Today’s Prep:
Income planning is an essential part of retirement planning. Learn to examine your income needs in retirement, and join us for a conversation on diversification.
Equipping Points:
00:52 – How Much Income Can Mary Live On?
- Mary has about a million dollars. She wants to know how much she’ll be able to live on each year. Unfortunately, this is a tricky question to answer without knowing how long Mary is going to live. Of Course, there are other ways of going about this predicament.
1:33 – Explaining The Four Percent Rule.
- Years ago, there was this rule of thumb called the “Four Percent Rule.” It basically stated you could withdraw four percent of your assets each year from your retirement accounts and live off of that income. Of course, the idea was as long as you didn’t exceed four percent, you’d never run out of money. While it’s a fine rule of thumb, it hasn’t really kept up with our modern economic environment.
3:15 – Determine How Much You Need To Spend.
- Rather than focusing on how much you CAN spend in retirement, focus on what you NEED. After all, your needs will change throughout retirement. At first, you’ll be more active, and perhaps you’ll do some traveling. As time goes on, perhaps you’ll need more money for doctors visits. Once you know what you’ll need, you can begin the income planning process.
5:00 – Considering Diversification.
- You might think you need multiple IRAs to be diversified. However, it really just depends on what’s inside your IRA. If you’re properly diversified within that IRA, it might not be necessary for you to open a second one. Furthermore, you can have multiple IRAs, but if they’re all invested in the same things, you’re probably not diversified.
Today’s Takeaway:
“Income planning is key to helping you accomplish your goals in retirement. Determine how much income you’ll need, and work with your advisor to help you build an income plan to meet your needs. – Retirement Ready“
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
Do You Have These Blind Spots In Your Retirement Plan?
Many people can have a couple of “blind spots” so to speak when it comes to their retirement plans. Do you worry you may not be accounting for everything you might need for your retirement? Then today’s episode is perfect for you!
Read MoreInside Out: How We Can Look at Finances Through the Characters of Pixar’s Latest Flick
There can be a lot of emotions when it comes to investing and planning for retirement. And what better way to discuss those emotions than through the characters of Pixar’s latest film, Inside Out 2?
Read MoreThe Importance of Preventative Care
Preventative care isn’t just for your health; it’s essential for your financial well-being too. By consulting a financial advisor early and often, you can avoid financial distress and make informed decisions that lead to a secure and fulfilling retirement. Many people will put it off for fear they will be told something they don’t want to hear or because of the perceived costs of financial advisors.
Read MoreRetirement Income
When planning for retirement, one of the most critical aspects to consider is your income. But what does this mean, and how can you ensure you have enough income to cover your needs and desires?
Read MoreFinancial Wisdom from Mark Twain
In the latest episode of the Retirement Ready Podcast, Eric invites us to explore the timeless wisdom of Mark Twain and how it applies to modern financial planning. Mark Twain, known for his wit and keen observations, offers quotes that are surprisingly relevant to today’s financial landscape. Eric takes these quotes and translates them into practical advice for those planning their retirement.
Read MoreUnderstanding Bonds in Today’s Market
Are bonds really the safe investment we’ve always been told they are? What percentage of assets should a retiree or pre-retiree hold in bonds? In today’s episode, Eric addresses some of his most frequently asked questions about the world of bonds…
Read MoreUnderstanding Your Financial Statements
Financial statements can often feel like a foreign language, filled with jargon and numbers that seem to have little relevance to your everyday life. However, understanding these documents is crucial for effective retirement planning. In the latest episode of the Retirement Ready Podcast, Eric breaks down the essentials of reading and interpreting your financial statements.
Read MoreFrom Graduation to Retirement
This one goes to the grads! Whether you know someone graduating high school, college, or even preschool, graduation marks a new stage and season in life. Similarly, retirement is a new chapter in life. It’s a time of change, celebration, and sometimes, uncertainty. On today’s show, we talk through the similarities between leaving school and entering retirement.
Read More