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
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.
Reference: MoneyWatch (August 3, 2015) “Seven demands retirees should place on their