Income Planning
00:00:07
Welcome to cornerstone clips, my name is Tyler Scott. I’m one of the certified financial planners here. Hopefully you got to have a little fun and watch our retirement planning video. But today, as promised in that video, we’re going to talk about income planning, so.
00:00:20
What in the heck is income planning? Well, income planning is all about recreating that paycheck, so it’s really understanding different sources. So when we go through income planning, one of the biggest things that we like to see is is and it’s a really fun word, need to come up with a more fun word. But coming up with that budget and what we mean by that is what are your essential expenses? And what are your discretionary expenses?
00:00:46
The real value of understanding where your expenses are is when you go through tough times in the market, you really understand how your budget might be able to be suppressed down to that fixed expense budget, because minimizing withdrawals really helps, right? So that’s the number one and and number one key thing that we like to see is, is that budget.
00:01:05
And again, we can back into those numbers here at Cornerstone, so don’t be too afraid of that word. But it’s really what we can start basing everything else on. Now the other part about income planning is is after you’ve been in the accumulation stage for so long, you have several different sources. Now what in the heck do I mean by sources? Sources are is your money from your 401K? It could be pretax. It could be post tax or Roth. Now there’s difference between Roth and Post tax and different tax implication.
00:01:36
You can have another brokerage account that has already been taxed. You have Social Security as mentioned in pensions, and some might be inflation adjusted or not. So really, it’s packaging all that up and getting them to complement your income plan and recreating that paycheck. And and it’s really about the efficiency.
00:01:56
You know, tax impacts and tax changes are happening all the time, and we definitely keep apprised of those. And so, we just want to make sure that you know your assets are talking your goals right and we’re making as as efficient as possible. So, if you want to chat about income planning give us a call and we’re always happy to help.
