If You Don’t Have an Income Plan, You Don’t Have a Retirement Plan

Main Questions Asked:

Do I have an income plan that will allow me to have enough money to last throughout my retirement?

Do I understand my rate of return and what money I should spend first?

Key Lessons Learned:

Good Income Planning Keys

• Are you going to have enough money to last the rest of your life? Ask yourself, how much money do you need available each month based on your goals, and will you ever run out of money?
• What rate of return do I need on my savings?
• Which account should I take money out of first?

Using Our One-Page Money Map to Create Your Financial Plan

• Ask three questions:
  1. Do I have enough money?
  2. What rate of return do I need?
  3. Which account should I spend first?
• Once you know that you have enough money and what rate of return you need, then you can decide which account to spend first.
• To have financial security it needs to be based on a plan.

Retirement Planning Checklist

• Do I know exactly how much income I need in retirement? You could do a simple calculation based on your current take-home pay.
• Do I know which account I should draw from first? One of the most important things when taking income is minimizing taxes. Which account you draw from first matters.
• Do I know the ideal time to take Social Security? For each year you delay, your monthly check goes up by 7 to 8%.
• Have I addressed longevity risk so that I don’t outlive my money?
• Am I prepared to handle Market volatility? Fear and emotions can lead to poor decisions.
• Do I have my legacy plan nailed down? Create a legacy plan based on your values. You can use trusts to maintain your values.