When I meet with my clients, we review their investments as to quality, mix, and performance. That is not the most important part of what I do for my clients. Cash flow is the most important issue when preparing for, and when you are in retirement. People tend to focus on income vs how that income is spent. Don’t get me wrong, earnings, social security, pensions, and dividends are all important, but not the most important.
What you need in retirement is cash flow. Each month you have expenses, and you need cash coming in to meet those expenses. Depending on how you plan for retirement, that cash flow might come from many different places, and not all of it will fit the technical definition of income.
Suppose you retire at 65, but you make a plan and start Social Security at age 70. What do you do to fill that gap to cover your expenses? How you spend your sources of income will be the biggest determinate as to how comfortable your retirement is. It’s all about the cash flow and the decision you make on how to spend it.

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