Today’s Prep:
What does it take to create a strong financial foundation in your financial plan? Today we talk about the importance of your income plan and how it influences your spending decisions in retirement.
Equipping Points:
The foundation of any successful retirement plan is your income plan. When you’re working, your income allows you to live your life and pay your bills. In retirement, you still need an income. This may be from things like Social Security, stocks, or a pension. You have to have a plan though on how you take that money out. What will you do about taxation? Risk? Inflation?
You might think you have a retirement plan, but once you are nearing retirement age, do you really have an income plan? You need to run the numbers to understand what your withdrawal rate will be and how much money that leaves you. Many will defer to the 4 percent rule, but that rule was created in the 1990s when things were different than they are today. What’s the probability that your plan will actually succeed?
When you’re working, you spend what comes in. When you’re retired, you need to think about your budget and how much you really can spend. Think about what it takes to maintain your lifestyle now. This is key to understanding how much you need.
If you meet with Eric and his team to do a Retirement Readiness Review, you’ll gain a better understanding of where you’re at and where you’re headed. Beyond asset management, they engage clients in a relationship to help you navigate both the good and bad. You need somebody to be a rock for you in retirement and hold steady to your plan.
Listen to the entire episode or skip ahead using the timestamps below.
0:46 – What is your income plan?
2:55 – How many people have an income plan in place?
6:22 – Why do we find ourselves unprepared when we near retirement?
7:47 – What steps should we take now?
9:41 – How does the Retirement Readiness Review help?
Today’s Takeaway:
“Do you want a plan that only has a 50 percent probability of succeeding? Or do you want it to be more like 99 percent probability of succeeding?“
-Eric Peterson
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
Finding Financial Silver Linings
Throughout our lives, there will be times when the markets rise and times when we experience downturns. Largely, we don’t have control over the circumstances we’re dealt, but we do have control over how we respond to those situations.
Read More
Unasked Retirement Questions You Shouldn’t Ignore
Tune in to this episode with Eric, as he breaks down some frequently unasked retirement questions that are very important to consider.
Read More
The Diverse Definitions Of Diversification
Diversification is one of those buzzwords you hear often in financial planning. While many people know it’s important, few are clear on what it actually means when applied to various aspects of their financial strategy. In today’s episode, Eric and Marc will bring you the diverse definitions of diversification.
Read More
The Use Of Technology In Financial Planning
As technology keeps advancing, it’s made our lives easier in so many ways. Tasks that used to need outside help can now be done on our own with just a few clicks. This shift has also brought more accessible online financial tools, but how accurate and helpful are they really?
Read More
Retirement Planning Conversations With Dorothy Parker
Dorothy Parker is one of the great writers of the 20th century. Her wit and prose have been appreciated by readers for generations. But are there any lessons we can learn when it comes to finance with some of Parker’s most well-known quotes?
Read More
Mailbag: Moving To A State With Income Tax And More
In this episode, Eric is answering your questions! We’ll cover a range of topics today, including key considerations for income taxes when moving to a new state, how to initiate financial conversations with parents or grandparents, and whether using a life insurance policy to save for a college fund is a wise choice.
Read More
What Is Lazy Money?
What is lazy money and why do you want to not have too much of it in your retirement portfolio? Simply put, lazy money is money that isn’t growing as much as it could be. Having your money grow and work for you is a key part of building a solid portfolio, so Eric breaks down some strategies to help get the most out of your money in this episode.
Read More
Retirement Planning Today Is Harder Than It Used To Be
Retirement planning simply isn’t the same as it used to be. From changes in life expectancy, the lack of pensions, and getting caught in the sandwich generation, there’s a lot to keep in mind when putting together your financial plan. Instead of taking advice from others who may have retired in a different era, it’s important to understand what strategy is right for you.
Read More
Social Security Variables That Impact Your Claiming Strategy
After so many years of paying into Social Security, you might feel ready to reap the benefits. But before you get too eager, it’s best to have a thorough understanding of the different variables and how to best leverage them.
Read More
Retirement Real Estate Decisions: Downsizing, Snowbirding, and More
One of the key discussions you may have in retirement is what to do about the house. Should you downsize your home? Pay it off early? Buy a vacation home and become a snow bird? Eric emphasizes the importance of considering not just the financial implications but also the lifestyle changes each of these decisions entail. Weighing out the pros and cons of each decision can highlight what is right for you (which isn’t always the same as what your neighbor is doing).
Read More