Building A Financial Foundation

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.

(Click the featured times below to jump forward in the episode)

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

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The host: Eric Peterson - Contact - Call: (515) 226-1500

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