Your Retirement, Incorporated

It’s no secret that you are ultimately responsible for your retirement since no one cares about it as much as you do.   If you want to survive retirement you might think about running it like a business.

To be successful a business needs a strong infrastructure, so does your retirement.   Businesses have to balance income and expenses to return a profit; for you to survive retirement, you will have to do the same.   You will need to also pivot between two roles; Chief Executive Officer and Chief Financial Officer.

You As The CEO

The Visionary

You had the vision to build the basic framework or infrastructure for your retirement during your working years.

You worked hard to invest and save so that when you reached retirement age your retirement plan would financially support you for the rest of your life.   You will rely upon your CFO instincts to make sure that happens.

The Investment Expert

  • As CEO you are responsible for all investments within your retirement plan.
  • If invested in mutual funds you will continually confirm that the objectives of those investments match your personal financial objectives.
  • You will monitor the fees and expenses of your retirement plan investments.   You know that the prospectus will highlight all of that detail for you.
  • You will supervise the diversification and allocation of your retirement plan assets; understanding that both are based on your personal risk tolerance.
  • If market volatility makes you edgy, you will be responsible for making the decision to change your investment mix.

You As The CFO

The Strategic Thinker

When you play the role of CFO you are responsible for the financial health of your retirement.   It is your duty to implement financial discipline.   You are responsible for minimizing retirement income risk so that your money lasts as long as you do.

The Regulator

  • The overall finances of your retirement is your responsibility.  It is your duty to regulate cash flow and monitor expenses; all expenditures must be approved by you.
  • Your other duties include money management, accounts payable and receivables, implementation of a budget, distinguishing between luxury needs and those things you simply need to live on.

Expense Controller|Spending Caps

  • Plan your retirement like you're running your business

    Image by Digitalnative via Flickr

    You will have to cut back on any excessive spending habits that you may have developed during your working years.   You may have to implement spending caps on your own spending.

  • Excessive spending may have been acceptable when you were working and could count on a steady pay check.  During your retirement years you are off the pay check route; you are on the limited income track.

Succeed At Retirement

It will be up to you to make Your Retirement, Incorporated successful.

Your Retirement Income

Your retirement income will consist of your retirement investments and maybe social security.   To guaranteed yourself a successful retirement you will need to stretch that retirement income so that it lasts as long as you do.

During your retirement years your only raises will be the return on your investments and maybe a meager cost of living increase from social security every once in a while.

You worked hard to reach retirement; run it like a business to help yourself stay retired.   You do not want to be forced to return to the work force because you did not pay attention to the details of your retirement.