If you have reached retirement age, you must know how to use retirement funds so they can last you for the remainder of your life. Some retirement assets will need to be liquid in order to cover your monthly expenses. If you have a fairly diverse portfolio of investments, you will need to determine the order in which you withdraw the funds. You may also need to alter the allocation of your retirement funds, to adopt a more conservative strategy.
- Determine the amount of money you require for living expenses. Total all of your monthly income including Social Security, pension plans, interest income and any other sources that generate cash. Next, figure your living expenses including any extended travel plans or hobbies that you are taking up during your retirement. If your income covers your expenses, you can use retirement funds for whatever you like.
- If you determine that your income is insufficient, review your investments. You may want to sell any investment property you own, and put the proceeds from the sale into an investment that pays you interest. Another option to use retirement funds is by purchasing stocks that pay a quarterly dividend, to help increase your cash flow.
- Consider downsizing your home, if you do not need the extra space. Find a way to slash any unnecessary expenses. You do not want to have to drastically alter your lifestyle now that you have the time to enjoy yourself, but the alternative may be to get a part-time job if your retirement funds do not cover your expenses.
- Contact a financial advisor for help. They can help you use retirement funds in an efficient manner. Make sure you know what they charge before you agree to use them for advice. If they can find a way to help your investments last throughout your retirement years, you will be happy you paid for their services.
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