3 Jobs Your Money Needs to Do in Retirement
Your retirement account balance tells you how much you have today. I also want to know what that money needs to do tomorrow. At Legacy Retirement Group, we use a three bucket framework to discuss accessible reserves, ongoing income, and longer term growth. Each has a different job in supporting your retirement.
The first job is providing reserves for unexpected expenses and near term cash needs. We call this our sleep well at night money. The second is supporting everyday income. We look at how your income sources and planned withdrawals could cover your bills, taxes, and lifestyle. The third is pursuing growth for future needs, including rising costs. Growth investments can lose value, so that portion needs to fit your resources, time horizon, and comfort with risk.
The amounts will look different for every household. I would also avoid assuming your expenses will automatically fall as you age. Travel may slow while healthcare or support needs increase. A written income plan should help you see how those possibilities could affect your resources, with assumptions we can review and adjust.
I want your income, tax, and investment plans working together so you can make spending decisions with a clearer picture of the tradeoffs. If you would like to talk through those three jobs for your own money, reach out to our team atLegacyRetirementGroup.com.