Income
Weekend Reading: What's Your Retirement Income Style?
You have a unique personality and preferences. Shouldn’t these elements be integrated into your retirement income strategy?
Weekend Reading: An Investing Road Map for Retirees
Your retirement is more than an investment strategy. Guaranteed income is high on the list and taxes shouldn’t be overlooked.
Weekend Reading: 7 Streams of Income to Get Rich
With multiple streams, you reduce reliance on one income outlet, while maximizing earning potential.
Weekend Reading: Why So Many Experts Consider Annuities a Win for Retirees
Your retirement income strategy should be crafted with the end-goal of providing lifelong income. Amidst recent risk factors such as inflation and market volatility, one way to guarantee that income is by leveraging annuities.
Weekend Reading: Redefining the Retirement Income Goal
Your income plan might be the most vital part of your retirement plan. However, when it comes to spending, the majority of financial planning tools don’t capture the reality of how flexible your income needs could be (if needed) as you move through retirement.
Weekend Reading: 6 Secret Sources of Income for Early Retirees
If your retirement goal is to step away from full-time work in your 50s or even earlier, the most important step is ensuring you have a paycheck replacement.
Weekend Reading: What’s a Safe Withdrawal Rate Today?
Despite the effects inflation and volatility can have on retiree income, new research through Morningstar suggests a “safe starting point” withdrawal rate for new retirees in 2023 is 3.8 percent, up from 3.3 percent a year ago.
Weekend Reading: What Taxes Will You Owe on Retirement Income?
While your taxes could be lower in retirement than your working years, the reality is, the more income you have, the more taxes you will owe. The first step to mitigating the amount of dollars that go to Uncle Sam is understanding what income is taxed and how.
Weekend Reading: Managing Taxes in Retirement: Income Thresholds versus Incremental Average Tax Rates
Here, past podcast guest, Wade Pfau, highlights how to strategize the withdrawal order between your three tax buckets (taxable, tax-deferred, tax-exempt) by utilizing two different distribution methods: The adjusted gross income (AGI) threshold strategy versus the incremental average tax rate method.
Weekend Reading: The RISA Framework: A Systematized Approach to Personalizing Retirement Income Strategies for Clients
In this article, two of my favorite retirement researchers, past podcast guest Wade Pfau and Alex Murguía, highlight what is known as the RISA (Retirement Income Style Awareness) Framework. This profile is created by pinpointing the two strongest factors that determine your overall income preference style.
Weekend Reading: How to Plan Retirement Income for a Constrained Investor
To determine if you are a constrained investor, you would calculate the ratio of your minimum annual living expenses to the value of your net investment assets. If the outcome is more than three percent, you could be classified in the constrained category.
Weekend Reading: Why Critics of Bucketing Strategies are Wrong
Bucket strategies are immensely popular in the realm of retirement planning strategies, but as with any financial approach, they have their naysayers too.