You are working hard in your pre-retirement years to max out your retirement funds. And while your money should always work, when you do retire your money is going to need to work even harder. It's time for you to demand more from your money!
If you think of your money as a partner in your retirement plan, the idea that it should work hard for you makes a lot of sense. Consider these "demands" on money that appeared in "Seven demands retirees should place on their money,"from MoneyWatch:
- Growth: Make sure you still have a growth component in your portfolio so that you aren't faced with attempting to live with an income that no longer covers your costs.
- Safety: Keep your money in a safe place and in the care of a reputable custodian who is not part of the investment company. Two words of warning: Bernie Madoff.
- Tax Efficiency: Remember what Mom used to always say, "It's not about how much money you make, but how much money you keep." After tax cash flow is a must.
- A Healthy Long-Lasting Income: Ask your financial planner to conduct a cash-flow analysis to see how your money shakes out in five, ten, twenty and thirty years. Get help creating a plan that takes taxes and inflation into consideration and one that increases the probability that you'll receive an income for the rest of your life.
- Control: Have some control over the access to your investments. What if there's an emergency?
- Access: Set some money aside for an emergency fund or rainy day fund, in case you have an unforeseen expense.
- Effective Estate Planning: Make sure that your estate plan lets your loved ones inherit your estate in the least-taxed, most cost-efficient way.
Make your money work hard! Speak with a qualified estate planning attorney.