Income Planning

Income Planning

(Millionaire or Not, You Are Going To Need More Money)
  • Fixed, guaranteed expenses need guaranteed income.
  • Monthly expenses need monthly income.
  • Do you know the total amount of money you will need to retire?
  • Do you know how much monthly income that amount of money will produce?
  • Are you ABSOLUTELY certain that it will last the rest of your life?

Most people don’t know the answers to these questions. They are too busy dealing with daily life to think about it. When the “market” is up, they look at their statement.

When the market is 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.

But Times Have Changed

Gone are many of the built-in company annuity and pension plans that guaranteed lifetime payouts to employees. Today, the majority of company sponsored retirement plans will no longer guarantee their employees a lifetime income. Now it’s up to the employee to assume the investment risk and hope that the final outcome is in line with their retirement goals.

Questions For These Changing Times

Will Social Security continue to provide a reliable source of monthly income for retirees in the future? What about the loss of Social Security income upon the death of a spouse? 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 and the pensioner dies, how will the lost income be replaced?

Stock market accounts were not designed to provide monthly income every month without fail for 20-30 years. Due to recessions, market downturns and unforeseen events such as pandemics they are at risk of loss.

In the past nineteen years, on two occasions, the market has lost 50% of its value. If you live 20 years or more in retirement and the market delivers even one more 50% loss, how will that affect your retirement lifestyle?


According to Morningstar, “It seems that a 2.8withdrawal 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.”

Assuming a retirement account is valued at $1,000,000, according to a recent Morningstar study, “a 2.8withdrawal rate over a retirement period of 30 years, with a 40% allocation to stocks, is the recipe for a 90% success rate if rest rates continue to stay low.” 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? Considering market downturns, how much time would be needed to recoup lost the principal? What about the lost interest opportunity cost on the lost principal?

No Retirement Re-Dos

Odds are that over a 20-30 year retirement, at least one serious income interruption is likely. Considering these uncertain times, are you willing to gamble your retirement income will last (aside from Social Security and a pension)?

There is an excellent strategy that if properly structured can provide double-digit returns in good years while eliminating:

  • Market downturns
  • Income Taxes
  • Broker Fees
  • And Provide a Guaranteed Lifetime Income

Find out more here.

Most Americans will need more money in retirement. But just as problematic is the ability to keep the money they have accumulated.

Take the Gamble Out.

Why gamble? There are NO retirement “re-dos”. Look at your current retirement plan and request a STRESS TEST to see what would happen if a worst case scenario did happen. Find out now if/when you might RUN OUT of money.


Find out more here.