04/06/2024
Here's why cash flow matters and how to estimate it:
đź’µ Having a strategic cash flow plan is crucial. It ensures you have a steady income to cover all your expenses throughout retirement, preventing the risk of outliving your money.
1. Calculate retirement income: FERS annuity, Social Security, TSP distributions, and other investments.
2. Estimate monthly expenses: essentials, inflation-adjusted, and taxes.
3. Check cash flow: Enough for lifestyle? Positive or negative?
đź’ˇ Strategies to avoid a negative cash flow:
* Work till 62 for a 10% FERS bonus.
* Max out TSP contributions - new limits in 2024!
* Consider a Fixed Indexed Annuity for guaranteed income.