If you've recently retired or are approaching retirement, you may be wondering about the best way to turn your retirement savings into a monthly paycheck. It's critical to manage cash flow when you retire, to ensure you don't outlive your funds.
As a Californian, I'm used to drought and conservation, and when I think about how water is stored, where it flows from and how it is used, I see how managing cash flow in retirement is a lot like managing water. This isn't an exact metaphor, but it can help paint a picture of how the process of managing retirement savings can work.
Your investment portfolio is like the snowpack in the mountains. As snow melts, water flows into a reservoir behind a dam. Mechanisms within the dam control the release of water to the water district and, ultimately, the consumer.