Income Planning

Income Planning

(Millionaire or Not, You Are Going To Need More Money)


  • In retirement, guaranteed expenses need secured income.
  • Monthly expenses need monthly income.
  • Do you know the total amount of money you will need to retire on?
  • Do you know how much income that amount will produce?
  • Are you ABSOLUTELY certain it will last the rest of your life?

Most people don’t know the answers to these questions. They are too busy dealing with life’s issues to think about it. When the “market” is up, they look at their statement.
When the market has been down, many simply don’t want to look.

The Market Always Comes Back (eventually)

Retirement isn’t about achieving some magical retirement savings number. Instead, it’s
about generating sustainable cash flow to meet your goals, needs and wants.
In the past, many Americans relied on pension plan annuity payouts, government pensions, and Social Security.

Now, for many Americans, it’s time to wake up.

Gone are many of the built-in company annuity and pension payouts. That shift places the savings, investing and income generation burdens onto the individual. Will Social Security continue to be a reliable source of monthly income funding for future retirees?

Answer These Questions

Social Security is a single payout, so how will you replace the lost income upon a spouse passing away? What about future income taxes? Will they go up, remain the same, or go down?

If you are married and receive a pension, was the payout set up to be paid for a single-life or joint lives? If set up as a single life payout (which is a higher payout amount than joint lives) and the pensioner dies, how will the lost income be replaced?

So You Know

Due to recessions, crashes, stagnation, market downturns, and perhaps an occasional Black Swan event, stock market accounts were not designed to provide monthly income every month without fail for 20-30 years.

We have had two 50% losses in the market in the past 19 years, 2000-2002 and 2007-2009. If you live in retirement for 20 years or more and the market delivers one to two more 50% losses, how will that affect your retirement? Even with a $1,000,000 in your 401(k), Roth 401(k), or IRA, do you want to gamble that it will provide enough income through 2045 and beyond?


According to Morningstar, “It seems that a 2.8% withdrawal rate over a retirement period of 30 years, with a 40% allocation to stocks, is the recipe for a 90% success rate — if interest rates continue to stay low, according to a recent study by David Blanchett, head of retirement research at Morningstar Inc.’s investment management division.”

There are a lot of assumptions in this Morningstar quote.

Assuming a retirement account valued at $1,000,000 in the above Morningstar quote, would the extra $28,000 a year be enough? Who would track the stocks, the allocations, and the fee expenses for 30 years? What about the impact of inflation and taxes, not to mention market downturns? If there were market downturns, how much time would be needed to recoup lost principal? What about the lost interest opportunity cost on the lost principal? And last but not least, there would only be a 90% probability of success.

Social Security is the only government-sponsored “entitlement” program that will guarantee you a lifetime income (assuming it survives its present state).

The Retirement Gamble Is All Yours

Odds are that over a 20-30 year retirement, a serious income interruption would occur. Considering the future of these uncertain times, why would you gamble against it?

There are strategies that if properly structured, can in good years provide double-digit returns while eliminating market downturns, income taxes, broker fees, and provide a guaranteed lifetime income.

The Problem

Most Americans will need more money in retirement. But just as problematic is the ability to keep the money they have accumulated compared to the risk they are taking to create it.

Take the Gamble Out.

Why gamble? There are NO retirement “re-dos”. Look at your current retirement plan assets and request a STRESS TEST to see what would happen if the worst case did happen (no sales pitch, just a discovery session), and find out if/when you would RUN OUT of money during retirement.

Find out more here.

Successful Retirement Panning is all about minimizing and managing these risks.


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