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Income Planning

How Income Planning Is Vital to Your Retirement

When you create a retirement plan, you’re most likely focused on amassing a certain dollar amount of assets. It’s an easy way to assess your progress in saving toward retirement, and it gives you a goal to work toward. But once you’re ready to retire, things change a little. Now the number you’re most interested in is how much money you can withdraw from your retirement fund each month.

Retirement income planning deals with distributing your retirement assets in the most effective way. With the proper retirement income plan, you have a mix of liquid and non-liquid assets, allowing you to still produce returns on some assets while converting others to cash-producing income streams. Most people will have a mix of short-term and long-term investments at this point to ensure they can pay for their monthly expenses.

Why Is Retirement Income Planning Important?

Having a large amount of cash in the bank isn’t usually helpful, because cash spends fast. Your retirement accounts can be converted into cash, but this shouldn’t be done without thinking it through. The goal is to make your retirement nest egg last for a long time, even while you’re withdrawing money to pay the bills and travel the world like you’ve always wanted to.

Our team of financial advisors understands the importance of an income plan for your retirement. With our help, you won’t be wondering where all the money went a few years into your retirement. You’ve worked hard to enjoy your retirement. Now is not the time to spend all your assets in one year. Instead, let us help you plan your retirement with the same attention to detail we used to grow your investments.

FAQ about Retirement Income Planning

How Do I Make an Income Plan?
In a nutshell, you have to assess all potential income sources and determine the best time and method to utilize each of them. This could mean finding the best time to take Social Security benefits, the best way to receive your pension payments, and the best investments to sell or liquidate each year. Creating an income plan for retirement is best done with the help of someone who understands your asset allocations. Different assets mature at different times, and a financial advisor can ensure you always have access to the cash you need while still keeping most of your assets in interest-generating investment accounts. 

What Is the Most Popular Retirement Income Plan?
The most popular strategy is the systematic withdrawal strategy, selling enough investments each year to generate the income you need. But that doesn’t mean it’s the right option for you. Some people prefer the bucket strategy, where each investment bucket is allocated to a specific timeline, such as five years from now and ten years from now. A better question to ask would be, what’s the best retirement income plan for you? Our financial advisors can answer that for you.

How Can I Grow My Money without Losing?
When you withdraw income for retirement, you probably worry about shrinking your nest egg. There are ways to combat this, including living off just the investment income, converting some of your assets into an annuity, and spending less money per year than what your investments accumulate. You may also rely on other sources of income, such as Social Security, to cover the basic needs. 

Let’s Devise a Retirement Income Strategy for You

Let’s Devise a Retirement Income Strategy for You

The best thing you can do for your retirement is to talk to us about devising an income strategy for you. Together, we’ll determine your income needs and decide how to meet those needs throughout your retirement years. 

Even if you’re not ready to withdraw from your retirement account, we’re here to make sure your retirement portfolio will support your income needs when the time comes. Call us today to get started with your retirement planning.

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