You might have heard someone say that without an income plan, you don’t have a retirement plan. It might be a slight exaggeration but it might not be.
Having a solid income plan is essential to putting a financial foundation in place for retirement. If you don’t know what sources of income you have coming in each month, it’s impossible to build a plan that gives you the confidence that you won’t eventually run out of money. That’s a worry no one wants to have.
So on this episode of the Retirement Coach’s Corner, we’ll dive into income planning and cover most of the important items you need to be considering. We all get caught up with the day-to-day of life that we don’t take the time to truly think through retirement and what it might look like, and this show will hopefully bring some attention to an important aspect of a comprehensive plan.
As we take you through the reasons why so many people we first meet with are underprepared here, we will provide the steps to get things on track.
First, be intentional and think about it. Spend time specifically on this area and dedicate the energy it needs. Next, figure out what kind of sources you will have. Do you have a pension or any other recurring income? What about Social Security and the strategies surrounding that benefit? After that, you can look at the power of the money you’ve created and determine how you divide that out.
Then you need to take tax planning into account. We’ll provide more details on that during the show but it’s always best to discuss this with your advisor. And once that’s all done, it’s time to wee what’s left and then develop an investment strategy to create income.
It takes some work but it’s well worth the time. Without an income plan, you’re left guessing in retirement.
2:12 – No income plan, no retirement plan?
4:29 – How many people have a true income plan?
6:52 – Why are people so unprepared in this area?
8:11 – Steps to take
11:32 – Real-life example of building an income plan
14:08 – Factoring in lifestyle
17:01 – Our process