3 Ways to Boost Cashflow In Retirement

Even if they feel confident that they've saved well for retirement, there is a scarcity factor when they go to retire and they start to show up as a lesser version of themselves. Valuable content are going to be shared, and we're literally impacting lives. There's been a lot happening this year with our current administration that is affecting our clients. Hey, everyone. Welcome to this video as part of a special collaboration series for my good friend Denzel Rodriguez and the finance geek community. I'm Daniel Ronberg, and I specialize in helping people step into retirement with an abundant mindset. In this video, I'm going to be sharing with you three really impactful ways that you can boost your cash flow in retirement. And one of the reasons why I love working with Denzel and his clients is because he helps people to improve their cash flow and pay off debt, which is one of the best prerequisites I feel, for boosting cash flow in retirement. And when you look at retirement income, there's only two things you can do. You can reduce your expenditures from outstanding liabilities, or you can increase your income. That's it. That's all you can do. And so while Denzel's helping you pre retirement to shrink down debts, shrink down those monthly obligations and payments to ultimately free up more cash flow, I'm going to show you how you can then, on the other side, boost cash flow specifically for your retirement. And the first strategy I want to talk about today is a bridge strategy. So a lot of people always ask me, Daniel, what's. What do you do to boost cash flow in retirement? If people have Social Security, pensions, possibly annuities, different forms of lifetime income, what are you going to do to maximize those different streams of income? And a bridge strategy is so important. So a bridge strategy can really be the difference in creating a substantial boost in your retirement income and, and actually costing yourself hundreds or even thousands of dollars or tens of thousands of dollars in your retirement. And so a bridge strategy is very simple. Basically, it says if you have different forms of lifetime income, and there's only three, these are gonna be Social Security, pensions or annuities, some form of income that's gonna be guaranteed for your entire life, and you have some excess capital, like some cash in the bank or some savings, you may be able to pull off the bridge strategy. So what is the bridge strategy and how does it work? It is a simple cash flow analysis strategy to figure out when is the optimal time to turn on each income stream. Now, what's good for you watching this video is As a strategic partner of Denzel Rodriguez's, we are the retirement income arm of Denzel's business. So if you're a client of Denzel's, if you're a viewer of the channel, we will do this for you. Complimentary. It's not something you have to write down or learn how to do yourself. You. It's something that we do actually automatically for each of our clients that we sit down with to make sure that as they take their retirement account withdrawals, they're making the right choices to optimize those withdrawals, both from a maximizing income standpoint and a reducing taxation so you can keep more of your own money. So going back to the bridge strategy, if you have some cash and you have different forms of lifetime income, all you do is take a look at if you use that cash to bridge your income for that year or a specific duration of time, will your income on that lifetime income increase enough to where you could never make more on your cash? So, for example, if you can use $30,000 of your cash and that doesn't drain your liquidity, you have maybe 150,000, and you use 30,000 for a year's worth of income. And that takes your income stream from 3,000amonth to, let's say, $3,300 a month. Well, that is a 10% increase for life. Can that 30,000 produce an additional $300 a month every month, guaranteed for as long as you live, net of taxes, fees, and risk? That is a 12% distribution of that cash. The answer to that is probably no. So that would be a simple cash flow analysis to tell us that it makes sense to use that capital in that year again, as long as it doesn't hurt your overall liquidity. And make sure you can still operate from abundance, but boost that income by deferring it one more year and getting an extra 12% out of it every single year for the rest of your life. So a bridge strategy is super important. A lot of people can use it. Even if you only have Social Security as your only form of guaranteed lifetime income, doing a bridge analysis prior to turning on your benefit is super important. And we're happy to do that for you. We actually have a really cool report that shows you how you can maximize your Social Security. So step number two is going to be using roll ups. So what are roll ups? Well, people always say if you defer Social Security, it's going to grow by 6% a year from 62 to full retirement age, and then from full retirement age to 70, which is the maximum deferral you can take. It'll grow from 7 and then even in a couple of years, 8%. Well, it's interesting because we're talking about a form of lifetime income. How does a form of income grow by 8%? Well, that is what we kind of liken to a roll up. So you can do this same kind of principle with annuities. You can roll over portions of your retirement account, or you can use cash from the bank to fund one. And then you can add a roll up through the form of a rider which will increase the value of that income by a certain percentage every single year. So a lot of people see these and they go, oh, I'm getting 7% growth on my money. Well, that's not true. You're growing your income by a certain amount. You're not getting that growth that you can take out like a CD or a savings account and just live off the interest. But you are increasing that income by a meaningful amount every single year. And when you can do that on a guaranteed basis, it really helps you to be able to map out future income needs and future inflation adjustments that you're going to have to have for that income to be able to protect it. So using a roll up is a really powerful tool to be able to dial in these last few years before retirement to maximize your income. Now when you add a roll up, sometimes you add a fee to your annuity and, and that fee gives you a guarantee that you're going to see that increase every single year. Not all roll ups are the same. Some are compound, some are simple, some come with bonuses. It's actually can be a lot of different options. So again, you can allow us to help you evaluate those options to again try to maximize the use of a roll up to ultimately boost your cash flow in retirement. And the third way that you can substantially increase retirement, playing off of the roll up is, would be to use less money to get more income. So a lot of times when we help people retire, let's say they have a million dollars and they go, okay, well I want to generate a retirement income of say $60,000 a year and they want to use the whole million dollars to do it. Well, that is a very expensive and inefficient way to create that retirement income because you have to use the whole million dollars, you have to balance it to be able to produce that income for as long as you live. That can be very costly, it can be risky and it can be unnecessary. What you can do is you can carve off a portion of that money if you have enough time pre retirement and you can add it into a lifetime income annuity. You can do it on a single basis for just you. You can do it on a joint basis so it'll provide lifetime income for you and your spouse. But what you can do is use a tool like a rollup, say 10 years before retirement. And maybe instead of having to use the whole million dollars to create that 60,000 of income, depending on the roll up and the payout factors, you may be able to roll over, say 400,000 of the million and generate that $60,000 of income just using that. So what does that do that liberates the other 600,000 to be able to continue to grow or to be able to provide for other needs in your retirement. So being able to solve for the right income need using less actual money is a really crucial way that we help you to boost cash flow so you can ultimately show up more intentionally and enjoy life and enjoy spending in retirement more than just trying to figure out how to survive your retirement. So these are just three really simple, basic ways that you can boost cash flow. And these are all just automatic. These are part of our process that we do for every single person. And so we run through all of these, plus several other ideas that get more and more advanced to see how we can help you to increase your income in retirement. So if you are somebody who's really serious about getting your cash flow right before retirement, and then you want to take that second step and go, how do I maximize that to enjoy spending and receiving that income in retirement, Please click the link down below. We're taking time to visit with everybody. Complimentary. We'll run you through our entire process. There's no cost and we will be sure to do everything we can to look under every stone. So to boost as much cash flow as possible for you and your retirement because ultimately you worked hard saving your entire life, we want to help you honor and compliment that and really see it come to its full ability to produce income for you and have good stewardship over those resources. So thanks so much for watching. I hope you enjoyed it. If you have questions or comments, leave those down below. We'll reply to all of them and I hope to see you all really soon. Take care.