In this day and age, pre-retirees and retirees need an income plan. This is a newer, more effective approach to retirement planning and is different from what has always been considered “traditional” retirement planning.

Traditional retirement planning takes into account your risk tolerance and seeks to create a portfolio that maximizes the potential return for a given level risk. Also known as “modern” portfolio theory, this method was created in 1952.

Depending on your level of risk, experts suggest you can safely draw 3% to 5% of your portfolio balance per year, while adjusting annually for inflation, and still expect that your investments will last the remainder of your life.

With traditional retirement planning, the amount of money you can withdraw each year ultimately depends on how well, or how poorly, your investments perform. If there is a large drop in the value of your account, this means you will have to adjust your income accordingly.

Other decisions, such as when to retire, how to best draw Social Security benefits, etc., are entirely left up to you. In this model, as long as you have sufficient savings, and your investments perform well, your retirement should be reasonably secure. This method of planning creates uncertainty and can leave your income vulnerable to your investment performance.

In comparison, income planning is a holistic approach to retirement planning. It seeks to find the optimal way to maximize income throughout your lifetime. The benefit to this approach is that you can see a preview of your retirement prior to retiring.

Information is first gathered about all potential sources of your retirement income: Social Security, pensions, investments, real estate, employment, etc. Multiple models are then created based on a range of desired retirement ages and desired income amounts. You can then see which model will create the highest amount of income for the longest period of time. Further analysis is done to make certain the chosen model is as tax efficient as possible, and that proposed investments are within your desired risk tolerance range.

This preview shows the strengths and weaknesses of the retirement plan in advance. It allows for a testing of recommendations to see if they will enhance the retirement plan prior to implementation. Before any benefits are drawn or money reallocated, rebalanced or repositioned, you will be able to see the long-term effects of each decision. This preview will give you the confidence needed to make changes to your investments where they are needed.

The ultimate goal of income planning is to provide you with peace of mind. This is accomplished with a customized plan optimized and tailored to meet your income, inheritance and investment goals.

To get started on your free customized retirement income plan, please complete the form below or contact my office once you have gathered that information.

 
Complete spouse's information where indicated, if applicable.
Enter your Full Retirement Age (FRA) benefit. If you don't know how to get your FRA benefit, follow the instructions under the "Free Social Security Analysis" page. Please note if you are subject to the Windfall Elimination Provision (WEP).
Enter your Spouse's Full Retirement Age (FRA) benefit. Please note if your spouse is subject to the Windfall Elimination Provision (WEP).
Please provide estimates of your pension benefit at the age(s) you are planning to retire. Include your age, monthly amount, and if applicable the lump sum amount for all ages you are planning to retire.
Please provide estimates of your Spouse's pension benefit at the age(s) they are planning to retire. Include their age, monthly amount, and if applicable the lump sum amount for all ages they are planning to retire.
Includes: 401(k)s, IRAs, 403(b)s, 457s, or any other pre-tax retirement account. Please complete this section or provide statements. For annuities, especially any with a living benefit, please provide a quarterly or annual statement.
Include your contributions and any employer contributions.
Includes: 401(k)s, IRAs, 403(b)s, 457s, or any other pre-tax retirement account. Please complete this section or provide statements. For annuities, especially any with a living benefit, please provide a quarterly or annual statement.
Include your contributions and any employer contributions.
Please complete this section for any Roth IRAs or provide statements. For annuities, especially any with a living benefit, please provide a quarterly or annual statement.
Please complete this section for any Roth IRAs or provide statements. For annuities, especially any with a living benefit, please provide a quarterly or annual statement.
This section is for after tax accounts (where the money has already been taxed). Please complete this section or provide statements. For annuities, especially any with a living benefit, please provide a quarterly or annual statement.
This section is for after tax accounts (where the money has already been taxed). Please complete this section or provide statements. For annuities, especially any with a living benefit, please provide a quarterly or annual statement.
Use this section to provide additional information on anything above and to provide information on any other asset that will provide retirement income, will be sold, or inherited. This may include but not be limited to: Rental income, business income, inheritances, asset sale, business sale, property sale, disability income benefit (please note if taxable or tax free), non-qualified retirement accounts, etc.