The book The Charles Schwab Guide to Finances After Fifty: Answers to Your Most Important Money Questions lists nine steps to manage your money in retirement as follows (along with my comments):
1. Review your situation -- make sure you know your net worth. I listed this as step #1 to having great finances.
2. Maintain at least a year of cash. Not a bad idea to help you get your bearings in year #1. That said, I prefer having assets that will generate a year of cash every year. ;)
3. Consolidate income in a single account. Doing so will make it easier to track your cash/status.
4. Match your investments to your goals and needs. IMO, this should have been done well before retirement. Maybe a bit of adjusting here and there is called for, but nothing major.
5. Cover essentials with predictable income. My preference is to cover EVERYTHING (all costs) with predictable income.
6. Don't be afraid to tap into your principal. Uh, yes, I'm afraid to do that. Or more accurately stated, I'm saving so I don't have to worry about doing it. may assets will generate enough income to cover my expenses without ever spending principal.
7. Follow a smart portfilio drawdown strategy. Nope. Not going to draw down.
8. Rebalance to stay aligned with your goals.
9. Stay flexible and reevaluate as needed. I agree with this. Looking at your situation regularly and making adjustments is good money manangement no matter what life stage you're in.
Overall, the suggestions are "ok". I know they are decent guidelines for most people, but I'm not working towards that type of retirement. I want a very, very safe retirement.
How about you? What do you think of the nine steps?