Income Planning

While everyone’s circumstances are unique, general principles apply to any retirement withdrawal strategy. It’s just a matter of drawing up a budget that reflects all your income and spending expectations and devising a suitable distribution strategy. You may no longer be getting a paycheck, but with proper planning, you can create a steady income after you retire. Good practice is to pay for essential expenses with predictable income, and if possible, fund discretionary expenses with fluctuating income as appropriate for your needs. This is usually better accomplished by enlisting the assistance of a Retirement Income Certified Professional.

We’ll begin with the Allocation Roadmap™ which will provide you with a unique overview of your current and proposed asset allocation. The goal is to customize an overall strategy tailored to your risk tolerance, investment objectives and time horizon. This powerful tool is meant to give you a realistic view of what you may expect long-term from a risk and reward standpoint.

Then I will create the Income Aviator, a personalized report designed to help you determine the viability of your current retirement income goals and help you build your financial flight plan consisting of creating individual income buckets.
Additionally, I will provide you with the Compass Report, which measures the probability of your plan’s success, I use a Monte Carlo simulation to determine the likelihood your money will last for the duration of the plan. There are multiple factors that influence your probability of success. This process may provide some insulation from market volatility when you need it most. This bucket approach to income planning can incorporate multiple techniques and financial products to help solve challenges faced by today’s retirees.
Social Security, pension payments, annuities, interest income, or even cash kept in reserve are among the stable and predictable sources of income you can use to cover necessities like housing, food, and utilities. Then, fund discretionary expenses (i.e., “nice-to-haves”) with growth assets or less certain or less guaranteed income sources from your portfolio. When tapping assets, a general guideline is to tap investments in taxable accounts before taking money from tax-deferred or tax-free accounts, such as a traditional or Roth individual retirement account (IRA) or a 401(k).

Additionally, we will walk you through :

·Social Security Strategies                                Medicare Planning
·Long Term Care                                                  Legacy Planning

Because of the significant role that taxes play a in any financial planning process, I look to utilize tax advantaged tools to optimize your retirement income objectives. This could include Roth IRAs, traditional IRAs, 401(k)’s, and IRA rollovers among others.

Bear in mind that, while analyzing options for your retirement savings may seem overwhelming, at Hevia Wealth Management, I will help you make sense of it all.

Disclosure: I / we do not provide legal or tax advice and you should consult an attorney or tax advisor for such advice.