People in, and approaching retirement, are typically concerned about three things—having a dependable retirement income, protecting their assets, and leaving a legacy. No matter how much money you have accumulated, to ensure you’ll never run out of money, the most important thing you can do is to create a dependable retirement income bucket.
The financial services industry says by spending between only 3-4% of your money each year, you probably won’t run out of money. We don’t want your retirement success to be a probability. How did those people that retired in 2022 fare? They spent 4% while the market dropped close to 20%. That’s 24% of their money gone in just one year. You’ve worked your whole life, so why would you want your lifestyle to decrease in retirement because of a tactical error?
We start by looking at what your anticipated monthly costs will be. Then, we subtract out your expected income, such as Social Security, pensions, real estate income, etc. Once we know what that deficit is, we can take a portion of your portfolio and position it into funds that will pay income each month. It is much easier to sleep at night knowing that you will never run out of income.
Once the income bucket is funded, we can use the remaining assets for bigger purchases, investment growth, and legacy. The growth bucket can be used for anything you want, including purchasing long-term care insurance and vacation properties, traveling, paying for grandchildren’s college, or for donating to your favorite church or charity. Later, as inflation damages your purchasing power, we can move some money out of your growth bucket into your income bucket, giving you an income raise. Who doesn’t like a raise?
It's important to make your income plans 5-10 years before retirement. If you have dreams to retire early, have that conversation 15-20 years before your desired retirement age. Many of the best income tools available need time to grow and mature. If you’d like to discuss your plans, reach out to our Money Concepts team today!
Contact us for more information.The financial services industry says by spending between only 3-4% of your money each year, you probably won’t run out of money. We don’t want your retirement success to be a probability. How did those people that retired in 2022 fare? They spent 4% while the market dropped close to 20%. That’s 24% of their money gone in just one year. You’ve worked your whole life, so why would you want your lifestyle to decrease in retirement because of a tactical error?
We start by looking at what your anticipated monthly costs will be. Then, we subtract out your expected income, such as Social Security, pensions, real estate income, etc. Once we know what that deficit is, we can take a portion of your portfolio and position it into funds that will pay income each month. It is much easier to sleep at night knowing that you will never run out of income.
Once the income bucket is funded, we can use the remaining assets for bigger purchases, investment growth, and legacy. The growth bucket can be used for anything you want, including purchasing long-term care insurance and vacation properties, traveling, paying for grandchildren’s college, or for donating to your favorite church or charity. Later, as inflation damages your purchasing power, we can move some money out of your growth bucket into your income bucket, giving you an income raise. Who doesn’t like a raise?
It's important to make your income plans 5-10 years before retirement. If you have dreams to retire early, have that conversation 15-20 years before your desired retirement age. Many of the best income tools available need time to grow and mature. If you’d like to discuss your plans, reach out to our Money Concepts team today!