation before making any decisions.

Additionally, If you are looking for additional help, seek help from a CERTIFIED FINANCIAL PLANNER™ Professional that can look at your individual situation holistically.