How to Find Sustainable Cash Flow in an Unstable Environment

How to Find Sustainable Cash Flow in an Unstable Environment

October 30, 2018

Today’s volatile market environment may be difficult to stomach, especially when you are relying on sources of cash flow generated from the market throughout retirement. Consider these ways to find additional sources to help you stay steady.

  1. Remember that an increase in cash flow can come from 1) increasing income or 2) decreasing liability.  Therefore, take a hard look at your liabilities and develop a plan to pay them off or down.  This will increase cash flow.
  2. If you have cash value built up in a permanent life insurance policy, consider borrowing against a portion of it and invest it into something that will generate monthly income or pay off or down a debt.  Meet with your insurance professional first and remember, loans decrease death benefits dollar for dollar
  3. Many people have pensions they have never activated even though they are eligible.
  4. Do you have too much cash sitting in low interest bearing savings and checking accounts?  Put the money to work into an income generating investment (I recommend you don’t use your emergency cash).
  5. Review your withholdings or quarterly estimates.  Are you withholding or paying too much based up 2018’s income and expenses?  If so, adjust accordingly.
  6. Shift a portion of your portfolio from growth to income i.e. dividend paying investments.
  7. Review all of your insurance.  Could you decrease your monthly, quarterly or annual bill by just increasing your deductible?
  8. Ask your credit card company to reduce your interest rate which in turn will reduce your monthly credit card payment.
  9. Increase rents if you are charging below market rates
  10. Take on a second job or start a small business.

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